RANCHO CUCAMONGA, Calif., and BIRMINGHAM, Ala. (4/7/16)--Just as the member-owners of credit unions benefit from the success of the credit union through bonus dividends, so do credit unions that belong to credit union service organizations (CUSOs). Both CO-OP Financial Services and Credit Union Service Centers (CUSC) of Alabama recently announced patronage dividends for their members.
CO-OP Financial Services announced its 2015 shareholder patronage of $53.3 million, the highest annual dividend ever recorded by a CUSO for its owner credit unions.
The patronage is partially the result of CO-OP’s sale during 2015 of most of its investment in Ensenta Corp., Redwood Shores, Calif. CO-OP first invested in the self-service and image solutions provider in 2006, and the tech firm now holds four patents for its image capture capabilities.
“We were able to apply some gains from the sale of Ensenta stock for shareholder patronage, and at the same time maintain a board seat to influence product development direction for the good of credit unions,” said Stan Hollen, CO-OP Financial president/CEO. “The transaction was among many milestones for CO-OP that made the past year among the most eventful in the company’s history, all of which contributed to a record patronage and maximum return on value for our shareholders.”
CO-OP’s patronage amount now stands at a total $367.9 million since the CUSO became a cooperative in 1996.
CUSC of Alabama also will pay patronage rebates and dividends for the fifth consecutive year to members of the shared branching network.
Based on 2015 transaction volumes, total rebates and dividends total more than $173,000.
“To offer a rebate and dividend for five years in a row shows that credit union members see value in shared branching,” said Patrick La Pine, CUSC chair. “We saw excellent growth in new outlets in 2015 and that has also carried over into 2016 with nine new outlets expected by this June. Shared branching continues to bring convenience to credit union members across Alabama.”
CUSC of Alabama added 15 outlets to the network in 2015--the most it has added in three years.