FITCHBURG, Mass. — Workers' CU here is giving more than $2.5 million back to its members for the second consecutive year.
The $1 billion credit union awarded members a $2 million payout in 2013, which was distributed to members earlier this year, and based on positive feedback from that, the board approved a dividend for 2014 which will be issued early in 2015.
"The feedback from our first GiveBack was extremely positive. Our members really appreciated the payout," Workers' President and CEO Doug Petersen said in a statement, adding "It is because of our members' support that we are doing well, so our GiveBack program allows us to share that financial success with them."
Each member's individual dividend is based on the average balance for the year in all eligible deposits and loans, and for 2014 the board expanded payouts to include business deposits and loans, and IRAs. Workers' board said in a statement that it hopes to make the payments to members ongoing. This is only the second time in Workers' 100-year history that it has given a dividend.
In the first two quarters of 2014, Workers' has already earned a net income of $7.6 million, according to its most recent Call Report, and it is currently "Well Capitalized" with a net worth ratio of 12.4%. The CU has $778 million in loans on the books, more than two-thirds of which is concentrated in real estate lending.
In 2013, Workers' Credit Union earned a net income of nearly $9 million.
