Editor's Note: the following letter to the editor was sent in reference to a story titled "Members Reap Rewards Of Pre-Merger Payout" that ran on Credit Union Journal's Daily Briefing on July 2. The story was about a $5.2-million dividend paid to State Central CU members prior to its planned merger with Summit CU.
While the payout is arguably a fair distribution in advance of the merger, keep in mind that the accumulated capital represents slices of every transaction, deposit, loan etc, going back to the CU's origins and so those who were members in years past, but are not now, are excluded whereas those who reap the benefit of the distribution may not have "earned" it.
Any of Central States capital in excess of the percent of capital of Summit would represent a contribution by the Central States members to those of Summit.
LGE Community CU, Marietta, Ga.