PSCU Assets Grew 23% Before Acquiring Co-Op Solutions
Annual report shows its special dividend nearly doubled, while capital spending fell in the year ending in September.
PSCU’s annual report released in January showed the payments CUSO had strong growth in its last year before acquiring Co-Op Solutions.
PSCU ended its fiscal year Sept. 30, 2023 with $1.6 billion in assets, up 23% from a year earlier, while its revenue rose 16% to $871 million.
In December it paid $31 million in patronage dividends to its owner credit unions, nearly double the $16.1 million paid a year earlier. The fiscal 2023 dividend was 1.9% of average assets, up from 1.3% in fiscal 2022 and 1.6% in 2021. Until this year the ratio has been falling since at least 2016, when it was 5.5% of average assets.
“PSCU is proud to once again deliver an outstanding dividend to our owner credit unions – a 93% year-over-year increase – while maintaining a record level of capital spend that continues to grow,” President/CEO Chuck Fagan said in a Dec. 14 news release. “PSCU remains a financially healthy cooperative, with a firm commitment to delivering both ongoing investments in innovation and strong returns for our owners.”
PSCU’s annual report also showed:
- Cash and cash equivalents rose 19.3% to $380.4 million.
- Cash returned to owners as a portion of the owners patronage rose 93% to $9.3 million.
- Cash returned to owners in capital credits rose 1.3% to $7.6 million.
- Cash returned to owners in revolving funds fell 3.8% to $2.5 million.
- Capital spending fell 3.9% to $59.3 million, or 4.1% of average assets.
In 2022, PSCU’s $61.7 million in capital spending was 4.8% of average assets — about on par with 2021’s 5.1% and down from a recent peak of 6% in 2020.
The annual report also showed PSCU had 3,400 employees, the same as it reported a year earlier, and not including those added through its year-end acquisition of Co-op Solutions, a competing CUSO based in Rancho Cucamonga, Calif., 40 miles east of Los Angeles. Its 1,940 employees worked in Rancho Cucamonga, Fort Worth, Texas and Des Moines, Iowa.
Co-op, which generally served smaller credit unions, generated $527 million serving 2,650 credit unions in 2022. Its assets were $588 million at the end of 2022.