Four Credit Unions Pay Nearly $31 Million in Special Dividends

Four credit unions founded at military bases are returning $30.7 million to their 878,046 members in Tennessee, Florida, Ohio and North Carolina.

Nearly half the amount came from Tyndall Federal Credit Union of Panama City, Fla. ($2 billion in assets, 114,702 members), which paid members $13.7 million this month as a special dividend. The amount represented about $119 per member and 68 basis points of its ROA of 0.52% for the 12 months ending Sept. 30.

The payout was given to more than 70,000 qualifying members and deposited directly into their savings accounts — 41% more recipients than last year. Most of its members live in the Florida Panhandle or southeast Alabama. Individual amounts were calculated based on participation with the credit union and ranged from $70 to $420.

Tyndall has returned more than $40 million back to its members as profit-sharing and storm aid over the last five years, including $10 million last year.

President/CEO Jim Warren said Tyndall began waiving more than 15 fees at the start of the year — including monthly service charges, minimum balance fees, money market fees, non-sufficient funds and ATM fees.

“We’re able to deliver value year after year because we don’t waste our members’ money,” Warren said. “Instead of charging excess fees, and exorbitant rates, our team is able to do this by keeping operating costs down, investing in digital channels and focusing on our members’ needs.”

The $30.7 million in special dividends from the four credit unions represented about $35 per member and 23 basis points of its ROA of 1.19% for the 12 months ending Sept. 30. The other three credit unions were:

1. Wright-Patt Credit Union, Dayton, Ohio ($7.6 billion in assets, 471,576 members) will pay members $11 million on Jan. 4 as a Special Patronage Dividend — its largest ever. The amount represents about $23 per member and 15 bps of its ROA of 1.31% for the 12 months ending Sept. 30.

2. Fort Bragg Federal Credit Union, Fayetteville, N.C. ($575.8 million in assets, 39,341 members) is paying members $1 million in December as a Loyalty Dividend. The amount represents about $25 per member and 18 bps of its ROA of 1.1% for the 12 months ending Sept. 30.

3. Ascend Federal Credit Union, Tullahoma, Tenn. ($3.8 billion in assets, 252,427 members) paid members $5 million in December as a special dividend. The amount represented about $20 per member and 14 bps of its ROA of 1.34% for the 12 months ending Sept. 30.

Caren Gabriel, Ascend’s president/CEO, said a special dividend is never guaranteed, but it is a goal of Ascend’s board to distribute one every year. The credit union has been able to pay a special in each of the past 18 years because of its growing membership, members’ use of the credit union and prudent management. More than $104 million has been paid to members since the member return program began in 2005.

“In what has been a challenging economic year, Ascend continues to show strength in its steadfastness and security,” Gabriel said. “Our credit union’s ability to consistently offer this return yearly is another example of the many benefits that Ascend provides for its members.”

So far this season, 11 credit unions ($39 billion, 2.2 million members) have announced $95.7 million in special dividends. The amount represented about $44 per member and 25 bps of their 12-month ROA of 1.13%.

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