Patelco switches to federal insurance

After more than a year of consideration, your Board of Directors has elected to change Patelco’s deposit insurance
from private insurance to insurance provided by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF carries the full faith and credit of the federal government and is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).

Effective January 1, 2008
Your non-IRA credit union savings deposits will be insured up to $100,000 and IRA deposits will be insured up to $250,000 by the NCUSIF. Greater coverage may be obtained by changing the ownership rights on accounts. Check with your local branch
for details on how this might apply to your own circumstances.

Why is Patelco Making this Change?
Since we became insured by ASI, late in 2002, a number of changes have occurred that lead us to believe that federal deposit insurance is a better fit for our future. Here are a few of the reasons why:

• The maximum amount of NCUSIF insurance for IRAs has increased to $250,000; a substantial improvement in the federal program.
• The cost borne by Patelco for deposit insurance through NCUSIF will be lower.
• Recently, we have found that our private insurance coverage has limited our ability to work with some federal agencies.
• Private insurance has not enhanced our ability to increase our branch network through partnerships with other credit unions.