JAY, Maine–Otis FCU has returned $300,000 to its members in the form of a bonus distribution and loan interest refund.
The amount represents one-quarter of the credit union’s net profit for 2015. It is the 11th consecutive year OFCU has made the payment, and comes at the same time the community has seen 300 workers laid off from the local Androscoggin Mill.
Members were given back 7% of the interest paid on consumer loans, real-estate loans and VISA credit cards, while a bonus of 7% was paid on all dividends earned in 2015.
Because of the members' faith and trust in us as their financial institution, we are pleased to be able to reward them for that over and above the everyday benefits of using a credit union brings,” CEO Roland Poirier said, according to the Maine Credit Union League. “Our success comes from our members so our board and staff feel very strongly that they should share in that success. On the heels of the news this past fall that 300 employees would be losing their jobs at the mill, we are grateful that many of them will benefit from these funds at a time when many are having financial challenges. This program exemplifies one of the significant differences between credit unions and other financial institutions, and we are proud of that difference.”
Separately, in Hunt Valley, Md., Atlantic Financial Federal Credit Union paid its members a bonus dividend/interest rebate amounting to approximately $90,000. Members were paid an additional 2.50% annual percentage yield bonus dividend on their deposits and a rebate of 2.50% of the interest they paid during the year on any loan or credit card. Atlantic Financial said 6,284 AFFCU member accounts received some payment. “Simply put, this is our members’ money,” said Matt Piazza, AFFCU president and CEO. “The capital that we do not have earmarked for reinvestment into the credit union, we feel should be returned back to who it belongs to – our member-owners. Their use of our money-saving products and services has a direct correlation to our financial success. Every time our members bring their financial business here, they are investing in AFFCU’s success. The bonus being returned has a direct correlation to this activity, coupled with the credit union’s strong financial results. It’s a great way to tell our members Thank You for trusting AFFCU for your financial needs, and that we are running THEIR credit union with sound, prudent financial practices, something the management team and board are very proud of. It’s a testament to our continued financial health and stability.”