Michigan, Georgia, Texas Members Win Up to $38M in Dividends

Credit unions in Michigan, Georgia and Texas expect to distribute $38.6 million in special dividends by mid-January among some of their 1.3 million members, with one credit union picking recipients through random drawings.

The three credit unions’ boards approved awards that represent about $29 per member and 20 basis points of their 1.41% return on average assets for the 12 months ending Sept. 30. They are:

1. Dow Chemical Employees’ Credit Union of Midland, Mich. ($2.1 billion in assets, 73,719 members), which expects to pay members $13.6 million Jan. 1-15 as Member Givebacks. The amount represents about $184 per member and 67 bps of its ROA of 0.66% for the 12 months ending Sept. 30.
2. Robins Financial Credit Union of Warner Robins, Ga. ($3.8 billion in assets, 238,839 members), which paid members $18 million Dec. 14 as Member Rebates. The amount represents about $75 per member and 51 bps of its ROA of 1.2% for the 12 months ending Sept. 30.
3. Randolph-Brooks Federal Credit Union of San Antonio ($14.6 billion, 1 million members) paid members $7 million October through December as Member Giveback Sweepstakes. The amount represents about $7 per member and about 5 bps of its ROA of 1.58% for the 12 months ending Sept. 30.

Dow Chemical Employees CU launched its Member Giveback program in 1955 and its board has approved awards in all but one year since then. This year’s award marks the 41st consecutive year that the credit union returned a share of its earnings to members, with a grand total of $262 million given back since 1980.

Mark Bachman, chair of Dow Chemical Employees CU, said the board has been able to approve awards annually because the credit union “has 74,000-plus members who loyally utilize our products and services year in and year out.”

“To say the least, the participation we see from our members in terms of their saving and borrowing activity with us is the driving force behind the credit union’s success,” Bachman said.

This season, Dow Chemical Employees CU will give back 40% of the interest that members in good standing paid on their eligible loans over the course of the year and will give them a cash reward equal to 40% of the interest and dividends they earned on their eligible deposits. Members in good standing also will receive a 0.125% rebate on their total DCECU Visa® Debit Card purchase transactions for the year, regardless of whether the transactions were signature-based or PIN-based.

A year ago, Dow Chemical Employees CU paid $15.6 million in special dividends, or about $221 per member and 85 bps of its 12-month ROA of 0.73%. The amount included nearly $6.5 million from interest rebates in 2020’s fourth quarter. The credit union rebated nearly $12 million in interest in the 12 months ending Sept. 30.

Michael Goad, Dow Chemical Employees CU’s president/CEO, said last year’s award was the nation’s largest special dividend as a percent of total assets.

“And 2021’s payment currently is ahead of other credit unions that have announced givebacks,” Goad said. “We’re also the largest financial institution based in Michigan’s Great Lakes Bay Region — which is only possible because of the loyalty of our members, and the Member Giveback is one of the biggest ways in which we thank them for that loyalty.”

This marks the fifth consecutive year that Robins Financial has given back to members. Since 2017, Robins Financial has given back over $73 million to members in the form of a Member Rebate.

The size of each rebate depends on factors that include having an active checking account, loan and deposit balances and years of membership in the credit union, which has 22 branches in central Georgia.

“We are grateful to provide financial services to our members every day,” Christina O’Brien, president/CEO of Robins Financial CU, said. “It is their support that allows us to succeed and to empower our communities. Our Member Rebate is a way to say thank you.”

Randolph-Brooks FCU chose to distribute its special dividend through a contest involving random drawings on Oct. 15, Nov. 10 and Dec. 6.

Randolph-Brooks made 70,000 awards of $100 each this fall to celebrate its 70th anniversary. An entrant might receive anywhere from one to 18 awards depending on the number of products they have with the credit union. The rules allow non-members to participate, so it’s unclear how many of the awards went to members.

Randolph-Brooks FCU President/CEO Christopher O’Connor said the program is designed to reward members for engagement.

“Loyalty spells success for everyone and allows us to continue to provide products and services that improve the economic well-being and quality of life for our members,” O’Connor said.

“Every day, we see members who trust us with life milestones, whether it’s financing the first car for a child, helping them become a first-time homebuyer, or simply keeping their accounts with us during a deployment or with a new job,” O’Connor said. “We hope this Member Giveback Sweepstakes reflects our appreciation.”

So far this season, 12 credit unions ($44 billion, 2.6 million members) have announced $109.6 million in special dividends. The amount represents about $42 per member and 27 bps of their 12-month ROA of 1.32%.

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