I’d like to comment on all these large bonus dividends credit unions are doling out. Here at Power FCU we have given back over $1 million each year for the past three consecutive years and over $5 million in the last seven years. The $1 million giveback represented 4.75% of the total 2005 interest received on loans (interest rebate) and the same 4.75% of the total 2005 interest paid on deposits (bonus dividend). In my opinion, a major responsibility of all board members is to oversee the credit union’s financial health and net worth position. When a credit union’s net worth ratio exceeds 10% (as described by Greg Smith in the front page story of your Jan. 4 issue), I believe that the declaration of a bonus dividend and interest rebate should be the No. 1 priority of all board members and should be made an agenda item and discussed at a board meeting at least annually. The board process of declaring an interest rebate and bonus dividend is categorically and undeniably what makes us different than a bank because we pay our excess net income back to our membership whereas a bank would pay its excess profit back to its stockholders. I cannot see anything else in what we do as a credit union that makes us so totally different than a bank. John D Wakefield President/CEO Power Federal Credit Union Syracuse, N.Y.

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?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2023 ALM Global, LLC. All Rights Reserved.