PenFed Credit Union Highlights Continued Success of Business Model at 2022 Annual Meeting
CEO focuss on maximizing lending capacity To help Members Fulfill the American Dream
President Employee, team, and Volunteer of the Year
TYSONS, Virginia., 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. held by audioconference 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 and CEO and PenFed Foundation CEO. James Schenck. “PenFed exists to lend to our members and provide a safe place for savings and savings. We consistently offer highly competitive dividends to our members to maintain a stable core deposit base. PenFed ended 2021 with $862 million excess capital to ensure that PenFed would be there to take excellent care of our members in any economic environment.”
During his remarks, Schenck pointed to PenFed’s business model of lending all members’ shares plus a fair amount of long-term capital to maximize member lending capacity. PenFed ended 2021 with a loan-to-share ratio of 103%.
“PenFed lends some of our long-term capital to help more of our members achieve their financial goals,” Schenck said. “Even in times of recession and inflation, it’s important to keep the credit union’s lending engine going as members need to fund homes, cars, and school fees through all rate cycles. PenFed gave the prioritizing serving our members and operating in a safe and healthy environment for 87 years.We plan to continue this model to help more members care for their families, get to work, and live the American dream.
For example, maintaining its current loan-to-equity ratio for the remainder of this year, PenFed would be able to deploy capital to approve 125,000 additional members for auto loans or 10,000 additional members for mortgage loans.
Schenck highlighted PenFed’s strategic partnership with the Federal Home Loan Bank of Atlanta provide the credit union with the tools to make more mortgages and practice sound liquidity and risk management to better serve members.
His remarks also highlighted PenFed’s sale of loans to other credit unions. PenFed’s loan sales help strengthen the entire credit union system by providing more loans and income for other credit unions’ balance sheets. Additional revenue from PenFed’s loan volumes and loan sales enables PenFed to reinvest in technology to provide member convenience and cybersecurity to protect member assets. The PenFed infrastructure handles 80% of member 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 securely delivering world-class service to members.
President Ed Cody announced awards for PenFed Employee, Team and Volunteer of the Year for outstanding service and contributions to the credit union. This year’s winners are:
- Employee of the Year: Andrea McCarrenvice president and director of content, recognized for its 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 Thomasexecutive vice president and chief information officer, and Tony La Mannainformation security managerrecognized for leading PenFed cyber defenses and protecting critical PenFed systems and member accounts.
- Volunteer of the year: Jim Quinnvice-president, recognized for outstanding service and bringing his experience, dedication and love of people to PenFed.
“As Chairman, each year on behalf of our Board of Directors, it is my privilege and pleasure to recognize individuals who have made extraordinary contributions to the success of PenFed,” said Cody. “We couldn’t succeed without great teams – and PenFed is blessed with some of the finest teams of employees and volunteers in the financial industry.”
About Pen Fed
Founded in 1935, the Pentagon Federal Credit Union (PenFed) is the second largest federal credit union in the United States, serving 2.8 million members worldwide with $35 billion in assets. PenFed Credit Union offers certificates, checks, credit cards, personal loans, mortgages, car loans, student loans and a wide range of other market-leading financial services, always keeping in mind mind the interests of the members. PenFed Credit Union is federally insured by the NCUA and is an equal housing lender. To learn more about PenFed Credit Union, visit PenFed.orglike us on Facebook and follow us @PenFed on Twitter. Interested in working for PenFed? Consult us on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.
SOURCE PenFed Credit Union