PenFed Credit Union Finishes 2023 with Over $3 Billion in Net Worth and Welcomes Over 230,000 New Members
PenFed Credit Union today released financial results highlighting it finished 2023 with nearly 3 million members, $35 billion in assets and over $3 billion in net worth. PenFed continues to focus on its members with market-leading products and services, despite a challenging economic environment with prolonged yield curve inversion.
"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 230,000 new members as we increased our digital capabilities while offering great rates and world-class service. We thank all of our 2.9 million members for choosing to achieve their financial dreams with PenFed."
PenFed 2023 financial highlights include:
PenFed's member shares grew year-over-year by $1.7 billion, which represents 6% growth.
PenFed reduced total operating expense by $123 million year-over-year, which represents a 13% reduction.
PenFed's external borrowings declined $1.9 billion year-over-year, as external borrowings were replaced with member share deposits, driven by offering great rates to our members.
PenFed's total cash and investments increased to 11.2% of total assets, an improvement of 1.3% year-over-year.
PenFed closed the year with over $750 million of capital in excess of required regulatory net worth.
In 2023, PenFed focused on building capital while implementing the current expected credit loss (CECL) model and building reserves to account for future loan losses.
Loan loss rates increased in 2023 as PenFed revised its loan charge-off policy. Several loan portfolio charge offs occurred between September and December upon adoption of the policy.
In addition to accomplishing key business milestones, PenFed donated over $2.4 million to charitable organizations in 2023.
Last month, The PenFed Foundation launched a national campaign, in partnership with Canine Companions, addressing the urgent need for more volunteers to raise puppies to become service dogs. The groundbreaking partnership helps provide more service dogs to veterans and others with a disability. The nationwide campaign focuses on reducing the wait time to receive a service dog by recruiting more volunteer puppy raisers and encourages more corporations to allow their employees to raise service dogs in the workplace. A PenFed employee is currently raising the ninth service sponsored and supported by PenFed.
Looking forward, Schenck said, "In 2024, 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."