Credit Unions Big and Small Announce Dividends
The largest of the four special dividends is $16 million by Eastman CU of Tennessee.
Four credit unions ranging from the nation’s 41st largest to its 2,135th have announced $17.5 million in special dividends for members in Tennessee, Illinois and Pennsylvania.
The largest distribution came from the nation’s 41st largest credit union: Eastman Credit Union of Kingsport, Tenn. ($7.8 billion in assets, 320,400 members), which is paying members $16 million in January as an Extraordinary Dividend. The amount represents about $50 per member and 21 basis points of its return on average assets of 2.00% for the 12 months ending Sept. 30.
President/CEO Kelly Price said the credit union’s strong financial performance in 2023 allowed ECU’s board of directors to approve the year-end bonus, up from $15 million a year ago. The 2024 payout is ECU’s largest ever and will raise the total given back to members to $193 million since 1998.
“We can attribute this success to our loyal members, hard-working staff, and the leadership and vision of our management and board of directors. It’s a grand finale to another great year,” Price said.
Price added, “Giving back is at the heart of ECU’s members-first philosophy. In everything we do, we’re constantly thinking about what’s best for our members, and how we can strengthen our communities and boost local economies.”
The nation’s 2,135th largest credit union, Midwest Coalition of Labor Credit Union of Chicago ($71.7 million in assets, 7,775 members), paid members $100,000 Dec. 18 as a special dividend. The amount represents about $13 per member and 14 bps of its ROA of 1.82% for the 12 months ending Sept. 30.
Casey Martin, MCLCU’s president/CEO since 2019, said in a video posted Dec. 18 that its special dividend is the first since the credit union was founded 49 years ago.
“The band is just getting warmed up,” Martin said. “We hope and plan on issuing more of these special dividends in the future. True to our mission: As we go, you go.”
“I’m proud to say the credit union is financially healthy – more than it’s ever been – and we want to reward our members who have stood by us.”
The two other dividends announced in December were from:
- Top Tier Federal Credit Union of Clarion, Pa. ($191.4 million in assets, 14,646 members), which is paying members $350,000 in January as a Special Bonus Dividend. The amount represents about $24 per member and 20 bps of its ROA of 1.28% for the 12 months ending Sept. 30.
- Scott Credit Union of Edwardsville, Ill. ($1.8 billion in assets, 151,108 members), which paid members $1 million in early December as a bonus dividend and loan interest rebate. The amount represents about $7 per member and 6 bps of its ROA of 0.56% for the 12 months ending Sept. 30.
President/CEO Frank Padak said Scott CU has consistently returned a bonus dividend for the past 31 years and a loan interest rebate for the past 16 years.
“As a credit union, we believe in sharing our success with the members we serve,” Padak said. “In fact, in the past 16 years, we’ve given back a remarkable $15.4 million to our members through the bonus dividend and loan interest rebate.”
So far this season, CU Times has tallied 24 credit unions ($78.8 billion, 4.2 million members) that have announced $171.7 million in special dividends. The amount represents about $41 per member and 22 bps of their 12-month ROA of 1.15%.
Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.