Securitization leveraged to further strengthen credit union through diversified funding, increased liquidity and net worth

TYSONS, Va., Sept. 22, 2025 /PRNewswire/ -- PenFed Credit Union, one of the nation's largest federal credit unions, today announced the closing of its third prime auto loan securitization offering PenFed Auto Receivables Owner Trust 2025-A (PNFED 2025-A). The transaction issued $398,490,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans.

"PenFed is proud to announce our third auto loan securitization," said PenFed Credit Union President/CEO James Schenck. "This third securitization diversifies funding, increases liquidity and strengthens net worth."

The securitization is a private placement offering, which in the United States is offered only to qualified institutional buyers under Rule 144A. The asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch.

"PenFed is pleased that this auto loan securitization offering was very well received by the market," said PenFed Credit Union CFO and EVP, Sarah Heintzman. "We plan to continue establishing PenFed as a programmatic issuer and leveraging securitization as a tool to help us serve our members by diversifying liquidity and funding options."

PenFed has the second-largest consumer loan portfolio among all credit unions across auto, personal, student, consumer loans and credit cards. PenFed also possesses one of the largest auto loan portfolios among federal credit unions, with originations across all 50 states and Puerto Rico. PNFED 2025-A is the second transaction to include auto loans issued in Puerto Rico as part of the collateral pool for this transaction.

J.P. Morgan Securities LLC acted as the structuring lead of the transaction and Wells Fargo Securities LLC, acted as joint lead with Goldman Sachs & Co LLC as the co-manager on the transaction.

About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is one of America's largest federal credit unions, serving nearly 3 million members worldwide with $30 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on X. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.       

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SOURCE PenFed Credit Union