Year-End Special Dividends From CUs Reach $300M

Coastal Credit Union of Raleigh, N.C., paid members $4.1 million in Loyalty Bonuses on Valentine’s Day, helping raise the season total of year-end credit union dividends to $300 million.

The CU Times tally started with annual payouts made since Oct. 1, 2021, and typically ends this month after Coastal’s traditional Feb. 14 Loyalty Bonus dividend.

In that time, 51 credit unions have announced $300 million in special dividends for their 7.7 million members, or about 6% of members nationwide. The amount represented about $39 per member. The group earned a total of $306.4 million on $131.9 billion in average assets for the 12 months ending Sept. 30. Their special dividends accounted for 23 basis points of that 1.27% ROA.

The latest batch includes Coastal and 12 other credit unions that have paid members $35.8 million since December as special dividends. The amount represented about $33 for each of their 1.1 million members and 20 bps of their ROA of 1.21% for the 12 months ending Sept. 30.

Coastal’s special dividends represented about $14 per member and 10 bps of its ROA of 1.06% for the 12 months ending Sept. 30.

Coastal said in a news release that its Loyalty Bonus dividends, ranging from $5 up to $300, were paid to nearly 77,000 of its members on Monday. The board decides each year whether to pay a bonus, and if so, gauges the total amount based on the credit union’s overall performance in the year. Individual amounts were based on loan and deposit balances, and length of membership.

Over the past 11 years, Coastal has returned $29.2 million to members as special dividends, including $3.6 million last year.

“A great part of being a locally-based cooperative is, at the end of the year, we don’t pay dividends to Wall Street investors. Instead, that money stays here in our community, and we reward the members who choose to do business with us every day.” Coastal President/CEO Chuck Purvis said.

The largest amount in the current batch was found at Police and Fire Federal Credit Union of Philadelphia ($7.4 billion, 402,171 members), which paid members $22 million Dec. 14 as a Member Bonus. The amount represented about $55 per member and 32 bps of its ROA of 1.58% for the 12 months ending Sept. 30.

The remaining $9.7 million came from these other 11 credit unions:

1. Pittsford Federal Credit Union, Pittsford, N.Y. ($507.1 million in assets, 20,865 members), which paid members $1.1 million Jan. 25 as a Special Member Dividend. The amount represented about $53 per member and 23 bps of its ROA of 0.89% for the 12 months ending Sept. 30.

2. Beacon Credit Union, Wabash, Ind. ($1.5 billion in assets, 46,754 members), which paid members $1.3 million in January as loan interest rebates. The amount represented about $29 per member and 9 bps of its ROA of 0.37% for the 12 months ending Sept. 30.

3. True Sky Federal Credit Union, Oklahoma City ($842.4 million, 49,775 members), which paid members $161,493 in January as member dividends. The amount represented about $3 per member and 2 bps of its ROA of 0.62% for the 12 months ending Sept. 30.

4. Fort Community Credit Union, Fort Atkinson, Wis. ($342.7 million in assets, 21,659 members), which paid members $300,000 in January through its Member Loyalty Cash Program. The amount represented about $14 per member and 9 bps of its ROA of 0.61% for the 12 months ending Sept. 30.

5. Gas & Electric Credit Union, Rock Island, Ill. ($109.9 million in assets, 5,062 members), which paid members $250,000 in January as a bonus dividend. The amount represented about $49 per member and 24 bps of its ROA of 1.12% for the 12 months ending Sept. 30.

6. NuMark Credit Union, Joliet, Ill. ($588.9 million in assets, 55,303 members), which paid members $1 million Jan. 1 as a special bonus dividend. The amount represented about $18 per member and 22 bps of its ROA of 1.5% for the 12 months ending Sept. 30.

7. Co-op Credit Union Montevideo, Minn. ($315.1 million in assets, 15,347 members), which paid members $1 million Dec. 31 as a bonus dividend. The amount represented about $65 per member and 35 bps of its ROA of 1.95% for the 12 months ending Sept. 30.

8. PAHO/WHO Federal Credit Union, Washington, D.C. ($290.6 million in assets, 8,237 members), which paid members $260,000 Dec. 31 as a year-end dividend bonus. The amount represented about $32 per member and 10 bps of its ROA of 0.43% for the 12 months ending Sept. 30.

9. American United Federal Credit Union, Salt Lake City ($349.8 million in assets, 24,771 members), which paid members $280,000 in December as Reward Dividends. The amount represented about $11 per member and 8 bps of its ROA of 0.8% for the 12 months ending Sept. 30.

10. Clarion Federal Credit Union, Clarion, Pa. ($146.7 million in assets, 12,389 members), which paid members $350,000 in December as a Special Bonus Dividend. The amount represented about $28 per member and 26 bps of its ROA of 1.37% for the 12 months ending Sept. 30.

11. TTCU Federal Credit Union, Tulsa, Okla. ($2.6 billion, 144,395 members), which paid members $3.7 million in 2021 as member rewards dividends. The amount represented about $26 per member and 15 bps of its ROA of 1.24% for the 12 months ending Sept. 30.

If your credit union’s special dividend is missing from the tally, send along the total amount, payment date and any other pertinent details by email to JDuPlessis@cutimes.com.