A message from Penfed

cute fuzzy bunny · 07-25-2008, 09:49 AM

I remember a couple of people asking about Penfeds solidity compared to other banks and CU's. Got an email from their chairman today, thought I'd share.

"No doubt you’ve seen and read about the many problems currently plaguing much of the financial services industry. I’ve received more than a few e-mails from members who are concerned about where Pentagon Federal stands in today’s environment. I’m happy to report that, unlike many of the financial institutions in the news recently, your credit union does not hold any collateralized mortgage obligations (CMOs), nor do we have any subprime mortgages in our portfolio. It's important to point out that recent bank, thrift, and mortgage company troubles all involve a history of subprime lending.

At Pentagon Federal, we take great pride in the fact that our history of prudent lending standards has kept us out of the subprime fray. Our loss rates are half those of our peers in the credit union industry and a tiny fraction of those in the financial services industry as a whole. In addition, our mortgage portfolio is excellent and we are monitored by federal government regulators.

Simply put, we have none of those huge losses you’ve been reading about to pass on to our members. Other financial institutions may experience difficulties, but our careful lending practices have kept us clear of the kinds of risks that have landed some banks in crisis. Because of our lending standards and careful internal financial controls, today's economic troubles are likely to have a negligible impact on the rates you pay on Pentagon Federal loans or the yields you receive on our savings/share products.

Additionally, your Pentagon Federal deposits are insured to at least $100,000 -- backed by the full faith and credit of the United States government. Both traditional and Roth Individual Retirement Accounts (IRAs) are similarly insured to at least $250,000.

We realize some of our members may be suffering through these troubled economic times. Hard times usually mean job losses and other cutbacks that certainly affect at least some Pentagon Federal Credit Union members. Despite a national trend toward higher loan delinquencies and losses, rest assured that Pentagon Federal remains an industry standout for low delinquencies and losses.

And despite all you've heard about hard times for mortgage lenders, Pentagon Federal continues to have a very strong mortgage business. We have plenty of mortgages to choose from. In fact, our 5/5 ARM is one of the best mortgage deals out there for homeowners who may be facing dramatic increases as their current ARMs' adjustment periods end. Our products are actually helping our members stave off the effects of rising rates and a down mortgage market.

If you have more specific questions about Pentagon Federal Credit Union’s financial well-being, please visit the "About Us" section of PenFed.org under "Publications," you can find copies of our last seven Annual Reports, which detail what the credit union has been doing to ensure its profitability and continued financial excellence for our membership as well as detailed financial analyses of the credit union’s deposits and loans.

We appreciate the trust you place in Pentagon Federal Credit Union. It’s loyal members like you who have allowed us to remain one of the strongest and safest credit unions in the world. We look forward to serving you in the future with the same sound practices that you have come to expect from us."

brewer12345 · 07-25-2008, 09:54 AM

Having looked at Pen Fed's financial statements numerous times, I have zero doubt that they are quite solid. I have only one problem with them: I wish they could go public so I could buy shares as a depositor!

FinanceDude · 07-25-2008, 10:04 AM

Quote:

Originally Posted by brewer12345

Having looked at Pen Fed's financial statements numerous times, I have zero doubt that they are quite solid. I have only one problem with them: I wish they could go public so I could buy shares as a depositor!

If they had "pesky" shareholders they would be so motivated by greed they would start doing stupid things to make money..........

rec7 · 07-25-2008, 10:10 AM

Quote:

Originally Posted by FinanceDude

If they had "pesky" shareholders they would be so motivated by greed they would start doing stupid things to make money..........

So true then they would become like all the banks we left.

OAG · 07-25-2008, 10:17 AM

Another point is that a LOT of their work is with Active Duty Military. Logically, a short letter to the Commander of a trooper or trooperete (that ought to bring the flames) falling behind in payments will probably result in a quick positive adjustment to their payment history. I am sure NFCU has the same motivating factor at work. USAA also but probably to a lesser extent.

brewer12345 · 07-25-2008, 10:21 AM

Quote:

Originally Posted by FinanceDude

If they had "pesky" shareholders they would be so motivated by greed they would start doing stupid things to make money..........

Not necessarily true. For example, look at a bank like HCBK. They never wavered from their insistence on sound lending standards and a conservatively run balance sheet. And they went public ten odd years ago.

Marquette · 07-25-2008, 10:30 AM

Quote:

Originally Posted by OAG

trooper or trooperete (that ought to bring the flames)

Because trooper is gender neutral and if you were trying to differentiate then it should be trooperette?

