CU Dividends Sent to 1.3 Million More Members

Another 13 credit unions from Oregon to South Carolina have paid year-end special dividends, giving back about $34.7 million to their 1.3 million members.

With 11 others previously tallied by CU Times, the season’s total for special dividends rises to $119.8 million paid over the last two months to 2.9 million members, or about $42 per member based on Sept. 30 counts.

The combined 24 credit unions held $36.5 billion in assets and performed better than most.

NCUA data shows they generated $363.6 million in net income in the 12 months that ended Sept. 30, 19.4% more than in the previous 12 months. Their return on average assets (ROA) rose 103 basis points to 1.03%. Among the 5,550 federally insured credit unions reporting for Sept. 30, ROA was 0.92%, up 12 bps.

Meanwhile, cash moved in the other direction for the credit union owners of PSCU. The St. Petersburg, Fla. CUSO announced this month that its owners earned $24.2 million in patronage dividends for 2018, of which 25% was an immediate cash dividend. PSCU also paid an additional $8.5 million of previously issued equities to bring the total cash payment to $14.6 million.

Among the latest group of credit unions awarding special dividends to members, the largest payout was from Eastman Credit Union ($4.4 billion in assets, 219,364 members).

Kingsport, Tenn.-based ECU paid $13 million Jan. 1 as an Extraordinary Dividend, or about $59 per member. NCUA data shows its net income for the 12 months ending Sept. 30 was $61.1 million, up 22.3% from the previous 12-month period. Its return on average assets was well above the movement average: 1.45%, up 12 basis points.

Individual payouts varied based on the interest earned on deposits and the interest paid on loans through 2018. The credit union said new members often say the year-end bonus was a deciding factor in moving their accounts to ECU. The special dividends appeared in members’ January statements.

“Often, new members come in and ask about the deposit,” said Jenny Myers, an ECU member service representative. “They think it is an error on their account. When we explain to them what it is, they’re shocked. It also helps that it’s deposited during a time of year when many need a little extra.”

The 12 other credit unions announcing dividends were:

• Hanscom Federal Credit Union, Hanscom Air Force Base, Mass. ($1.3 billion in assets, 85,983 members) paid $1.1 million Dec. 31 as Loyalty Dividends, or about $12 per member. Net income for the 12 months ending Sept. 30 was $11.4 million, up 20.3%. ROA was 0.89%, up 11 bps.
• Ascend Federal Credit Union, Tullahoma, Tenn. ($2.4 billion in assets, 196,219 members) paid $5 million Dec. 31 as bonus dividends and loan interest refunds, or about $25 per member. Net income was $29.3 million, up 20.8%. ROA was 1.28%, up 10 bps.
• Fort Bragg Federal Credit Union, Fayetteville, N.C. ($402 million in assets, 39,306 members) paid $624,000 Dec. 13 as in Loyalty Dividends, or about $16 per member. Net income was $2.9 million, -3.7%. ROA was 0.72%, -4 bps.
• Scott Credit Union, Edwardsville, Ill. ($1.2 billion in assets, 144,480 members) paid $570,000 Nov. 30 as a bonus dividend and loan interest rebate, or about $4 per member. Net income was $12.1 million, up 60.4%. ROA was 1.04%, up 35 bps.
• Clackamas Community Federal Credit Union, Oregon City, Ore. ($388.5 million in assets, 33,127 members) paid $1.2 million Dec. 31 as a bonus dividend, or about $36 per member. Net income was $4.9 million, up 51.3%. ROA was 1.29%, up 35 bps.
• Richland Federal Credit Union, Sidney, Mont. ($85.8 million in assets, 4,940 members) paid $250,000 Dec. 31 as bonus dividends, or about $51 per member. Net income was $1.1 million, up 24.7%. ROA was 1.25%, up 23 bps.
• First Financial of Maryland Federal Credit Union, Lutherville, Md. ($997.8 million in assets, 64,921 members) paid $2 million Dec. 31 as in Loyalty Rewards, or about $31 per member. Net income was $3 million, up 350.6%. ROA was 0.3%, up 23 bps.
• CP Federal Credit Union, Jackson, Mich. ($443.7 million in assets, 53,682 members) paid $700,000 Dec. 31 as in an Interest Rebate and Bonus Dividend, or about $13 per member. Net income was $5.3 million, up 162.8%. ROA was 1.21%, up 73 bps.
• SAFE Federal Credit Union, Sumter, S.C. ($1 billion in assets, 124,955 members) paid $1.2 million Dec. 31 as annual bonus dividends and interest rebates, or about $10 per member. Net income was $11.4 million, up 86.5%. ROA was 1.1%, up 50 bps.
• CommunityAmerica Credit Union, Kansas City, Mo. ($2.7 billion in assets, 235,659 members) paid $8.4 million Dec. 31 as in Profit Payouts — about $36 per member or $94 per qualifying household. Net income was $13.7 million, down 27.5%. ROA was 0.52%, -24 bps.
• True Sky Credit Union, Oklahoma City, Okla. ($587.9 million in assets, 51,589 members) paid $96,716 Dec. 31 as year-end interest rebates and dividends, or about $2 per member. Net income was $2.6 million, up 223.8%. ROA was 0.44%, up 30 bps.
• Guardian Credit Union, Montgomery, Ala. ($487.5 million in assets, 63,500 members) paid $587,660 Dec. 31 as an Interest Rebate and Dividend Bonus, or about $9 per member. Net income was $6.2 million, up 59.7%. ROA was 1.32%, up 38 bps.

Altogether the 13 credit unions in the latest tally held $16.5 billion in assets, and earned $165.1 million in net income in the 12 months ending Sept. 30, up 26.2%. Their ROA was 1.04%, up 15 bps.

The 11 credit unions reported last month held $20 billion in assets and had 1.5 million members. They paid $85.1 million over the last two months, or about $55 per member. Their net income was $198.5 million, up 14.3%, and their ROA was 1.02%, up 6 bps.