RALEIGH, N.C.–Coastal Credit Union said it has paid out more than $3.3 million in special dividends to eligible members through its Loyalty Bonus program.
The payout was shared among 63,500 members, making it Coastal’s largest bonus dividend in terms of both dollars paid and number of recipients, the credit union said. This year’s payout was a 35% increase over 2018.
The $3.3-million payout by Coastal brings to more than $179 million the amount returned to members by credit unions during 2018 in the CUToday.info Member Giveback Tracker.
The total Loyalty Bonus payout was based on Coastal’s overall performance in 2018. Individual shares of the payout were then calculated based on each member’s aggregate relationship (year-end loan balances plus average deposits) with Coastal, as well as their length of membership. Individual members received anywhere from $5 up to $300.
A ‘Different Business Model’
“It’s important for us to remind people that there’s a different business model out there that’s designed to actually return value to its consumers rather than extract it from them,” said Chuck Purvis, Coastal’s president and CEO. “As a member-owned cooperative, we’re in a unique position to both work to help our members improve their personal financial situation every day, and then share our financial success with them at the end of a profitable year. We aren’t beholden to Wall Street investors, so we can focus on using our earnings however they will best benefit our members. One way we can do that is by returning some to the people who helped us earn it.’”
More Than $17.5 Million Returned
Over the past eight years, Coastal said it has returned $17.5 million to members as special dividends.
“Loyalty Bonus is just part of how Coastal returns value to our members,” said Joe Mecca, VP of Communication. “We’ve identified more than $32 million in member savings during 2018 by calculating the difference between our loan rates, deposit dividends and fees, compared to our competition, as well as the value of other incentives and programs we offered to members throughout the year.”