DEARBORN, Mich.—Three more CUs have announced patronage dividends, including DFCU Financial here, which has returned $25 million to its members, the largest patronage dividend awarded in its history.
Last year DFCU paid back $24 million. This year’s giveback, deposited into members’ accounts Jan. 5, represents about half of DFCU’s 2015 net income.
"DFCU Financial members made 2015 a great year, and as we continue to grow in communities across the Detroit, Ann Arbor, Grand Rapids and Lansing areas, it's important to us that we thank our members for their loyalty, and that they share in our success," said Mark Shobe, DFCU president and CEO, in a statement. "As we look ahead to continued expansion in 2016, our team remains focused on providing the education and support to help our members make sound financial decisions.
The $3.9-billion DFCU's Cash Back program pays qualified members an annual loyalty reward of 0.5% on their average yearly loan and deposit balances from the previous year. DFCU has paid out more than $206 million in Cash Back to its members since 2006.
In Harrisburg, Penn., Pennsylvania State Employees Credit Union said it will be paying a $12.5-million “Relationship Reward” to its members, the fourth consecutive year it has rewarded members for doing business with it
The Pennsylvania CU Association reported that to be eligible for the Reward, the member must have certain products and services. If a member is eligible for a Reward, the minimum reward will be $10, and the final amount will be determined by two components. The first is usage of eligible products and services which earns a fixed dollar amount depending on the product or service. The second is a percentage based on both the amount the individual member and the entire membership received in total dividends earned and interest paid in the past year.
Meanwhile, in Rock Island, Ill., the $70-million Gas & Electric Credit Union has paid a $250,000 bonus dividend to its members for 2015. It’s the second consecutive year the credit union has paid a bonus dividend.
In Greensboro, N.C., for the sixth consecutive year members of the $168-million Premier Federal Credit Union received 5% of the interest paid in 2015 on eligible loans.
More than 9,400 members received a portion of the $272,000 given back through a deposit to their savings account. Over the past six years, more than $1,490,000 has been returned to members in the form of an annual interest rebate.
“The credit union philosophy as a financial cooperative is to return our profits to our members-owners. We are pleased to be in the financial position that afforded us this opportunity,” stated CEO Lori Thompson. “The response from our members has been very positive. Some were calling before year end in anticipation of how much their rebate would be.”