Beyond the Letter: Key Takeaways from the NCUA’s 2026 Supervisory Webinar
Before diving into the 2026 Supervisory Priorities webinar, we would like to highlight a new resource available in our Compliance Library. Our “2025 Year in Review” is now available and ready for members to access. The Compliance Library is located here: Compliance Library | America's Credit Unions
Now, on to the topic of our blog! On February 19, 2026, the NCUA hosted a webinar to discuss its 2026 Supervisory Priorities. The priorities were released in January and America’s Credit Unions wrote a blog discussing those priorities shortly thereafter. I had a chance to attend the webinar and, in this blog, I will focus on the information that was shared during that hour. The webinar offered a deeper look into the 2026 Letter, “offering insight and setting expectations for the year.” While the blog we wrote back in January provides a high-level overview of the letter, this blog will highlight areas where the webinar offered further detail and clarification.
Balance Sheet Management
The webinar started with a discussion on balance sheet management, highlighting that credit unions should maintain strong, proactive credit risk protections with an emphasis on sound underwriting to mitigate loss. Examiners will assess a credit union’s ability to identify credit risk, monitor portfolio performance, and manage concentration and emerging risks. The scope of examinations will reflect the size of the loan portfolio, the complexity of products, and the overall risk profile. The NCUA also underscored the responsibility of a credit union’s board of directors when it comes to balance sheet management, ensuring directors are being informed of overall risk exposure, understand portfolio trends, and make strategic adjustments as needed.
The webinar also expressed concerns over elevated funding costs and how credit unions should maintain a balance sheet structure with defined limits for both upward and downward rate movements. Additionally, there was a discussion of early warning indicators, such as how credit unions should identify clear triggers that activate specific mitigation strategies and formal liquidity contingency planning.
Operational Risk Management
Next, the webinar shifted to a focus on operational risk management. The NCUA has identified increased operational and security exposures, as well as expanding vulnerabilities in payment systems. The presenters also emphasized the need for heightened vigilance against growing fraud schemes and enhanced education for credit union members and employees. In particular, the NCUA stressed a need for education focused on phishing scams, identity theft, and account takeovers. The NCUA urges credit unions to report incidents of fraud to the FBI, providing multiple benefits of doing so, such as potential recovery, pattern identification, and access to law enforcement resources.
Insider abuse was another operational risk management topic discussed during the webinar, focusing on the following key risks:
- Abuse of access to sensitive information;
- Record manipulation for embezzlement; and
- Potential collusion with external actors.
To help combat these risks, the NCUA laid out several supervisory expectations for credit unions, including fostering a culture of accountability and encouraging reporting of suspicious activity. They also touched on the “Deter, Detect, Respond, and Report” framework.
Examination Program Updates and Best Practices
Furthermore, the agency provided some expected examination program updates and best practices for credit unions to implement during examinations. They highlighted an examination flexibility initiative including extended examination cycles and tailored supervision based on the credit unions risk profile. They also plan to focus on document request list improvements such as revised lists to reduce burdens, tips for organizing documents, and use of Secure FTP for submissions. Some of the best practices discussed were the importance of requesting an entrance meeting and maintaining open communication with the NCUA during examinations. This allowed concerns to be addressed properly.
NCUA’s Deregulation Project
Lastly, as expected, the webinar concluded with a discussion on the current Deregulation Project . NCUA leadership emphasized a firm stance against “regulation by enforcement”, meaning rules should not be created retroactively, supervisory expectations must be grounded in formal guidance, and over-enforcement of clear expectations is not permitted. The message was made clear that supervisory clarity and fairness are top priorities.
Key Takeaways
Overall, the webinar reinforced that the NCUA is approaching 2026 with prioritization balanced on financial resilience, operational vigilance, and supervisory clarity. From strengthened balance sheet oversight and liquidity planning to heightened fraud awareness and insider risk controls, the message was clear: preparation and proactive risk management are essential. Paired with examination flexibility and a commitment to fair, transparent supervision, the agency emphasized that open communication and disciplined execution remain central expectations for credit unions in the year ahead.
