PenFed Credit Union and HarborOne Bancorp, Inc. have recently showcased remarkable financial performances, indicating their resilience and growth amid challenging economic circumstances. With enhanced member services, innovative strategies, and impressive capital reserves, both credit unions are positioning themselves for increased member satisfaction and community impact.
According to PR Newswire, PenFed Credit Union, the second-largest federal credit union in the United States, concluded 2024 with substantial growth, welcoming over 117,000 new members and reaching nearly 3 million total members. The Tysons, Virginia-based institution reported assets totaling $31 billion and maintained more than $3 billion in regulatory net worth. PenFed’s regulatory net worth capital ratio climbed to 9.72%, showcasing its financial health amid the most challenging economic climate faced by financial institutions within the last half-century.
PenFed’s President and CEO, James Schenck, noted, “PenFed is committed to supporting our members... ensuring the institution’s safety and soundness throughout all economic cycles.” He emphasized their focus on responsible lending practices, mentioning how PenFed has consciously reduced lending exposure by over $4 billion to concentrate on the most stable segments. Despite this cautious approach, PenFed provided record dividends, amounting to $811 million for 2024—up 17% from 2023—and delivered competitive rates to both savers and borrowers.
Among the credit union’s notable achievements were its technology transformation initiatives. Schenck highlighted, “We introduced over 600 enhancements to the digital banking platform... to drive seamless and secure experiences for members.” This continually improving digital experience is set to streamline service operations and cater effectively to member needs.
Helping the community has also been pivotal for PenFed. During 2024, the credit union allocated nearly $1.8 million to 69 charitable organizations, including supporting housing initiatives for veterans. Schenck reiterated PenFed’s mission, asserting, “Being a credit union with the mission of people helping people, we continue to take perfect care of our membership.”
On the other hand, HarborOne Bancorp, Inc. also reported significant financial growth. The holding company for HarborOne Bank announced net income of $27.4 million for the year ended December 31, 2024, reflecting a substantial increase from $16.1 million the previous year. This jump corresponds to $0.66 earnings per diluted share, demonstrating the effectiveness of their relationship banking model.
Joseph F. Casey, President and CEO of HarborOne, commented on their strong year, stating, “I am proud of our team’s efforts... The fourth quarter was our strongest of the year.” Key financial indicators included net interest income stability, improved loan-to-deposit ratios, and increased average deposits, showcasing HarborOne’s commitment to growth and efficiency.
During the fourth quarter alone, HarborOne recorded net income of $8.9 million, with highlights including the successful payoff of previous borrowings, which lowered borrowing costs. This disciplined financial strategy allowed them to improve their net interest margin and bolster non-interest income by 29.5%, attributed to successful loan sales and improved mortgage performances.
Despite these successes, HarborOne remains vigilant about asset quality, noting fluctuations in nonperforming assets and maintaining solid credit loss provisions. “The provision for loan credit losses was primarily due to... qualitative factor adjustments and decreases in loan balances,” reflected their cautious yet proactive approach to risk management.
A strategic growth initiative undertaken by HarborOne allowed them to expand without significantly increasing overhead costs. They implemented business process outsourcing to optimize their lending operations. This model enabled them to efficiently manage loan originations and provide timely service to members without the necessity of large upfront investments.
Michael Fasshauer, Director of Consumer Loan Origination at Alliant Credit Union, explained the benefits of such strategies, noting, “The proof is... originations are increasing pretty much every month.” This reflects broader trends within the credit union space, where agility, scalability, and efficiency become key competitive strategies for success.
Both PenFed and HarborOne demonstrate how credit unions adapt and thrive through strategic planning, enhanced member services, and innovative technology. Their commitment to member-focused solutions, record dividends for shareholders, and active community engagement highlight their roles as pillars of the financial industry and their dedication to improving the economic lives of their members.
With the financial sector continuing to evolve, the paths carved by credit unions like PenFed and HarborOne may serve as models for sustainable growth and responsible banking practices. The focus on community impact, coupled with strategic innovation, propels these institutions forward, ensuring they remain pivotal players within the broader financial ecosystem.