Pentagon Federal Credit Union
| File:PenFed 2015 Logo.png | |
| Company type | Credit union |
|---|---|
| Industry | Financial services |
| Founded | 1935 |
| Headquarters | 7940 Jones Branch Drive, McLean, Virginia, United States |
Number of locations | 50 |
Area served | Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies, the Veterans of Foreign Wars and their families |
Key people | Edward B Cody, Board of Directors Chairman James Schenck, President and CEO |
| Products | Savings; checking; consumer loans; mortgages; credit cards; investments |
| Total assets |  $34,823,233,611(2023) |
| Website | penfed.org |
Pentagon Federal Credit Union, commonly known as PenFed, is a federally chartered credit union based in McLean, Virginia, operating under the supervision of the National Credit Union Administration (NCUA). As of December 2023, PenFed holds the position of the third largest federal credit union in the United States with assets totaling $34.8 billion and serving over 2.8 million members.
PenFed offers a comprehensive suite of financial solutions including consumer loans, savings and checking accounts, credit cards, mortgage products, and investment options.
Membership
Initially, membership at Pentagon Federal Credit Union was restricted to individuals affiliated with national defense entities. However, in 2018, PenFed broadened its membership eligibility by acquiring Progressive Credit Union—a New York-chartered institution that provided a nationwide open field of membership after encountering financial difficulties related to taxi medallion loan defaults.
Those qualified for membership encompass active and retired members of the U.S. Army, Navy, Marine Corps, Air Force, Space Force, Coast Guard, Reserves, and National Guard; civilian personnel employed by the Departments of Defense and Homeland Security; employees and volunteers associated with the American Red Cross; as well as participants in military organizations such as Veterans of Foreign Wars and the Military Officers Association of America. Additionally, family members and PenFed employees are eligible to join.
Competition
Focusing primarily on serving military communities, PenFed competes with other military-oriented credit unions like Navy Federal Credit Union alongside financial service providers such as Bank of America-Military Bank and USAA.
Locations
PenFed maintains branch offices throughout major U.S. regions including Washington, D.C., California, Florida, Georgia, Hawaii, Nebraska, New Jersey, New Mexico, New York, North Carolina, Texas as well as military installations located in Guam, Japan, Portugal, and Puerto Rico. The organization also operates call centers situated in Omaha and Papillion (Nebraska), Eugene (Oregon), and San Antonio (Texas).
Since joining the Allpoint surcharge-free ATM network in 2003, PenFed members have gained access to an extensive network exceeding 23,000 ATMs nationwide.
Expansion
PenFed’s growth strategy involves a series of mergers aimed at increasing market share and enhancing service offerings. In 2017, it absorbed Valor Credit Union from Scranton following Valor’s financial setbacks.
A landmark merger took place on January 1, 2019 when Progressive Credit Union merged into PenFed. This deal brought taxi medallion loan portfolios under PenFed’s management and granted it an open charter permitting nationwide membership beyond its traditional military base.
Also in 2019, McGraw-Hill Federal Credit Union merged with PenFed—extending its footprint into New Jersey through the East Windsor branch operating under PenFed branding.
The expansion continued with the December 2020 integration of Post Office Credit Union from Madison, Wisconsin. Subsequently in April 2021—after receiving regulatory consent—Aspire Federal Credit Union in Clark, New Jersey merged into PenFed.
These strategic mergers illustrate PenFed’s ongoing commitment to strengthening financial performance while broadening its membership base through targeted acquisitions and organizational restructuring.
PenFed Foundation
Established in 2001 by executives from PenFed Credit Union, the PenFed Foundation is dedicated to providing military personnel, veterans, and their families with tools and support aimed at fostering financial security and growth. Since its founding, the organization has aided more than 140,000 military households.
In April 2019, retired four-star General John W. “Mick” Nicholson, Jr. assumed the role of foundation president, a position he held until January 2022. During his tenure, the foundation significantly broadened its reach and enhanced its public profile.
The foundation introduced an innovative COVID-19 emergency relief initiative in March 2020, designed to assist all service members and veterans. This program attracted 6,000 applications within just four days, establishing the foundation as a prominent provider of veteran-centered financial support during the pandemic.
Acknowledging its impactful work, the foundation earned several prestigious accolades, including being named Nonprofit of the Year in 2020 by the Northern Virginia Chamber of Commerce and recognized by CNN as one of the top nonprofits during COVID-19. Additionally, Military Spouse Magazine honored it as a Top 20 Nonprofit Champion, and Business Insider featured it among essential nonprofits to support amid the pandemic.
These honors underscore the foundation’s strong positioning and influence within the veteran assistance sector. The PenFed Foundation continues to capitalize on strategic collaborations and philanthropic contributions to improve its financial outcomes and expand its veteran support initiatives globally.