LAS VEGAS -
That’s what happened at Clark County CU, when it paid one member his $56,000 share of the credit union’s $6.9-million dividend payment.
Mark Andrews, VP-sales and marketing for CCCU, told Credit Union Journal the member is a commercial borrower who earned $41,000 on one property loan for a building here. The unidentified member earned the dividend through a total of three accounts with the credit union.
CCCU adds all interest members paid on loans to all interest earned on deposits, Andrews explained. Each member’s total is divided into the overall bonus dividend, which determines the proportionate share. “With that system, loans earn dividends faster than savings,” he said. “The ratio of interest we sent back to members was 12.99%.”
The total dividend payment was $6,961,960.90. Andrews said the credit union preserves 10% of its earnings for net worth, then the rest goes back to the members.
“We had over 1,200 members receive $1,000 or more in bonus dividends. It was quite a nice year,” he said. Which made for quite a nice day on Jan. 8, when employees were busy personally contacting the members who received the largest dividends. Andrews said many people were eagerly anticipating the news, both on the staff side and the member side.
In addition, tellers and loan officers in the credit union’s branches wore electronic billboards. The credit-card size, scrolling billboards said: “Ask me about your bonus dividend.” The main screen of staffers’ workstations were given a quick link to bonus dividend amounts by entering the member’s name or account number.
Not surprisingly, the member who received the $56,000 dividend was “delighted” to hear the news. Andrews said the member had a loan in excess of $2 million, and also had a personal account with a non-mortgage product and a joint account with other individuals.
“Commercial borrowers never expect that sort of thing because they are used to banks. Unless they are a shareholder of a bank, they don’t see that money,” Andrews explained. “For our commercial borrowers who have been with us for a few years, they begin to look for it and plan accordingly. For some, it represents two or three months’ loan payments.”
One commercial borrower is in his first year with CCCU, so he was not expecting to receive a dividend. Andrews said that member decided to donate his bonus dividend to Children’s Miracle Network.
“This is always a fun time for us,” Andrews said. “We love seeing members’ reactions because they are unexpected.”
One CCCU member received enough to pay for a water heater that went out over the weekend, he continued. “Some people are in a bad spot and an unexpected amount like this helps them. Others call in to report an unexpected deposit in their account and they are calling to report it because they think they won’t be able to get away with it. We are happy to tell them it is their money.”
According to Andrews, some of CCCU’s “jealous competitors” say the credit union returns large dividends only because it is overcharging on loans.
“Which is not true,” he declared. “This money comes from our investments and efficiency. This is the truest form of cooperative activity. Members have learned if they save us expense payments by signing up for e-statements, everyone shares.”
The top 20 dividend earners include a realtor, a developer, a dentist, a surgeon, a county employee, an elected official, an attorney, a local business owner, a private school owner, an insurance agent, a mortgage loan officer and an airline pilot.
“Quite a mix, and the list even includes a retired couple,” Andrews added.
