In a year defined by political disruption, industry consolidation and intensifying competitive pressures, credit union leaders repeatedly pointed to 2025 as one of the most consequential periods for the movement in more than a decade.
The year opened with a jolt in Washington.
At the National Credit Union Administration’s February board meeting, Chairman Kyle Hauptman acknowledged that a series of executive orders issued by President Donald J. Trump were reshaping the federal workforce and could potentially alter the agency’s structure and operations. “All of us at the NCUA—including the board—are diligently assessing how these announcements may impact NCUA, our operations, regulatory structure and our workforce,” he said.
Two months later, the political ground shifted further when the President fired board members Todd Harper and Tanya Otsuka years before their terms were scheduled to expire. Both have been fighting for reinstatement ever since—an unprecedented conflict that continued to cast a shadow over the agency throughout the year.
Against that backdrop, industry consolidation accelerated at a pace not seen in years. The number of federally insured credit unions fell to 4,331 in the third quarter, down from 4,499 a year earlier. The NCUA approved 41 mergers in the third quarter alone and 121 through the first nine months of the year. Many executives told Tyfone that consolidation pressures—from succession issues to compliance burdens—remained among the industry’s most urgent challenges.
Few felt that more directly than John Holt, CEO of Nutmeg State Financial Credit Union in Rocky Hill, Conn., who told Tyfone that completing two mergers in a single year helped propel the credit union’s growth to $850 million from about $500 million. He also pointed to “the continued challenge with the regulatory environment including the threat of being taxed and interchange income risks.”
Fears over the loss of the industry’s long standing tax exemption surfaced early in the year. But Congress ultimately preserved it when lawmakers finalized H.R. 1 this summer—a relief to executives who had warned that taxing not-for-profit institutions would fundamentally alter their mission.
Leadership changes also marked 2025.
America’s Credit Unions named Scott Simpson as its next president and CEO, with his tenure beginning in November. Simpson, who led the California and Nevada Credit Union Leagues and formerly headed the Utah Credit Union Association, replaced Jim Nussle, who guided the organization through its 2024 formation following the merger of CUNA and NAFCU.
At the institutional level, executives told Tyfone that they viewed 2025 both as a year of unusual strain and notable accomplishment.
Greg Kidwell, president of Pathways Financial Credit Union, a $758.5 million-asset institution in Columbus, Ohio, told Tyfone that the speed of the year stood out as much as the results. “This year has been more profitable for Pathways, driven primarily by an increase in net yield on loans,” he said, adding that he was impressed by the “effort credit unions make to continue to stay relevant.”
In New Orleans, Judy DeLucca, president and CEO of the $278.9 million-assets New Orleans Firemen’s Federal Credit Union, told Tyfone that 2025 was defined by stepping up for smaller credit unions, supporting five institutions through management partnerships to preserve local access to fair, mission-driven financial services.
She emphasized that many small credit unions remained vulnerable due to limited succession planning and operational strain, but said 2025 also revealed the movement at its best, with leagues and peers working collaboratively to protect communities. She also pointed to a significant federal greenhouse-gas-reduction award secured for Louisiana families, calling it a once-in-a-generation opportunity once unlocked.
At $1.8 billion-asset 7 17 Credit Union in Ohio, CEO John Demmler told Tyfone that 2025 was a year of “major commitments,” including “No Fee” mortgages, savings innovations, a stadium-naming partnership in Akron and deeper community investments. For the broader industry, he said the year marked a turning point in the adoption of AI-based tools that are beginning to transform member service.
As 2025 drew to a close, leaders agreed that the landscape ahead remains uncertain—politically, economically, and competitively. But they also stressed that the institutions best positioned to thrive will be those that lean into collaboration, modernization, and mission.
In a year that tested the movement’s durability, they told Tyfone that its cooperative foundations—and willingness to adapt—proved as vital as ever.
Portland, Oregon-based Tyfone is a leading provider of consumer and commercial digital banking services for community financial institutions. At Tyfone, we believe that as credit unions of all sizes continue to merge and acquire, adopting digital banking.
