DEARBORN, Mich. — With credit unions everywhere making the most of large dividend payouts, Michigan' s largest credit union–the $1.8 billion DFCU Financial CU–used the occasion of its $17 million distribution last week to remind the public via the Internet of its special economic role and to sharpen the CU "difference with banks."
Joining in the attack on the banks was the Michigan Credit Union League, which talked up the large Dearborn Financial payout as another example of CUs' ability to give back to their members while profit-minded banks do not.
"When is the last time that a bank sent their customers a little extra after a profitable year?" asked David Adams, president/CEO of the league. "As an industry, we can tout this special dividend as the credit union difference in action. This dividend represents the hard-dollar differences between credit unions and banks."
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To demonstrate his point, Adams went further by once again attacking the big Comerica Bank of Detroit for "leaving town" and moving its headquarters to Dallas during a troubled economic period for Detroit and Michigan.
Meanwhile, DFCU Financial said in a two-day period it received more than 500 comments, most of them favorable, on its Web site (www.dfcufinancial.com) as a result of a "feedback" section asking for views from its 134,000 members.
Web comments on DFCU Financial's "Give Us Your Feedback on Special Dividend" pullout included praise for CU managers for "giving back to us for our patronage." Another wrote the extra funds came at a time when "we are struggling after a difficult holiday season." Still another commented, "I have been a DFCU member since high school, and now I have accounts for my kids and after last year I told them what a treat the dividend was and do not expect it all the time. How exciting to get another one."
A DFCU spokesman said member reaction was instantaneous with 100 replies on the Web site within the first hour of its announcement Jan. 10.
In its press release, Mark Shobe, president/CEO of DFCU, said considering the area's economic challenges, "we're glad to help out so many members by giving back in the form of this special dividend." For those with DFCU mortgages, the dividend "equates to practically a free payment which is welcome relief," said Shobe, noting the DFCU payout matches the $17.5 million given out a year ago.
DFCU Financial also reminded Detroiters that it has invested more than $50 million in southeastern Michigan since 2003 "through branch expansions, jobs creation, dividends and investments in our schools and communities" and without mentioning Comerica said the CU "is one of only a few financial institutions in the area that isn't relocating, reducing its workforce or closing branches."
"The fact that DFCU Financial is able to issue a dividend, build new branches, introduce payment- and interest-free loans through the Career Transition Program, provide free credit and budget counseling, and still be financially strong is testament to our loyal member base and how well the credit union is operating amidst this struggling economy, " Shobe concluded.
This is the second large dividend the credit union has offered since it attempted a conversion to a mutual savings bank under Shobe's leadership a couple of years ago.
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