Pelican State CU Gives Back $350,000 In Dividends to Members
BATON ROUGE, LA – Pelican State Credit Union announced today that its Board of Directors has approved the payment of $350,000 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 15, 2014.
"The payment of this bonus dividend proves our commitment to serve our members to the best of our ability," said Pelican CEO Jeffrey K. Conrad. "This is the largest payout in Pelican's 57-year history," added Conrad.
The dividend is the result of a surplus in the credit union's operating budget due to such factors as under budget expenses, increased efficiency and a superior team effort contributed by Pelican's 170 dedicated employees.
"Our member-owners have demonstrated continued support, usage and faith in the financial strength of Pelican State Credit Union," said Gary Crockett, Chairman of Pelican's Board of Directors. "We are rewarding them with the Special Member Dividend to thank them for their loyalty," said Crockett.
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 for the fourth time.
The bonus dividend was distributed two years consecutively in 2007 and 2008 paying out $300,000 and $125,000, respectively, with an additional $172,000 payout in 2011.
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'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 Crockett.