PHOENIX — The chairman of the Arizona Credit Union System acknowledged Friday the real estate fallout has created "a difficult climate" for a number of Arizona CUs including the state's second largest, the $1.9 billion Arizona FCU, but that capital ratios are well above peer averages.
"If you take a look at Arizona Federal's numbers as well as some of the others going through a difficult time, you have to see they are well capitalized," said Stephen Dunham , the System head and president/CEO of the $150 million Canyon State CU of Phoenix.
Arizona CUs "are right in the 10 1/2 – 12 1/2 range and that should be pretty reassuring," said Dunham stressing that from his reading Arizona CUs reporting losses in the first half did not engage in subprime loans but were experiencing losses from the state's continuing economic malaise.
Earlier this week, Arizona FCU citing overall delinquencies tied to home equity, credit cards and auto loans, reported a $42.5 million loss for the first second months while maintaining its capital is at 8.23% net "and over 10% gross" a figure that can be considered "very well capitalized."
Dunham said management of Arizona CUs reporting what he said are "modest" losses are indeed "surprised that they even are having to report them." And yet, the Arizona economy with soaring foreclosure rates, has a similar pattern but not as severe as the California CU experience.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.