TYSONS, VA (October 30, 2025) |
PenFed Credit Union, one of the nation's largest federal credit unions, reported continued capital and liquidity strength and earnings growth through the third quarter of 2025. PenFed finished the third quarter with nearly 2.8 million members, $29 billion in assets and over $2.9 billion in net worth.
"PenFed’s third quarter results demonstrate the strength of our diversified balance sheet, disciplined lending strategy and unwavering focus on our members,” said James Schenck, PenFed President and CEO. “We continue to grow capital, generate increased earnings, and deliver great rates for our members. These results underscore our ability to perform well through all economic environments while staying true to our mission of empowering members to achieve their financial dreams.”
PenFed’s Q3 2025 Financial Highlights
Capital and Liquidity Strength
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Increased net worth ratio by 32 basis points (bps) quarter-over-quarter and 80 bps year-over-year.
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Closed the quarter with over $1 billion of capital in excess of required regulatory net worth to be well capitalized, increasing 7% quarter-over quarter and 14% year-over-year.
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Increased total cash and investments to 15.0% of total assets, up 59 bps year-over-year.
Earnings Growth
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Increased quarter-to-date net income by 21% quarter-over-quarter and 121% year-over-year.
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Achieved year-to-date net income of $111.8 million, increasing 91% year-over-year (up $53 million).
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Improved net interest margin by 18 bps year-over-year to 3.20%.
Credit Quality and Risk Management
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Continued to improve loan loss rates, declining 7% quarter-over-quarter and 9% year-over-year, with further improvement when excluding commercial real estate exposure.
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Decreased loan portfolio’s delinquency rate by 35 bps year-over-year to 1.47% due to management’s focus on resilient lending strategies and improved credit performance.
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Reduced commercial real estate exposure by 3% quarter-over-quarter and 42% year-over-year.
Loan and Deposit Growth
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Grew auto loan originations (year-to-date) 28% year-over-year to $1.4 billion, reflecting strong member demand.
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Increased home equity line of credit (HELOC) originations by 15% year-over-year to $1.0 billion, as members leveraged PenFed’s competitive rates.
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Increased non-maturity deposits by 8% year-over-year to $14.6 billion, with continued growth in premium online savings accounts.
Community and Member Impact
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Continued investing in both its members and the communities it serves. During the first nine months of 2025, PenFed and the PenFed Foundation donated over $1.1 million to 45 charitable organizations, supporting veterans, military families, and children battling life-threatening illnesses.
As the US economy continues to push ahead entering the fourth quarter, Schenck pointed to the recent actions taken by the Federal Reserve to reduce short-term interest rates by 25 bps noting that “the Fed is acting on its dual mandate to lower inflation and reduce unemployment which will ultimately lower borrowing costs for consumers. We are here to serve our members in all economic environments and to help them achieve their financial dreams through home ownership, the purchasing of a vehicle and saving for their family’s life milestones and their futures.”