Two Credit Unions Pay Members $10.2 Million

Two credit unions are closing out the 2023-2024 season of special dividends with payments of $10.2 million to members.

TruStar Federal Credit Union of International Falls, Minn. ($338.7 million in assets, 18,296 members as of Dec. 31) paid members $650,000 Feb. 27 as a Patronage Dividend. The amount represents about $36 per member and 19 basis points of its return on average assets of 0.87% for the 12 months ending Sept. 30.

CommunityAmerica Credit Union of Lenexa, Kan. ($4.8 billion in assets, 316,315 members) paid members $9.6 million January as a Profit Payout. The amount represents about $31 per member and 21 bps of its ROA of 0.67% for the 12 months ending Sept. 30.

A news release from CommunityAmerica said the Kansas City area credit union has returned $93 million to its members since beginning the payback initiative in 2012.

“CommunityAmerica’s enduring commitment to support members by generously sharing profits sets the credit union apart from other financial institutions,” it said. “Profit Payout is a reflection of the company’s dedication to put people on a path to thrive and achieve financial well-being.”

TruStar’s Patronage Dividend payout this year was the first after three years when the board decided against paying a special dividend. It has now paid $4.75 million since 2013.

“When our capital exceeds our goal for the year, the excess is returned to our members in the form of a Patronage Dividend,” President/CEO Kipp Raboin said. “This is a perfect example of what being a member of a financial cooperative is all about – sharing the success of the business.”

From October through February, CU Times tallied 51 credit unions that announced $322.2 million in special dividends. The credit unions comprised $134.1 billion in assets and 7.3 million members as of Sept. 30, 2023, or 6% of the movement’s assets and 5% of its members.

The 2023-2024 special dividends represented about $44 per member and 25 bps of their 12-month ROA of 1.03%.

Last season, CU Times tallied $331.7 million in special dividends from 55 credit unions that comprised $148.1 billion in assets and 7.7 million members as of Sept. 30, 2022, or about 6% of the movement’s assets and members. The amount represented about $43 per member and 23 bps of their 12-month ROA of 0.91%.

The comparisons are inexact because CU Times depends on what credit unions report through news releases sent to us, their reports on the internet or responses to email queries. Some credit unions reported special dividends, but not the amount. Some credit unions do not list media contacts; some do not respond to emails.

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