LENEXA, Kan.–Two more credit unions have announced big year-end bonuses amounting to more than $23 million combined.
In Kansas, the $3.66-billion CommunityAmerica said it has paid out a $8.4-million “Profit Payout to its members, down slightly from the record $8.5-million paid out last year.
The payout marks the 25th consecutive year the credit union had distributed the bonus to members and the ninth straight year of it being worth more than $5 million. The amount each member received is based on a formula that considers use of the credit union's products services and account balances.
"2020 was an exceptionally difficult year for so many individuals and businesses," CommunityAmerica CEO Lisa Ginter in a Thursday release. "We are truly grateful we were able to support our members in their greatest time of need with skip payments, deferments, and PPP and consumer loan programs. As a result, our organization is doing very well and we can return those profits at a rate consistent with our pre-pandemic give-back."
CommunityAmerica has more than 255,000 members.
$15 Million Payout
Meanwhile, in Kingsport, Tenn., Eastman Credit Union is returning a $15 million Extraordinary Dividend to members, bringing the total member payout to over $147 million since it began in 1998.
“We are delighted to return another year-end bonus to members, especially one that exceeds any amount ever distributed. That’s a testament to ECU’s extraordinary service and relationship we have with our members,” said Kelly Price, president and CEO of ECU, in a statement.
The dividend returned to each member is directly related to the amount of interest members earn on deposits and pay on loans throughout the year. ECU noted that while its 260,000 members have come to anticipate this year-end bonus, the Extraordinary Dividend is “not guaranteed. ECU must first achieve a level of net worth that allows for the growth and sustainability of the organization.”
ECU has more than $6 billion in assets.