PSCU Financial Services Pays Out Over $1 Million

ST PETERSBURG, Fla. – PSCU Financial Services has announced that it will repay over $1 million in “patronage equity” to member owner credit unions,” three months in advance of anticipated. Patronage equity refers to the amount of money owed by PSCU to its member owner credit unions, which federal law calls “patrons for profits the cooperative made in previous years.” Because PSCU is a cooperative, explained PSCU Executive Director Michael Yatros, federal law requires the cooperative give its member owners back at least 20% of its earnings after expenses as cash. “But we give 25% back in cash” he said, “and in previous years we have issued our member owners notes for the remaining 75%, payable at different times in the future. This has provided our working capital,” he explained. The over $1 million in payment equity being paid back represents the payment on notes that were issued in 1995, when PSCU was PSCU Service Centers, he added. Yatros said the cooperative’s new payment structure, which asks credit unions to purchase individual services from the PSCU instead of packages of services, will not impact future issuing of payment equity notes. “We still build margins into the costs of the services,” he said. He also expected that as PSCU grows and takes advantage of greater economies of scale, the amount of money available for patronage equity will grow, he said. “Obviously we are extremely proud that our valued member-owner credit unions will be receiving this equity payment,” said Dave Serlo, PSCU president. “The issuance of these checks nearly three months early further validates that PSCU is a strong, financially sound company.”