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 close to $9,000,000 in Patronage Dividends to the membership proving the value and benefits of being part of a cooperative are real and significant.
$750,000 Patronage Dividend Paid to the Members of Western Division FCU in 2020
A Patronage Dividend of over $750,000 was shared with members of Western Division on Wednesday, November 25, 2020. 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.
“Even though this has been a trying year and full of uncertainty, one thing you can always count on is Western Division to be here to help you along your financial journey. We are in this together! So, at this time of Thanksgiving, we are most thankful for you and the trust you have placed in us. We hope this Patronage Dividend helps to make your holidays brighter and shows you the value and benefits of being part of our financial cooperative are real and significant,” said Robert Harms, President/CEO.
How does the Patronage Dividend Work?
The Patronage Dividend is designed to reward members who conduct business with us during the year, and takes into consideration market conditions and the credit union’s performance. As a result, the formula and criteria used varies each year. The Patronage Dividend is not guaranteed to be paid every year, however, we have given back close to $9 million to the members since 2003 and are the only local credit union in Western New York to do so.
All active members, in good standing, who paid interest or received dividends in a sufficient amount to warrant a Patronage Dividend receive 25% of dividends received on savings and 50% of interest paid on loans as of September 30, 2020. The Patronage Dividend was paid in addition to regular dividends. 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, VISA Credit Card 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.
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 $20.20 to a maximum of $500.
The Patronage Dividend is posted to the regular savings (000 suffix). This information can be found by viewing your account and/or statement when you login to Online Banking, through our Mobile App or view your paper statement.
I wasn’t paid a Patronage Dividend – why not?
The more you save and borrow, the greater opportunity for a Patronage Dividend. Inactive, dormant, negative balance or delinquent accounts will negate a payout. 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.
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!
2003 – $250,000
2004 – $250,000
2005 – $300,000
2006 – $500,000
2007 – $1,000,000
2008 – $1,000,000
2010 – $750,000
2011 – $800,000
2012 – $780,000
2016 – $500,000
2017 – $800,000
2018 – $750,000
2019 – $500,000
2020 – $750,000