Dearborn Financial Seeks To Convert ToMutual Savings Bank

DEARBORN, Mich. - (12/15/05) The $1.8-billion Dearborn FinancialCredit Union has announced plans to convert to a mutual savings andloan. The credit union provided few details in response to presscalls other than to confirm its plans. Employees were informed ofthe decision on the morning of Dec. 14. “We are excited aboutthe opportunity this will provide DFCU Financial and itsmembers,” said Kim Gabbert, director of public relations atDFCU. DFCU is the second billion-dollar credit union in Michigan toseek to become a mutual savings bank. The first, Lake MichiganCredit Union, attempted to convert charters but failed to garnerthe two-thirds approval of voters that is required under Michiganlaw. In the Lake Michigan CU case, the Michigan league sponsorednewspaper advertisements that didn’t oppose the merger plans,but did seek to inform members of what would be lost in the eventthe conversion were to occur. David Adams, president of theMichigan league, said the league will be watching eventssurrounding Dearborn Financial CU’s conversion attempt.“We will see how the process plays out to decide whether wewill weigh in more aggressively or less aggressively,” hetold The Credit Union Journal.