PenFed Credit Union delivers on strategic goals in 2022: Further increasing member shares, liquidity and capital
America's Second-Largest Federal Credit Union Attracts $572 Million in New Shares in Q4, Adds 19 Basis Points of Net Worth
SAN ANTONIO, VA (January 26, 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 fourth quarter of 2022, PenFed attracted $572 million in new shares, and increased net worth an additional 19 basis points since the third quarter of 2022.
“Building deposits, liquidity and capital were PenFed’s key priorities for the second half of 2022 – and during the fourth quarter we successfully executed on those goals,” 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 450,000 new members in 2022, as current members share their stories about PenFed’s great rates and world-class service. We thank all of our 2.8 million members for choosing to save and borrow with PenFed.”
PenFed reported many financial highlights after closing the fourth quarter of 2022:
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PenFed’s member shares grew year-over-year by $4.6 billion, which represents 20% growth.
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Of particular note, PenFed’s Certificate balances grew year-over-year by $6.1 billion, a growth rate of 74% as PenFed offered market-leading dividend rates to deliver value to its members and help its members do better financially.
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PenFed’s net worth ratio increased to 9.52% at the close of the fourth quarter, 19 basis points higher than the close of the third quarter.
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PenFed closed the fourth quarter with nearly $900 million of capital in excess of required regulatory net worth, which is more than $60 million higher than the third quarter.
In addition to accomplishing these key business milestones, PenFed donated $2.2 million to more than 100 charitable organizations during 2022.
“Most recently,” Schenck pointed out, “we began moving forward with plans to build a PenFed Grand Lodge at the Willing Warriors Retreat in Haymarket, Virginia, which will serve as a second home to help wounded warriors recover and rebuild relationships with their families. And we mobilized hundreds of PenFed employees across America to raise funds and participate in the Susan G. Komen Walk to fight breast cancer.”
As anticipated in the fourth quarter of 2022, Schenck noted, “we saw loan demand continue to decline as the Federal Reserve raised interest rates. With that in mind, PenFed focused on finishing the year strong through building deposits, liquidity and capital, while maintaining credit quality and delivering world-class service to our growing membership. We successfully delivered on these strategic priorities.”
Looking forward to 2023, Schenck said, “PenFed will continue to take perfect care of its members by providing great rates and world-class 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 $34.6 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.
