Credit Union Service Centers of Alabama are set to pay a patronage rebate and dividend to members for the seventh consecutive year, according to the League of Southeastern Credit Unions.
LSCU explained that CUSC of Alabama’s unaudited net income before taxes and patronage for 2017 amounted to $391,316. The patronage rebate is calculated at 60 percent of unaudited net income before taxes and patronage, which is $234,791.
This patronage amount is “split evenly for issuer and acquirer rebates” and calculated for each credit union based on the number of their issuer and/or acquirer transactions LSCU noted.
Moreover, shareholder dividends are calculated at 10 percent of unaudited net income before taxes and patronage, which amounts to $39,132, or $584.05 per share.
Total rebates and dividends paid out for 2017 totaled more than $230,000. LSCU indicated that this is the largest patronage rebate and shareholder dividend to date. The total amount of rebates given since 2011, which was the first rebate and dividend payment year, now exceeds $1.34 million.
“To offer a rebate and dividend for seven years in a row shows that credit union members are seeing the benefits of shared branching,” said CUSC chairman Patrick La Pine. “That sends a strong message about the cooperative participation in the network. Shared branching continues to bring convenience to credit union members across Alabama.”
CUSC of Alabama is a cooperative network of shared service centers and outlets, which was formed to allow credit unions from within Alabama, across the country, and abroad to share facilities.
According to Laura Lee Vann, VP of shared branching at CUSC of Alabama, the LSCU Service Corp, LEVERAGE, has a management agreement with CUSC, which is a separate entity owned by credit unions.