**ziggy29** · 07-25-2008, 10:35 AM

Quote:

Originally Posted by FinanceDude

If they had "pesky" shareholders they would be so motivated by greed they would start doing stupid things to make money..........

Good point. When you don't have to hit numbers quarter after quarter to satisfy Wall Street, it's easier to manage a business with a long-term perspective -- at least for large businesses with lots of anal-yst coverage.

FUEGO · 07-25-2008, 10:37 AM

I got the same letter - it must be a pretty exclusive club we belong to.

I know they are fairly conservative on loan underwriting. They turned me down on a home equity loan application when I was applying for only about 60% LTV. I reapplied and got approved after showing them my personal balance sheet with enough assets to repay the loan 3 times over, and verification of income to pay the monthly payments 10x over.

calmloki · 07-25-2008, 11:19 AM

"nor do we have any subprime mortgages in our portfolio". Ha! Penfed loaned me money on our home - they only think they don't have any subprime mortgages!

**ziggy29** · 07-25-2008, 11:21 AM

My CU has a similar note on their web site. And also prominently notes that they have never underwritten any subprime mortgages.

cute fuzzy bunny · 07-25-2008, 11:27 AM

Quote:

Originally Posted by FUEGO

I got the same letter - it must be a pretty exclusive club we belong to.

I figured all members that signed up with an email address got it. But a lot of people who arent members yet were asking about the financial stability of the CU before buying a CD or opening an account there.

This seemed to answer those questions.

CitricAcid · 07-25-2008, 12:22 PM

Got the same letter. Go public! That way we can ride it up for a couple of years followed by the shareholders burning the company to the ground. It would make a great movie methinks.

FUEGO · 07-25-2008, 12:35 PM

Quote:

Originally Posted by cute fuzzy bunny

I figured all members that signed up with an email address got it. But a lot of people who arent members yet were asking about the financial stability of the CU before buying a CD or opening an account there.

This seemed to answer those questions.

Sorry - I forgot the "this is sarcasm" (in thick heavy polish accent) tag.

Nords · 07-25-2008, 12:36 PM

Quote:

Originally Posted by OAG

... a trooper or trooperete (that ought to bring the flames)

Didn't the Jurassic dinosaurs perish in a sea of flame too?

Anyway it's a rank, not a biological gender description. Heck, my spouse has a piece of paper declaring her to be an officer and a gentleman by an act of Congress.

OAG · 07-25-2008, 01:52 PM

I like this board. It even tells you when you misspell a word "trooperate" verses "trooperatte", wrong context "gender" versus "non-gender.

Just remember all will become "dinosaurs"; it is just some of us are way ahead of the class.

cute fuzzy bunny · 07-25-2008, 06:09 PM

Quote:

Originally Posted by FUEGO

Sorry - I forgot the "this is sarcasm" (in thick heavy polish accent) tag.

I usually do.

Marquette · 07-25-2008, 06:23 PM

Quote:

Originally Posted by OAG

I like this board. It even tells you when you misspell a word "trooperate" verses "trooperatte", wrong context "gender" versus "non-gender.

I didn't tell, I asked. I have no idea why one would get flamed so I was taking a couple shots in the dark.

cute fuzzy bunny · 07-25-2008, 06:24 PM

So Marquette, is your wife known as Marquetteette?

Marquette · 07-25-2008, 06:26 PM

Quote:

Originally Posted by cute fuzzy bunny

So Marquette, is your wife known as Marquetteette?

