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PenFed Year-to-Date Loan Originations Rise 22% to $8.8 Billion
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PenFed Credit Union reported $8.8 billion in year-to-date loan originations through September 2026, up 22% year-over-year, in third-quarter 2026 results released October 30, 2026. The Tysons, Va.-based credit union reported that, compared with its second-quarter results, its year-to-date loan loss rate improved to 1.15% from 1.28% and its net worth ratio rose to 10.84% from 10.72%. PenFed credited competitive rates, trusted service and digital convenience for supporting its lending growth and deeper member relationships.
“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. Schenck said inflation exceeded 3% over the past year, partly reflecting higher energy costs, and that with inflation above the Federal Reserve’s 2% goal, the central bank raised its benchmark rate in September for the first time in three years. He characterized the move as a step intended to ease inflation but one that can increase borrowing costs for homes, cars and other major purchases.
Lending Growth by Product
PenFed reported the following year-to-date origination figures through September 2026:
| Lending category | Year-to-date originations | Year-over-year change |
|---|---|---|
| Total loan originations | $8.8 billion | Up 22% |
| Auto loans | $2.1 billion | Up 45% |
| Mortgages | $1.7 billion | Up 65% |
| Home equity lines of credit | $1.2 billion | Up 17% |
The credit union attributed the origination growth to broad-based member demand across its lending products, citing member demand and competitive pricing in auto lending and what it called a streamlined, service-focused home-lending experience in mortgages.
PenFed said its PenFed Home business delivered strong year-over-year performance across mortgage, home equity and real estate through the third quarter despite what it described as a challenging housing and rate environment. The business connects members with those services through a single relationship, according to the credit union, and its Very Important Buyer Program combines access to PenFed Realty agents, mortgage expertise and financial incentives that PenFed said can lower homeownership costs and simplify buying from search through closing.
In consumer banking, year-to-date results included more than $2.0 billion in auto originations, approximately $375 million in personal loans and more than 20,000 new credit card accounts, with new card accounts up 67% year-over-year. Premium Online Savings balances exceeded $9 billion, and the credit union added approximately 130,000 new members during the period. PenFed said consumer banking delivered strong third-quarter momentum while maintaining what it described as prudent credit standards amid affordability challenges, and that targeted investments supported operating efficiency, product capabilities and fraud prevention.
Earnings, Capital and Credit Quality
PenFed reported year-to-date net income of $177 million, up 58% year-over-year, which it attributed to operating discipline and credit performance. Year-to-date return on assets increased to 0.80%, up 63% year-over-year, according to the credit union.
The net worth ratio of 10.84% reflected strong year-to-date earnings and disciplined balance sheet management, PenFed said. Capital in excess of required regulatory net worth rose to $1.1 billion, and total cash and investments stood at 16.6% of total assets, a liquidity level the credit union said supports member growth and continued financial strength.
Non-maturity deposits grew to $15.9 billion, up $1.3 billion, or 9%, year-over-year, rising to 65% of total deposits from 58% a year earlier. PenFed said the shift reflects deeper, longer-lasting member relationships.
The year-to-date loan loss rate of 1.15% was down 30% year-over-year, an improvement PenFed attributed to continued credit discipline, proactive portfolio management and improving performance trends. Year-to-date total delinquencies improved to $233 million, down 30% year-over-year.
PenFed said its phone and branch support services teams continue to receive the credit union’s highest consumer satisfaction scores, and that its IT teams deliver mobile and web experiences that process more than 8 million member interactions each month.
Year to date, PenFed contributed more than $1 million in total community giving to organizations and initiatives focused on financial well-being, military and veteran support, education, health and family services. The PenFed Foundation for Military Heroes, which is affiliated with the credit union, raised more than $1.2 million to support veterans and military families at its 23rd annual Military Heroes Golf Classic on August 31, 2026.
“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,” Schenck said.
