With the economic blight in Michigan, as elsewhere, now top of mind, a Battle Creek credit union, the $240 million OMNI Community, is using the year-end special dividend as a way to promote its own "Economic Stimulus Package" with a Jan. 8 payout of $750,000.
The Michigan CU, one of only a handful in the state actually extending the dividend, has renamed the member stipend a "Cash Rebate" noting also it has developed what it calls a technique for payouts based on a the "total account relationship" by incorporating loan, savings and checking balances.
"The greater the relationship the larger the rebate," promised OMNI which said qualifying members will receive an extra .22% back on their 2009 average yearly loan and account balances. In 2008, OMNI paid out .20% or $650,000.
Ted Parsons, president/CEO, said his Battle Creek CU with 15% capital has been fortunate based on some "prudent steps we've taken in our portfolio and revenue stream" to ride out the economic storm in Michigan, a state now with 15% unemployment.
Parsons credited his chief marketing officer, Chris Overbeek, and a management team with coming up with the graduated payout schedule and rebranding the special dividend as a "cash rebate," something that "has a lot more relevance to the public today."
