Patronage Dividend

You won’t see many banks sharing their profits with their customers, but we’re not like most.  When you’re a member of Western Division, you’re a member-owner and when we make a profit, you get a piece of it.  The more you use us, the more we share with you.  

Since 2003, Western Division has paid back over six million in Patronage Dividends to the membership proving the value and benefits of being part of a cooperative are real and significant.


$800,000 Patronage Dividend Paid to the Members of Western Division FCU in 2017

A Patronage Dividend of over $800,000 was shared by members of Western Division Federal Credit Union the week of Thanksgiving, November 20, 2017.   The amount of each member’s dividend was based on his or her level of participation in the credit union – the greater the relationship, the larger the dividend.

“This year marks our 80th Anniversary and what a better way to celebrate than reward our members for their loyalty and the trust they have placed in us. It seems only fitting, the week of Thanksgiving is the best time to share in the Patronage Dividend. This unique benefit recognizes the fact that the credit union belongs to its members, and that their business sustains the credit union, enhances its financial position, and ultimately makes the payout possible,” said CEO and President, Robert Harms.


How does the Patronage Dividend Work?

All active members, in good standing, who paid interest or received dividends in a sufficient amount to warrant a Patronage Dividend received eighty percent (80%) of interest paid on loans and eighty percent (80%) of dividends received on savings as of September 30, 2017. The Patronage Dividend was paid in addition to regular dividends. The maximum dividend a member could receive was $580. The Patronage Dividend was credited to the Savings account (suffix 000).


What types of products qualify for the Patronage Dividend?

Loans: Personal, Vehicle, Recreational, Home Equities and Mortgages

Deposits: Savings, Sub-Savings, Money Market, IRAs and Term Certificates


How are we able to pay the Patronage Dividend?

We were able to pay the Patronage Dividend because of our existing loyal members as well as new members that joined and took advantage of our excellent savings rates and low rates on loans. When more members use and contribute to the credit union, more value and benefits can be returned to all our members.

We sincerely appreciate our members’ support and continue to encourage you to continue to invite your family, friends and co-workers to experience the unique benefits of membership with Western Division.


Will there be a Patronage Dividend every year?
A patronage dividend is a share of the profits that the Board, in their sole discretion, may choose to return to the membership on an annual basis. It’s one of the things that makes us different from a bank!


How do you decide how much?
The total amount to be disbursed is decided annually by the Board. The amount paid to each eligible member is based on that member’s business with us, and ranges from a minimum of $5.00 to a maximum of $580.  We cap the amount on the dividend so more members can share the wealth.


I wasn’t paid a Patronage Dividend – why not?
The more products you use and the higher the balances you maintain on your accounts, the greater opportunity for a patronage dividend.  If you feel you have met the criteria, and did not receive one, please contact us.


Will this be included in my 1099-INT? 
Yes, the amount you receive for the patronage dividend will be included on your 1099-INT form for the tax year.