Six Credit Unions Pay $67 Million in Special Dividends
Western Division FCU compares its payout to an economic stimulus.
Six credit unions with 1.1 million members from Florida to New York paid members $66.6 million this fall as special dividends, with one calling them its own “economic stimulus.”
For the credit unions with $17.7 billion in assets, the special dividends represent about $59.09 per member and 40 basis points of their ROA of 0.86% for the 12 months ending Sept. 30.
Western Division Federal Credit Union in Williamsville, N.Y. ($158 million in assets, 8,664 members) paid members $750,000 in November as a Special Patronage Dividend. The amount represents about $87 per member and 50 bps of its return on average assets of 0.55% for the 12 months ending Sept. 30.
At Western Division, this year’s special dividend was paid to active members in good standing based on 25% of savings dividends and 50% of loan interest as of Sept. 30. The formula, which changes each year, takes into consideration market conditions and the credit union’s performance.
In the 12 months ending Sept. 30, Western Division had $827,894 in net income, or 0.55% of average assets, up from 0.42% in the previous 12 months.
Since 2003, Western Division has paid almost $9 million in special dividends to members, including $500,000 last year.
“Even though this has been a trying year and full of uncertainty, we are proud to be able to once again pay a Patronage Dividend this year,” Chair Peter Seitz said. “We like to think of our Special Patronage Dividend as our own economic stimulus package because a large portion of the almost $9 million has been put back into the local economy.”
The other five credit unions included three with ties to Air Force bases:
- Ascend Federal Credit Union of Tullahoma, Tenn., 13 miles from Arnold Air Force Base ($3.1 billion in assets, 222,551 members) paid members $4.1 million in December as bonus dividends and loan interest refunds. The amount represents about $18 per member and 15 bps of its ROA of 0.70% for the 12 months ending Sept. 30.
- Tyndall Credit Union based in Panama City, Fla., 10 miles from Tyndall Air Force Base ($1.8 billion in assets, 113,450 members) announced it plans to pay members $10 million from Nov. 23 to Dec. 25 as Project Giveback. The amount represents about $88 per member and 58 bps of its ROA of 1.06% for the 12 months ending Sept. 30.
- Robins Financial Credit Union based in Warner Robins, Ga., five miles from Warner Robins Air Force Base ($3.2 billion, 224,475 members) paid members $17.5 million on Dec. 14 as Member Rebate. The amount represents about $78 per member and 59 bps of its ROA of 1.30% for the 12 months ending Sept. 30.
- Citizens Equity First Credit Union in Peoria, Ill. ($6.8 billion, 354,874 members) paid members $30 million on Dec. 1 as an Extraordinary Dividend. The amount represents about $85 per member and 46 bps of its ROA of 0.46% for the 12 months ending Sept. 30.
- Educators Credit Union of Mt. Pleasant, Wis. ($2.6 billion, 203,430 members) paid members $4.3 million on Dec. 1 as Member Loyalty rewards. The amount represents about $21 per member and 18 bps of its ROA of 1.47% for the 12 months ending Sept. 30.
Over the last three years, Educators Credit Union has deposited more than $10 million into members’ accounts with their reward program. The 2020 payout is the biggest ever, and provided up to $165 per member.
Educators also helped minors add money to their savings with Member Loyalty. If a minor had at least $100 in their savings, Educators deposited $25 into their account. In total, 9,850 young members received this deposit for a total of more than $246,000.
Minors who were eligible for a bigger reward through the Member Loyalty deposit got the higher payout.
These six credit unions were in addition to two others with special dividends this season reported in October: ORNL Federal Credit Union of Oak Ridge, Tenn. ($2.6 billion, 181,057 members) paid $4 million and First Financial Federal Credit Union in Sparks Glencoe, Md. ($1.1 billion, 66,091 members) paid $1.7 million.
So far this season, the $72.3 million in special dividends from the eight credit unions represented about $53 per member and 36 bps of their 12-month ROA of 0.83%.