PenFed Credit Union Highlights Continued Success of Business Model at 2022 Annual Meeting

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May 18, 2022, 09:45 ET

CEO Focuses on Maximizing Lending Capacity to Help Members Achieve American Dream

Chairman Awards Employee, Team, and Volunteer of the Year

TYSONS, Va., May 18, 2022 /PRNewswire/ -- PenFed Credit Union, the nation's second largest federal credit union, highlighted its continued success with record results for 2021 and the first quarter of 2022 at its 2022 annual meeting. The meeting was held via audio conference on the evening of May 16 with members, employees, and the board of directors.

"PenFed is dedicated to its mission of empowering members of our community to achieve their financial well-being," said PenFed Credit Union President/CEO and PenFed Foundation CEO James Schenck. "PenFed exists to loan to our members and provide a safe place for savings and thrift. We consistently deliver highly competitive dividends for our members to maintain a stable base of core deposits. PenFed ended 2021 with $862 million of excess capital to ensure PenFed would be here to take perfect care of our members in any economic environment."

During his remarks, Schenck underscored PenFed's business model of lending out all of members' shares plus a good portion of long-term capital to maximize lending capacity to members. PenFed ended 2021 with a 103% loan-to-share ratio.

"PenFed lends out some of our long-term capital to help more of our members achieve their financial goals," said Schenck. "Even through recessions and inflation, it's important to keep the credit union's loan engine running because members need to finance homes, cars, and college tuition in all rate cycles. PenFed has prioritized serving our members and operating in a safe and sound environment for 87 years. We plan to sustain this model to help more members take care of their families, get to work, and live the American dream."

For example, by sustaining its current loan-to-share ratio for the rest of this year, PenFed would be able to deploy capital to approve 125,000 more members for auto loans or 10,000 more members for mortgages.

Schenck spotlighted PenFed's strategic partnership with the Federal Home Loan Bank of Atlanta to provide the credit union with tools to make more mortgages and practice sound liquidity and risk management to best serve members.

His remarks also emphasized PenFed's selling of loans to other credit unions. PenFed's loan sales help strengthen the entire credit union system by delivering more loans and income for other credit unions' balance sheets. The extra earnings from PenFed's loan volumes and loan sales allow PenFed to reinvest in technology to deliver convenience to members and cyber security to protect members' assets. PenFed's infrastructure handles 80% of members' transactions through the PenFed.org website and the PenFed mobile app.

Schenck announced that PenFed's top business priorities for the remainder of 2022 include building capital and liquidity, maintaining credit quality, and delivering world-class service securely to members.

Chairman Ed Cody announced awards for PenFed's employee, team, and volunteer of the year for outstanding service and contributions to the credit union. This year's award recipients are:

Employee of the Year: Andrea McCarren, VP and chief content officer, recognized for her leadership and creation of the PenFed Digital team. The team produces daily stories of inspiration, resilience, and service for PenFed's social media channels. Over 200 million people have seen the results.
Team of the Year: Joe Thomas, executive vice president and chief information officer, and Tony LaManna, chief information security officer, recognized for leading PenFed's cyber defenses and protecting PenFed's critical systems and members' accounts.
Volunteer of the Year: Jim Quinn, vice chairman, recognized for his outstanding service and bringing his experience, dedication, and love of people to PenFed.

"As Chairman, every year on behalf of our board, I have the privilege and fun of recognizing individuals who have made extraordinary contributions to the success of PenFed," said Cody. "We could not succeed without great teams – and PenFed is blessed with some of the best teams of employees and volunteers in the financial industry."

About PenFed

Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving 2.8 million members worldwide with $35 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 with members' interests always in mind. 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