Credit Unions Share Returns With Members

About 1.5 million credit union members in at least 11 states will receive about $55 each in special dividends by the end of January.

Eleven credit unions have announced $85.1 million in special dividends paid since Nov. 15 or to be paid by the end of January 2019.

Those credit unions held $20 billion in assets as of Sept. 30 and generated $198.5 million in net income for the 12 months ending Sept. 30, up 14.3% from the previous 12-month period. Their return on average assets (ROA) was 1.02%, up 6 basis points.

Eight of the credit unions paid $73.9 million between Nov. 15 and Dec. 18, while three others plan to pay $11.2 million by Jan. 31.

The richest payout was to members of Citizens Equity First Credit Union, Peoria, Ill. ($5.9 billion in assets, 337,156 members). CEFCU paid $50 million Nov. 30 as an Extraordinary Dividend, the largest in its history, or about $148 per member.

Over the last 19 years, CEFCU said it has returned $280 million in Extraordinary Dividends to members. That works out to about $55 per year based on average membership.

This year’s special dividend is 131% of the $38.3 million in net income it generated in the 12 months that ended Sept. 30. The net income (which, of course, is also net of special dividends) was 0.66% of average assets, 66 basis points higher than the ROA for the previous 12-month period.

“Because of members’ continued loyalty and trust, CEFCU has had another strong year,” Chairman Todd Gwillim said.

CEFCU President/CEO Mark Spenny said the special dividend is reflects the credit union’s commitment to members, not profits.

“When business is good, those benefits are returned to the member/owners,” Spenny said. “It is rewarding to directly share our financial success with members, the people that made it happen.”

The other 10 credit unions with special dividends were:

• Aloha Pacific Federal Credit Union, Honolulu ($852.3 million in assets, 52,281 members) paid $2 million Nov. 15 as a special cash dividend, or about $38 per member. Net income for the 12 months ending Sept. 30 was $5.1 million, up 16.2%. ROA was 0.62%, up 62 bps.
• Educators Credit Union, Racine, Wis. ($2 billion in assets, 181,778 members) paid $3.1 million Dec. 1 as a Loyalty Pay Back Reward, or about $17 per member. Net income for the 12 months ending Sept. 30 was $21.2 million, up 34.4%. ROA was 1.11%, up 111 bps.
• Erie FCU, Erie, Pa. ($485 million in assets, 59,155 members) plans to pay $600,000 by the end of January 2019 as a Special Patronage Bonus, or about $10 per member. Net income for the 12 months ending Sept. 30 was $3 million, up 10.8%. ROA was 0.63%, up 63 bps.
• Goldenwest Credit Union, Ogden, Utah ($1.5 billion in assets, 135,721 members) plans to pay $2 million Dec. 31 as a Bonus Dividend, or about $15 per member. Net income for the 12 months ending Sept. 30 was $19.3 million, up 9.2%. ROA was 1.31%, up 131 bps.
• Gulf Winds Credit Union, Pensacola, Fla. ($664 million in assets, 61,340 members) paid $1 million Nov. 30 as a bonus dividend, or about $16 per member. Net income for the 12 months ending Sept. 30 was $5.1 million, up 49.1%. ROA was 0.78%, up 78 bps.
• Ravalli County Federal Credit Union, Hamilton, Mont. ($46.4 million in assets, 4,896 members) paid $50,000 Dec. 4 as a Patronage Dividend ‎‎‎‌‎‎‌‌‎‌‎‌‌‌‌‌‌‎‎‌‌‌‌‌‎, or about $10 per member. Net income for the 12 months ending Sept. 30 was $531,078, up 78.7%. ROA was 1.15%, up 115 bps.
• Robins Financial Credit Union, Warner Robins, Ga. ($2.5 billion in assets, 201,014 members) paid $13 million Dec. 18 as a Member Rebate, or about $65 per member. Net income for the 12 months ending Sept. 30 was $37.7 million, up 1%. ROA was 1.54%, up 154 bps.
• Rogue Credit Union, Medford, Ore. ($1.5 billion in assets, 132,146 members) paid $4 million Dec. 5 as a Rewards Loyalty Dividend, or about $30 per member. Net income for the 12 months ending Sept. 30 was $20 million, up 12.4%. ROA was 1.35%, up 135 bps.
• Western Division Federal Credit Union, Williamsville, N.Y. ($140.9 million in assets, 8,489 members) paid $750,000 Nov. 21 as a Patronage Dividend, or about $88 per member. Net income for the 12 months ending Sept. 30 was $744,574, up 15.7%. ROA was 0.53%, up 53 bps.
• Wright-Patt Credit Union, Dayton, Ohio ($4.3 billion in assets, 373,767 members) plans to pay $8.6 million Jan. 3, 2019 as a Special Patronage Dividend, or about $23 per member. Net income for the 12 months ending Sept. 30 was $47.5 million, up 17.7%. ROA was 1.16%, up 116 bps.