CU Dividends Float Down From LA to Fort Bragg

Nearly 800,000 credit union members are sharing $21.9 million in special dividends — from fire fighters in Los Angeles, to Screaming Eagles at Fort Bragg in North Carolina, to Minnesota State Mavericks hockey fans and teachers in Arizona.

Their collective net income was $133.1 million (0.98% ROA) in the 12 months ending Sept. 30, up from $19.6 million (0.18% ROA) in the previous 12 months.

The largest payout came from Desert Financial Credit Union of Phoenix ($7.8 billion in assets, 379,097 members), which will pay members $15 million by Feb. 1 as a Member Giveback Bonus. The amount represented about $40 per member and 21 bps of its ROA of 1.18% for the 12 months ending Sept. 30.

Desert Financial raised its special dividend from the $14 million paid a year ago. It has paid $54 million in the last five years.

And, in another sign of improving results, Arizona Federal Credit Union in Phoenix ($2.7 billion in assets, 144,646 members) resumed its special dividend after skipping it one a year ago. It paid members $3 million Dec. 31 as its Member Bonus Payout. The amount represented about $21 per member and 12 bps of its ROA of 0.7% for the 12 months ending Sept. 30.

Its special dividend, previously called Plus Payout, is now called its Member Bonus Payout. By either name, the program has paid members more than $45 million since it began in 2012, including $6 million in December 2019.

President/CEO Ronald L. Westad said the Member Bonus Payout is Arizona FCU’s commitment to return excess earnings to participating members when the credit union performs well.

Arizona FCU earned $17 million in the 12 months ending Sept. 30, 2021, up from $2.9 million (0.15% ROA) in the 12 months ending Sept. 30, 2020. Its net worth ratio stood at 11.92% on Sept. 30, down from 13.52% a year earlier.

“Despite the challenges of the COVID-19 pandemic that continue to impact most of us in some way or another, Arizona Federal has performed well financially and remains well capitalized,” Westad said.

Total payments for the six credit unions represented about $28 per member and 16 basis points of their return on average assets of 0.98% for the 12 months ending Sept. 30. The other four credit unions with special dividends were:

1. Firefighters First Credit Union, Los Angeles ($2 billion in assets, 55,348 members), which paid members $2 million Dec. 31 as its Annual Profit Sharing distribution. The amount represented about $36 per member and 11 bps of its ROA of 0.69% for the 12 months ending Sept. 30.

2. Fort Bragg Federal Credit Union, Fayetteville, N.C. ($537.5 million, 38,074 members), which paid members $1 million Dec. 22 as Loyalty Dividends. The amount represented about $26 per member and 20 bps of its ROA of 1.16% for the 12 months ending Sept. 30.

3. Scott Credit Union, Edwardsville, Ill. ($1.6 billion, 150,123 members), which paid members $765,000 in November as a bonus dividend and loan interest rebate. The amount represented about $5 per member and 5 bps of its ROA of 0.68% for the 12 months ending Sept. 30.

4. Minnesota Valley Federal Credit Union ($246.4 million, 16,283 members), which paid members $101,000 Dec. 31 as Coop Patronage Bonus Dividends. The amount represented about $6 per member and 4 bps of its ROA of 1.70% for the 12 months ending Sept. 30.

Minnesota Valley is based in Mankato, Minn., home of Minnesota State University and its No. 1-ranked men’s hockey team. President/CEO Nick Meyer said last year’s dividends rose from about $900,000 before the special dividend to $1 million after.

“That’s an extra 11% premium,” Meyer said. “And we do try to pay a strong dividend across the board throughout the year.”

So far this season, 24 credit unions ($90.4 billion in assets, 5.1 million members) have announced $189.1 million in special dividends. The amount represented about $37 per member and 22 bps of their 12-month ROA of 1.26%.

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