DEARBORN, Mich. – DFCU Financial, Michigan’s largest credit union, said this morning it plans to pay members a $21 million special patronage dividend, the biggest credit union payout ever.
DFCU, which paid out $20 million last year and $19 million the year before, is returning half its earnings through the huge payout. The one-time Ford auto workers credit union earned $38 million in net income for the first three quarters of the year.
The credit union, originally Dearborn Financial FCU, has paid out $130 million in annual patronage dividends since 2006.
The Special Patronage Dividend will be paid to the credit union's 230,000 members on January 4, 2013, and will total about $21 million.
“The cash payout to members is our way to thank them for choosing DFCU Financial as their primary financial institution,” said Mark Shobe, president of the $3.3 billion credit union.
The payout to members is calculated based upon the member’s total relationship with DFCU Financial -- the greater the relationship, the larger the dividend. Qualifying members receive a one-half percent (0.5%) dividend on their average yearly loan and deposit balances, with eacheligible member receiving at least $50. This includes all savings accounts and loan balances.