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TEXAS CONVERSION CASES SETTLED

Alexandria, VA, August 31, 2005 - National Credit Union Administration (NCUA) Chairman JoAnn Johnson today announced that the agency had settled the lawsuit filed against it by Community Credit Union of Plano, Texas. Another Texas credit union, OmniAmerican Credit Union, had also joined in the lawsuit.

“The settlement reached today means NCUA will no longer object to the methods and procedures applicable to the membership votes on the proposals for Community Credit Union and OmniAmerican Credit Union to convert from credit unions to mutual savings banks.” Noting her disappointment in the Magistrate Judge’s Report and Recommendation issued last week in this case, Chairman Johnson stated that “Even though we believe there are valid objections that could be raised in response to the Report and Recommendation, we also believe settlement of this lawsuit is the best way to quickly resolve this matter.”

“This lawsuit has served to bring into clear focus several issues regarding our regulatory procedures, particularly the need for full and fair disclosures to members,” Chairman Johnson said. She added that “NCUA will continue to evaluate our regulations and processes to make certain that we satisfy our Congressional mandate to administer the member vote properly when a credit union seeks to convert to a mutual savings bank.”

The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 83 million account holders in all federal credit unions and the majority of state-chartered credit unions.