The National Credit Union Administration (NCUA) Board conducted its third open meeting of 2025, focusing on the agency's Voluntary Separation Program (VSP) and the performance of the National Credit Union Share Insurance Fund in the first quarter of 2025.
During the meeting, NCUA's Executive Director and Deputy Director of the Office of Examination and Insurance provided insights into the VSP. This initiative aligns with Executive Order 14210, aimed at optimizing workforce efficiency. NCUA Chairman Kyle S. Hauptman emphasized, "Throughout this process, my top priority was to design a program that provided employees with certainty, was voluntary and fair, and allowed the NCUA to meet its operational needs." The program comprises two components: the Deferred Resignation Program (NDRP) and a Voluntary Separation Incentive Payment for retirement-eligible employees.
Approximately 250 employees are expected to leave under this program. So far, 152 employees have been placed on paid administrative leave under the NDRP until their official separation by December 31, 2025. The remaining participants will begin their administrative leave soon. The VSIP offers a $50,000 incentive payment for eligible retirees who separate from the agency by year-end.
Chairman Hauptman expressed gratitude to departing staff: "If you have chosen to depart the agency through the VSP, know that I am grateful for your years of service and contributions." He also looks forward to working with those staying as they "re-imagine" NCUA operations. Changes under Executive Order 14210 are projected to save approximately $75 million starting in 2026.
In financial matters, the Share Insurance Fund reported a net income increase to $79.8 million in Q1 2025—a rise of $1.2 million from Q4 2024—and asset growth from $22.3 billion at end-2024 to $23 billion in Q1 2025. The equity ratio remained stable at 1.30 percent as of late last year.
There were no credit union failures during Q1 2025. The number of credit unions rated CAMELS composite rating of three decreased by over five percent from Q4 2024 figures; assets dropped from $188.8 billion to $172.6 billion during this period. Credit unions rated four or five saw numbers fall slightly but experienced nearly ten percent asset growth compared with previous quarter levels.
These preliminary results are unaudited; further details can be accessed via NCUA’s website where additional information on board action memorandums is available alongside video archives documenting open meetings held throughout each fiscal year cycle