PHOENIX — In separate announcements Monday, the $1.8 billion Arizona Federal Credit Union said it has distributed nearly $4 million in dividend earnings to its members while also disclosing what it calls an “exclusive” and precedent-setting pact with the city's YMCA organization to open its first financial institution branch.

The credit union's YMCA branch, to open in early March in a low income Hispanic neighborhood, west Phoenix, is designed, in part, to counter and provide an alternative to the proliferation of payday shops in the area, officials said.

“Arizona Federal is proud to partner with the YMCA to help deliver critical financial skills to the community,” said Ronald Westad, president/CEO of Arizona FCU. “This partnership was forged in response to a great social need: the need for financial education.”

Officials said more CU branches in other Phoenix area YMCA facilities may be opened later on along with financial education instruction in the centers.

Meanwhile, the Phoenix CU said its $4 million payout underscores the enviable position of the CU in returning earnings to members, said a release. The release also noted, at the same time, the CU added three new branches in 2007, rolled-out a new suite of member business services, and began providing all membership with identity theft recovery service “at no cost.”

Having the ability to return nearly $4 million in capital in addition to these added benefits “during a particularly difficult year in the financial services industry demonstrates the commitment Arizona Federal has to its member-owners,” concluded Westad.