CEFCU Distributes $40 Million Special Dividend

Citizens Equity First Credit Union (CEFCU) announced Friday that it had paid members a $40 million special dividend.

The payout on Friday by CEFCU of Peoria, Ill. ($7.4 billion, 391,451 members) represents about $102 per member and 53 basis points of its return on average assets of 0.80% for the 12 months ending Sept. 30.

The amount each member received was determined by dividends earned and interest paid during the first 11 months of the year.

Over the last 23 years, CEFCU’s board had decided to return $455 million in Extraordinary Dividends to members, most of whom live in Illinois and California. Last year’s payout was $35 million, the second largest among the 55 credit unions in last year’s CU Times tally.

“This Extraordinary Dividend is the direct result of CEFCU’s strong financial results and continued member loyalty,” Chair Kavita Sachdev said. “It is just one of the many ways that CEFCU consistently delivers better to member/owners each and every day.”

Two other credit unions announced special dividends:

1. Wright-Patt Credit Union of Dayton, Ohio ($8.1 billion in assets, 497,182 members) is paying members $8 million Jan. 4 as a Special Patronage Dividend. The amount represents about $16 per member and 10 bps of its ROA of 0.82% for the 12 months ending Sept. 30. Wright-Patt has now distributed Special Patronage Dividends for every year since 2008, bringing the total to more than $113 million.

2. Western Division Federal Credit Union of Williamsville, N.Y. ($195 million in assets, 9,948 members) paid members $716,000 Nov. 22 as a Patronage Dividends. The amount represents about $72 per member and 38 bps of its ROA of 0.68% for the 12 months ending Sept. 30.

With November’s payout, Western Division has paid back more than $11 million in Patronage Dividends.

“We are most thankful for our members and the trust they have placed in us,” President/CEO Robert Harms said. “We hope this Patronage Dividend helps to make the holidays brighter and shows the value and benefits of being part of our financial cooperative are real and significant.”

So far this season, 10 credit unions ($36.4 billion, 1.9 million members) have announced $88.2 million in special dividends. The amount represents about $46 per member and 25 bps of their 12-month ROA of 0.92%.

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