CommunityAmerica Returns $8.4 Million to Members
Kansas City credit union CEO says the special dividend is especially needed after a difficult year.
CommunityAmerica Credit Union announced Thursday it has paid $8.4 million in special dividends to its members this week, which its leader said is especially needed in the wake of last year’s hardships.
The Kansas City credit union’s Profit Payout represented about $33 for each of its 255,631 members and 25 basis points of its 0.77% return on its $3.3 billion in average assets for the 12-months ending Sept. 30.
President/CEO Lisa Ginter said 2020 was “an exceptionally difficult year” and this year’s special dividend will be “a huge support for many families.”
“In previous years we have enjoyed stories about members using their payout to pay down loans, help fund a dream or eliminate a medical bill,” Ginter said. “This year, I’m certain Profit Payout will be needed more than ever to help our members through challenging times.”
The credit union also supported members last year through its programs allowing members to skip loan payments, defer loans and apply for Paycheck Protection Program loans from the U.S. Small Business Administration.
“We are truly grateful we were able to support our members in their greatest time of need,” she said. “As a result, our organization is doing very well and we can return those profits at a rate consistent with our pre-pandemic give-back.”
The Profit Payout marked the ninth year in a row that CommunityAmerica has returned at least $5 million, and the 25th consecutive year it has issued a special dividend.
A year ago, CommunityAmerica paid $8.5 million in special dividends, representing 0.30% of its average assets, compared with its ROA of 0.83% for the 12 months ending Sept. 30, 2019.
The special dividends are based on each member’s use of its products, services and associated account balances. Its membership is open to anyone living or working in one of 12 counties in the Kansas City area.
The CommunityAmerica year-end special dividend is the 21st so far tallied by CU Times. Together they have announced $142.9 million in special dividends — an amount that equals $44 per each of their 3.2 million members and 27 bps of their 12-month return of 0.98% on $52 billion in average assets.