How to balance patronage dividends and loan loss reserves
Six credit unions talk about their strategies to offer members an annual payback while still ensuring adequate coverage in loan loss accounts.
In a year that presented no shortage of economic uncertainties, credit unions that paid out dividends and rebates had to do so while balancing the tradition against their own financial realities. For many, the need to build loan loss reserves pushed back against the desire to reward member-owners for their patronage at a time when many needed to build their own cash reserves.
CreditUnions.com talked to several cooperatives about how they handled patronage dividends and rebates this year. Here’s what they had to say.
CoVantage Credit Union
Brett Lee is chief retail officer at CoVantage Credit Union ($2.3B, Antigo, WI), which on Dec. 31 paid out its 40th consecutive annual patronage dividend.
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