Penfed Credit Union Finishes 2024 With Increased Capital And Liquidity

(MENAFN- PR Newswire)

America's second largest federal credit union welcomes over 117,000 new members and maintains over $3 billion in regulatory net worth.

TYSONS, Va., Jan. 30, 2025 /PRNewswire/ -- PenFed Credit Union , the nation's second-largest federal credit union, finished 2024 with increased capital and liquidity. PenFed also finished the year with nearly 3 million members, $31 billion in assets and over $3 billion in regulatory net worth.

"In one of the most challenging economic environments faced by all financial institutions in the last 50 years, PenFed paid our members record dividends on their deposits, kept our loan rates low, charged low to no fees, put significant funding into reserves for safety and soundness and accounted for the financial impact of Current Expected Credit Losses (CECL), all while remaining profitable for the year and significantly building our regulatory capital and liquidity positions," said PenFed President and CEO James Schenck . "PenFed is committed to supporting our members while ensuring the institution's safety and soundness throughout all economic cycles. PenFed has purposely reduced its lending exposure by over $4.0 billion year-to-date to focus on its most resilient segments, while increasing its loan loss coverage ratio and ensure PenFed's ability to reserve for our members' loans through all credit cycles. We are also proud to deliver on our promise to members by paying top dollar on certificates. For the full year of 2024, PenFed paid out $811 million in member dividends, up from $696 million in 2023, a 17% increase. Being a credit union with the mission of people helping people, we continue to take perfect care of our membership by providing market leading rates to our savers and our borrowers. Sometimes it is prudent to go slow, in order to go fast when the yield curve steepens and economic environment improves."

PenFed's 2024 financial highlights include:

• PenFed's regulatory net worth capital ratio increased to 9.72%, an increase of 62 basis points year-over-year.
• PenFed closed the year with over $849 million of capital in excess of required regulatory net worth to be well capitalized.
• PenFed's total cash and investments increased to 13% of total assets, an increase of 177 basis points year-over-year.
• PenFed's year-to-date net income was $36 million. Over the past 5 years, PenFed has earned over $724 million in net income and grown its total membership at a 9% compound annual growth rate.
• PenFed continued adding to its portfolio and servicing billions in low-rate mortgages that will benefit its membership for years to come.
• PenFed reduced total operating expense by $42 million, which represents a 5% reduction year-over-year.

In addition to PenFed's financial achievement, "2024 marked significant progress in PenFed's technology transformation journey," said Schenck. "We introduced over 600 enhancements to the digital banking platform including an upgraded mobile app to drive seamless and secure experiences for members. These advancements enabled us to streamline platforms, enhance member experiences and improve operational efficiency. As we continue to innovate, our technology roadmap remains centered on delivering secure, innovative, and value-driven solutions for our members."

In addition to accomplishing key business milestones, PenFed donated nearly $1.8 million to 69 charitable organizations during 2024 and will continue to support the communities where its employees live and work throughout the year. One example is the PenFed sponsorship of home construction for a Navy veteran and his family in Jacksonville, Florida in partnership with Beaches Habitat for Humanity . Dozens of PenFed employees recently participated in building the home that will be completed later this year.

Looking forward, Schenck said, "PenFed will continue to take care of its members with outstanding rates and service provided by world-class financial professionals and by keeping the institution safe and sound with strong capital and liquidity. PenFed will also continue to have a positive impact on society through its philanthropic giving. Being a federal credit union and governed by dedicated volunteer board members, PenFed can take care of its constituents throughout all rate and economic environments."

About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving nearly 3 million members worldwide with over $31 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed , like us on Facebook and follow us @PenFed on X . Interested in working for PenFed? Check us out on LinkedIn . We are proud to be an Equal Employment Opportunity Employer.

SOURCE PenFed Credit Union

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