As dividend season continues, credit unions return millions to members
The Rochester, New York-based credit union has now returned more than $350 million to members since launching its signature program in 1997. Institutions of every size distributed bonus dividends and loyalty payments in January, illustrating a fundamental distinction between credit unions and traditional banks.
When Hermann Schulze-Delitzsch founded the world's first credit unions in Germany in 1850, he established a revolutionary principle that endures today: Schulze-Delitzsch co-operatives paid dividends to members, balancing social purposes with financial incentives. By 1859, more than 200 people's banks operated under this model, which continues today for more than 145 million Americans. The first month of 2026 saw that tradition continue.
ESL Federal Credit Union returned $30 million to its members through its annual owners’ dividend, marking the 30th consecutive year of the program. Since launching the initiative in 1997, the Rochester, New York-based credit union has distributed more than $350 million to the people it serves.
The milestone payout is more than a round number. It illustrates a defining characteristic of the credit union model: member-owners share directly in their institution’s financial success.
“For three decades, the owners’ dividend program has represented our commitment to share our financial success with our members,” said Faheem Masood, president and CEO of ESL Federal Credit Union. “This milestone is a direct reflection of the trust our members place in ESL and the strength of our cooperative model.”
A nationwide movement
ESL is far from alone. Credit unions across the country returned substantial sums to their members in January, demonstrating that the cooperative model delivers tangible financial benefits.
DFCU Financial deposited $18.7 million in cash back into member accounts on January 6, marking a milestone moment for the Dearborn, Michigan-based credit union. The payout celebrates the 20th anniversary of DFCU Financial's Cash Back program, which has now returned more than $510 million to members since launching in 2006.
Nusenda Credit Union in Albuquerque, New Mexico, announced the distribution of more than $8.5 million to members on January 28, pushing its cumulative payouts past $90 million since 2009. SRP Federal Credit Union in South Carolina paid more than $4.2 million in Loyalty Dividends to its 200,000 members.
The pattern extends to credit unions of all sizes. Gulf Coast Educators Federal Credit Union in Texas distributed $2 million in loyalty bonuses to more than 33,000 eligible members on January 14, with individual bonuses ranging from $15 to $285 based on each member's relationship with the credit union.
The cooperative difference
These dividend programs underscore a fundamental distinction between credit unions and traditional banks. When a bank profits, shareholders benefit. When a credit union profits, member-owners receive the returns through competitive rates, lower fees, enhanced services, or direct cash dividends.
"As a not-for-profit, member-owned financial institution, our success belongs to our members," said Eric Stegall, CEO at Gulf Coast Educators Federal Credit Union. "When we do well, our members do well. This loyalty bonus is our way of saying thank you for choosing us and for helping make our credit union strong."
Nusenda President and CEO Michelle Dearholt echoed that sentiment. "As a cooperative, giving back to our member-owners is part of who we are, and one of the things that make credit unions special," she said.
Beyond the bonus check
While headline-grabbing payouts capture attention, many credit unions structure their programs to reward member engagement across multiple dimensions. ESL Federal Credit Union’s Owners’ Dividend calculates returns based on account balances, Visa card transactions, and wealth management relationships, with every eligible member receiving at least a $10 base payout.
DFCU Financial's Cash Back program calculates returns based on the depth of each member's relationship, including checking and savings accounts, IRAs, and loans. This approach ensures that both savers and borrowers benefit.
Nusenda's Earn Your Return program operates similarly, tying bonus dividends to members' use of credit union deposit and loan products. The credit union also returns money through its Community Rewards program, which generates cash back for members while simultaneously funding grants to nonprofit organizations across New Mexico and West Texas. In 2025, the Nusenda Foundation celebrated its 10th anniversary by providing $1 million in Community Rewards grants to 108 organizations.
Gulf Coast Educators Federal Credit Union has made its Loyalty Bonus program a corporate goal, with CEO Stegall noting that the credit union hopes to continue the initiative every year. Including previous years, the Texas credit union has paid out a total of $13.9 million in loyalty bonuses to members.
What it means for members
For credit union members, these programs represent a tangible return on their financial relationship. "Serving our members is at the heart of who we are," said Liz Ponder, CEO of SRP Federal Credit Union. "This Loyalty Dividend is a meaningful way to recognize their trust and the collective success we've achieved together."
The consistent theme across all programs: when credit unions succeed financially, they share that success with the member-owners who made it possible.
NOTE: This article represents a random sampling of credit unions across the country. It is not intended to represent the total amount of dividends and other payments to members by credit unions across the nation. If you’d like to share your credit union’s dividend-like payment to members, contact us at communications@americascreditunions.org.
