Schools Financial Announces Last Pre-Merger Dividend
California CU is among six with special year-end rebates.
Schools Financial ($2.1 billion, 158,759 members) said it will pay members $4 million by Dec. 31 as special dividends. The amount represents about $25 per member and 19 bps of its 12-month ROA of 1.73%.
The dividends are in addition to $6.75 million it estimates its members will save each year through lower loan rates, higher deposit rates and lower fees after its Jan. 1 merger with SchoolsFirst Federal Credit Union of Santa Ana, Calif. ($16.1 billion, 920,031 members).
Starting Jan. 1, the former state-charter credit union will go by “Schools Financial, a division of SchoolsFirst FCU.” It will adopt its parent’s name when its integration with Schools First is complete, which is expected by fall 2020.
Based on Sept. 30 assets, SchoolsFirst would remain the nation’s fifth-largest credit union, but with about $18.2 billion in post-merger assets it will become much closer in size to No. 4, BECU of Seattle ($21.8 billion, 1.2 million members).
Schools Financial is among six credit unions announcing $8.9 million in special dividends to 340,098 members in December. The rebates represent about $26 per member and 20 bps of their returns of 1.17% on $4.5 billion in average assets for the 12 months ending Sept. 30. The other five are:
- Evolve Federal Credit Union, El Paso, Texas ($314 million, 20,416 members) paid members $2 million in December as Special Patronage Dividends. The amount represents about $97.96 per member and 65 bps of its 12-month ROA of 0.50%.
- DoverPhila Federal Credit Union, Dover, Ohio ($475.1 million, 34,752 members) paid members $1.5 million in December as bonus dividends. The amount represents about $43 per member and 32 bps of its 12-month ROA of 0.82%.
- Fort Bragg Federal Credit Union, Fayetteville, N.C. ($411.2 million, 38,653 members) paid members $721,000 on Dec. 18 as Loyalty Dividends. The amount represents about $19 per member and 18 bps of its 12-month ROA of 0.81%.
- Charter Oak Federal Credit Union, Waterford, Conn. ($1.2 billion, 77,415 members) paid members $618,600 in December as cash bonuses that are part of its Gold Rewards program. The amount represents about $8 per member and 5 bps of its 12-month ROA of 0.62%.
- Atlantic Financial Federal Credit Union, Baltimore ($94.8 million, 10,103 members) paid members $83,000 in December as My AFFCU Rewards special dividends. The amount represents about $8 per member and 9 bps of its 12-month ROA of 0.99%.
So far this season, 18 credit unions ($51 billion, 3.6 million members) have announced $152.7 million in special dividends. The amount represents about $42 per member and 31 bps of their 12-month ROA of 1.12%.