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DECATUR FEDERAL SIGNS DEPARTMENT OF JUSTICE CONSENT DECREE

 DECATUR FEDERAL SIGNS DEPARTMENT OF JUSTICE CONSENT DECREE
 DECATUR, Ga., Sept. 17 /PRNewswire/ -- Decatur Federal Savings and Loan Association (NASDAQ: DFSE) today announced reaching a settlement with the Department of Justice pending acceptance by the federal district court regarding alleged racial discrimination in its home lending practices.
 Decatur Federal categorically denies all the allegations brought by the Justice Department. The company voluntarily chose to settle the case in order to avoid protracted and costly litigation. The litigation could have lasted years, cost millions of dollars and hampered the effective operation of the company. Decatur Federal also stated it has never discriminated on the basis of race, religion, age, sex, marital status, handicap or national origin, and stated it has had programs in place to serve all segments of the community.
 Decatur Federal has developed in cooperation with the Department of Justice, a plan to enhance its policies and practices regarding fair lending. According to Robert C. McMahan, chairman and chief executive officer of Decatur Federal: "We have always been committed to helping people own homes. We have decided to use this settlement to rededicate ourselves to making home loans available to all individuals. We will seize this opportunity to effect real and lasting change in minority lending by taking a leadership role in our communities and our industry. This settlement will strengthen our company as we will set forth a challenge for other institutions to match."
 In the cooperative settlement reached with the Department of Justice, Decatur Federal agreed to address the following issues:
 -- Continue and expand its affirmative marketing, advertising, branching, solicitation, recruitment and mortgage production strategies in the black community to increase applications.
 -- Enhance efforts to assure that mortgage applications from all applicants are processed under the same standards and underwriting criteria.
 -- Establish and expand existing training programs to inform mortgage lending personnel of the settlement, of special marketing efforts and of issues related to nondiscriminatory lending.
 -- Place $1 million into a Consent Decree fund to be disbursed as relief to allegedly aggrieved persons as identified by the Department of Justice.
 The settlement will not affect the proposed merger with First Union Corporation (NYSE: FTU) or the price that shareholders are to receive in the merger.
 Decatur Federal is the wholly owned subsidiary of DFSoutheastern, Inc., whose common stock is traded in the NASDAQ Over-the-Counter Securities Exchange under the symbol "DFSE."
 -0- 9/17/92
 /CONTACT: Susan Paul Smith, vice president-Public Relations of DFSoutheastern, 404-371-4411/
 (DFSE FTU) CO: Decatur Federal Savings and Loan Association, DFSoutheastern, Inc.;
 U.S. Department of Justice ST: Georgia IN: FIN SU:


BR-BN -- AT002 -- 0480 09/17/92 09:33 EDT
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Publication:PR Newswire
Date:Sep 17, 1992
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