America's second largest federal credit union
welcomes 33,000 new members and maintains over $3 billion in regulatory net worth.
TYSONS, Va., April 16,
2024 /PRNewswire/ -- PenFed Credit Union, the
nation's second-largest federal credit union, finished the first
quarter of 2024 with increased liquidity and capital. PenFed also
finished the quarter with nearly 3 million members, $34.6 billion in assets and over $3 billion in regulatory net worth.
"We are ahead of our 2024 business plan and continue to execute
on our key priorities of building liquidity and capital," said
PenFed President and CEO James Schenck. "PenFed is proud to
deliver on our promise to members by paying top dollar on
certificates. During the first quarter of 2024, PenFed paid out
$209 million in member dividends, up
from $140 million in the first
quarter of 2023, a 50% 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."
PenFed first quarter 2024 financial highlights
include:
- PenFed's total cash and investments increased to 12.6% of total
assets, an improvement of 240bps year-over-year.
- PenFed's regulatory net worth capital ratio increased from
9.10% at year-end to 9.26% end of March, an increase of 16 basis
points.
- PenFed's year-to-date net income was $23
million. Over the past 5 years, PenFed has increased its
regulatory net worth by $645 million
with over $811 million in net
income
- PenFed reduced total operating expense by $29 million year-over-year, which represents a
14% reduction.
- PenFed's external borrowings declined $1.6 billion year-over-year, as external
borrowings were replaced with member share deposits, driven by
offering great rates to our members. Member share deposits were up
$750 million or 3% year over
year.
- PenFed closed the quarter with over $786 million of capital in excess of
required regulatory net worth.
In addition to accomplishing key business milestones, PenFed
donated over $423,000 to 10 charitable organizations during
the first quarter and will continue to support the communities
where its employees live and work throughout the year.
PenFed is proud to give back to the communities we serve. April
is Financial Literacy Month and PenFed recently celebrated our
commitment to invest in the future of Puerto Rico by hosting a financial literacy
event at a local school as part of our strategic partnership with
EVERFI. The partnership provides over 4,000 public and private K-12
school students in 39 schools across Puerto Rico access to its proven curriculum at
no cost to the schools. The program teaches students how to make
smart financial decisions and achieve success in life. PenFed has
provided this education to students on the island over the past
five years and this was the fourth financial literacy event which
PenFed has held in high schools in Puerto
Rico.
Looking forward, Schenck said, "PenFed will continue to take
care of its members with outstanding rates and service; hiring,
inspiring and retaining world-class financial professionals;
keeping the institution safe and sound with strong capital and
liquidity; and having a positive impact on society through its
philanthropic giving. Being a federal credit union and
governed by dedicated volunteer board members, PenFed can always
play the long-game and take care of its constituents throughout all
rate environments."
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 over $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.
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SOURCE PenFed Credit Union