Credit Unions in 2 States Pay Nearly $10 Million in Special Dividends

Three credit unions in Kansas and Texas are awarding nearly $10 million in special dividends to their 315,607 members.

The largest chunk is coming from CommunityAmerica Credit Union of Lenexa, Kan. ($4.6 billion in assets, 284,340 members), which announced Wednesday it is paying members $9.5 million this month as a Profit Payout. The amount represents about $33 per member and 21 basis points of its 0.37% return on average assets for the 12 months ending Sept. 30.

This year’s Profit Payout follows $9 million in 2022 and $8.4 million in 2021. The special dividend requires board approval, but it has been paid for the past 25 years.

“We have such a heart for serving our members and our community, so it’s truly important that we are good stewards of our business and well positioned to pay forward a portion of our profit to them,” CommunityAmerica CEO Lisa Ginter said in a news release.

“Working hard for our members and the communities we serve is what drives us and allows us to deliver this kind of return,” Ginter said.

The two other credit unions paying special dividends are:

• Skyward Credit Union, Wichita, Kansas ($391.1 million in assets, 18,967 members), which is paying members $300,000 in January as a bonus dividend. The amount represents about $16 per member and 8 bps of its ROA of 0.39% for the 12 months ending Sept. 30.
• Space City Credit Union, Houston ($150.9 million in assets, 12,300 members), which paid members $175,000 Dec. 31 as a bonus refund. The amount represented about $14 per member and 14 bps of its ROA of 1.33% for the 12 months ending Sept. 30.

Space City announced its seventh annual special dividend Tuesday, saying members with loans in 2022 received a 3% interest refund directly deposited to their savings account. In addition, checking account holders redeemed bonus rewards throughout the year after using their Space City debit card.

President/CEO Craig Rohden said Space City remains relatively small among credit unions, but has grown fast. Its assets grew from $15.4 million in September 2002, to $59.4 million in September 2012 to about $150 million now.

“Our impressive growth is a result of our outstanding service, cutting edge products and excellent rates.” Rohden said. “This Loan Interest Refund and Bonus Rewards program are just the beginning of much more to come for Space City CU members. We are excited about the future — and this is one way we say thank you to our members.”

So far this season, 32 credit unions ($96.9 billion, 5.2 million members) have announced $240.7 million in special dividends. The amount represents about $46 per member and 26 bps of their 12-month ROA of 1.02%.

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