Member Participation Bonus Paid
Did you notice the 'bonus' deposit to your membership share account on 2-28-10?
You should see an amount posted on February 28th with the description, 'Member Participation Bonus'. This bonus was based on the amount of dividends you earned and/or interest you paid during 2009. Interest paid on secondary market mortgage loans was excluded because even though HCU is servicing the loan, we do not receive the interest.
Why the bonus? First, thanks to the loyalty and participation by many members, HCU experienced a very successful year. In spite of the gloomy financial news and again, by members like you tangibly supporting their credit union by using its products and services, HCU was able to prosper.
Second, HCU is a not-for-profit financial cooperative. In the purest sense, that means members pool their resources to gain a benefit for all. While we certainly have to make some profit to pay the bills and satisfy state and federal regulators who focus on safety and soundness, we do not have to make additional profit for a small group of stock holders. Instead, what could be additional profit is re-routed to members in various forms…lower loan rates, higher savings rates and low or no fees.
Additionally, the Board can consider distributions to members from accumulated earnings …in this case about $83,000. It takes leadership to balance that decision against the demands of regulatory requirements, growing expenses, investing for growth and especially, today's economic uncertainties. Bottom line, your credit union is truly a cooperative organization that is more about people than profit and your volunteer Board of Directors are doing an excellent job of balancing that delicate equation.
On behalf of the Board of Directors, as listed below, thanks again for your past and continuing support of HCU.