The NCUA's 2025 annual report released Wednesday showed the agency spent more money on fewer employees last year.
The NCUA went from 1,211 employees on Dec. 31, 2024 to 940 on Dec. 31, 2025 after instituting a voluntary separation program a year ago in response to President Trump's Feb. 11 executive order to cut the federal workforce.
The annual report said the 23% headcount reduction was in response to Trump's order.
NCUA sent CU Times a response saying the higher costs were due to paying departing employees full salaries and benefits through Dec. 31, 2025. It also approved "one-time incentive payments" for those choosing to leave, and the departing employees were paid for their earned time off that had not been used before they left NCUA.
However, the report and the NCUA's news release Wednesday did not mention the increase in employee costs last year. The report also made comparisons difficult by eliminating from its financial statements the column for 2024 numbers.
CU Times created a spreadsheet by copying results from both the 2025 annual report, and the one for 2024, which included figures for both 2024 and 2023. The annual reports showed:
- Employee wages and benefits were $121.7 million in 2025, up nearly 10% from $111.1 million in 2024. Those expenses rose 8% to $102.772 million in 2024 as its workforce grew by four employees.
- Based on year-end employment, the NCUA spent an average of $129,461 per employee in 2025, up 41% from $91,718 in 2024.
- If you divide by the year's average employment (averaging the year's starting and ending employment), average pay rose 23% to $113,150.
- Overall, the NCUA's operating fund expenses grew 6% to $160.7 million, while revenues rose 4% to $151.6.
- That created a $9 million deficit, up 62% from 2024's $5.6 million deficit.
- The 2025 deficit, in turn, reduced the operating fund balance 8% to $100.3 million.
In an NCUA news release, Chair Kyle S. Hauptman said the Share Insurance Fund, which protects members from losses, and the credit union system as a whole remained well-capitalized with sufficient liquidity.
"As promised, we've delivered millions in cost savings to credit unions," Hauptman said. "Our agency-wide effort on efficiencies has paid off, as NCUA will emerge from our reorganization a nimbler, more focused agency."
The NCUA's annual report also explained to readers how the federal agency is governed.
"A three-member Board of Directors oversees NCUA's operations by setting policy, approving budgets, and adopting rule," it said.
"Each Board Member is appointed by the President and confirmed by the Senate," it said. "The President also designates the Chairman of the NCUA Board. No more than two Board members can be from the same political party, and each member serves a staggered six-year term."
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
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