Tennessee & Utah Credit Unions to Pay $10 Million in Special Dividends

Credit unions in Utah and Tennessee have lined up $10 million in special dividends for their nearly 400,000 members.

The dividends will be paid by Goldenwest Federal Credit Union of Ogden, Utah ($2.4 billion in assets, 156,149 members) and Ascend Federal Credit Union in Tullahoma, Tenn., 13 miles from Arnold Air Force Base ($3.4 billion in assets, 233,564 members). The dividends represent about $26 per member and 19 basis points of their 1.53% return on assets for the 12 months ending Sept. 30.

Ascend will pay qualified members $7 million Dec. 1 as member return. The amount represents about $30 per member and 22 bps of its ROA of 1.26% for the 12 months ending Sept. 30.

With this year’s award, Ascend’s volunteer, unpaid board of directors has approved giving a total of more than $99 million to the credit union’s members since 2004. Last year’s award was $4.1 million, or $18 per member and 15 bps of its ROA of 0.70% for the 12 months ending Sept. 30, 2020. It included $2.9 million from interest refunds.

Goldenwest will pay members $3 million Jan. 1, 2022 as its 2021 year-end Bonus Dividend. The amount represents about $19 per member and 14 bps of its ROA of 1.91% for the 12 months ending Sept. 30.

Over the past 18 years, Goldenwest’s Bonus Dividend program has returned $20.4 million in earnings to members, including its January 2021 payment of $2.2 million, or about $15 per member and 12 bps of its 1.47% ROA for the 12 months ending Sept. 30, 2020.

Bill Hart, Goldenwest’s chair, said directors approved the special dividend during their November board meeting. “Members should be pleased that our credit union is thriving, even during the ongoing challenges of the pandemic,” Hart said.

Goldenwest President/CEO Kerry Wahlen said the ability to pay a special dividend depends on member loyalty. “The bonus dividend program is one of the top benefits our members receive by choosing Goldenwest Credit Union as their primary financial institution.”

Goldenwest’s one-time dividend will be paid as a 4.30% annual percentage yield (APY) payment on top of the stated monthly dividend of 0.05% APY. Members will earn 4.35% APY for the month of December on primary shares, secondary shares, Christmas Club shares and IRA shares. Dividend earning amounts will vary by member based on the average daily balance in their individual accounts over the 2021 calendar year.

So far this season, six credit unions encompassing nearly $18 billion in assets and nearly one million members have announced $55.1 million in special dividends. The amount tallied by CU Times represents about $55 per member and 33 bps of their 12-month ROA of 1.30%.

Credit unions interested in sharing its special dividend announcements can email them to mogden@cutimes.com.