X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ST PETERSBURG, Fla. – PSCU Financial Services has announced that it will repay over $1 million in “patronage equity” to member owner credit unions,” three months in advance of anticipated. Patronage equity refers to the amount of money owed by PSCU to its member owner credit unions, which federal law calls “patrons for profits the cooperative made in previous years.” Because PSCU is a cooperative, explained PSCU Executive Director Michael Yatros, federal law requires the cooperative give its member owners back at least 20% of its earnings after expenses as cash. “But we give 25% back in cash” he said, “and in previous years we have issued our member owners notes for the remaining 75%, payable at different times in the future. This has provided our working capital,” he explained. The over $1 million in payment equity being paid back represents the payment on notes that were issued in 1995, when PSCU was PSCU Service Centers, he added. Yatros said the cooperative’s new payment structure, which asks credit unions to purchase individual services from the PSCU instead of packages of services, will not impact future issuing of payment equity notes. “We still build margins into the costs of the services,” he said. He also expected that as PSCU grows and takes advantage of greater economies of scale, the amount of money available for patronage equity will grow, he said. “Obviously we are extremely proud that our valued member-owner credit unions will be receiving this equity payment,” said Dave Serlo, PSCU president. “The issuance of these checks nearly three months early further validates that PSCU is a strong, financially sound company.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.