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PenFed Credit Union
PenFed Credit Union, led by James Schenck, is the second-largest federal credit union in the U.S., with over $30B in assets and 2M members.
PenFed Credit Union
PenFed Credit Union was founded in 1935 as the Pentagon Federal Credit Union, originally chartered to serve employees of the U.S. Department of Defense. By 2023, it reported total assets exceeding $30 billion, making it the second-largest federal credit union in the United States (per NCUA, 2023). PenFed's investment posture is conservative, focusing on member-facing lending products rather than proprietary trading or direct investing. Its primary deployment channels are residential mortgages, auto loans, credit cards, and personal loans — all originated within a federally insured cooperative structure. The credit union does not maintain a separate investment portfolio outside of required Regulatory capital reserves and member deposits. The firm employs over 3,000 professionals across its headquarters in Washington and satellite offices in San Antonio and Honolulu. PenFed operates a philanthropic arm, the PenFed Foundation, which has granted over $30M to military families and veterans since its founding in 2000 (per PenFed Foundation, 2023). In 2023, PenFed opened a new digital banking platform, expanding its reach beyond physical branches. PenFed's structural differentiator is its cooperative ownership model: members are both customers and owners, with profits either reinvested into lower rates or returned as dividends. This eliminates the need for outside capital and aligns the firm's incentives with its end-users rather than external shareholders.
General information
Firm type
other
Year founded
1935
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Washington
Corporate office
Washington, United States
Principals
James Schenck
President and CEO
John Broderick
Vice President of Lending
Frequently asked questions
Who runs investment decisions at PenFed Credit Union?
Investment decisions at PenFed are made by a combination of the board of directors, executive management including CEO James Schenck, and the credit union's asset/liability committee. The firm's lending activities are governed by federal regulations and cooperative principles rather than a proprietary investment mandate.
Does PenFed maintain a separate investment portfolio beyond member lending?
PenFed does not operate a typical family office or asset management division. Its assets consist largely of member deposits, which are deployed primarily into consumer and mortgage loans. The credit union holds regulatory capital reserves but does not engage in third-party fund investing or direct equity deals.
What investment stages does PenFed typically target?
PenFed does not target investment stages in the traditional venture or private equity sense. Its lending products span the full lifecycle of consumer needs — from auto loans and mortgages to credit cards — and are originated to individual members rather than institutional counterparties.
How is PenFed related to the U.S. Department of Defense?
PenFed was originally chartered to serve Pentagon employees but is now open to anyone who joins the credit union's membership base. It retains a strong affiliation with military and government communities through its PenFed Foundation and Veteran-focused programs, but operates independently as a federally insured credit union regulated by the National Credit Union Administration (NCUA).
What philanthropic structures does PenFed maintain?
PenFed operates the PenFed Foundation, a 501(c)(3) nonprofit that has granted over $30M to military families, veterans, and first responders since 2000 (per PenFed Foundation, 2023). The foundation is funded through credit union profits and member donations, and is separate from the credit union's general revenue.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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