PHOENIX -- Marking one of the largest year-end payouts to members, $10 million, Arizona Federal Credit Union promoted the event with Dec. 15 visits by NCUA Vice Chairman Rodney Hood and U.S. Sen. Jon Kyl (R-Ariz.). The state's second largest CU said the $10 million capital distribution underscored a good year for the CU as well as a public demonstration of how it gives back to members and to the community, countering criticism in Congress of NCUA and industry policies on serving the low income.
Credit union officials referred to a Government Accountability Report two weeks ago comparing banks and CUs on the underserved and taking NCUA to task over its regulatory role.
The $1.5 billion Arizona FCU, the state's second largest, acknowledged that it was "time to step up to the plate" and counter such criticism by trumping the year-end giveback in a public forum by inviting Hood and the Arizona senator to a special morning press conference held at a hotel near the Phoenix airport.
Also expected to speak at the briefing was NCUA Regional Director Melinda Love joined by the leadership of the Arizona Credit Union System with board members expected to participate. Ron Westad, the president/CEO of Arizona FCU, is a past chairman of ACUS. In a media advisory, Arizona FCU said the year-end distribution was drawn from earnings from its loan and deposit business.
"A proportionate distribution of the $10 million will be based on loan interest paid and dividends earned by members," said a news release. "The distribution of excess earnings comes after a successful year of new membership growth, expanded branch and product offerings and one of the highest membership satisfaction ratings in the organization's history." --email@example.com