RALEIGH, N.C.–Coastal Credit Union has paid out more than $3.6 million in special dividends to eligible members through its Loyalty Bonus program.
The payout was shared among nearly 69,000 members, the credit union reported.
Coastal CU said the Loyalty Bonus dividend was based on its overall performance in 2020, with individual shares of the payout calculated according to each member’s aggregate relationship (a function of year-end loan balances and average deposits) with Coastal, as well as their length of membership. Individual members received anywhere from $5 to $300, the CU said.
“Despite the challenges presented by COVID-19, we had a strong finish to 2020, and our financial results enabled us to once again share with our members,” said Chuck Purvis, Coastal’s president and CEO. “Loyalty Bonus is more than a dividend payout to our members. It’s a way to reward them for making us their first choice when it comes to financial services, and demonstrates our principles as a member-owned cooperative. The money we earn belongs to the members who use our products and services, and when we have a good year, we can give some of it back to them. I’m thrilled that 2020 turned out to be another one of those years.”
More Than $25 Million in Special Dividends
Coastal CU reported that over the past 10 years it has returned $25.1 million to members as special dividends. In addition, it looks at the overall “member giveback,” which it described as the cumulative positive impact it has by saving money for members on their everyday financial needs.
“We calculate the difference in our loan rates, deposit dividends and fees, compared to the banks in our market, and add in the value of other membership benefits throughout the year,” added VP-Communications Joe Mecca. “Despite a year of a tighter rate market and seeing COVID-related shutdowns limit our ability to offer discounts and rewards, we still managed to identify more than $31 million in member savings during 2020, or $114 per member.”