New Year to Bring $30M More in CU Dividends
Awards go to members from east Texas to Upstate New York.
Nearly a million more credit union members from east Texas to upstate New York are in line for special dividends in the New Year.
Three credit unions will pay $30 million in January, or about $32 per member and 20 basis points of their return on average assets of 1.51% for the 12 months ending Sept. 30. They are:
1. Eastman Credit Union, Kingsport, Tenn. ($7 billion in assets, 279,298 members), which will pay members $15 million in January as an Extraordinary Dividend. The amount represents about $54 per member and 23 bps of its ROA of 1.47% for the 12 months ending Sept. 30.
2. Wright-Patt Credit Union, Dayton, Ohio ($6.8 billion in assets, 443,603 members), which will pay members $10.5 million Jan. 4 as a Special Patronage Dividend. The amount represents about $24 per member and 17 bps of its ROA of 1.72% for the 12 months ending Sept. 30.
3. Empower Federal Credit Union, Syracuse, N.Y. ($2.7 billion, 220,009 members), which will pay members $4.5 million Jan. 1 as a Giveback bonus dividend and interest rebate. The amount represents about $20 per member and 18 bps of its ROA of 1.1% for the 12 months ending Sept. 30.
Empower said all members in good standing will receive a portion of this Giveback, which will bring the total payouts to $44 million over the past 14 years. Last January Empower awarded $4 million in special dividends, which included $3.2 million from interest refunds.
Wright-Patt’s special dividend is its largest ever, and brings its total payouts to more than $94 million since 2008.
“As a cooperative, we strive to maximize the benefits our members can take advantage of,” Tracy Szarzi-Fors, Wright-Patt’s vice president of marketing and business development, said. “Giving more back to our members means they have more opportunities for healthy finances.”
Eastman’s Extraordinary Dividend matched the $15 million it gave a year earlier, which was its largest ever. With the January 2021 payout, the credit union’s special dividends will reach $162 million since the first award in 1998. It’s based on the amount of interest members have earned on deposits and paid on loans throughout the year. Besides northeast Tennessee, it serves members in southwest Virginia, and Gregg and Harrison Counties in east Texas.
“ECU’s Extraordinary Dividend demonstrates our commitment to giving our members the absolute best financial experience,” President/CEO Kelly Price said. “The longevity of this payout is indicative of our financial safety and soundness and that ECU’s member first focus is unwavering.”
So far this season, 15 credit unions ($60.5 billion, 3.6 million members) have announced $139.6 million in special dividends. The amount represented about $39 per member and 25 bps of their 12-month ROA of 1.37%.
Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.