Arizona Federal Credit Union, still wrestling with large loan losses, is closing four of its branches April 4.

"We've experienced a decline in demand for financial services across our branch network, which has led us to a difficult but appropriate decision," explained Ron Westad, president/ CEO of the $1.7 billion CU which recorded a staggering $115.9 million loss in 2008.

The closures, two in Mesa and one each in Phoenix and Tempe, will leave Arizona Fed with a total of 25 branches. The CU employs about 750 and local news reports said the CU staff had dropped by 68 through attrition.

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No layoffs are anticipated, and the CU plans to transfer employees from the closed branches to other locations, a company spokesman.

"While we regret having to take this action, we do so as an appropriate step to ensure the long-term success of your credit union," Westad said on the CU website. "The operating costs to maintain a 29-branch network in this economic environment are no longer prudent, given the reduced demand."

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