Credit unions return $157+ million to members as dividend season peaks
Numerous credit unions have announced extraordinary dividend and rebate programs for the late 2025-early 2026 season. These direct cash returns to members highlight one of the cooperative model's fundamental advantages over shareholder-driven banks.
When CEFCU deposited $55 million into member accounts on December 2, it marked one of the largest single credit union member payouts of the season and matched the Illinois-based credit union's previous record-setting extraordinary dividend to its members.
An extraordinary dividend is a non-recurring, special payout of earnings distributed to members. Often shared at year-end, it reflects the credit union's strong financial performance and cooperative structure and is calculated based on each member’s activity with the credit union. Unlike regular dividends from accumulated profits, it's a bonus reflecting exceptional results, returning value directly to the credit union’s member-owners.
CEFCU's year-end deposits to its members represent just one piece of a uniquely credit union phenomenon: across America, substantial portions of credit unions earnings are returned directly to the member-owners who made that success possible.
The cooperative difference in action
These dividend programs represent a fundamental distinction between credit unions and traditional banks. When a bank profits, only a select group of shareholders benefits. In comparison, every single member receives the returns when a credit union profits. This is most often in the form of competitive rates, lower fees, enhanced services, or direct cash dividends.
"Being part of a mission-driven credit union means value created here goes back to members," said Mike Windberg, board chair of CoVantage Credit Union. "We set aside what is needed to protect CoVantage, fund operations, and pay regular dividends, and then we share some of the cooperative's success with our member-owners."
Credit unions’ not-for-profit tax status reflects their commitment to cooperative finance. The financial benefits that credit unions provide far exceed the cost of the credit union federal tax status. In fact, the credit union tax status’ annual “cost” of $2.8 billion (estimated by the Joint Committee on Taxation) delivers a 1,200% return on investment, with $38 billion in member and non-member benefits for the year ending December 2024.
These benefits to members and non-members come from the credit union structure. Without stockholders demanding a market return on their investment–like banks–member-owners get lower loan interest rates, higher savings yields, fewer/lower fees, and more. Many branches work with their members to waive fees during hard financial times and offer financial literacy programs to equip them with healthy financial habits.
It’s these programs and offerings that reinforce the credit union difference, and why 73% of Americans view credit unions positively, according to a national consumer pulse survey conducted by Harper Polling and Frederick Polls. Compared to banks, credit unions lead when it comes to affordable borrowing, acting in consumers’ best interest, investing in local communities, and trust.
Decades of consistency define strong cooperative commitment
CEFCU's extraordinary dividend program exemplifies this long-term commitment, with $565 million returned to members over 25 years. "Credit unions exist for members, not for profit," said Matt Mamer, CEFCU president and CEO. "That structure allows us to return profits to member-owners.”
But CEFCU is not alone in their efforts. Several other credit unions announced eight-figure dividends this season. Robins Financial Credit Union distributed a $20 million Member Rebate on December 9, bringing the Georgia institution's total member returns to $151 million since 2017.
Dow Credit Union announced its member giveback program is returning more than $18 million in 2026, marking the credit union's 45th consecutive year of sharing surplus earnings. Since 1980, Dow has returned more than $331.6 million to members, a distinction shared by only a small number of credit unions nationwide.
Eastman Credit Union in Tennessee is also distributing a $16 million Extraordinary Dividend, continuing a tradition that has returned $225 million to members since 1998.
Police and Fire Federal Credit Union returned approximately $16 million through its Member Bonus program, on top of nearly $185 million in dividends distributed over the course of the past year. American Airlines Federal Credit Union distributed nearly $12 million in Bonus Dividends, bringing its historic total close to $215 million returned since 1998. Wright-Patt Credit Union announced an $8.3 million Special Patronage Dividend posting January 13, extending a streak that has delivered $135 million to Ohio members since 2008.
CoVantage Credit Union set a record with its $7.5 million patronage payout on December 31, the Wisconsin institution's 45th consecutive year returning earnings to members, totaling more than $30 million in just the past five years.
West Virginia Central Credit Union took a distinctive approach with its owner dividend, distributing it to members on New Year's Day. Rather than basing payouts on account balances, the Parkersburg-based credit union allocated its $993,000 dividend equally among its approximately 22,000 members based solely on membership length—$48 for those who joined before December 31, 2024, and $12.50 for newer members.
"It doesn't make any difference how much money you have with us, each member is an equal member," said Michael Tucker, president and CEO. One member reported using her dividend to pay for her daughter's tumbling class, illustrating how even modest returns can make a meaningful difference in people’s lives.
Illinois-based Scott Credit Union announced over $1 million in Bonus Dividends and Loan Interest Rebates in December, marking its 34th consecutive year of bonus dividends and 18th year of loan rebates.
Top Tier Federal Credit Union in Pennsylvania celebrated its own milestone: the 10th anniversary of its Special Bonus Dividend program with a record $450,000 payout in December.
"It is our job to take care of our members, and that's what we do," said CEO Mark A. Lauer. The 10-year total now stands at $3.4 million returned to members.
Dividends at every size
While large credit unions may often generate headline-grabbing totals, smaller institutions demonstrate that the cooperative model scales to every community.
Tri-CU Credit Union in Kennewick, Wash., may be the only small credit union in the Tri-Cities area, but it delivered what CEO Doug Wadsworth called "the highest dividend rate, ever, in the history of our community" in a recent LinkedIn post. The credit union paid a 50% APY special December dividend on the first $500 in members' primary savings and checking accounts. "As a healthy not-for-profit financial cooperative, we prioritize giving profits back to our members," Wadsworth said.
Western Division Federal Credit Union distributed a $1 million patronage dividend to New York members on November 26, continuing a program that has returned more than $13 million since 2003.
Priority First Federal Credit Union in Pennsylvania announced a $400,000 loyalty bonus dividend posting January 15, 2026.
"At Priority First FCU, we proudly share our success with our valued members," said Alan Clouse, CEO.
In rural South Dakota, Norstar Federal Credit Union distributed $200,000 in bonus dividends to its approximately 2,800 members on December 30.
Cedar Point Federal Credit Union distributed over $810,000 in extraordinary dividends for 2025 including a second extraordinary dividend in December. Meanwhile, Wakota Federal Credit Union returned more than $75,000 to its approximately 3,800 Minnesota members on December 15.
What members should know
For credit union members, these programs offer tangible returns on their financial relationship. Members should check with their credit union to understand specific qualification criteria and payment schedules. Those considering a switch from traditional banking may find that the cooperative model's profit-sharing structure offers meaningful financial advantages beyond standard rates and services.
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.
