5 Credit Unions to Pay Members Nearly $10 Million

Five credit unions will pay their 442,860 members $9.9 million in special dividends, including $5 million from Wisconsin’s CoVantage Credit Union.

CoVantage ($2.9 billion in assets, 149,806 members), based in Antigo, 90 miles northwest of Green Bay, is paying members $5 million in January as a patronage dividend. The amount represents about $33 per member and 18 bps of its ROA of 0.90% for the 12 months ending Sept. 30.

This was the 42nd year in a row that CoVantage’s board has approved a special dividend. Over the past five years, the credit union has returned over $20 million to members, including $5 million last year.

Chair Susan Gitzlaff said CoVantage is one of the few credit unions in the country that provides special dividends. The board was able to approve the award again this year despite economic challenges.

“When the board evaluates the financials, we determine how much income is needed in reserves to protect the credit union when times get tough. To know that we can give back over $5 million after we’ve done this is amazing,” Gitzlaff said.

“While it hasn’t been an easy year due to the volatile rate environment, CoVantage is doing fantastic, and for that we say thank you to members and employees,” she said.

CoVantage depositors received a 5% bonus on dividends earned on eligible savings, term share certificates and variable rate accounts. Borrowers received a rebate of 5% of their total 2022 interest paid on eligible vehicle, home equity, in-house mortgage, credit card and commercial loans.

The $9.9 million in special dividends from the five credit unions represents about $22 per member and 14 bps of their ROA of 0.78% for the 12 months ending Sept. 30. The other four were:

1. Niagara’s Choice Federal Credit Union, Niagara Falls, N.Y. ($263 million, 22,770 members), which paid members $193,000 in December as a member loyalty payout. The amount represented about $8 per member and 7 bps of its ROA of 0.55% for the 12 months ending Sept. 30.

2. Top Tier Federal Credit Union, Clarion, Pa., 77 miles northeast of Pittsburgh ($167.4 million, 13,560 members), which is paying members $350,000 in January as a Special Bonus Dividend. The amount represents about $26 per member and 22 bps of its ROA of 1.66% for the 12 months ending Sept. 30.

3. Workers Credit Union, Littleton, Mass., 40 miles northwest of Boston ($2.5 billion, 122,928 members), which paid members $2.2 million in April 2022 as a GiveBack. The amount represented about $18 per member and 9 bps of its ROA of 0.53% for the 12 months ending Sept. 30.

4. SAFE Federal Credit Union, Sumter, S.C. ($1.7 billion in assets, 133,796 members), which paid members $2.2 million Jan. 1 as a Member Giveback. The amount represented about $16 per member and 13 bps of its ROA of 0.91% for the 12 months ending Sept. 30.

This year marked the 26th anniversary of SAFE’s Member Giveback. Since the program’s inception, the credit union has paid its members more than $37 million in bonus dividends and interest rebates.

Payments were calculated based on members’ account usage. Deposit accounts were given an 8.5% bonus based on dividends collected in 2022. Loan accounts received a 3.25% rebate based on total interest paid in 2022.

Unlike years past, SAFE extended its giveback criteria to include more than deposits and loans. This year, members also were paid for using their debit card on average more than 30 times per month.

“Thanks to our members, 2022 was a record year for SAFE in many ways,” Michael Baker, SAFE’s president/CEO, said. “We are delighted to share a portion of SAFE’s net earnings directly with the amazing members who made it possible.”

So far this season, 26 credit unions ($83.3 billion, 4.5 million members) have announced $214.6 million in special dividends. The amount represented about $48 per member and 27 bps of their 12-month ROA of 1.07%.

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