As Prepared for Delivery on July 24, 2025
Opening Statement for the Board Meeting
Before we begin with our formal agenda for today, I would like to make a few remarks.
We have three items on today’s agenda. The first is a briefing on artificial intelligence and its use within the credit union industry and the NCUA. The second is a briefing from the Office of the Ombudsman with post-exam survey results. The third and final briefing is on the Central Liquidity Facility.
Before we move over to the briefings, I want to acknowledge that the NCUA has had three liquidations since our last board meeting. The liquidation of a credit union is always disappointing news. NCUA moves to liquidate a credit union when the organization is insolvent with no reasonable prospect of re-capitalization. Upon liquidation, the NCUA’s priorities become:
- Prompt return of member shares;
- Payment of creditors; and the
- Disposition of the remaining assets to NCUSIF.
The liquidation of a credit union is a unique action that is not connected to actions taken with respect to other federally insured credit unions. The timing of liquidations depends upon the identification of material issues and/or losses that cannot be otherwise resolved. The timing of the three recent failures is coincidental and does not reflect a larger trend.
On a positive note, I would like to take a moment to acknowledge the chartering anniversaries of the following credit unions, all of which were federally chartered in 2023 or 2024:
- New Jersey State PBA Federal Credit Union, of Woodbridge, New Jersey;
- Fair Break Federal Credit Union of Memphis, Tennessee;
- Young Community Federal Credit Union of Louisville, Kentucky;
- Generations United Federal Credit Union of New York, New York; and
- For Members Only Federal Credit Union of Chicago, Illinois.
I would also like to recognize Arise Community Credit Union and Tribe Federal Credit Union, both of Minneapolis, Minnesota, and both of which already have their provisional charter and are getting closer to opening to the public.
Congratulations to all of these credit unions and their members. I wish them every success as they continue to grow and support their memberships.