LIBERTY LAKE, Wash. – The CUSO CU*NorthWest (CUNW) reported it distributed more than 75% of 2016 net earnings to its owners CUs. The cash returns amounted to a 12% “rebate” on base processing fees paid by the customer/owner throughout 2016.
In addition to those direct cash returns, the cooperative said it extended more than $60,000 in free services (paid by CUNW) to all customers regardless of stock ownership – those services were purchased and paid for by CUNW for its clients in the coming 2017 fiscal year, the CUSO said. Those purchased services were designed to drive more business for the CU*NorthWest credit unions, it announced.
“I am so proud of our board and the cooperative spirit they displayed in this process,” said Greg Smith, CEO of CU*NorthWest. “They not only took care of stockholders, but also recognized the non-stockholder customers as we have always believed that paying a monthly invoice is also a function of investment in our firm. Bringing their business to CU*NorthWest is far more important than being a stockholder – which has always been optional.”
The CUSO said that each year following the completion of a third party financial audit, the board evaluates the net bottom line and makes decisions on how to best extend those returns to owner/customers.
CU*NorthWest reported it a record fiscal year in 2016, which ended on Sept. 30, 2016, and not only paid the budgeted return but was able to add an additional “bonus return” on top of that. In addition to the dividend distribution, the firm better than doubled its retained earnings and saw the stock book value increase by nearly 17%.
“The board and management of CU*NorthWest have a driving philosophy when managing the cooperative’s income,” said Chuck Papenfus, current board chair, CEO of Inland Valley FCU in Fontana, Calif.. “We seek to balance returns in four areas: maintaining a healthy balance sheet (retained earnings); stock value growth (book value); direct cash returns to owners (dividends); and price reductions or extra services for all customers regardless of ownership.”
Separately CU*NorthWest announced it has set the new price for an ownership share at $83,500. Each year the CU*NorthWest board establishes the new stock price based on the audited financials from the prior fiscal year.
“The initial offering price was $31,250.00 in 2005 and this year’s price is now more than double that,” said Papenfus.