PHOENIX – The $1.7 billion Arizona Federal Credit Union recorded a nearly $116 million net loss and placed $174.5 million in loan loss provisions as of December 31, 2008, resulting in an undercapitalized 4.75% ratio.

AFCU began 2008 with almost 11% capital. What happened?

According to President/CEO Ron Westad, his institution's commitment to serving the underserved backfired when the real estate market turned south.

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