Tennessee CU Members Receive $10 Million in Special Dividends
Credit unions spread another $1.5 million among members in Alabama and North Carolina.
Two of Tennessee’s largest credit unions have announced plans to pay members $10 million in special dividends this year.
On Thursday, Ascend Federal Credit Union of Tullahoma, Tenn. ($4.2 billion in assets, 240,798 members) said it will pay members $5 million in December as part of its member return program. The amount represents about $21 per member and 12 basis points of its return on average assets of 1.12% for the 12 months ending Sept. 30.
ORNL Federal Credit Union of Knoxville, Tenn. ($3.5 billion in assets, 198,847 members) announced earlier it paid members $5 million in October as a special dividend. The amount represents about $25 per member and 15 bps of its ROA of 1.68% for the 12 months ending Sept. 30.
At Ascend, this year’s special dividend brings its total payouts to $109 million since the member return program began in 2005. The member return encompasses bonus dividend payments, loan interest refunds and reward payments based on debit card use.
President/CEO Matt Jernigan said the member return is never guaranteed, but it is a goal of Ascend’s board to distribute it every year. He said the board has approved one in each of the past 19 years because of the credit union’s growing membership and prudent management.
“Our member return is another example of the great benefits Ascend provides,” President/CEO Matt Jernigan said. “Each year, we like to thank our valued members by putting money back into their pockets during the holiday season. Looking forward, we anticipate another year of continued financial strength and stability in 2024, and we are enthusiastic about what is ahead for our credit union and members.”
Credit unions in North Carolina and Alabama also have announced special dividends.
Fort Liberty Federal Credit Union of Fayetteville, N.C. ($583.6 million, 39,750 members) is paying members $1 million in December as a Loyalty Dividend. The amount represents about $25 per member and 17 bps of its ROA of 1.25% for the 12 months ending Sept. 30.
The credit union formerly known as Fort Bragg Federal Credit Union said its 2023 Loyalty Dividend will be distributed to more than 20,000 members, and will bring its six-year total to nearly $4.8 million.
Coosa Pines Federal Credit Union of Childersburg, Ala. ($357.8 million, 25,133 members) is paying members $500,000 this quarter as a bonus dividend and loan interest refund. The amount represents about $20 per member and 14 bps of its ROA of 1.59% for the 12 months ending Sept. 30.
This is the ninth consecutive year that Coosa Pines members have received a bonus and refund, for a total of over $3.2 million.
Coosa Pines President/CEO Don Carden said the board chose to issue the bonus and refund based on the success of the credit union in 2023 and its outlook for 2024.
“This year has been very successful for Coosa Pines, and the outlook for next year is positive,” Carden said. “While the purpose of a bank is to make money for its shareholders, as members of a financial cooperative we all share in the success of our credit union.”
So far this season, seven credit unions have announced $39.5 million in special dividends for their one million members. The amount represents about $38 per member and 20 bps of their 12-month ROA of 1.01%.
Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.