Pelican Pays Members $172,000 through Special Member Dividend
Pelican State Credit Union announced today that its Board of Directors has approved the payment of $172,000 in bonus dividends to its membership.
The payout, named the Special Member Dividend, is a timely distribution of excess earnings and is based on the amount of interest members earned on deposits and paid on loans. Members who earned the bonus dividend will see the deposit hit their account on January 20, 2012.
"The Special Member Dividend is the result of a surplus in the credit union's operating budget due to such factors as under budget expenses, increased efficiencies, and a superior team effort contributed by Pelican's 153 dedicated employees," said Jeffrey K. Conrad, Pelican President/CEO. "This is truly lagniappe and not something we can promise to deliver every year," he said.
"Our Member-owners have demonstrated continued support, usage and faith in the financial strength of Pelican State Credit Union," said David Colvin, Pelican Chairman of the Board of Directors. "We are rewarding them with the Special Member Dividend to thank them for their loyalty throughout the years," said Colvin.
Conrad attributes this year's banner performance to stellar asset liability management and strong employee performance. "Our ability to pay record dividends is a significant accomplishment – one that confirms Pelican's commitment to its membership and validates the sound business practices we follow," Conrad said.
Credit unions are not for profit; any earnings are returned to members in the form of higher dividends and lower loan rates. Pelican has taken this practice to the extreme by literally giving its members a cash dividend at the end of a successful year.
As a credit union, Pelican is state chartered, federally insured, and operated for the benefit of its members who share in the company's performance. Dividends are one of the important ways that Pelican's membership receives value from the company's success. Pelican has consistently benefited its membership with strong dividend performance throughout its 55 year history.
While some large financial institutions began charging consumers more fees, Pelican was focused on finding a way to give money back to its membership.
This is the third time Pelican has declared a Special Member Dividend. The bonus dividend was distributed two years consecutively in 2007 and 2008 paying out $300,000 and $125,000, respectively.
"Pelican's ability to provide credit to its membership is fundamentally constructive for the economy as a whole. We are focused on serving all of our membership including those of lesser means and those that reside in distressed areas of the state. Paying excellent dividends while maintaining the greatest degree of financial strength is a concrete example of our mission," stated Colvin.