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Michigan Credit Union League

DFCU Sends $24 Million Dividend to Members

DFCU Financial is returning a record $24 million to its members, for a total dividend of $181 million paid back to members since 2006.

“At DFCU Financial, returning cash back to our members is our way of saying ‘thank you’ for their loyalty,” DFCU President and CEO Mark Shobe said. “We believe it’s our responsibility to share our success with the members who help us achieve it, whether they are borrowers or savers.”

DFCU attributed its ability to offer the patronage dividend to its streamlined structure and management approach. The dividend is the largest of any financial institution in the country over the eight-year period it has provided the dividend. This year’s reward surpasses last year’s record-breaking $23 million payout.

“Mark Shobe and his team should be proud of how they leverage the credit union structure that affords the ability to return so much value to the membership,” MCUL & Affiliates CEO David Adams said. Adams added that he knows the dividend model does not work for all credit unions. Many credit unions prefer to offer great rates and low fees throughout the year.

“DFCU, Dow Chemical Employees Credit Union and OMNI Community Credit Union are just a few examples of credit unions that provide great value to their members with this model,” Adams said. “It is particularly noteworthy that DFCU has paid such large patronage dividends over the past eight years and that their highly efficient and value-based model strives to not only offer competitive rate and fee structures throughout the year but then follows it up with a large dividend that rewards patronage.”

DCECU announced its dividend program last week. While the credit union had not yet calculated a total amount of the dividend, it said the rebates would include a 75 percent rebate on loan interest, 75 percent reward on all dividends paid on shares and deposits and a 0.125-percent rebate on its VISA Check Card.
OMNI has not yet released information about its dividend for 2014.

DCECU announced its dividend program last week. While the credit union had not yet calculated a total amount of the dividend, it said the rebates would include a 75 percent rebate on loan interest, 75 percent reward on all dividends paid on shares and deposits and a 0.125-percent rebate on its VISA Check Card.

DBusiness.com ran a story about DFCU’s dividend.

More than 100,000 members at DFCU share the dividend. In 2015, members receive an average CASH BACK direct deposit of $250 and the largest reward totaled $18,000. In many cases, members’ CASH BACK rewards are significant enough to pay a mortgage or car payment.

The organization returns approximately half of its annual earnings to members, who receive 0.50 percent CASH BACK on their portfolios — which may include checking, savings, auto and mortgage loans and credit cards — annually.

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2015-01-12 00:00:00