Praising the city’s amenities and diverse talent pool, Pentagon Federal Credit Union (PenFed) on Friday announced plans to establish a regional financial center in San Antonio.
The planned expansion is expected to create approximately 600 new jobs to serve the Virginia-based company’s 1.8 million members around the world.
“PenFed’s top priority for our new regional center was to locate in a pro-business, military-friendly state,” stated James Schenck, PenFed’s president and CEO. “We ultimately chose San Antonio because the city and the surrounding area provide a highly skilled diverse talent pool and world-class amenities to support PenFed’s leading position as a destination employer.”
City Council will vote Jan. 31 on an incentive package for PenFed that includes an Economic Development Incentive Fund grant of up to $221,000 and a 15-year, 60-percent Chapter 380 Rebate on real and personal property to secure the financial center and the creation of high-wage jobs.
The financial center will be located in the former corporate offices of CST Brands at 19500 Bulverde Rd.
PenFed posted the first of its San Antonio job openings here. Seven of the job listings are for about 40 positions that will be filled in the first round of hiring. The member service representative listing is for about 30 positions.
Bexar County commissioners approved an incentive package Feb. 12 valued at $380,662 to assist the company’s expansion. The State has already extended PenFed a Texas Enterprise Fund grant offer.
Established in 1935, PenFed is the nation’s second-largest federal credit union with more than 1.8 million members and $25 billion in assets. The company provides banking and mortgage services to members of the Armed Forces, Department of Defense, Department of Homeland Security, various military associations, eligible veterans and retirees, and their families. (Navy Federal Credit Union, with six branches in San Antonio, is the nation’s largest federal credit union.)
Consumer banking advice website NerdWallet lists PenFed among the “top military banks and credit unions,” along with San Antonio-based USAA Bank, established in 1983, and Security Service Federal Credit Union, founded in 1956.
At $71 million in deposits in 2017, USAA Bank ranks 28th on the list of largest banks in the United States, and is frequently recognized in the industry for its reputation, veteran-hiring practices, philanthropy, and community service. Earlier this month, it reached a settlement with the Consumer Financial Protection Bureau (CFPB), which charged USAA Bank with violating banking and consumer protection laws.
Last week, parent company USAA responded to criticism for not offering low-interest loans during the ongoing government shutdown by making a major donation to the Coast Guard Mutual Assistance to support loans for Coast Guard members. Last year, the major San Antonio employer eliminated 100 positions here in its real estate lending and Real Estate Rewards Network, which handles home mortgages.
Security Service is the largest credit union in San Antonio and the state, with 800,000 members and $9.5 billion in assets, according to iBanknet.
Randolph-Brooks Federal Credit Union, another financial services provider to the military based in San Antonio, has 750,000 members and just over $9 billion in assets. It is ranked seventh among federal credit unions.
PenFed’s planned growth would significantly increase the credit union’s San Antonio workforce at its two existing branches. In the proposed financial center, several executive positions will manage research, mortgage and loan operations, service center operations, collections, and human resources.
“This project illustrates the community’s continued commitment to attracting innovative employers to our city and the creation of skilled, high-wage jobs,” City Manager Sheryl Sculley said. “PenFed’s selection of San Antonio further bolsters our city’s position as a desirable location for businesses to expand and grow their operations.”
Mayor Ron Nirenberg called it a vote of confidence for the city’s strong financial services sector, adding, “PenFed is an outstanding corporate citizen and cultural fit for our San Antonio community.”
Jenna Saucedo-Herrera, San Antonio Economic Development Foundation president and CEO, stated, “Now is the time to invest in San Antonio and our rapidly growing financial services and technology industries. PenFed will further elevate a base of innovative, community-focused, strong corporate citizens here in San Antonio.”
