Erie Federal Credit Union in Erie, Pa., will pay $600,000 in a special patronage bonus to its membership.
The credit union noted this will be the second year it has paid a patronage bonus. Last year, the $484 million-asset Erie paid nearly $550,000 to 51,521 eligible members.
This year’s patronage bonus will be paid to eligible members prior to Jan. 31.
According to a statement from the institution’s board and management team, the patronage bonus was developed to distribute a bonus back to members based on their individual account relationship and usage of Erie products and services over the past year.
Any active member in good standing on Dec. 31 will be eligible to receive money back. Members who use Erie as their primary source for their financial needs will receive the greatest benefits from the patronage bonus.
A member is considered in good standing if they keep a minimum of $5 in a primary savings account, have no delinquent loans or negative savings accounts, and did not cause the credit union a financial loss of any kind, Brian Waugaman, CEO of Erie, told Credit Union Journal. Each member’s bonus is calculated based on a number of factors, including average daily deposit and loan balances, receiving e-statements and having a debit card with Erie.
“2018 was another extremely successful year for Erie Federal Credit Union and the patronage bonus reflects our dedication to sharing that success with our members while contributing to the communities we serve,” Waugaman said. “We truly want to thank our members for doing business with us, both borrowers and savers – it’s really that simple, and just the right thing to do. Sharing with our members is one of the many ways we are different from a bank.”
Waugaman added Erie devoted a significant amount of time developing the program, and the management team hopes it can declare similar patronage bonuses to members in the future, based on the credit union’s performance.
