Four Credit Unions Pay $30 Million in Dividends

Four credit unions are paying members $30.5 million as special dividends to their 886,529 members this season, including $22 million from the Police and Fire Federal Credit Union of Philadelphia.

The $30.5 million represents about $34 per member and 21 basis points of their 1.19% return on average assets for the 12 months ending Sept. 30.

Police and Fire FCU ($7.9 billion in assets, 426,923 members) paid members $22 million Dec. 13 as a Member Bonus. The amount represents about $52 per member and 29 bps of its ROA of 1.55% for the 12 months ending Sept. 30.

The Member Bonuses, which could range from $1 to $1,000, were calculated on dividends earned, loan interest paid, and courtesy overdraft fees paid Jan. 1 through Nov. 30 this year.

“It was our way of saying we value your membership and thank you for your business,” the credit union’s website says. “As we wrap up 2022, we stay committed to providing exceptional value to our members by offering higher deposit yields, lower loan rates, and fewer fees.”

Police and Fire FCU has paid members more than $100 million since starting the Member Bonus program in 2018.

The other three credit unions reporting special dividends were:

1. Firefighters First Credit Union of Los Angeles ($2.1 billion in assets, 58,923 members), which paid members $3 million Dec. 21 as a profit sharing proceeds. The amount represents about $51 per member and 15 bps of its ROA of 0.47% for the 12 months ending Sept. 30.
2. Scott Credit Union of Edwardsville, Ill. ($1.7 billion, 153,552 members), which is paying members $1 million in December as a bonus dividend and loan interest rebate. The amount represents about $7 per member and 6 bps of its ROA of 0.41% for the 12 months ending Sept. 30.
3. Empower Federal Credit Union, Syracuse, N.Y. ($3 billion, 247,131 members), which is paying members $4.5 million Jan. 1 as a Giveback. The amount represents about $18 per member and 16 bps of its ROA of 1.18% for the 12 months ending Sept. 30.

Empower’s Giveback represents a percentage of savings dividends earned and a rebate on loan interest paid for 2022, as well as Refer a Friend and MasterCard Giveback Rewards.

Lori Verzillo, SVP and chief retail officer, said Empower has given back $48.5 million in special dividends over the past 15 years.

“The strong financial year was thanks to our members-owners who take advantage of the products and services we offer,” Verzillo said.

Frank Padak, Scott CU’s president/CEO said the credit union has given members in the St. Louis metro area a bonus dividend for the past 30 years and a loan interest rebate for the past 15 years

“This is just one of many advantages of doing business with a member-owned financial cooperative,” Padak said. “We also share our success with our member-owners by offering competitive rates and lower fees than most other financial institutions.”

“Looking at the financial and economic challenges of the past two years, I can say that I am so proud of our employees and their continued dedication to our members,” Padak said. “Because of this dedication, our credit union remains a financially strong and fiscally sound institution. When we do well, everyone benefits.”

So far this season, 20 credit unions ($69.7 billion, 3.8 million members) have announced $166.3 million in special dividends. The amount represents about $43 per member and 25 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.