PenFed posts increased membership, lower earnings for 2018

Pentagon Federal Credit Union in McLean, Va., reported that its membership increased in 2018, though its earnings declined from a year earlier.

The $24.5 billion-asset credit union earned $156 million, down more than 12% from a year earlier. PenFed said on Wednesday that its net new membership increased 7%, ending the year with about 1.7 million members.

The results were announced at PenFed’s 84th meeting of members on Tuesday night. The credit union already has published its first quarter call report for this year. The report said PenFed earned about $52.6 million in the first quarter, up about 5% from the same period a year earlier.

In January, PenFed absorbed the $383 million-asset Progressive Credit Union, a New York-based institution that was in dire straits financially due to souring taxi medallion loans. The merger included Progressive’s open charter, which means anyone in the United States now can join Pentagon FCU.

At this week’s meeting, James Schenck, PenFed’s president and CEO, said it added $170 million to its net worth in 2018.

Last year, the credit union’s capital hit a record $2.5 billion. It was considered well capitalized with a net worth ratio of 10.32% at the end of last year.

PenFed opened new branches in Nebraska, Texas and New York in 2018, and it installed a new phone system in its service centers. The credit union said it responded to member requests for new features on its mobile platform by adding bill pay and enhancing security.

The credit union reported 5,429 families booked mortgages with PenFed as it processed more than $1 billion in home equity loans.

“I am proud 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,” Schenck said in a statement.