NCUA Release Annual Letter to Credit Unions
Posted by John Trull on January 7, 2025

The NCUA has released its annual letter to credit unions outlining its 2025 exam priorities. As is customary, the agency lists its priorities in order of importance, providing insight into the upcoming year’s examination focus. A new Chair could shift the focus, potentially emphasizing safety and soundness, especially considering the elevated risks associated with credit risk, balance sheet management, and cybersecurity.
Key Highlights from the Letter
Credit Risk: At the top of the list is credit risk, reflecting rising delinquency rates, which are now slightly above historical trend lines. This focus is expected, given the current economic conditions and associated risks. This was also the top exam priority in 2024.
Balance Sheet Management: The second area of emphasis is balance sheet management, with a specific focus on risks to earnings and net worth. Credit unions should anticipate detailed scrutiny in these areas during exams. While balance sheet management includes Liquidity and Interest Rate Risk it is notable that these are not exam priorities in 2025.
Cybersecurity: Cybersecurity remains a priority for 2025 as expected, highlighting the continued importance of protecting member data and addressing emerging and evolving threats.
Consumer Compliance: While consumer compliance has been moved lower on the list and the agency’s decision to scale back exams in this area is notable, it is surprising to see this remain an exam priority given the incoming administrations anticipated focus on safety and soundness exams.
Advocacy Win: The letter also includes a notable change GoWest has actively advocated for. The NCUA outlines the Extended Exam Cycle for credit unions with assets over $1 billion and a CAMELS rating of 1 or 2 that have been on a 12-month exam cycle are now eligible for a 16 month exam cycle.
We’ll continue monitoring any developments related to NCUA leadership changes and their potential impact on examination priorities.
Posted in Advocacy on the Move, Regulatory Advocacy.