PSCU said costs related to the COVID-19 pandemic led it to pay a smaller dividend for 2021, but the St. Petersburg, Fla., payments CUSO shared a larger portion in cash to its member credit unions.
The total annual dividend for the 12 months ending Sept. 30, 2021, was $17.8 million, or 1.7% of its average assets of $1.08 billion. For fiscal year 2020, which included the first six months of the pandemic, it paid $37.4 million, or 4.5% of average assets, which was the highest since it paid $38.9 million in fiscal year 2013.
However, its cash portion was $15.2 million, or 85% of the total 2021 patronage. For fiscal 2020, the cash portion was $20.5 million — 55% of the total and the largest cash payout in PSCU’s history.
“PSCU’s 2020 patronage dividend was extraordinarily high,” PSCU said in a statement in response to questions from CU Times.
“Our plan for 2021 reflected a lower level of level of patron earnings, which were adjusted for the impact of COVID-19. Fiscal year 2021 reflected a full year of impact of the pandemic on operations,” it said.
One area was its workforce. PSCU’s website said it has more than 2,800 employees, up from 2,450 in September 2020.
“To effectively serve our credit unions and accommodate increased demand in consumer-facing areas, PSCU increased staffing levels in the Contact Center by 31% and Risk Services by 55% in FY21 — very large numbers in a highly competitive labor market with unprecedented shortages and higher salary levels — while augmenting with external vendor support as needed.
“PSCU continued to deliver on our service commitments to our credit unions throughout the COVID-19 pandemic, staffing up to meet the demands of our industry, while continuing to bring new products to market to enhance member experience in a digital environment,” it said.
Despite the lower patronage dividend, PSCU ended fiscal year 2021 with gains in other areas from a year earlier:
- Revenue rose 11.6% to $649.8 million.
- Capital spending rose 11.2% to $54.8 million.
- Assets as of Sept. 30 rose 38.1% to $1.25 billion.
- Cash and cash equivalents rose 126.7% to $398.6 million.
“PSCU has continued to experience tremendous growth, which allows us to provide our owners with sizable returns. Despite the additional difficulties of the COVID-19 pandemic over the last year, PSCU’s strategic portfolio of investments has allowed us to remain financially strong,” it said.
This year’s $15.2 million in cash consisted of a capital credits payment of $7.3 million, a revolving funds payment of $2.6 million and $5.3 million, based on 30% of the total dividend.