Media Advisory

NCUA Liquidates Sterlent and Cal State 9 Credit Unions; Patelco Credit Union Purchases and Assumes Credit Union Assets

July 1, 2008 Alexandria, Virginia - The National Credit Union Administration (NCUA) today liquidated two state chartered California credit unions, Sterlent Credit Union of Pleasanton and Cal State 9 Credit Union of Concord.  Patelco Credit Union purchased assets and assumed most shares of both institutions.  

In the case of Sterlent Credit Union, the California Department of Financial Institutions agreed that the NCUA would serve as liquidating agent of Sterlent.  Immediately following the issuance of the order, NCUA liquidated Sterlent and entered into an agreement with Patelco Credit Union to sell certain assets and liabilities of Sterlent to Patelco.  At the time of liquidation, Sterlent Credit Union had approximately $94.6 million in assets. Sterlent was established in 1936 as EBTEL Federal Credit Union and became a California state chartered credit union in 2002.

The Cal State 9 Credit Union liquidation and purchase and assumption by Patelco Credit Union had been announced May 22, and was completed today.  Cal State 9 had been operating under NCUA conservatorship since November 2007.  Chartered in 1948, Cal State 9 was originally chartered to serve University of California employees.  It had assets of $339 million and served nearly 29,000 members.

Members of the two liquidated credit unions experienced no interruption of credit union service as their credit unions were purchased by Patelco Credit Union.  Patelco will continue operating branches of both purchased credit union, and member accounts in all involved credit unions are federally insured by the National Credit Union Share Insurance Fund (NCUSIF) up to at least $100,000. 

Patelco Credit Union is a state-chartered, federally insured institution that was chartered in 1936. It is a full service, $4.1 billion credit union with more than 242,000 members primarily located in California. Patelco has 39 branches nationwide and no-fee ATM service at 25,000 locations.  

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings more than 87 million members in all federal credit unions and many state-chartered credit unions. NCUA operations are funded by credit unions, not tax dollars.

-NCUA-