TYSONS, Va. – At its 84th Annual Meeting last evening, PenFed Credit Union’s Chairman of the Board Ed Cody and PenFed President and CEO James Schenck reported on record capital growth, increased membership and strong earnings.
“At PenFed, we empower our members to do better financially. As a credit union, we’re in business to charge the least on loans and pay the most on deposits to make money for our members – that is the credit union difference,” Schenck said. “I’m proud that 80,000 members voted with their wallets and joined PenFed in 2018, while we added $170 million in net worth to keep our institution safe and sound.”
In his chairman’s update, Cody reported PenFed increased net new membership by 7%, ending the year with 1.71 million members. In 2018, PenFed’s capital grew to a record $2.53 billion and total assets grew by $1.6 billion to $24.5 billion. With a net worth ratio of 10.32%, PenFed holds $813 million more in capital than required to qualify for the official regulatory rating of “Well Capitalized.”
In 2018, PenFed launched the Premium Online Savings Account, with no minimum deposit requirements. PenFed’s current 2% dividend rate is almost 20 times the national average. PenFed also launched the PenFed Pathfinder Rewards credit card to industry and member acclaim and lowered student loan rates to assist college graduates.
PenFed also reported:
- Ut responded to member requests for new features on its mobile platform by adding Bill Pay, enhanced security and provided “show loan application status” and a “pending transactions” view.
- It assisted 5,429 families with mortgages and processed over $1 billion in home equity loans. Members who used PenFed Real Estate Rewards program saved about $3.6 million when purchasing their homes.
- Itopened new branches in Nebraska, Texas and New York and installed a new phone system in service centers to further improve the member experience.
Cody highlighted PenFed’s commitment to communities through donations topping $1 million to charities around the country. The Chairman provided an update on the PenFed Foundation and its commitment to serving our nation’s defenders through:
- Raising more than $6.2 million to help military families through the Military Heroes Fund and partnerships
- Making homeownership a reality for 186 military families — a record number of grants for the program
- Providing more than $2.25 million across Military Heroes Fund programs to organizations such as Dog Tag Inc., Armed Services Arts Partnership, Friendship Place and US VETS DC
- Launching the Veteran Entrepreneur Investment Program (VEIP) with a Foundation contribution and match funding of over $1 million from PenFed Credit Union – providing Veteran-owned start-ups with seed capital to build and grow their businesses and creates a robust network for Veteran-owned businesses to succeed.
“I can proudly say that the mission of ‘people helping people’ started in America 110 years ago is not only alive but is flourishing,” said Cody. “We will always focus on the credit union mission of ‘people helping people,’ but with our foundational roots dating back to the War Department in 1935, at PenFed we like to say it is all about serving those who serve our nation.”