ESL Pays Members $25 Million Special Dividend

ESL Federal Credit Union of Rochester, N.Y., announced Friday it is paying members $25 million in special dividends, while six other credit unions are distributing another $4.7 million to members.

The Owners’ Dividend from ESL ($9.1 billion in assets, 425,257 members) represents about $59 per member and 27 basis points its ROA of 0.47% for the 12 months ending Sept. 30.

ESL said the payment was made based on its most recent annual financial activity and was the second largest single payout in ESL history. This payout is also the second consecutive year of a $25 million payout for eligible credit union members.

With this latest distribution, ESL has now shared more than $290 million with its members through the Owners’ Dividend since 1997, including $125 million paid to members since 2020.

“This year’s $25 million payout reaffirms our commitment to share our financial success with our members,” President/CEO Faheem Masood said. “We thank them for their trust and loyalty in us, as their ongoing support enables this payout and our ongoing efforts to help Greater Rochester thrive and prosper.”

Eligible ESL members receive an Owners’ Dividend based on established criteria, which includes account balances, card transactions and relationships with the ESL Wealth Management teams. This is in addition to a base starting payout of $10.

The six other credit unions are:

1. OMNI Community Credit Union of Battle Creek, Mich. ($589.7 million in assets, 44,773 members), which paid members $1.8 million Jan. 19 as a Cashback Rebate. The amount represents about $40 per member and 30 bps of its ROA of 1.29% for the 12 months ending Sept. 30. OMNI has distributed more than $20 million to members since the program’s inception in 2008. “At OMNI, we are dedicated to recognizing and rewarding our members for their loyalty,” President/CEO Mark Cramer said. “The Cashback Rebate program is a testament to our commitment to giving back.”

2. Guardian Credit Union of Montgomery, Ala. ($963.3 million in assets, 87,859 members), which paid members $450,000 Jan. 8 as an Interest Rebate and Bonus Dividend. The amount represents about $5 per member and 5 bps of its ROA of 1.22% for the 12 months ending Sept. 30. Guardian has distributed $7.6 million since 2012.

3. Michigan Legacy Credit Union of Wyandotte, Mich. ($226.4 million, 21,739 members), which paid members $385,834 throughout 2023 as a Patronage 365 dividend. The amount represents about $18 per member and 16 bps of its ROA of 0.24% for the 12 months ending Sept. 30.

4. OTIS Federal Credit Union of Jay, Maine ($244.8 million, 11,213 members), which paid members $566,113 Jan. 1 as a Bonus Dividend and Interest Refund. The amount represents about $50 per member and 23 bps of its ROA of 1.40% for the 12 months ending Sept. 30. “2023 was another financially strong year for OTIS Federal Credit Union,” President/CEO Chris Bouchard said. The credit union has now distributed more than $6.9 million in special dividends in the last 19 years.

5. Charter Oak Federal Credit Union of Waterford, Conn. ($1.5 billion in assets, 87,264 members), which paid members $480,000 in December as cash bonuses to its Gold Rewards members. The amount represents about $6 per member and 3 bps of its ROA of 1.05% for the 12 months ending Sept. 30. Since its start in 2010, Charter Oak has distributed more than $7.4 million in annual $100 cash bonuses to its qualified Gold Rewards members.

6. SAFE Federal Credit Union of Sumter, S.C. ($1.8 billion in assets, 139,500 members), which paid members $1 million Dec. 31 as a Member Giveback. The amount represents about $7 per member and 6 bps of its ROA of 0.55% for the 12 months ending Sept. 30.

SAFE has distributed more than $38 million to members since the program began in 1997.

“SAFE’s success is a shared accomplishment,” President/CEO Michael Baker said. “This year’s million-dollar giveback is a tangible way for us to show our appreciation by sharing a large portion of our earnings directly with our members.”

So far this season, CU Times has tallied 39 credit unions ($109.3 billion, 5.8 million members) that have announced $274.8 million in special dividends. The amount represents about $47 per member and 26 bps of their 12-month ROA of 1.05%.

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