Special Credit Union Dividends Top $244M So Far This Season

Credit unions have announced more than $242 million in special dividends since October, including another $53.2 million this month from six credit unions.

The new batch included the largest special dividend of the season — $40 million that ESL Federal Credit Union of Rochester, N.Y., will pay members on Friday, according to a news release from the credit union Thursday.

The payout by ESL ($8.7 billion in assets, 398,193 members) represented about $100 per member and 48 basis points of its 2.15% return on average assets for the 12 months ending Sept. 30. It followed payouts of $35 million for the previous year.

Like other credit unions, the payment of any amount of special dividend is a decision of ESL’s board. So far, ESL has paid a special dividend every year since 1996, and Friday’s payment will bring its total to about $225 million.

ESL President/CEO Faheem Masood said this year’s Owners’ Dividend — the largest ever for the credit union — was a testament to the credit union’s commitment to sharing its financial success with members.

“ESL had a successful year in 2021, and the Owners’ Dividend, specifically this record payout, represents how much positive impact our members have on the growth of the organization,” Masood said. “We could not deliver on our commitments to help the Greater Rochester community thrive and prosper without their enduring trust and loyalty in us. For that, they have our unwavering gratitude.”

The newly reported special dividends from ESL and five other credit unions were $55.2 million, or about $55 for each of their collective one million members. The amount also was 33 bps of their 1.58% return on $16.8 billion in average assets for the 12 months ending Sept. 30.

The others with special dividends were:

• Centra Credit Union, Columbus, Ind. ($1.9 billion in assets, 143,810 members), which paid members $3.5 million in January and last May as Member Loyalty Bonuses. The amount represented about $24 per member and 19 bps of its ROA of 0.87% for the 12 months ending Sept. 30. It paid $2 million last May and $1.5 million this month.
• CommunityAmerica Credit Union, Lenexa, Kan. ($4.4 billion, 275,614 members), which paid members $9 million in January as Profit Payout Program. The amount represented about $33 per member and 22 bps of its ROA of 1.17% for the 12 months ending Sept. 30.
• Fort Worth City Credit Union, Fort Worth, Texas ($278.1 million, 15,219 members), which paid members $750,000 on Dec. 31 as bonus dividends and loan interest rebates. The amount represented about $49 per member and 29 bps of its ROA of 0.9% for the 12 months ending Sept. 30.
• Ideal Credit Union, Woodbury, Minn. ($916.6 million, 51,332 members), which paid members $472,250 Jan. 4 as VIP+ program. The amount represented about $9 per member and 5 bps of its ROA of 0.84% for the 12 months ending Sept. 30.
• SAFE Federal Credit Union, Sumter, S.C. ($1.5 billion, 126,827 members), which paid members $1.5 million Dec. 31 as a Member Giveback Program. The amount represented about $12 per member and 11 bps of its ROA of 0.83% for the 12 months ending Sept. 30.

SAFE FCU was founded in 1955 to serve Sumter Air Force base employees and personnel, and now serves residents in a broad swath of central South Carolina.

This year marked the 25th anniversary of the SAFE FCU special dividend. Since the program’s inception, the credit union has paid its members more than $34 million in bonus dividends and interest rebates.

It calculates its payments based on members’ account usage. This year, deposit accounts were given an 8% bonus based on dividends collected in 2021 and loan accounts received a 3% rebate based on total interest paid in 2021.

“The Giveback Program is a way for us to show our appreciation and a tradition we’ve been proud to keep for a quarter century,” SAFE FCU President/CEO Michael Baker said. “Thanks to our members’ support, 2021 was another very successful one for SAFE and we are happy to share our success directly with our members.”

So far this season, 30 credit unions ($108.1 billion, 6.1 million members) have announced $244.3 million in special dividends. The amount represented about $40 per member and 24 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.