Members continue to benefit from extraordinary CU dividends
MADISON, Wis. (1/9/15)--Credit unions share the benefits of their cooperative structures year-round with their member/owners, and when they have a particularly successful year, those members can be rewarded above and beyond lower loan rates and higher savings rates.
The end of the calendar year is a perfect time for many credit unions to announce the extraordinary dividends or patronage bonuses they are giving to their members:
- First Service CU, a $512 million-asset credit union in Houston, is paying out its first patronage dividend--roughly $250,000--following a financially successful year in 2014. "Being part of a financial cooperative pays big," said President/CEO David Bleazard. "It doesn't take much to see that the power of credit union member-ownership has value and real meaning to those that are a part of it;"
- FAA CU, Oklahoma City, with $563 million in assets, provided year-end bonuses to its members for the 14th consecutive year. A 4% rebate totaling $453,922 went back to eligible members Dec. 31. "We are proud to be one of the only financial institutions to continue to give back to our members with year-end rebates and bonuses," said President/CEO Steve Rasmussen (The Oklahoman Jan. 3);
- ince 2006, the largest credit union in Michigan--Dearborn-based DFCU Financial CU with $3.6 billion in assets--has paid its members a bonus dividend to the tune of a total $181 million. This year's record-breaking $24 million rebate will go to more than 100,000 members, with an average cash-back direct deposit of $250 (Hometown Life Jan. 8). President/CEO Mark Shobe said, "We believe it's our responsibility to share our success with the members who help us achieve it, whether they are borrowers or savers;"
- More than 3,200 members of $150 million-asset Community Financial CU, Broomfield, Colo., are eligible for member bonuses this year. The $400,000 dividend--the largest to date--is based on the amount of interest and dividends earned on deposit accounts and interest paid on loans. Since 2008, the credit union has rewarded its loyal members with $2.1 million in rebates;
- "The credit union's purpose is to return value to its member-owners," said Angie Owens, president/CEO of $5.6 billion-asset American Airlines FCU, in announcing this year's bonus dividend. The Fort Worth, Texas, credit union recognized its most active and loyal members with an additional $50, bringing this year's total distribution to more than $12.7 million;
- At Veridian CU, Waterloo, Iowa, holders of member equity savings accounts received a one-time 6% bonus dividend payout. The $2.4 billion-asset credit union pays out bonus dividends to members when its capital-to-asset ratio exceeds 10%. "As a member-owned, not-for-profit financial cooperative, Veridian CU always returns excess capital to our members in the form of great rates, low fees and better services," said Monte Berg, senior vice president of finance;
- For the past 18 years, SAFE FCU, Sumter, S.C., with $893 million in assets, has paid bonus dividends and loan interest rebates. This year, $2 million was deposited into qualifying members' accounts, including a 20% bonus on dividends and 7% interest rebate on loans. "The unique structure and philosophy of credit unions makes it possible for our board of directors to declare year-end bonus returns," said President/CEO Beverly Gagne; and
- In celebration of its 60th anniversary, NuMark CU, Joliet, Ill., disbursed a special 5% annual loan interest rebate and 5% checking account dividend for the month of December. "While other financial institutions are charging more for loans and increasing checking account fees, NuMark is giving money back to our members," the $195 million-asset credit union said in a statement. "It is all part of our cooperative nature."