Eastman CU Pays Members $15 Million
Special dividend to be distributed from east Tennessee to east Texas.
Eastman Credit Union of Kingsport, Tenn., announced Sunday it will pay members $15 million in January as a special dividend.
Eastman ($7.6 billion in assets, 300,309 members) is paying an Extraordinary Dividend that represents about $50 per member and 21 bps of its ROA of 1.70% for the 12 months ending Sept. 30.
Kelly Price, president/CEO, said the special dividend was recently approved by Eastman’s volunteer board of directors. This payout matched the amount announced a year ago, and brought its total special dividends to $177 million since it began in 1998.
“We are excited to return this money to our members,” Price said. “This announcement is a direct result of our members’ loyalty, our employees’ hard work and our board’s leadership.”
Price said the Extraordinary Dividend signifies the shared success afforded by the credit union’s cooperative structure. Member payouts are calculated based on the interest paid on loans and earned on deposits throughout the year.
“It exemplifies the credit union difference and shows that we put our members first. Beyond that, our communities and local economies benefit from the extra boost. It’s a win-win,” Price said.
The Extraordinary Dividend has a concentrated economic impact on the regions comprising Eastman’s field of membership, which includes northeast Tennessee, southwest Virginia, and Gregg and Harrison Counties in east Texas.
Like any special dividend, Eastman’s is never guaranteed. Its board of directors approves the payout each year after reviewing the financials and verifying the credit union has achieved a level of net worth needed for current and future requirements.
CU Times has previously reported payouts by two other credit unions in this season’s tally of special dividends.
ORNL Federal Credit Union of Oak Ridge, Tenn. ($3.1 billion in assets, 191,528 members) paid members $5 million Oct. 21, and Dupaco Community Credit Union in Dubuque, Iowa ($2.9 billion in assets, 153,953 members) paid members $3.7 million Oct. 20.
Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.