Dividend payout continues to rise at CoVantage Credit Union
CoVantage Credit Union in Antigo, Wis., has returned more than $4 million in patronage dividends to members, up from $3.3 million last year and double what the credit union paid out five years ago.
The credit union has returned a patronage dividend to members for the last 30 years, according to a statement from CoVantage, and more than $10 million has gone back into members’ pockets in the last three years alone.
Members who saved and borrowed with at the $1.8 billion-asset CU were eligible for the rebate. Those with deposit accounts received a bonus 5% return on eligible savings, term share certificates and variable-rate accounts, while members with loan relationships got 5% rebate on all 2019 interest paid on qualifying vehicle, home equity, mortgage, credit card and commercial loans.
The credit union’s “round-up” program, Change it Up, which rounds up debit card transactions to the next dollar amount, saved more than $2 million with that program alone this year, the CU said. As reported, a growing number of credit unions are using round-up initiatives to help members save – and competing with fintechs in the process – as well as to fund philanthropic initiatives.
“The board determines how much income we need to pay regular dividends and operating expenses, and keep in reserves to ensure we remain strong during difficult times. Because of our financial strength, and the fact that more and more members are trusting CoVantage with their loans, deposits, and cards, we had a successful 2019,” Lee Siler, chairman of CoVantage’s board of directors, said in a press release.
CoVantage reported more than $17.5 million in net income during the first three quarters of 2019, according to call report data, up from $16.7 million during the same period one year prior.
Additional coverage of 2019 patronage dividends across the industry can be found here.