PenFed Credit Union Finishes Third Quarter with Increased Liquidity and Capital
America's second largest federal credit union welcomes over 94,000 new members and maintains over $3 billion in regulatory net worth.
PenFed Credit Union, the nation's second-largest federal credit union, finished the first nine months of 2024 with increased liquidity and capital. PenFed also finished the first nine months with nearly 3 million members, $32.7 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 committed to supporting our members while ensuring the institution's safety and soundness in this challenging economic cycle. PenFed has purposely reduced its lending exposure by over $2.8 billion year to date while increasing its loan loss coverage ratio by 29 basis points from 2.49% to 2.78%. We are also proud to deliver on our promise to members by paying top dollar on certificates. During the first nine months of 2024, PenFed paid out $624 million in member dividends, up from $495 million in the first nine months of 2023, a 26% 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's first nine months of 2024 financial highlights include:
PenFed's total cash and investments increased to 14.4% of total assets, an increase of 320 basis points year over year.
PenFed's regulatory net worth capital ratio increased from 9.10% at year-end to 9.85% end of September, an increase of 75 basis points.
PenFed's year-to-date net income was $59 million. Over the past 5 years, PenFed has increased its regulatory net worth by $582 million with over $760 million in net income while adding to its portfolio and servicing billions in low-rate mortgages that will benefit its membership for years to come.
PenFed reduced total operating expense by $29 million year-over-year, which represents a 5% reduction.
PenFed closed the quarter with over $943 million of capital in excess of required regulatory net worth to be well capitalized.
In August, PenFed announced the closing of its second prime auto loan securitization offering PenFed Auto Receivables Owner Trust 2024-A (PNFED 2024-A). The transaction issued $447,400,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans.
"PenFed is proud to announce our second auto loan securitization," said Schenck. "This second securitization diversifies funding, increases liquidity and strengthens net worth."
In addition to accomplishing key business milestones, PenFed donated nearly $1.2 million to 45 charitable organizations during the first nine months and will continue to support the communities where its employees live and work throughout the year.
PenFed employees supported local communities through blood drives that resulted in donations that will save hundreds of lives. Employees also collected backpacks and school supplies at office locations across the country supporting children as they returned to school.
Looking forward, Schenck said, "PenFed will continue to take care of its members with outstanding rates and service provided by world-class financial professionals and by keeping the institution safe and sound with strong capital and liquidity. PenFed will also continue to have 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."
