American Airline Members Land $10 Million Special Dividend

American Airlines Federal Credit Union paid members $10 million in special dividends Monday.

The Bonus Dividend represents about $28 per member and 11 basis points of its ROA of 0.70% for the 12 months ending Sept. 30.

American Airlines FCU has now paid members $193 million in special dividends since 1998.

President/CEO Gail Enda said the board decides each year whether to issue a special dividend.

“While the bonus isn’t guaranteed, the amount an individual member receives is directly impacted by their involvement in the Credit Union,” Enda said.

“When members ask if it’s possible to increase the amount of their Bonus Dividend, I tell them to take advantage of as many of the financial solutions we offer as possible,” she said. “These products not only add value to your life, they can also literally pay off in the end.”

American Airlines FCU bases its Bonus Dividend on activity from both loan holders and depositors. The total is calculated based on dividends earned on qualifying share accounts and interest paid on auto loans, credit cards, mortgages, personal loans and student loans.

Two other credit unions announced this month that they have paid members more than $405,000 in special dividends:

1. Heritage South Credit Union of Sylacauga, Ala. ($172.9 million, 15,400 members), which paid members $350,000 Dec. 1 as a 5.5% interest rebate and bonus dividend. The amount represents about $23 per member and 20 bps of its ROA of 0.71% for the 12 months ending Sept. 30. The credit union began the special dividends in the late 1990s.
2. Quest Federal Credit Union of Kenton, Ohio ($182.1 million in assets, 15,657 members), which paid members $55,000 Dec. 1 as a patronage dividend. The amount represents about $4 per member and 3 bps of its ROA of 0.98% for the 12 months ending Sept. 30.

So far this season, CU Times has tallied 13 credit unions ($45.3 billion, 2.3 million members) who have announced $98.6 million in special dividends. The amount represents about $43 per member and 22 bps of their 12-month ROA of 0.88%.

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