Pentagon Federal Credit Union saw a huge lending spike in 2020, especially in its mortgage division.
The McLean, Va.-based credit union originated more than $8.2 billion in mortgages last year, up 202% compared to 2019, the $26.3 billion-asset company said in a press release Wednesday.
Also among the highlights of the credit union's 2020 results was the addition of 389,000 new members, up 159% compared to 2019.
PenFed President and CEO James Schenck said in an email that membership growth via mergers accounted for about 21,000 of the 389,000 new members, which includes members gained through a previous merger with Magnify Credit Union. In total, mergers accounted for just over 5% of PenFed's member growth last year, with the rest coming organically.
"If you’re not growing organically, you’re dying," Scheck wrote. "Mergers are just a small portion of our total growth and our focus remains on organic growth because it shows we are adding value for our members. Mergers also help us to further build our engine and bring in incredible talent from different regions across America.”
In the press release announcing the annual results, Schenck said PenFed's merger strategy over the last five years "allowed us to rebuild infrastructure, upgrade technology systems and hire some of the industry’s best leaders while building a strong capital position. In combination with our merger partners, we’ve built an engine that will provide PenFed a long-term strategic competitive advantage.”
The company also reported a 16% year-over-year increase in its consumer lending division, which originated more than $8.4 billion in loans.
Total loan originations exceeded $16.6 billion, a 67% increase compared to 2019.
PenFed was the nation’s third-largest federally insured credit union at the close of the third quarter, according to data from the National Credit Union Administration. It earned roughly $106.3 million in the first three quarters of 2020, down 24% from $139.5 million for the same period in the prior year, according to NCUA call report data.
This report was updated at 2:41 P.M. ET on Jan. 14, 2021.
