DFCU Financial Sets Record Dividend

DEARBORN, Mich. – DFCU Financial, the credit union giant that sought greener pastures as a bank earlier this year, said today it is rewarding its members for its best year ever with a $17.5 million dividend, the largest ever for a credit union. Robert Chapman, newly appointed chairman of the DFCU Board, said the record payout was made possible by the millions of dollars in savings enacted over the last six years. This is the first special dividend DFCU has paid in 20 years. Chapman was named chairman in recent weeks after the mysterious resignation of Harold Lowman, the long-time chairman who is the target of a members’ lawsuit for his role in the ill-fated conversion to mutual savings bank. The $2 billion credit union will pay every member 0.5% on their average loan and savings balance for 2006, with every member receiving at least $50. The dividend will be paid into members’ accounts on January 8. Members of the credit union who successfully fought to defeat the conversion to bank are suing in state court to force a special meeting where they hope to recall all of the directors who voted for the conversion.