TYSONS, Va., Jan. 13, 2021 /PRNewswire/ -- PenFed Credit Union, the nation's second largest federal credit union, today released financials highlighting the strongest year in the institution's 85-year history. In 2020, PenFed set records for membership growth, mortgage loan volume and consumer loan volume, while helping more members through the global pandemic.
"At PenFed we measure success by how many people we've helped. In 2020, PenFed helped more than 2.1 million members do better financially," said PenFed President & CEO James Schenck. "PenFed's record results are a combination of organic growth and a focused merger strategy paying huge dividends. Partnering with other credit unions over the last five years allowed us to rebuild infrastructure, upgrade technology systems and hire some of the industry's best leaders while building a strong capital position. In combination with our merger partners, we've built an engine that will provide PenFed a long-term strategic competitive advantage."
Among PenFed's highlights in 2020:
- PenFed welcomed 389,000 new members, up 159% over 2019. Members benefited from some of the nation's lowest loan rates and highest deposit rates across the nation.
- PenFed increased its charitable contributions to help those in need and gave back nearly $3 million to veterans, first responders and many other community heroes. The credit union supported nearly 100 charitable organizations in communities where its 2,700 employees and volunteers live and serve.
- Total loan originations exceeded $16.6 billion, up 67% over 2019.
- The mortgage division originated over $8.2 billion, up 302% from 2019.
- The consumer lending division originated over $8.4 billion, up 16% from 2019.
- PenFed sold and participated $5.3 billion worth of loans to other credit unions, up 288% over 2019, to maintain a steady asset growth rate near PenFed's long-term target of 5%.
- PenFed earnings (adjusted for one-time COVID-19 reserves) exceeded more than $200 million, up 40% percent over 2019.
- Members who experienced financial hardship as a result of COVID-19 were able to skip payments and apply for other special assistance.
- Members who needed in-person access had sanitized lobbies or drive-throughs available at 44 branches throughout the pandemic.
- PenFed closed 2020 with more than $2.8 billion in capital and a net worth ratio exceeding 10.5%. PenFed's capital cushion is almost $1 billion above the federal requirement to be well capitalized.
- The PenFed Foundation became the first Veteran Service Organization to offer a COVID-19 Relief Program, helping thousands of active duty military and veterans survive the pandemic.
- The PenFed Foundation's Veteran Entrepreneur Investment Fund created a Master's Program empowering veteran-owned businesses to grow while other businesses were shutting down.
"We couldn't have made all of this positive impact without our dedicated employees and loyal members," Schenck concluded. "During a time when many consumers found new ways to conduct their financial business, we are honored that more members chose PenFed's combination of digital access backed by world-class personal service. We hope PenFed members are proud of how their credit union fulfilled urgent needs in their communities during this most challenging year."
PenFed released this video to show how PenFed employees and members overcame the challenges of 2020 together.
About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving over 2.1 million members worldwide with over $26 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. Our mission is to empower members of our community to achieve their financial well-being. 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 Twitter. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.
SOURCE PenFed Credit Union