NCUA Questions DFCU Campaign To SaveDirectors

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DEARBORN, Mich. - (04/27/06) – NCUA said Wednesday that direstatements of a regulatory takeover of DFCU Financial if dissidentmembers succeed in recalling the nine directors who voted for theill-fated conversion of the $1.8 billion credit union are in error.“I don’t know where they got that from, but if therecall of the board succeeds, then the supervisory committee wouldthen be given control and they would be responsible for schedulingelections for a new board,” John McKechnie, chief spokesmanfor NCUA, told The Credit Union Journal. Material distributed byDFCU in its attempts to defeat the recall state, “The NCUA– the government – would appoint a conservator until anew slate of directors could be elected at the next AnnualMembership Meeting, which will be sometime in February 2007. Thistypically only happens to insolvent credit unions that is why thisis such a drastic measure. Do you want the government to choose theleadership of DFCU Financial?” Separately, DFCU reported thatits financials remain among the strongest among the nation’scredit unions, with first quarter net income of $7.8 million and a1.7 return-on-average assets for the first quarter, putting itamong the top performers in the nation, according to data compiledby Callahan & Associates.. The credit union reported strongloan growth of 7% annualized for the first quarter and growth innet capital of 16% to $237 million at March 31.

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