WASHINGTON – Credit union losses continue to mount as the NCUA updates 4^th quarter 2008 financial reports available on its Web site (www.ncua.gov/IndexCUQuery.htm). After news the $1.7 billion Arizona Federal Credit Union's net worth had fallen to 4.75%, additional investigation turned up two medium sized credit unions that have fallen below the NCUA's 6% capital ratio standard.

The Las Vegas-based $159 million Community One Federal Credit Union's net worth plummeted to 4.17%, after last quarter's 6.77% mark and 7.48% in December 2007. Community One suffered a $6 million net loss, spurred by $4.5 million in charge offs and an $8 million loan loss provision. Loan losses are primarily found in direct and indirect consumer lending.

A couple of hours south on Interstate 15, Victorville-Calif.-based The Members' Own Federal Credit Union reported 5.88% net worth at year-end. The $92 million institution posted nearly $4 million in losses, thanks to soaring mortgage delinquencies that contributed to year-end provisions of $3.8 million.