07-25-2008, 09:49 AM	#1
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	A message from Penfed I remember a couple of people asking about Penfeds solidity compared to other banks and CU's. Got an email from their chairman today, thought I'd share. "No doubt you’ve seen and read about the many problems currently plaguing much of the financial services industry. I’ve received more than a few e-mails from members who are concerned about where Pentagon Federal stands in today’s environment. I’m happy to report that, unlike many of the financial institutions in the news recently, your credit union does not hold any collateralized mortgage obligations (CMOs), nor do we have any subprime mortgages in our portfolio. It's important to point out that recent bank, thrift, and mortgage company troubles all involve a history of subprime lending. At Pentagon Federal, we take great pride in the fact that our history of prudent lending standards has kept us out of the subprime fray. Our loss rates are half those of our peers in the credit union industry and a tiny fraction of those in the financial services industry as a whole. In addition, our mortgage portfolio is excellent and we are monitored by federal government regulators. Simply put, we have none of those huge losses you’ve been reading about to pass on to our members. Other financial institutions may experience difficulties, but our careful lending practices have kept us clear of the kinds of risks that have landed some banks in crisis. Because of our lending standards and careful internal financial controls, today's economic troubles are likely to have a negligible impact on the rates you pay on Pentagon Federal loans or the yields you receive on our savings/share products. Additionally, your Pentagon Federal deposits are insured to at least $100,000 -- backed by the full faith and credit of the United States government. Both traditional and Roth Individual Retirement Accounts (IRAs) are similarly insured to at least $250,000. We realize some of our members may be suffering through these troubled economic times. Hard times usually mean job losses and other cutbacks that certainly affect at least some Pentagon Federal Credit Union members. Despite a national trend toward higher loan delinquencies and losses, rest assured that Pentagon Federal remains an industry standout for low delinquencies and losses. And despite all you've heard about hard times for mortgage lenders, Pentagon Federal continues to have a very strong mortgage business. We have plenty of mortgages to choose from. In fact, our 5/5 ARM is one of the best mortgage deals out there for homeowners who may be facing dramatic increases as their current ARMs' adjustment periods end. Our products are actually helping our members stave off the effects of rising rates and a down mortgage market. If you have more specific questions about Pentagon Federal Credit Union’s financial well-being, please visit the "About Us" section of PenFed.org under "Publications," you can find copies of our last seven Annual Reports, which detail what the credit union has been doing to ensure its profitability and continued financial excellence for our membership as well as detailed financial analyses of the credit union’s deposits and loans. We appreciate the trust you place in Pentagon Federal Credit Union. It’s loyal members like you who have allowed us to remain one of the strongest and safest credit unions in the world. We look forward to serving you in the future with the same sound practices that you have come to expect from us." __________________ Many an optimist has become rich by buying out a pessimist

07-25-2008, 09:54 AM	#2
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,248	Having looked at Pen Fed's financial statements numerous times, I have zero doubt that they are quite solid. I have only one problem with them: I wish they could go public so I could buy shares as a depositor! __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

07-25-2008, 10:17 AM	#5
OAG Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Dublin, Ohio Posts: 1,824	Another point is that a LOT of their work is with Active Duty Military. Logically, a short letter to the Commander of a trooper or trooperete (that ought to bring the flames) falling behind in payments will probably result in a quick positive adjustment to their payment history. I am sure NFCU has the same motivating factor at work. USAA also but probably to a lesser extent. __________________ Proud Vietnam Veteran: Cu Chi 66, 1/25th, HHC 25th and Pleiku 66-67 41st Sig Bn 1st STRATCOM

07-25-2008, 11:21 AM	#11
ziggy29 Moderator Join Date: Oct 2005 Location: Texas Hill Country Posts: 2,398	My CU has a similar note on their web site. And also prominently notes that they have never underwritten any subprime mortgages. __________________ FIRE Clock: Retired. Since it feels like I'll never be now. waiting for the government to privatize the gains and socialize my losses in my 401K...

07-25-2008, 01:52 PM	#16
OAG Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Dublin, Ohio Posts: 1,824	I like this board. It even tells you when you misspell a word "trooperate" verses "trooperatte", wrong context "gender" versus "non-gender. Just remember all will become "dinosaurs"; it is just some of us are way ahead of the class. __________________ Proud Vietnam Veteran: Cu Chi 66, 1/25th, HHC 25th and Pleiku 66-67 41st Sig Bn 1st STRATCOM

07-25-2008, 10:37 AM	#9
FUEGO Full time employment: Posting here. Join Date: Nov 2007 Posts: 676	I got the same letter - it must be a pretty exclusive club we belong to. I know they are fairly conservative on loan underwriting. They turned me down on a home equity loan application when I was applying for only about 60% LTV. I reapplied and got approved after showing them my personal balance sheet with enough assets to repay the loan 3 times over, and verification of income to pay the monthly payments 10x over.

07-25-2008, 11:19 AM	#10
calmloki Thinks s/he gets paid by the post Join Date: Jan 2007 Location: Independence Posts: 1,420	"nor do we have any subprime mortgages in our portfolio". Ha! Penfed loaned me money on our home - they only think they don't have any subprime mortgages!

07-25-2008, 12:22 PM	#13
CitricAcid Full time employment: Posting here. Join Date: May 2008 Posts: 546	Got the same letter. Go public! That way we can ride it up for a couple of years followed by the shareholders burning the company to the ground. It would make a great movie methinks.

07-25-2008, 06:24 PM	#19
cute fuzzy bunny Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Dec 2003 Location: Losing my whump Posts: 22,527	So Marquette, is your wife known as Marquetteette? __________________ Many an optimist has become rich by buying out a pessimist