Here are excerpts from the lead article in the Michigan Credit Union League's President's Report. The article, about DFCU Financial’s patronage dividend, is authored by David Adams, president and CEO of the Michigan Credit Union League. The Michigan Credit Union League is the credit union trade association in Michigan.

“Now, in November 2007, DFCU Financial has announced its second annual record-setting patronage dividend, again in the amount of $17 million. Qualifying members will receive a 0.5 percent dividend on all 2007 average loan and deposit balances, with each eligible member receiving at least $50. For example, a member with an average deposit balance of $10,000 and an average loan balance (including mortgage loan) of $150,000 ($160,000 total balance) would receive an $800 patronage dividend. Now that's differentiation! When is the last time that a bank has sent their customers a little extra after a profitable year?”

******************

“…Michigan's largest credit union, DFCU Financial is now demonstrating even more effectively than before that it understands the credit union difference. The real difference is in the not-for-profit structure and the ability that credit unions have to add value for their members - unlike the profit motive and need to maximize shareholder value that drives the banking industry.”

******************

“…I've been impressed by the way DFCU Financial has "stepped up" on behalf of its members.”

******************

“DFCU Financial has generated strong net income and net worth levels that allow it to consider this kind of dividend. In fact, this really isn't something that new. The credit union touts that they have invested more than $50 million in Southeast Michigan since 2003, referring to the branching and new programs offered.

******************

“It was just last March that Michigan's largest bank, Comerica, announced that it would relocate its headquarters to Dallas, Texas. This dealt a huge psychological blow to an already reeling Michigan economy. By contrast, Michigan's largest credit union, DFCU Financial, was distributing record-setting patronage dividends to its 125,000 Michigan members.”

If you would like to read the entire article, please follow this link:

http://www.mcul.org/Presidents_Report_583.html