Beacon CU Paying Members $1.8 Million Special Dividend

In one of Kevin Willour’s last acts before retiring as president/CEO of Beacon Credit Union on Dec. 31, he oversaw the distribution of a $1.8 million special dividend to its members in 50 Indiana counties.

Beacon, of Wabash, Ind. ($1.5 billion, 47,041 members) said it would be paying members a bonus dividend by Dec. 19 that represented about $38 per member and 12 basis points of its 0.38% return on average assets for the 12 months ending Sept. 30. The previous dividend was $1.3 million.

The bonus dividend was based on the daily average balance of total deposits from Jan. 1 through Nov. 30, 2022.

“Beacon’s not-for-profit model is what makes us such an attractive choice when it comes to banking,” Willour said. “It enables us to return a portion of our earnings back to our members and makes this bonus dividend possible.”

He added, “We have provided a loan interest rebate over the years and continue to do so. We also understand our communities are experiencing tough times with inflation and we are more than excited this year to provide a bonus dividend on the deposit side, giving back even more to our members.”

Beacon announced in November 2021 that Willour would retire at the end of 2022 and be succeeded by Dustin Cuttriss, its EVP/CEO for the past 11 years. Willour joined the credit union as a branch manager in 1989 and became president/CEO 10 years ago.

During Willour’s tenure, Beacon built 21 branches, expanded its field of membership to 50 Indiana counties, introduced digital banking, acquired an industrial lending company and helped guide multiple credit union mergers.

NCUA data showed Beacon is the largest agricultural lending credit union in the United States.

Beacon held $86.3 million in farm loans on Sept. 30, up 50% from a year earlier and accounting for 11% of all farm loans held by the 108 credit unions that held any amount of them in September.

So far this season, 16 credit unions ($54.9 billion, 2.9 million members) have announced $135.8 million in special dividends. The amount represented about $46 per member and 26 bps of their 12-month ROA of 1.10%.

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