NCUA Vice Chairman Rodney E. Hood Joins Arizona Federal in Announcing $10 Million Return to its Member-Owners

Phoenix, Ariz. (December 2006) – Rodney E. Hood, Vice Chairman of the National Credit Union Administration (NCUA), today joined Arizona Federal Chair Cathleen Gleason in announcing the distribution of $10 million to the member-owners of Arizona Federal. 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.

“Throughout 2006 the credit union delivered value to its members in the form of convenient and competitive products and services,” Gleason stated at the ceremony. She continued, “It is important to the board and leadership of Arizona Federal that the accumulation of capital in excess of the need for operating costs and adequate capitalization is returned to the owners of the organization. It is my honor today to announce the delivery on the credit union’s value promise of ‘giving back’ to the members.”

Loan and deposit balances are the primary financial engine of the Credit Union. Therefore, a proportionate distribution of the $10 million will be based on loan interest paid and dividends earned by members. The members will realize their portion of the distribution at the end of 2006.

In addition to the distribution of excess capital, Arizona Federal members have benefited from an expansion of products and services including a wide array of mortgage loan options as well as expanded branch and ATM networks across the markets it serves.

“It continues to be the value that members gain from the member-owned cooperative structure of their credit union that illustrates the ‘credit union difference’ in a community,” said NCUA Vice Chairman Hood in his remarks at the ceremony. “Arizona Federal is putting the credit union philosophy into practice in an impressive and visible manner that demonstrates their commitment to their members, their high quality of member service that built the earnings they are returning to their members, their commitment to investing in their community by returning dollars that will stimulate economic growth and their reputation for the future as a trusted financial partner for over 200 thousand members.”

Today’s event launches a campaign entitled $10 Million Reasons to be a Member, which emphasizes the benefits and value of credit union membership. The success affording the distribution of members’ capital highlights the ability for the credit union to deliver even more value into the new year with aggressive product offerings and pricing, more locations and enhanced service levels.

For more information on Arizona Federal, please call (602) 683-1000 or visit their Web site at www.ArizonaFederal.org.

Arizona Federal is one of the state’s largest credit unions with more than $1.5 billion in assets, 200,000 members and 23 Arizona locations. As a financial cooperative, Arizona Federal delivers value to its member-owners by offering them a wide variety of competitive and convenient financial services. Arizona Federal is dedicated to being a key contributor to the communities it serves by financial and volunteer contributions and by providing financial education.

The National Credit Union Administration (NCUA), governed by a three-member board, is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of 80 million account holders in all federal credit unions and many state-chartered credit unions.

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