American River HealthPro Credit Union To Announce 2008 Year End Results - Will Revisit Location for New Branch in 2009.

RANCHO CORDOVA, Calif. -- American River HealthPro Credit Union (ARHCU) today announced that its 2008, year-end results will reflect a net loss due to some of the common factors currently impacting financial institutions across the country. Official reporting, according to industry practice, will occur later this month following final accounting entries and review by the ARHCU Board of Directors.

"Clearly, the pressures affecting consumers in our greater economy have also had some impact here at ARHCU," said CEO, Bob Steponovich. Even relatively conservative institutions like ARHCU -- a 53-year-old, not-for-profit financial cooperative -- have felt "ripple effects" from the economic downturn and decline in real estate values, he noted. "The Central Valley's housing sector meltdown, coupled with the dismal trends in wages and employment, has hit local families hard."

Steponovich stated, "While our credit union's mortgage portfolio performed relatively well in 2008, we have seen the primary impact in our consumer loans, as our members struggle to stay current on their vehicle and credit card debt."

Anticipating this trend, however, in June, 2008 the credit union adjusted upward its Provision for Loan Loss by an additional $4 million: "Essentially, this was initiated as an abundance of caution measure given the bleak economic outlook," said Steponovich. "Accordingly, our annual reporting will document a stronger performance than projected, based on our mid-year numbers, which reflected the one-time adjustment."

In a related announcement, the ARHCU Board of Directors is currently taking the next step in the credit union's delivery strategy, by evaluating potential locations for the credit union's next branch office.

As the only Sacramento area financial institution with products, services and branch hours specifically designed to serve the growing healthcare industry, recent branch expansion plans have been driven by healthcare employers' capital investments, projections by these groups as to where they expect their most significant growth, and the pace with which new healthcare facilities come online.

ARHCU opened its newest branch in Roseville in spring of 2007. Early in 2008, tentative plans were made to pursue the next phase of growth with a branch in Elk Grove. Subsequent designs on a further expansion into Lincoln were to follow. Based on changing factors in these two markets over the past year, the sequence and timing of these plans is under review.

ABOUT AMERICAN RIVER HEALTHPRO CREDIT UNION:

American River HealthPro Credit Union (ARHCU) is a not-for-profit, financial cooperative headquartered in Rancho Cordova, CA that focuses on serving the healthcare employee community in the Greater Sacramento area. Founded in 1955, ARHCU currently has more than 22,000 members, 75 employees and assets in excess of $220 Million. Membership for ARHCU is open to individuals who live or work Sacramento, Placer, El Dorado and Yolo counties. Website: www.arhcu.org