Dow Credit Union to Pay Nearly $20 Million Special Dividend
Michigan credit union and two others distributing more than $22 million this season.
Three credit unions from the West to the Midwest are paying members $22.6 million in special dividends this season, led by $19.7 million from Dow Credit Union of Midland, Mich.
Dow CU ($2.1 billion in assets, 79,832 members) is paying members $19.7 million in January as a Member Giveback. The amount represents about $247 per member and 92 basis points of its return on average assets of 0.29% for the 12 months ending Sept. 30.
Dow CU has now announced a special dividend in each of the last 43 years, and the January 2024 payout brings its total to more than $295 million. Last year’s Member Giveback was $14 million.
On its website, the credit union explains that it “strives to maintain a healthy capital (net worth) level. Anything over that level is considered excess income and generally is given back to eligible members in the form of a Member Giveback. Typically included in the Member Giveback are our Loan Interest Rebate, Member Saver Reward and Visa Debit Card Rebate.”
Two other credit unions announced special dividends in late December:
- Firefighters First Credit Union, Los Angeles ($2.1 billion in assets, 63,421 members), which is paying members $2.8 million by Dec. 31 as an Annual Profit Sharing distribution. The amount represents about $44 per member and 13 bps of its ROA of 1.27% for the 12 months ending Sept. 30.
- Elevate Credit Union, Brigham City, Utah ($210.9 million in assets, 14,396 members), which paid members $69,197 Dec. 22 as a bonus dividend. The amount represents about $5 per member and 3 bps of its ROA of 1.55% for the 12 months ending Sept. 30. The credit union has paid $741,760 in bonus dividends to members since 2018.
So far this season, CU Times has tallied 27 credit unions ($83.3 billion, 4.4 million members) that have announced $194.2 million in special dividends. The amount represents about $45 per member and 24 bps of their 12-month ROA of 1.13%.
Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.