ESL Distributes $25 Million to Members
Upstate New York credit union’s special dividend is its third-largest annual payment.
ESL Federal Credit Union returned $25 million to its members in January, the third-largest annual special dividend by the Rochester, N.Y.-based credit union.
The $25 million Owners’ Dividend paid Jan. 20 by ESL ($9.2 billion in assets, 409,562 members as of Sept. 30) represented about $61 per member and 28 basis points of its return on average assets of 0.09% for the 12 months ending Sept. 30.
ESL paid members a $40 million special dividend in January 2022, or about $100 per member and 48 bps of its ROA of 2.15% for the 12 months ending Sept. 30, 2021.
In the previous 12 months, it paid $35 million in Owner’s Dividends, or about $94 per member and 47 bps of its 12-month ROA of 1.15%. It made an early distribution of $20 million in June 2020 to help members cope with economic disruption from the COVID-19 pandemic, followed by $15 million in January 2021.
With the latest distribution, ESL has now shared more than $265 million with its members over the Owners’ Dividend 27-year history.
“This payout based on 2022 financial results reaffirms our commitment at ESL to share our financial success with those who make it possible — our members,” President/CEO Faheem Masood said.
“We’re incredibly pleased to be able to deliver today’s $25 million Owners’ Dividend payout to our members, as we express our deepest gratitude for the trust and loyalty they show to us. Their support helps us stay on our path to helping Greater Rochester thrive and prosper,” Masood said.
New for this distribution, all members who were eligible to receive an Owners’ Dividend automatically received a $10 starting payout. This $10 payment allowed more people to receive an Owners’ Dividend and effectively increased payouts for a significant portion of members.
In addition to a $10 starting payout, ESL members received an Owners’ Dividend based on established criteria, which includes account balances, card transactions and relationships with the ESL Wealth Management teams.
ESL has a long history of annual special dividends, but all such payouts require approval by a credit board and are not guaranteed.
So far this season, 33 credit unions ($106.1 billion, 5.7 million members) have announced $265.7 million in special dividends. The amount represented about $47 per member and 26 bps of their 12-month ROA of 0.94%.
Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.