How are CUs spending their share of a $736M payout?
August 2, 2018 9:23 AM
The check's in the mail
With the National Credit Union Administration finally having issued a $736 million payout to more than 5,000 credit unions following the merger of the National Credit Union Share Insurance Fund and Temporary Corporate Credit Union Stabilization Fund, CU Journal reached out to credit unions across the country to get a sense of how they plan to spend those funds. Read on for a sampling of their responses.
Michael Rosek, CEO of First Alliance Credit Union, Rochester, Minn.
First Alliance Credit Union is receiving a refund from the [share insurance fund and corporate stabilization fund] merger of $98,000. Currently the credit union's plan is to utilize the dividend as ordinary income.
Chuck Purvis, president and CEO of Coastal FCU, Raleigh, N.C.
"We received approximately $1.6 million...and are using all of it to help fund the CUNA-led 'Open Your Eyes to a Credit Union' national awareness campaign . We’re actually committing a bit more, a total of $2 million, to that effort. We paid into the share insurance and corporate stablization funds at a very different time, when there was a very different need. But, the core purpose was the same as now: to act cooperatively and support credit unions and their members across the nation. It makes sense for us to re-commit our share of the distribution into a nationwide, mutual effort to lift up credit unions everywhere."
William Kennedy, president and CEO of HUD FCU, Washington, D.C.
"We are very boring …we are using the $36,407 in funds to aid in a migration in October 2018 from an in-house core system to [an] online service bureau (the same system). Of course, this doesn't cover all the costs, but it certainly helps!"
Security Service FCU, San Antonio
San Antonio-based Security Service Federal Credit Union, with more than $9.5 billion in assets, told CU Journal its equity distribution payout "will most likely go back into our net worth" since that amount is "a small fraction of what was initially paid."
BECU, Tukwila, Wash.
The $18.6 billion-asset BECU, based in Tukwila, Wash., "did not earmark these funds for any special purpose. We simply put the funds into ongoing operations and capitalization. We consider it a one-time item."
Peach State FCU, Lawrenceville, Ga.
The $444 million-asset Peach State FCU in Lawrenceville, Ga. said "While we have no specific plans, we do give away over $400,000 annually to charitable organizations as well as through our scholarship program. These funds will flow in through the income statement back into our network, helping us to remain committed to these endeavors."
Altura CU supports 'The Cheech'
Altura Credit Union presented a $600,000 donation to The Cheech, helping the project reach a key fundraising goal toward the creation of a permanent home for Cheech Marin’s 700-piece collection of Chicano art in Riverside, Calif. From left: Riverside Mayor Rusty Bailey; Assemblyman Jose Medina, (D-Riverside 61st District); Riverside Art Museum Board of Trustees Chair Lucile Arntzen; Actor, Comedian and Art Collector Cheech Marin; Altura CEO Jennifer Binkley; and Ofelia Valdez-Yeager, Chairwoman for “Reach for The Cheech” community campaign.
Summit Credit Union CEO Kim Sponem, Madison, Wis.
Summit Credit Union in Madison, Wis. received a $1.3 million payout from NCUA, which CU reps said was recorded in March as net income, as advised by NCUA at the time.
Passman, Aaron
Members First CU, Manchester, N.H.
Members First Credit Union in Manchester, N.H. donated $50,000 of its equity distribution payout to a "Safe Station," a fire department service helping individuals seeking assistance/looking for treatment for substance abuse. The credit union is also making donations to various charities and looking into donating to causes including hunger, homelessness, the opioid crisis, and at-risk youth and elderly.
