Pentagon Federal Credit Union (227), a $29.4B credit union headquartered in Mclean, VA, led by CEO Schenck, reported $25.4B in member deposits at the end of 2025 Q3, a decrease of $2.7B (-9.6%) compared to the same quarter last year.
The credit union's 90.5% loan-to-share ratio indicates strong loan demand relative to deposits, which may require attention to deposit pricing and liquidity management.
Taken together: deposit gathering becomes strategic priority for growth.
Deposit Composition
Pentagon Federal Credit Union's deposit portfolio is led by Regular Shares, comprising 40.4% of total deposits—basic savings accounts with no withdrawal restrictions. The heavy concentration in liquid shares provides operational flexibility but may pressure net interest margin in a rising rate environment.
Deposit Portfolio Breakdown
| Deposit Type | Balance | % of Total | YoY Growth |
|---|---|---|---|
| Regular Shares | $10.3B | 40.4% | +22.2% |
| Share Certificates | $9.2B | 36.4% | -27.6% |
| Share Drafts | $2.1B | 8.2% | +1.7% |
| Money Market | $2.1B | 8.1% | -27.1% |
| IRA/KEOGH | $1.6B | 6.2% | -11.8% |
| Other Shares | $94.0M | 0.4% | +23.6% |
| Non-Member Deposits | $87.6M | 0.3% | -56.5% |
Source: NCUA 5300 Call Reports (2025_Q3)
Quarterly Deposit Trends
Deposit contraction may reflect rate-sensitive members moving funds to higher-yielding alternatives, or broader economic pressures affecting member savings capacity.
Quarterly Trend
| Period | Total Deposits | QoQ Change | Avg/Member |
|---|---|---|---|
| 2024 Q2 | $29.0B | $10K | |
| 2024 Q3 | $28.1B | -3.0% | $10K |
| 2024 Q4 | $27.1B | -3.8% | $10K |
| 2025 Q1 | $27.1B | +0.1% | $10K |
| 2025 Q2 | $25.9B | -4.2% | $9K |
| 2025 Q3 | $25.4B | -2.0% | $9K |
Source: NCUA 5300 Call Reports
Member Deposit Metrics
Pentagon Federal Credit Union serves 2,748,653 members, a decrease of 3.1% year-over-year. The average member deposit of $9K has declined 6.6% compared to last year.
Deposit retention remains a key focus in the current rate environment.
Historical Context: Since the 2008 Crisis
Pentagon Federal Credit Union's deposit base has grown 153% since Q3 2008, when the financial crisis was at its peak. At that time, the credit union held $10.0B in member deposits serving 846,549 members.
Membership has expanded 225% over this period, demonstrating strong community trust and successful member acquisition.
Peer Comparison
Among 10 credit unions in its $14.7B–$44.0B asset peer group, Pentagon Federal Credit Union ranks in the 0th percentile for deposit growth. This suggests room for improvement in member deposit attraction and retention.
Outlook
Pentagon Federal Credit Union's deposit trajectory will depend on rate competitiveness, member retention efforts, and the broader economic environment affecting member savings behavior.
Pentagon Federal Credit Union's Q4 2025 results, expected in early 2026, will provide further insight into whether the credit union can stabilize its deposit base.
Track This Credit Union
Monitor Pentagon Federal Credit Union's quarterly deposit performance, member metrics, and share composition with Finleet Terminal.
Data Sources: NCUA 5300 Call Reports (2025_Q3), NCUA Historical Data (2007-present), Finleet Proprietary Analysis
Methodology: Year-over-year growth calculated comparing 2025_Q3 to same quarter prior year. Peer groups defined as credit unions within 50% asset range. Average deposit calculated as total shares and deposits divided by total members.