WASHINGTON-Hard times have not prevented some credit unions from delivering their annual holiday gift to members, the bonus dividend.
"With the national economy experiencing a financial crisis and news of many financial institutions receiving government bailouts, this decision really makes a statement about the financial strength of ECU," said Olan Jones, president of Eastman CU, of his credit union's $4-million payout. "Not only is the extraordinary dividend great news for our member-owners, but it represents a significant boost for the local economy."
Jones said Eastman is not only proud of this year's dividend, coming as it does in the midst of a financial crisis, but also of the fact that it is the credit union's 12th "extraordinary dividend" in a row.
DFCU Financial in Dearborn, Mich., is paying its members a whopping $17-million bonus for the third year in a row. "Given the economic challenges people are facing in this area, we're glad to help out so many members by giving back in the form of this special dividend," said Mark Shobe, president of the $2 billion credit union.
DFCU credit union, which is having another banner year, has paid out more than $50 million to members over the last year. More than 125,000 members are expected to participate in this year's bonus.
Main Street Vs. Wall Street
Some credit union executives are trying to emphasize the theme of strength during the current financial crisis. Main Street versus Wall Street. "Bad loans that hurt others: we didn't make those," said Mark Spenny, president of Citizens Equity Financial CU, the Peoria, Ill., in an address to CEFCU members. "Our standards never changed. CEFCU's doing just great." CEFCU paid out $6 million to members earlier this month.
"We use Main Street values to make our decisions and we're conservatively managed," said Doug Fecher, president of Wright-Patt CU, "Our most important job is to take care of our members and their money." The Fairborn, Ohio, credit union is paying members a $3-million special patronage dividend this year.
"Our ability to pay record dividends in this period of economic uncertainty is quite a significant achievement-one that confirms Pelican's commitment to its membership and validates the sound business practices we follow," said Jeffrey Conrad, president of Pelican State CU, of his Baton Rouge, La., credit union's $125,000 bonus dividend.
