Tyndall FCU to Pay $22 Million Special Dividend Dec. 13

Credit unions in Florida, Iowa and Wisconsin are paying their members more than $28 million this quarter as special dividends.

The amount represents about $53 per member and 25 basis points of their return on average assets of 0.74% for the 12 months ending Sept. 30.

The largest is the Tyndall Giveback from Tyndall Federal Credit Union of Panama City, Fla. ($1.9 billion, 111,787 members), which is paying members $22 million Dec. 13. The amount represents about $197 per member and 112 bps of its ROA of 0.62% for the 12 months ending Sept. 30.

Chair Frances Martin said Tyndall has eliminated many of its most common member fees and now charges $28 per member per year compared with Callahan & Associates’ estimate of $78 among its peers.

“Credit unions were created in 1934 to help everyday people save money and facilitate their lives,” Martin said. “And Tyndall is a low-income designated credit union, which means our first thought should always be, ‘How can we help our members keep money in their pocket and build the life they want?’”

Tyndall has distributed $62 million in special dividends over the past five years.

Dupaco Community Credit Union of Dubuque, Iowa ($3.2 billion, 161,813 members) paid members $3.3 million Oct. 19 as its Thank Use Ownership Perks. The amount represents about $20 per member and 11 bps of its ROA of 0.57% for the 12 months ending Sept. 30.

The payout on International Credit Union Day was an average of $45 per eligible member. It marks the credit union’s eighth consecutive special dividend. Since 2016, Dupaco has paid nearly $27.7 million.

CMO David Klavitter said the Thank Use dividend demonstrates the power of Dupaco’s member-owned, cooperative structure. “The more members use their credit union, the more members, the community and Dupaco benefit.”

Summit Credit Union of Madison, Wis. ($6.8 billion, 254,402 members) is paying members $2.7 million Dec. 15 as a Cash Boomerang. The amount represents about $10 per member and 4 bps of its ROA of 0.87% for the 12 months ending Sept. 30.

This year marks the 10th year in a row the board has chosen to make an annual member giveback, bringing total special dividends to $22.3 million.

This year’s member giveback will go to 75,900 members, or about $35 each among those eligible members.

President/CEO Kim Sponem said the payout is intentionally timed to occur right before the holiday season.

“We hear from members that they like to do something fun with their Cash Boomerang since they weren’t expecting it, or that it gives them just enough cushion to relieve some stress at this time of year,” Sponem said.

In the previous season ending in February this year, CU Times tallied $331.7 million in special dividends from 55 credit unions that comprised $148.1 billion in assets and 7.7 million members, or about 6% of the movement’s assets and members as of Sept. 30. The amount represented about $43 per member and 23 bps of their 12-month ROA of 0.91%.

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