PenFed Credit Union Expands Member Lending and Strengthens Credit Quality in Third Quarter 2026

Member-Focused Flywheel Supports $8.8 Billion in Year-to-Date Loan Originations, Deeper Deposit Relationships and Stronger Capital

PenFed Credit Union, one of the nation's largest federal credit unions, reported $8.8 billion in year-to-date loan originations through September 2026, up 22% year-over-year. Its member-focused flywheel of competitive rates, trusted service and digital convenience supported lending growth and deeper relationships. Year-to-date mortgage originations rose 65% year-over-year, and non-maturity deposits reached $15.9 billion, or 65% of total deposits versus 58% a year ago. Compared with second-quarter results, the year-to-date loan loss rate improved to 1.15% from 1.28%, and the net worth ratio rose to 10.84% from 10.72%.

"The economy remained resilient in the third quarter of 2026, with stable employment and growing summer consumer spending, even as families and businesses faced financial pressures," said James Schenck, PenFed President and CEO. "Inflation exceeded 3% over the past year, partly reflecting higher energy costs. With inflation above its 2% goal, the Federal Reserve raised its benchmark rate in September for the first time in three years—a step intended to ease inflation but one that can increase borrowing costs for homes, cars and other major purchases."

"Competitive financial products and a trusted partner are especially important in this environment. I'm proud of PenFed's very strong third quarter, which built on our momentum and strengthened our ability to serve our 2.7 million members."

PenFed Home delivered strong year-over-year performance across mortgage, home equity and real estate through the third quarter of 2026 despite a challenging housing and rate environment. Its integrated model connects members with these services through one trusted relationship. PenFed's Very Important Buyer (VIB) Program combines access to PenFed Realty agents, mortgage expertise and financial incentives that can lower homeownership costs and simplify buying from search through closing.

Consumer Banking delivered strong third-quarter momentum while maintaining prudent credit standards amid affordability challenges. Year-to-date results included more than $2.0 billion in auto originations, approximately $375 million in personal loans, more than 20,000 new credit card accounts—up 67% year-over-year—Premium Online Savings balances exceeding $9 billion and approximately 130,000 new members. Targeted investments supported operating efficiency, product capabilities and fraud prevention while making banking easier through branches and the mobile app.

PenFed's Q3 2026 Financial Highlights

Lending Momentum and Member Growth

• Grew year-to-date total loan originations to $8.8 billion, (up 22% year-over-year), reflecting broad-based member demand across PenFed's lending products.
• Accelerated year-to-date auto loan originations to $2.1 billion, (up 45% year-over-year), reflecting strong member demand and competitive pricing.
• Increased year-to-date home equity line of credit originations to $1.2 billion, (up 17% year-over-year), reflecting PenFed's competitive home equity solutions.
• Increased year-to-date mortgage originations to $1.7 billion, (up 65% year-over-year), reflecting PenFed's streamlined, service-focused home-lending experience.

Earnings Growth

• Reported year-to-date net income of $177 million, (up 58% year-over-year), supported by operating discipline and credit performance.
• Increased year-to-date return on assets to 0.80%, (up 63% year-over-year), reflecting continued operating performance.

Capital and Liquidity Strength

• Increased net worth ratio to 10.84%, reflecting strong year-to-date earnings and disciplined balance sheet management.
• Increased capital in excess of required regulatory net worth to $1.1 billion, further strengthening PenFed's capital position.
• Maintained strong liquidity with total cash and investments at 16.6% of total assets, supporting member growth and continued financial strength.
• Grew non-maturity deposits to $15.9 billion, (up $1.3 billion, or 9%, year-over-year), increasing to 65% of total deposits from 58% a year ago and reflecting deeper, longer-lasting member relationships.

Credit Quality and Risk Management

• Improved year-to-date loan loss rate to 1.15%, (down 30% year-over-year), reflecting continued credit discipline, proactive portfolio management and improving performance trends.
• Improved year-to-date total delinquencies to $233 million, (down 30% year-over-year).

Member Experience and Digital Engagement

• Support services teams on the phones and in branches continue to receive PenFed's highest consumer satisfaction scores. These results reflect the strength of PenFed's service culture and the commitment of employees who help members every day.
• PenFed's IT teams continue to deliver top-rated mobile and web experiences that process more than 8 million member interactions each month, helping members manage their financial lives with speed, confidence and convenience.

Community Impact

• Year to date, PenFed has contributed more than $1 million in total community giving, supporting organizations and initiatives that advance financial well-being, military and veteran support, education, health and family services.
• Affiliated with PenFed Credit Union, The PenFed Foundation for Military Heroes raised more than $1.2 million to support veterans and military families at its 23rd annual Military Heroes Golf Classic on August 31, 2026, advancing its mission to help veterans transition from service to success in civilian life.

About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is one of America's largest federal credit unions, serving 2.7 million members worldwide with $29 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 X. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.

SOURCE PenFed Credit Union