As Prepared for Delivery on December 18, 2025
Opening Statement for the Board Meeting
Thank you for joining us for the final board meeting of 2025. We have two items on today’s agenda. The first is a briefing on the National Credit Union Share Insurance Fund (NCUSIF) and the second is a briefing on the 2026–2027 Budget.
Before we begin today’s briefing, I’d like to share a few items. It’s been a busy year full of transition. As we inch towards the final days of 2025, I’d like to acknowledge my colleagues here at NCUA. They have continued to work hard and are keeping this agency moving with a smaller and leaner team.
I also want to recognize that we are saying farewell to many staff members who participated in the Deferred Resignation Program or are moving into retirement. We appreciate their commitment to public service and recognize their contributions to the agency.
Last week, we announced the launch of the NCUA Deregulation Project—a long-term initiative to review and revise NCUA’s regulations to focus the agency on fulfilling our core mission and statutory requirements. We currently have four Notices of Proposed Rulemaking available for public comment in the Federal Register, and we encourage interested stakeholders to provide feedback.
The goal of this deregulation is akin to spring-cleaning. We took a holistic view, making sure every letter, regulation or guidance document is needed. This is about smaller credit unions. It’s about making the job of running a small credit union less burdensome. We’re increasing the chance that a small credit union can not only survive but thrive for decades to come. We’re answering the call of every small credit union executive who said they felt they spent too much time working for NCUA and not enough helping their members. The credit union motto is “people helping people,” not doing compliance work because of redundant or obsolete commands from their regulator. I believe we’re right sizing that burden. As I often say, the only people who think compliance is easy…are those that don’t have to do it.
As we move into 2026, we’re looking forward to implementing a new mission for this agency and its regulatory framework―a mission solidly focused on safety, soundness, and resilience. This mission has the additional benefit of lifting compliance burdens so that credit unions can do what they do best: serve their members. Stay tuned for more information about this ongoing work. We will share more information about the mission and NCUA’s new strategic plan early next year.
Lastly, I want to acknowledge that NCUA recently granted a federal charter and Share Insurance Fund coverage to Haven Federal Credit Union, located in Santa Clara, California.
Haven intends to provide a variety of services promoting homeownership and sharing financial knowledge with its members in the Bay area. Chartering a new credit union is a significant undertaking and deserves recognition. I wish Haven Federal Credit Union every success as they continue to build.
Statement Following the Share Insurance Fund Quarterly Briefing
Thank you, Melissa, for the update.
The data presented today reinforces that the Share Insurance Fund remains strong as we close out 2025, supported by solid credit union performance, improving credit trends, and continued growth in insured shares. The third-quarter data show continued improvement in earnings, asset growth, and portfolio performance. There’s nothing dramatically different about today’s update, but it’s worth noting that the Share Insurance Fund indirectly benefits from the leaner, more-focused agency budget announced today.
The Share Insurance Fund is in good shape, and credit union balance sheets also remain fundamentally sound. Insured shares are up 4.3 percent from a year ago. Loan growth also remained steady: total loans outstanding increased 4.4 percent, up to $1.7 trillion.
We’re seeing a healthy mix of lending activity at credit unions: strong growth in home equity lines of credit and business lending, positive mortgage growth, and auto lending beginning to stabilize. Overall delinquencies remain manageable - although there are some concerning spots - and net charge-offs have been relatively steady.
In the third quarter, the Fund experienced two credit union failures, resulting in a $7 million loss to the Share Insurance Fund. While failures are always disappointing, those losses were modest relative to the size of the Fund and did not signal broader systemic distress. Share insurance was used for the purpose it was created.
On broader conditions, the Federal Reserve announced another quarter-point reduction in the federal funds rate, lowering the target range to 3.5-3.75 percent. That’s down 125 basis points from summer 2024, which was the recent high point in the Fed’s rate-hiking cycle. The yield curve is now generally upward-sloping, which, all else equal, is positive for banks and credit unions.
I’ll close by reiterating that the Share Insurance Fund remains in strong financial condition. And we all appreciate the work staff is doing to strengthen transparency, including the new, user-friendly SIF dashboard on NCUA’s website. Not to mention the another recent clean audit we received.
That concludes my remarks.
Statement Following the 2026–2027 Budget Briefing
Melissa and Jim, thank you for this presentation on the 2026–2027 Budget.
I’m encouraged to see the final 2026 combined budget, which includes Operating, Capital, and Share Insurance Fund Administrative Expenses, at $316.2 million, which includes 967 salaried positions. The $316.2 million number represents a 20 percent decrease from the 2025 budget.
The final 2027 combined budget is $325.3 million, including a steady state of 967 salaried positions. This is $19.3 million lower than the draft budget and signals that we’re on the right trajectory.
Public commentary on the draft budget revealed strong support for the budget reductions and the agency’s focus on efficient staffing and technology investments. Many commenters encouraged NCUA to continue providing technical guidance to small credit unions and to explore ways to control travel costs.
For the future of the agency, these changes suggest a shift towards more streamlined operations, with a focus on leveraging technology to reduce costs and improve efficiency. NCUA will continue prioritizing transparency and incorporating stakeholder feedback in its budgetary and operational planning. This approach helps ensure the agency remains responsive to the needs of credit unions while optimizing its resources.
In conclusion, the NCUA’s budget for 2026–2027 demonstrates a commitment to fiscal responsibility and effective resource management. The significant reductions in operating expenses, coupled with strategic investments in reorganization and technology, are concrete steps that move the agency in the right direction. As this transformative year draws to a close, I feel confident that NCUA is well-positioned to meet its goals and support the credit union system.