ORNL Federal Credit Union Pays $4 Million Special Dividend

ORNL Federal Credit Union paid its east Tennessee members $4 million on Oct. 16 as a special dividend, while a Baltimore credit union added $575,000 to its quarterly dividends and rebates.

The dividends by the Oak Ridge-based credit union ($2.6 billion, 176,983 members) represents about $23 per member and 17 basis points of its 0.99% return on average assets for the 12 months ending Sept. 30.

The 2020 special dividend also equaled about 0.1% of its 12-month average balance of loans and deposits. Members with average annual balances exceeding $100 during the past 12-month period were paid based on the depth and breadth of their relationships and balances.

The special dividend was paid by ORNL for the third year in a row, following payments of $4 million for 2019 and $3 million for 2018.

“Despite the current environment, we remain focused on providing value to our members and the communities we serve,” ORNL Chair Randy Gorman said. “The credit union continues to experience strong growth in these challenging times and we appreciate all our members for making ORNL FCU their trusted financial partner.”

For the second year in a row, ORNL revealed that three randomly-selected members would have their auto loan balances paid off in full, plus would each be provided with a check to cover the estimated taxes they would owe on the value of their loan payoff.

In the Baltimore area, First Financial Federal Credit Union ($1.1 billion, 65,976 members) paid members $1.7 million for the nine months ending Sept. 30 as dividends and rebates. The amount represents about $25.77 per member and 16 bps of its ROA of 0.11% for the 12 months ending Sept. 30.

The payouts were part of the ongoing quarterly rewards program at the credit union, based in Sparks Glencoe, Md., about 22 miles north Baltimore’s Inner Harbor. In the third quarter alone, members earned more than $575,000 in dividends and rebates.

First Financial checking account holders earned more than $125,000 in dividends in the third quarter, with the highest dividends going to qualified checking accountholders, who were eligible for additional debit card rebates. First Financial credit card holders were also eligible for cash rebates. Altogether, the credit union’s members earned over $449,000 in cash rebates for the third quarter.

“We see challenges as opportunities to help,” Eric Church, First Financial’s president/CEO, said. “This year we’ve had a lot of opportunities to help our members, and our quarterly rewards program is just one of the ways we can provide value and assistance. As a credit union, it’s our responsibility and our honor to be there for the people who made us who we are, and this is just one way that we can show them how grateful we are to be of service.”

First Financial is also continuing to offer assistance and other resources to members in need of financial relief in response to the pandemic and its financial ripple effects. Among the increased support programs are loan payment deferral options, increased availability of funds, no-penalty early withdrawals from share certificates and free financial education.