One of America’s largest federal credit unions maintains over $3 billion in regulatory net worth.
PenFed Credit Union finished the first half of 2025 with increased earnings, capital and liquidity. PenFed also finished the second quarter with nearly 3 million members, $30 billion in assets and over $3 billion in regulatory net worth.
“PenFed is proud to report it exceeded its goals for the first half of 2025. Compared to the first half of the prior year, year-to-date net income was $83.1 million versus $45.6 million, an increase of 82%; regulatory capital was 10.32% versus 9.57%, and liquidity increased from 12.5% to 14.5%,” said PenFed President and CEO James Schenck. “PenFed is committed to supporting our members with world class financial products at great rates through all economic cycles. We are proud to serve members’ increased demand for auto loans and home equity lines of credit during the first half of the year. Our savers also benefited from shifting their certificates to online savings accounts that provide the flexibility and value our members have come to expect. As we move through the remainder of the year, we could see some modest downward pressure on both consumer deposit and loan rates which is good news for our members looking to borrow or refinance.”
PenFed’s first half of 2025 financial highlights include:
- PenFed’s net worth increased by 27 basis points (bps) from the prior quarter and by 76 bps from the second quarter of 2024 on the strength of $83.1 million of year-to-date net income.
- PenFed closed the quarter with over $1 billion of capital in excess of required regulatory net worth to be well capitalized.
- PenFed’s total cash and investments increased to 14.5% of total assets, an increase of 196 basis points year-over-year.
- The loan portfolio’s delinquency rate has declined by 57 bps year-over-year to 1.27% due to management’s focus on resilient lending strategies and improved credit performance.
- PenFed’s year-to-date return on average assets is 54 bps, doubling since the second quarter of 2024.
- PenFed reduced commercial real estate exposure by 21.3% since last quarter and 40.9% year-over-year.
- PenFed has successfully served member demand for auto loans and home equity lines of credit, originating over $140 millionmore loans for the first two quarters of 2025 compared to the same period in 2024.
- Year-over-year, PenFed has increased non-maturity deposits by 9% which includes over $2 billion in additional deposits in its premium online savings account.
PenFed is committed to meeting members wherever they are – by continuing to invest in a first-class digital experience as well as strategic branch placement. PenFed recently opened a financial center in Humacao, Puerto Rico, its sixth on the island, and plans to open another financial center in the U.S. Virgin Islands by the end of the year.
In addition to accomplishing key business milestones, PenFed donated over $700,000 to 27 charitable organizations during the first half of the year and will continue to support the communities where its employees live and work. Charitable activities included supporting veterans and assisting the families of children battling terminal diseases.