Over the Christmas holidays, the Virginia Credit Union League gave its members a gift from Santa: a $300,000 dues rebate.
The league said it could manage the special rebate, a first of its kind for the group, by selling 3% of stock in Credit Union Service Corp., the Atlanta-based shared-branching firm.
The windfall should help credit unions cope with the recession, said the league
In returning the 2009 dues payments, league Chairman Stan Leicester of BayPort Credit Union noted the "challenging year given the economy and corporate stabilization costs" faced by the industry. We hope the dues will help our credit unions cope with their budgetary challenges."
Enabling the dues rebate, said a league official, was the sale of shares in CUSC as part of a national stock offering advanced by the firm to finance switch expenses. Other leagues may also have sold shares back to CUSC as part of the transaction, said the official.
In a statement, league President/CEO Rick Pillow said the league board thought it prudent to sell the stock given the premium being paid. "The league was unlikely to realize such a gain on any future stock sale," adding that "this is the first time in the league's history that it has been able to rebate a portion of affiliates' dues payments."
Rebate checks were mailed to eligible affiliates on Dec. 18.