Since November 2002, Patelco has been insured by the private insurer, American Share Insurance (ASI). According to the article, one big reason for the switch was the recent increase of IRA insurance coverage from $100K to $250K. Other reasons mentioned included reduced cost for the deposit insurance and fewer limitations in working with federal agencies that are closely involved with mortgage handling.
According to the article, Patelco is the largest credit union to have private insurance. Their financials as of 6/30/07 are available at the ASI page. Patelco has $4.28 billion in assets.
I'll be glad when Patelco gets back NCUA insurance coverage. There's something about federal insurance that provides confidence that insured deposits will be covered no matter what the future may bring. Private insurance just doesn't have the same weight in my opinion. Also, federal insurance is a very understandable mark of a financial institution's legitimacy. It's easy for those who don't follow these issues to understand that a credit union is legitimate when they see it's covered by the NCUA.
Patelco has a history of some great deposit deals. Please refer to my last Patelco post for some of their latest CD deals. It'll be nice to report on future Patelco deals without having to explain this ASI vs. NCUA issue.
Thanks to the readers who informed me of this news.