LANCASTER, S.C.—Founders FCU here has awarded more than $5.7 million in loyalty dividends to its members, bringing the credit union's total loyalty dividends to $45 million paid out since 1992.
"We know our members are the reason for our success," which is why we are committed to giving a loyalty dividend back to them each December," Founders CEO Bruce Brumfield said in a statement. "Our loyalty dividend rewards our members for using Founders—the more they save and borrow with us, the greater their loyalty dividend could be."
The Founders dividend continues the trend at many credit unions in recent years of rewarding members based on how much business they do with the credit union, rather than awarding an equal dividend to all members regardless of the depth of their relationship with the institution.
The South Carolina credit union paid out a $5.7 million dividend last year as well.
Founders members in good standing receive a payout based on the amount of interest they have paid on loans or dividends earned on deposits since Jan. 1, 2014. Qualifying members also receive an additional $20 for memberships of 20 years or more, and members in good standing with active checking accounts and direct deposit earn a minimum of $10.
The $1.7 billion credit union offers members a loyalty dividend calculator online at RelaxLoyaltyPays.com. The credit union has a net income of $10.5 million for the year, as of its September Call Report, and earned $11.2 million in 2013.