DFCU Financial Pays Nearly $41 Million in Special Dividends

DFCU Financial Credit Union of Dearborn, Mich., announced Wednesday it is paying members a $40.8 million special dividend, the largest amount CU Times has tallied so far this season.

Also, four other credit unions are paying members $10.5 million in special dividends, including an inaugural distribution from a Houston credit union.

The Cash Back distribution by DFCU Financial ($6.2 billion in assets, 239,561 members) represents about $170 per member and 67 basis points of its 0.91% return on average assets for the 12 months ending Sept. 30.

It was an increase from the $36 million it paid last season and is slightly larger than the $40 million special dividend paid Dec. 1 by Citizens Equity First Credit Union (CEFCU) of Peoria, Ill. ($7.4 billion, 391,451 members). CEFCU’s special dividend represented about $102 per member and 53 bps of ROA of 0.80% for the 12 months ending Sept. 30.

DFCU Financial’s award marked the 18th consecutive year of the credit union’s Cash Back program. Since the inception in 2006, DFCU Financial has returned $470 million to its members.

“Year after year, we are thrilled to demonstrate our gratitude to our members through our Cash Back program,” President/CEO Ryan Goldberg said. “This program is a cornerstone of our commitment to providing exceptional value and service. We believe in the importance of sharing our financial success with the members who are the reason for our existence.”

The special dividend was distributed among about 130,000 members based on the depth of their relationship with the credit union, including checking and savings accounts, IRAs and loans.

This season was the first special dividend by Space City Credit Union of Houston ($143.3 million in assets, 12,111 members), which paid members $1 million Dec. 31 as a bonus dividend. The amount represents about $83 per member and 68 bps of its ROA of 0.16% for the 12 months ending Sept. 30.

The bonus is a combination of $750,000 in Bonus Dividends, $175,000 in Loan Interest Refunds and $75,000 in Checking Rewards Points. It was distributed among eligible members based on their qualifying deposit balances and activity throughout the year.

“We are incredibly excited to share this milestone with our members,” President/CEO Craig Rohden said. “Their trust and investment in our credit union have fueled our success, and this bonus dividend is a direct expression of our gratitude.”

The three other credit unions with special dividends are:

• SRP Federal Credit Union of North Augusta, S.C. ($1.7 billion, 195,215 members), which is paying members $3 million in January as a Loyalty Dividend, double the amount it paid just two years earlier. The amount represents about $15 per member and 18 bps of its ROA of 1.82% for the 12 months ending Sept. 30. “With the increases in the costs of living in 2023, it is gratifying to know that SRP bolsters our membership with the financial strength they can rely on,” President/CEO Eric Jenkins said. “The Loyalty Dividend reflects our appreciation to our member-owners as they continue to support us loyally.”
• AlaTrust Credit Union of Birmingham, Ala. ($191.2 million in assets, 12,964 members), which paid members $500,000 Dec. 31 as an interest rebate and bonus dividend. The amount represents about $39 per member and 27 bps of its ROA of 1.30% for the 12 months ending Sept. 30.
• CoVantage Credit Union of Antigo, Wis., 90 miles northwest of Green Bay ($3.4 billion in assets, 164,301 members), which paid members $6 million Dec. 31 as a patronage payment. The amount represents about $37 per member and 19 bps of its ROA of 0.67% for the 12 months ending Sept. 30.

CoVantage said this season’s special dividend is its largest to date. In the last five years $25 million has been returned to members specifically through patronage. The board has chosen to distribute patronage payments in each of the past 43 years.

“Being able to provide outstanding value through patronage, great rates, no overdraft fees and technology enhancements are key to living our mission,” CoVantage President/CEO Charlie Zanayed said. “When we compare rates and fees CoVantage members received on their loans and deposits to banks in Wisconsin, in 2023 members earned $47 million more in direct financial benefits with CoVantage.

In addition, Zanayed said members saved $6 million last year because the credit union does not charge overdraft fees.

So far this season, CU Times has tallied 32 credit unions ($94.9 billion, 5 million members) that have announced $245.5 million in special dividends. The amount represents about $49 per member and 27 bps of their 12-month ROA of 1.11%.

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