Member Dividend Program 2023 - 2024

As announced during our Annual General Meeting a new Member Dividend Program has been developed by Senior Management and approved by the Board of Directors for implementation this year. The new program is based on the co-operative principle of Southwest Regional Credit Union sharing the success of the Credit Union with our Members. This year after surpassing our annual income target with a net income of $987,505 the Board approved a dividend in the amount of $100,000. This dividend will be shared with our members based on the amount and type of business they held with Southwest during the year.

Products have been grouped into four buckets, 1) Demand Accounts, 2) Term & Registered Products, 3) Loan & LOC’s and 4) Mortgages. The average of the 12 month-end balances for the year was used for each product to determine the dollar amount of business held and then a multiplication factor was assigned to each product bucket. A minimum dividend of $5 and a maximum dividend of $200 per qualifying Member was established to ensure the profits were shared in meaningful amounts and with as many Members as possible. Members below the minimum $5 threshold will not receive a dividend. Calculations indicate that approximately 2,650 Members will receive a dividend this year. Dividends will be posted to Member’s accounts by January 31, 2025. The deposit will be made to the primary checking account, or if there isn’t one, then it would go to a savings account. For Members with neither, we will look to open a savings account for the deposit.

As a result of this new program the previous Loan Interest Rebates and the Dividend Term and Dividend Savings programs will no longer be in effect. This new program will share the benefits of being a Member of Southwest with more Members than the previous programs. The intent was to improve the member value proposition and provide a measurable differentiator between a Credit Union and other financial institutions. We share our profits with our Members and not wealthy stockholders. This program will reward those Members who grant Southwest the opportunity to handle more of their financial business and support Southwest in our efforts to be a trusted partner in the local communities.

We trust you will find this new Member Dividend Program more equitable and in line with the co-operative spirit of Southwest Regional Credit Union. This simple gesture of sharing in the profits of the Credit Union shows your Board’s commitment to traditional cooperative values. It also provides one more reason for people to consider becoming a Member of Southwest or for existing Members to think about what other business the Credit Union may be able to assist you with. Please let us know if you have any feedback for us on this new program.

Sincerely;

Glenn Wilson - CEO