Largest-ever Loyalty Bonus dividend part of $35 million financial impact
RALEIGH, NC / ACCESSWIRE / February 14, 2020 / This morning, Coastal Credit Union issued more than $3.7 million in special dividends to eligible members through its Loyalty Bonus program. The payout was shared among more than 69,000 members, making it Coastal's largest bonus dividend in terms of both dollars paid and number of recipients.
The total Loyalty Bonus dividend was based on Coastal's overall performance in 2019. Individual shares of the payout were then calculated based on each member's aggregate relationship (year-end loan balances plus average deposits) with Coastal, as well as their length of membership. Individual members received anywhere from $5.00 up to $300.
'Loyalty Bonus Day has become somewhat of a company celebration here,' said Chuck Purvis, Coastal's President and CEO. 'It's so much more than a monetary payout to our members. It's a day where we celebrate the very reason we're able to return that money to them. As a member-owned cooperative, we're not obligated to extract huge profits from consumers and pay them out to investors. Instead, the money we earn belongs to the members who use our products and services, and when we have a good year, we can give some of it back to them.'
Over the past nine years, Coastal has returned $21.1 million to members as special dividends. The credit union also looks at the overall positive impact it has by saving money for members on their everyday financial needs.
'Loyalty Bonus is just part of how Coastal returns value to our members; our purpose is to do what's financially right for them, at every interaction' added Joe Mecca, VP of Communication. 'Each year, we try to quantify that value, and have identified more than $35 million in member savings during 2019, or $130 per member. We calculate the difference between our loan rates, deposit dividends and fees, compared to the banks in our market, and add in the value of other incentives and programs that we provided as membership benefits throughout the year.'
Coastal Credit Union is a not-for-profit, member-owned, financial cooperative, offering a full range of financial products and services. Coastal was chartered on August 31, 1967 with the mission of fostering the credit union philosophy of 'people helping people.' Today, with $3.4 billion in assets, Coastal serves 270,000 members from 1,700 business partners and is among the leading financial institutions in North Carolina. Coastal operates 23 branches in central North Carolina and serves members in all 50 states through a network of 5,000 shared branches, 80,000 surcharge-free ATMs, mobile banking featuring mobile check deposit, and a robust offering of online services at www.COASTAL24.com. For more Coastal news, visit our online newsroom.
*Member Giveback is estimated by comparing the average interest and dividend rates of Coastal's loan and deposit product portfolios versus average local bank rates for similar products from external sources like bankrate.com and S&P Global. We also compared Coastal's fees to the advertised fees of Bank of America, Wells Fargo, PNC, BB&T, First Citizens and SunTrust. Additionally, we quantify the actual cash value of product incentives and discounts that Coastal offers to members.
VP, Communication / Spokesperson
SOURCE: Coastal Credit Union
View source version on accesswire.com: