MADISON, Wis.—Three credit unions have announced early Christmas presents for members, with bonus dividends and other payouts ranging from $1 million to $5 million.
Among the credit unions declaring a bonus dividend was Summit Credit Union, which is paying out $2.08 million in what it calls a “Cash Boomerang, to its members.”
The funds are being paid to more than 51,000 Summit Credit Union members, with the amount for each member based on the financial success of Summit Credit Union as well as how much the member saved and borrowed with Summit between Oct. 1, 2016, and Sept. 30, 2017.
Summit CU reported Cash Boomerang recipients have received more than $7 million in payouts since the incentive program started four years ago. In 2016, the payout was $1.9 million.
“We had a really good year and we want those who do business with us to share in our success,” said Kim Sponem, CEO and president.
In Tullahoma, Tenn., Ascend Credit Union said it is paying out $5 million in bonus dividends and loan interest refunds.
The 2017 payout brings the 13-year total member return to more than $71.5 million, the credit union said.
“We know people have a choice of financial service providers, and on behalf of our board, I want to thank Ascend’s members for their continued business,” Ascend President and CEO Caren Gabriel said. “Ascend’s member return is the perfect example of what a financial cooperative should be doing – sharing the success of the business by returning money to the people who make it successful.”
Gabriel said the member return is never guaranteed, but it is something Ascend’s board strives for each year. She said the member return is a key differentiator between Ascend and its competitors.
“Banks, payday lenders – and many credit unions – do not return money to their customers,” Gabriel said.
As in previous years, the year’s return is based on a member’s relationship with Ascend. Gabriel said the 2017 return will appear on members’ December statements.
In Schaumburg, Ill., Andigo Credit Union said it will pay a $1 million “participation dividend” to its members in January.
The $880-million Andigo CU said the payout will be the fifth it has made to members since 2010, and represents funds remaining after the organization pays its expenses for the year and ensures that the credit union has adequate reserves.
All members with active accounts in good standing will qualify for the dividend that will be paid in January. The dividend amount is based on each member’s active participation in the credit union such as their level of deposits, loans, and whether they have a mortgage, the credit union said.
“As a not-for-profit financial institution, we exist for the purpose of serving our members, who are the owners of the credit union. Thanks to their active participation through the loans and deposits they have with Andigo, we are able to give back with this owner participation dividend,” said CEO Mike Murphy. “It’s something they wouldn’t get from a bank, and it’s just one more way we show how we are different.”