PHOENIX - The end of the year typically brings annual dividends paid out by credit unions to their members, with two of the three biggest bonuses in CU history coming just days apart.
As The CU Journal reported last week, Arizona FCU announced a $10-million year-end payment to its members on the heels of DFCU Financial's record $17.5-million dividend earlier in the week. The previous record had been held by Clark County CU, Las Vegas, which issued a $12-million special dividend in January 2006.
Call it what you will, credit unions all over the country were announcing million-dollar paydays for their members in the run-up to the end of the year, returning their built-up retained earnings to their member/owners.
In announcing their dividends, many credit unions took the opportunity to highlight that returning earnings to members instead of stockholders is part of the credit union difference. The following is a sampling of the dividends being paid out by credit unions across the country.
* CLARKSVILLE, Tenn.-When Fort Campbell Federal Credit Union said, "Thanks A Million," to its members earlier this month, they meant it, said Tom McManamay, board chairman. On Dec. 1, $1 million in patronage dividends was divided and posted to their primary accounts, he said.
"Our members received their share of the $1 million based on the number of services each member has with Fort Campbell Federal and how much interest they paid on consumer loans," McManamay explained. "Our member-owners are the foundation of the credit union."
* LANCASTER, S.C.-Members of Founders Federal Credit Union will receive a year-end bonus dividend of $6 million, the largest bonus dividend in the history of the CU.
"Once again, the incredible support we have received from our members has allowed us to declare a bonus dividend," said Bruce Brumfield, CEO of Founders with more than $1 billion in assets. "We are extremely grateful to our employees and members for an exceptional 2006 and we look forward to another successful year."
* FLINT, Mich.-Financial good health in 2006 prompted Dort Federal Credit Union to award its members in good standing their share of a $1-million bonus dividend.
Distribution was based on dividends earned and interest paid between Jan. 1 and Nov. 30, 2006, said Jenny Ludwigsen, Dort FCU marketing director. The average paid to each member was $17. However, she said, one member received a bonus of $1,500 and several others got as much as $1,000.
The $319-million CUs said the substantial capital gains were a direct result of the memberships' loyalty to their CU.
* KINGSPORT, Tenn.-For the tenth consecutive year, members of Eastman Credit Union will receive their share of a $4-million "Extraordinary Dividend" bonus.
"Our Extraordinary Dividend is based on the amount of business you have done with ECU within the past year," explained CEO Olan O. Jones, Jr. "The more business you are doing with ECU, the larger the dividend you will receive. This rewards those who made the dividend possible."
It is not uncommon for member-owners who use Eastman Credit Union as their primary financial institution to receive several hundred dollars in dividends, Jones said.
This year's amount brings the over total of bonus dividends handed out by the $1.7-billion asset ECU to $29.7 million.
* PEORIA, Ill.-Members of CEFCU got some extra help paying for Christmas presents this year with an extraordinary dividend of $6 million from their credit union.
The early Christmas present was deposited in members' accounts last week.
The bonus payout was divided equally between savers-$3 million, based on the amount of dividends received by Nov. 30-and borrowers-$3 million, based on the amount of interest paid.
The $3-billion credit union, originally known as Caterpillar Employees FCU, has paid out more than $21 million in extraordinary dividends since 2000.
* HARRISBURG, Penn.-PSECU recently issued $7.4 million in special year-end dividends to its members. This total represents an increase of $1.6 million over the 2005 special year-end dividend of $5.8 million.
PSECU calculated each individual's dividend amount by taking 5% of dividends earned on shares and the interest paid on loans through November 2006.
"This is one of many great examples of how our members reap the rewards of their credit union membership," says Gregory A. Smith, PSECU President. "Being able to return this money to our members shows how seriously we take our stewardship of their credit union."
* PANAMA CITY, Fla.-Tyndall Federal Credit Union announced a $3-million bonus to members a move the credit union said is in keeping with its mission statement: "Tyndall Federal Credit Union exists for the benefit of our members."
"We take the responsibility of safeguarding the members' money - for the ultimate benefit of the membership-very seriously," said CEO Jim Warren. "We work hard to keep loan rates and member fees as low as possible, and to offer great savings rates, to help members. When members come to their credit union first for their financial needs, they enjoy the reward of cooperation. This $3-million bonus is another way our Board has chosen to thank Tyndall Federal members for their loyalty and support."
