FT. BRAGG, N.C.–Fort Bragg FCU here is paying out more than $624,000 in loyalty dividends to approximately 24,000 qualified members. It is the first bonus dividend paid in the credit union’s 58-year history.
In a letter to members, CEO Todd Kenthack said qualifying members have received the payments in their regular share accounts.
“The Loyalty Dividend has two components: one to reward our depositors in the form of a special interest credit, and the other to rebate to our borrowers a portion of paid loan interest,” wrote Kenthack. “The maximum Loyalty Dividend any one member can receive is $500. The qualifying period is Jan. 1, 2018 through Nov. 30, 2018. In order to receive the Loyalty Dividend, members must have maintained a minimum aggregate share balance of $250 for every month of the qualifying period. Members with active loans for the entire qualifying period will receive a loan interest rebate of 5%.”
To answer members’ questions about the first-ever payment, the credit union has set up a special web page and dividend calculator.
“As a financial cooperative, we are able to return a portion of our credit union’s annual earnings to our member-owners. This sets us apart from many for-profit financial institutions,” wrote Kenthack. “While future dividends are not guaranteed—as they are in part dependent on our Credit Union’s financial performance—it is our hope this will be the first of many to come.”