Four Credit Unions to Pay $38 Million in Dividends

Credit unions in Michigan, Georgia, Wisconsin and Utah announced they are paying $38.3 million in special dividends this season to their 730,582 members.

The payouts represent about $52 per member and 28 basis points of their 1.09% return on average assets for the 12 months ending Sept. 30. The four are:

• Robins Financial Credit Union, Warner Robins, Ga. ($4 billion in assets, 249,346 members) paid members $18 million Dec. 13 as a Member Rebate. The amount represented about $72 per member and 46 bps of its ROA of 1.23% for the 12 months ending Sept. 30.
• Summit Credit Union, Madison, Wis. ($5.4 billion, 232,339 members) paid members $2.5 million in November as a Cash Boomerang. The amount represented about $11 per member and 5 bps of its ROA of 1.1% for the 12 months ending Sept. 30.
• Goldenwest Credit Union, Ogden, Utah ($2.7 billion, 171,669 members) is paying members $3.8 million in December as a year-end Bonus Dividend. The amount represented about $22 per member and 15 bps of its ROA of 1.58% for the 12 months ending Sept. 30.
• Dow Credit Union, Midland, Mich. ($2.1 billion, 77,228 members) is paying members about $14 million in January as a Member Giveback. The amount represented about $181 per member and 66 bps of its ROA of 0.23% for the 12 months ending Sept. 30.

Dow, which changed its name in September from Dow Chemical Employees’ Credit Union, is paying its members in the form of interest rebates and rewards deposited to their savings accounts.

This is the 42nd consecutive year that Dow has returned a share of its earnings to members: A total of more than $275 million. The Member Giveback began in 1955 and has been offered in all but one year since.

Members in good standing this year will receive 40% of the interest paid on their eligible loans over the course of the year a cash reward equal to 40% of the interest/dividends they earned on their eligible deposits. Members also will receive a 0.125% rebate on their total Dow Credit Union Visa Debit Card purchase transactions for the year.

“We provided the largest giveback in the nation as a percentage of total assets for 2021, and we’re hopeful that our 2022 Member Giveback will keep us on that leading edge,” Dow President/CEO Michael Goad said. “Along with our diligent management of members’ deposited funds, the loyalty of our members in saving with and borrowing from us year after year is a key reason we’re able to routinely offer such a significant Member Giveback.”

Most deposits will be made on Jan. 1, but the official total dollar amount of Dow’s 2022 Member Giveback will be announced in late January, after all rebates and rewards have been deposited to members’ accounts.

Dow’s news release said it strives to maintain a healthy capital level. Anything over its net worth target is considered excess income and generally is given back to eligible members in the form of a Member Giveback.

The amount also depends on factors such as interest rate levels, yield curve, balance sheet mix and risk, the current and future economic environment, and regulatory changes.

So far this season, 15 credit unions ($53.3 billion, 2.9 million members) have announced $134 million in special dividends. The amount represented about $46 per member and 26 bps of their 12-month ROA of 1.12%.

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