Philadelphia Federal Credit Union

Philadelphia Federal Credit Union

File:Philadelphia Federal Credit Union Logo.jpg
Company type	Credit union
Industry	Financial services
Founded	April 16, 1951 (1951-04-16) in Philadelphia, Pennsylvania, United States
Headquarters	Philadelphia, Pennsylvania, United States
Key people	Patricia Craven – President Bernard Lester – Chairman Joseph F. McHugh Jr. – Treasurer
Net income	US$9.39 million (2024) Decrease
Total assets	US$1.71 billion (2024) Increase
Total equity	US$201 million (2024) Increase
Number of employees	289 (269 full-time, 20 part-time; 2025)
Website	pfcu.com

Philadelphia Federal Credit Union (PFCU) is a credit union headquartered in Philadelphia, Pennsylvania. As of September 30, 2024, it reported $1.71 billion in assets, making it the sixth-largest credit union in the Philadelphia region and the ninth-largest in Pennsylvania. PFCU operates 12 branches across the city and surrounding areas.

The institution has faced a series of controversies, including class action lawsuits over overdraft fees and repossession practices, a multimillion-dollar loss on a hotel loan in Bucks County, and a debit card security breach affecting hundreds of members.

Controversies

In July 2019, Philadelphia Federal Credit Union confirmed that a debit card security breach may have affected approximately 400 members. The credit union reissued cards and pledged reimbursement for affected accounts.

In October 2019, a proposed class action lawsuit (*Dailey v. Philadelphia Federal Credit Union*) alleged that PFCU breached its account agreements by charging multiple non-sufficient funds (NSF) fees for a single transaction.

In 2020, PFCU disclosed losses related to a $13 million commercial loan for the Wyndham Hotel in Trevose, Pennsylvania. The hotel lost its liquor license and was closed by the fire marshal amid unpaid taxes, wages, and utility bills. At the time of bankruptcy, PFCU reported being owed more than $12 million. The hotel, appraised at $24.5 million in 2018, sold at auction in 2020 for $7 million, leaving PFCU with an estimated loss of at least $5 million.

In October 2023, another class action (*Cook et al. v. Philadelphia Federal Credit Union*) was filed, alleging that the credit union’s repossession notices unlawfully inflated redemption amounts and misrepresented members’ rights under Pennsylvania law.

In June 2025, PFCU filed a breach-of-contract complaint (*Philadelphia Federal Credit Union v. McDaniels*) in Pennsylvania state court. The case was entered on June 27, 2025.

Political Activity

Philadelphia Federal Credit Union maintains a connected Political Action Committee (PFCU-PAC). In the 2023–2024 federal election cycle, it raised approximately $125,800, spent $69,628, and ended with $204,729 in cash on hand.

The majority of expenditures (about 92 percent) were contributions to state and local political committees and candidates, with smaller amounts spent on fundraising and miscellaneous expenses.

Major Recipients

• Hasher for City Council — $21,000
• Friends of Brian O’Neill — $12,850
• Republican City Committee — $5,500
• Driscoll for Council — $4,250
• People for Parker — $2,900
• Friends of Pat Gallagher — $2,100
• Lisa Dahling (treasurer) — $1,950
• Jimmy’s Time Out (fundraising event) — $1,783
• Dillion for Senate — $1,750
• Democratic City Committee — $1,500

Major Donors

PFCU-PAC’s funding comes largely from contributions by individuals and entities associated with the credit union. In the 2023–2024 cycle, the top 10 contributions of US$1,000 or more were:

• Steve Sticco — $3,000
• Charles Zacney — $2,700
• Brian Rose — $2,150
• Driscoll for Council — $1,700
• William Levant — $1,500
• Raymond Longstreath — $1,450
• Michael McAllister — $1,300
• Larry Meador — $1,200
• Michael McAllister (second contribution) — $1,120
• Gary DeVito — $1,000

Notably, Driscoll for Council appears both as a recipient of PAC funds and as a contributor back to the PAC, reporting a US$1,700 contribution in 2023–2024. This type of circular transaction, while legally disclosed in FEC filings, has drawn scrutiny in campaign finance reporting.

Michael J. McAllister, Esq., is listed as an emeritus member of PFCU’s Board of Directors—effectively a "board member for life."

This level of PAC activity is unusual for credit unions of comparable size, and transparency advocates have raised concerns about the potential for institutional influence in local politics.

Services

Philadelphia Federal Credit Union provides traditional credit union services including checking and savings accounts, consumer loans, mortgages, and credit cards. Credit cards are issued through Elan Financial Services, a third-party provider.

The credit union also offers investment referrals through financial professionals affiliated with LPL Financial LLC, an independent broker-dealer.

PFCU promotes private student loans in partnership with Sallie Mae Bank and other lenders. Philadelphia Federal Credit Union is not the creditor for these loans but receives compensation from Sallie Mae for loan referrals.

Financials

As of September 30, 2024, PFCU reported US$1.71 billion in assets, US$201 million in equity, and net income of US$9.39 million.

Financial trends

Recent net income figures show notable volatility:

Net income trends (audited)

Year	Net income (US$ M)
2018	15.4 Increase
2019	17.8 Increase
2020	3.1 Decrease
2021	19.6 Increase
2022	16.7 Decrease
2023	10.3 Decrease
2024	9.4 Decrease

In total, net income fell in four of the past six years, with only a single large rebound in 2021, which was primarily attributed to post-COVID recovery and a low interest rate environment.

History

Philadelphia Federal Credit Union was founded on April 16, 1951, to serve Philadelphia municipal employees.

During the late 20th century and early 2000s, PFCU expanded through a series of mergers, including with Temple Employees Federal Credit Union in 1983, Community Concern #13 FCU in 1989, Health & Human Service FCU in 1990, Afserco Staff FCU in 2004, and New Bethel AME FCU in 2012.

In the 2000s, PFCU broadened its services to include mortgages, credit cards (issued through Elan Financial Services), investment referrals (via LPL Financial), and private student loan partnerships with Sallie Mae.

By 2025, PFCU served over 120,000 members across 12 branches and reported $1.71 billion in assets.