Published on 02-14-2020
Categories: From Chuck
It’s a good thing that 2020 is leap year. This February has been so busy that we can definitely put the extra day to good use. We’ve been hard at work finalizing our Loyalty Bonus dividend, as well as quantifying the value of the impact we make in our members’ lives. Later this month, we’ll take this information to Washington, where I’m participating in the Credit Union National Association’s Governmental Affairs Conference. It’s the largest credit union event of the year, and more than 5,000 people turn out to help ensure that our elected officials hear the stories of how credit unions are working to improve the lives of 110 million members nationwide.
Financial Well Being
One way we’re achieving that goal is through a focus on financial well-being. I’d like to congratulate Warren Murray on being named Coastal’s new Financial Well Being Manager. Warren joins us in the latest Coffee with Chuck video, and talks a bit about the program that we’ve been piloting with employees over the past several months. Warren and his team will work to take what we’ve learned from employees, make refinements, and then start to make the program available to members later this year.
February 14th is Loyalty Bonus day at Coastal! For the past 9 years, Coastal has returned a portion of our earnings back to our members in the form of a special dividend, as a way to reward you for choosing Coastal for your financial needs. This year’s Loyalty Bonus is more than $3.7 million and is being shared by more than 69,000 members. Both are the largest figures to date for the program.
The bonus was determined by members’ total loan and deposit relationships with Coastal, as well as how long you’ve been a member. To qualify, a member had to earn at least a $5 payout and remain in good standing with the credit union. Anyone who qualified saw a payout into their primary savings account on Valentine’s Day morning, and payouts ranged from $5 up to $300.
Since 2012, we’ve paid out more than $21.1 million in special dividends. Unlike for-profit banks, who are obligated to make the most money as they can for shareholders, credit unions like ours exist to do what’s right for our members. That means when we make a bit of extra money, it’s yours, and we give it back to you instead of giving it away to someone else.
The Loyalty Bonus is just part of how we give back to our members. Each year, we work to quantify the value of your Coastal membership. We take a look at our deposit and loan rates, as well as our fees, and then we compare them to several local banks. We can then determine how much more money ends up back in our member’s pockets, instead of in the pockets of bankers and Wall Street investors. We also add in discounts and other incentives that add value to your membership.
I’m pleased to share that our 2019 Member Giveback was more than $35 million. That means, on average, Coastal members have an extra $130, simply because they choose to do business with us.
Some highlights from this year’s calculation. Members earned or saved:
This is just what we’re able to quantify. We know that there are many more ways that we make a positive impact in your life that can’t be put into numbers. And that’s good, because at Coastal, you’re more than a number.
President & CEO
Our featured coffee is a medium roast Ethiopian from Benelux Coffee in Raleigh