TYSONS, VA.– PenFed Credit Union, one of the nation’s largest federal credit unions, reported continued increases in capital and liquidity, earnings growth and improved credit quality through the first quarter of 2026.
“PenFed’s first quarter results demonstrate the strength of our member focus, digital banking, and disciplined lending strategy,” said James Schenck, PenFed president and CEO. “Strong quarterly net income was driven by robust member demand and competitive pricing, as well as improved operating performance and credit discipline. PenFed’s AI-driven partnership with Salesforce is fueling PenFed’s success in enhancing the member experience and contributing to our ability to deliver great rates, hyper-personalization, and a complete unified banking platform across all channels. Being an agentic enterprise is central to creating value for our members, employees, and the institution by driving innovation, building resilience, and generating long-term impact throughout PenFed. This strategy enables us to deliver great rates for our members, generate strong earnings, and grow capital. These results underscore our ability to perform well across economic cycles while staying true to our mission of empowering members to achieve their financial dreams.”
PenFed’s Q1 2026 Financial Highlights
Loan and Deposit Growth
- Grew quarter-to-date auto loan originations to $595.1 million (up 88% year-over-year), reflecting strong member demand and competitive pricing.
- Increased quarter-to-date home equity line of credit originations to $344.4 million (up 12% year-over-year), reflecting PenFed’s competitive home equity solutions
- Increased quarter-to-date mortgage originations to $564.9 million (up 149% year-over-year), reflecting PenFed’s emphasis on a streamlined, service-focused home-lending experience.
- Increased non-maturity deposits to $15.47 billion (up 3.83% quarter-over-quarter and 5.15% year-over-year), reflecting PenFed’s competitive pricing focus.
Earnings Growth
- Reported quarter-to-date net income of $92.85 million (up 137% quarter-over-quarter and up 56% year-over-year), supported primarily from improving credit performance.
- Increased return on assets to 1.27% (up 152% quarter-over-quarter and up 65% year-over-year) reflecting strength of earnings and operating performance.
Capital and Liquidity Strength
- Increased net worth ratio to 10.47% (from 10.19% in Q4 2025 and 9.47% in Q1 2025), from strong quarterly net income.
- Increased capital in excess of required regulatory net worth to $1.02 billion (from $935.8 million in Q4 2025 and $754.2 million in Q1 2025), further strengthening PenFed’s capital position
- Increased total cash and investments to 16% of total assets (up 146 bps year-over-year), reflecting higher investment balances from strong inflow of deposits.
Credit Quality and Risk Management
- Improved loan loss rate to 1.22% (down from 1.75% in Q4 2025 and 1.77% in Q1 2025), reflecting continued credit discipline, proactive portfolio management and improving performance trends
- Improved quarter-to-date total delinquencies 60+ DPD to $300.1 million (down 3.30% year-over-year).
Community and Member Impact
- Continued investing in both its members and the communities it serves. During Q1 2026, PenFed and the PenFed Foundation donated $520,692 to 9 charitable organizations.
