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Arizona's credit union industry boosts its financial strength
In sharp contrast to the financial troubles plaguing the state's banking and thrift industries, Arizona's credit unions experienced healthy growth in net income, equity and assets during 1990 while also posting a sharp decrease in loan delinquencies, according to recently released federal figures.
"I'd say that now, credit unions as a whole are in the best shape financially that I've seen them in over the past five years," says Ken Johnston, assistant director of the Credit Union Section of the state Banking Department. "In general, if you look at the history of credit unions over the past 50 years, their losses have been minimal. One of the main reasons for that is they are organized as people cooperatives, so they know their people and make loans based on character."
Recent figures from the National Credit Union Administration, the federal body that regulates the nation's credit union industry, support Johnston's optimism. In 1990, compared with 1989, the state's 80 credit unions posted a 113.6 percent increase in net income, a 6.1 percent increase in equity (or capital) and a 5.5 percent increase in assets. At the same time, the total dollar amount of delinquent loans was reduced by 28.7 percent.
Credit union officials in the state credit the industry's …