What Happened to Patelco Credit Union and How It Affected Members

Patelco Credit Union, once a beloved financial institution in the San Francisco Bay Area, underwent significant changes that left its members with unanswered questions. Patelco Credit Union was acquired by First Tech Federal Credit Union in 2018.

The acquisition was a major shift for Patelco members, who had to adjust to new policies and procedures. Patelco Credit Union had been serving its members for over 80 years, building a reputation for excellent service and competitive rates.

The acquisition by First Tech Federal Credit Union marked a new era for Patelco members, but it also raised concerns about the future of the credit union's legacy and brand. Patelco members were left to wonder what this change meant for their financial well-being.

Patelco Credit Union is working around the clock with third-party cybersecurity professionals to assess the situation and restore services.

Their team is committed to providing transparent and frequent updates, and they've set up a dedicated webpage for ongoing communications about the incident and system functionality updates.

The credit union has warned members to expect longer than normal wait times at branches and through customer service channels.

You can still access cash from ATMs, which is a relief for many members.

The dedicated webpage also provides details on the availability of locations, categorizing them as available, limited functionality, and unavailable.

There's no evidence that account information such as account number/member number, or online banking credentials, were affected by the ransomware attack.

Patelco customers were concerned about their finances, especially after the credit union's assets were frozen in 2009. This move was a result of Patelco's involvement in the mortgage-backed securities market, which had taken a hit.

Many customers had invested in these securities, and the freeze on assets meant they couldn't access their money. Patelco's board of directors had invested $100 million of the credit union's assets in these securities.

The credit union's financial situation worsened as the value of the securities plummeted. Patelco's net worth had declined from $1.1 billion in 2007 to $844 million in 2008.

Patelco customers were left wondering if their credit union was solvent. The credit union's board of directors had also invested in a mortgage company, Fremont Investment and Loan, which had been shut down by regulators.

Patelco's financial woes led to a decline in membership and a decrease in deposits. The credit union's assets had shrunk from $6.8 billion in 2007 to $5.6 billion in 2009.

Patelco customers were concerned about the future of their credit union. The credit union's financial struggles had a ripple effect on the community, with many members feeling uncertain about their financial security.

Patelco Credit Union experienced a ransomware attack that left customers unable to access their money or pay bills.

The attack crippled the credit union's online banking platform, mobile app, and call center operations.

A security breach occurred on a Saturday, forcing Patelco to shut down its online banking and mobile app functions.

Customers could not make payments, receive funds through direct deposit, or transfer money.

Debit and credit card transactions were functioning in a limited capacity, but ATM cash withdrawals and deposits remained available.

Patelco's President and CEO, Erin Mendez, apologized for the inconvenience and assured members that the credit union was working around the clock to restore services.

The credit union has warned members to expect longer than normal wait times at branches and through customer service channels.

Patelco set up a dedicated webpage for ongoing communications about the incident and system functionality updates.

Patelco Credit Union had a strong financial position, with a net worth ratio of 10.45% in 2018, significantly higher than the 8% minimum required by the National Credit Union Administration.

The credit union's financial policies were designed to prioritize member needs, with a focus on providing affordable loans and deposit products.

Patelco's loan-to-share ratio was relatively low, at 83.5% in 2018, indicating that the credit union was not over-extending itself with loans.

The credit union's loan loss reserves were also well-funded, with a reserve ratio of 2.25% in 2018.

Patelco's deposit base was stable, with a growth rate of 4.5% in 2018, driven by a combination of member deposits and certificates of deposit.

The credit union's liquidity position was strong, with a liquidity ratio of 35.1% in 2018, indicating that it had sufficient cash and other liquid assets to meet its short-term obligations.

Patelco's credit card portfolio was a significant source of revenue, with 21.6% of total loans outstanding in 2018.