SAN FRANCISCO-San Francisco Fire CU rolled to the top of Callahan's Return of the Saver category for its asset size by returning a whopping 53% of its gross income in the form of dividends.
Diana Dykstra, SF Fire's CEO, said the credit union benefits from some "unique" factors, such as the fact firefighters - especially in California - are well-paid individuals. "Some have second careers, because firefighting allows them to do that, so our average share balance is $23,000, which is very high," she said.
"We are a small credit union that works really big - 23,000 members and $565 million in assets, for a high average balance," Dykstra told Credit Union Journal. "We pay a good rate which keeps the money here, but we aren't crazy about chasing the market. We had 22% share growth last year while the market was imploding."
Callahan's ranked San Francisco Fire in 1st place for Return of the Saver for CUs with $500 million to $1 billion in assets. Dykstra noted several components go into the Return of the Saver calculations, and she said dividends-to-total-income is a big part of her credit union being at the top.
"We work to keep our expenses low - our goal is to make sure 40% to 50% of our gross income goes back to members in the form of dividends," she explained. "Certainly it is not always easy to compete in the rate environment, but in a regular market our target is 40% to 50%. Last year, we returned 53% of gross income as dividends. The credit union average is 33%, and banks are 21%, so we are proud of our number."
In one sense SF Fire is "lucky" to have a highly compensated membership, Dykstra acknowledged, but it also has "deep relationships" with its members. She said every effort is made to increase share of wallet, with two factors standing out in particular. First, the CU offers simplicity to its members - no "funny features," no confusion from multiple checking and money market accounts ("Our members like this," she assessed.)
"Second, we listen to our members. Instead of sitting in board meetings deciding what our members like or want, we ask them two or three times a year, and we take action on their suggestions. Some asked for account-to-account transfers, others wanted easier loan approval processing. Because our members feel ownership, we grow. When they say something, we listen."
