PenFed Credit Union continues member focus by further increasing shares and attracting new members in first half of 2023
America's Second-Largest Federal Credit Union Attracts Almost $1.1 Billion in New Shares and 72,000 New Members in First Half of 2023
TYSONS, VA (August 8, 2023) — PenFed Credit Union, the nation’s second-largest federal credit union, today released financial results showing continued progress toward the organization’s strategic goals, despite a challenging economic environment. During the first half of 2023, PenFed attracted nearly $1.1 billion in new shares and added 72,000 new members.
“We are continuing to deliver on our key priorities of building deposits, liquidity and capital,” said PenFed President and CEO James Schenck. “The PenFed family continues to grow based on the value of our products and services. PenFed welcomed over 72,000 new members year-to-date, as we increase our digital capabilities while offering great rates and world-class service. We thank all of our 2.9 million members for choosing to save and borrow with PenFed.”
PenFed financial highlights as of the second quarter of 2023 include:
· PenFed’s member shares grew year-over-year by $2.5 billion, which represents 10% growth.
· Of particular note, PenFed’s certificate balances grew year-over-year by $4.8 billion, a growth rate of 44%, as PenFed offered market-leading dividend rates to deliver value to its members.
· PenFed’s external borrowings declined $3.3 billion year-over-year, as external borrowings were replaced with member share deposits that increased through the offering of great rates.
· PenFed’s net worth ratio increased to 9.6% at the close of the second quarter, an improvement of 0.6% year-over-year.
· PenFed closed the second quarter with nearly $931 million of capital in excess of required regulatory net worth.
In addition to accomplishing these key business milestones, PenFed donated over $1,100,000 to more than a dozen charitable organizations during the first half of 2023.
“PenFed is proud to serve our community and during Q2 hosted a financial literacy event for high school students in Puerto Rico,” said Schenck. “Through our strategic partnership with EVERFI we bring critical financial education technology at no cost to over 3,400 public and private K-12 school students in 30 schools across Puerto Rico.”
As anticipated in the first half of 2023, Schenck noted, “despite the current market environment and continuing decline in loan demand as the Federal Reserve raises interest rates, PenFed’s balance sheet and capital position remain strong.”
Looking forward, Schenck said, “PenFed will continue to take perfect care of its members by providing great rates and world-class digital capabilities and service while building a stronger PenFed through sustainable, risk-balanced growth, and giving back to the community.”
About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving 2.9 million members worldwide with nearly $35 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.org, 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.