OGDEN, Utah — Members at Goldenwest CU here earned a total of more than $1 million in bonus dividends paid out by the credit union for 2014.
The $1 billion credit union is set to pay a 4% APY benefit to Goldenwest and USU CU members. When combined with the regular 0.10% APY, members will see a 4.10% APY on share savings.
This is Goldenwest's largest-ever payout since the bonus dividend program began 11 years ago, and while the year-end bonuses have varied according to performance and economic conditions, the credit union has returned $6.875 million to members since dividends were first issued.
"The quite remarkable fact about this year's bonus dividend is that we are returning such a high level of profit to our membership during the same time period we absorbed considerable expenses resulting from the merger with USU Credit Union," Kerry H. Wahlen, Goldenwest's president and CEO, said in a statement. "Through an amazing effort to mitigate merger costs, maximize operational efficiencies and grow our loan portfolio, our management team has stayed true to our mission of providing a healthy year-end dividend to our members."
Through the first three quarters of 2014, Goldenwest earned $8.6 million, with $623 million in loans on the books, concentrated primarily in auto lending and mortgages.
Bonus dividends are paid on primary and secondary shares, Christmas Club shares and IRA shares. Based on average daily balances for shares during 2014, the dividend is paid for the month of December only, and the funds earned equate to a little less than the annual yield paid on a 12-month CD at the credit union.
Whalen added that this is the first year that USU CU members have received a bonus dividend.
