Ariz. Federal Credit Union closing 4 branches

[Phoenix-Risen]

Source: Azcentral.com

by Russ Wiles - Feb. 13, 2009 05:07 PM
The Arizona Republic
Arizona Federal Credit Union plans to close four Valley branches as it grapples with falling demand from customers and a tough economy that contributed to a massive fourth-quarter loss and undercapitalized position.

The state's second-largest credit union in terms of assets behind leader Desert Schools Federal Credit Union said it will close two branches in Mesa and one each in Phoenix and Tempe effective April 4, reducing its network to 25 from 29. The Phoenix-based institution had added three branches during the first half of 2008.

Arizona Federal, with roughly 200,000 members, reported a loss of nearly $116 million in 2008, including $64 million in the fourth quarter.


A trade publication, Credit Union Journal, called it the second-largest annual loss ever for a credit union. It was also by far the most red ink in Arizona, where more than one-half the state's 56 credit unions lost money in 2008.



Read more: http://www.azcentral.com/business/articles/2009/02/13/20090213biz-AZFederal0215.html

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Well, that's disconcerting. Local credit unions have been touted as safe havens in these time of economic turmoil.

[Mojorabbit]

1. I thought that too

It seems the mattress is the only safe place anymore.

[marybourg]

2. No depositor will lose any money, just convenience. nt.

[Indenturedebtor]

3. As a former car salesman I can tell you that much of their losses is probably from autoloans

That and mortgages and people taking out fewer loans...