A record $2.5 million in patronage has been deposited into the accounts of members who borrow and save with CoVantage Credit Union. This is $400,000, or 18% more than the credit union returned in 2015.
Patronage is a concept of “giving back” that originated among cooperatives many years ago. Most have abandoned the practice; but at CoVantage, patronage has been paid to member-owners for the past 36 years.
According to CoVantage Board Chairman, Matt Kolling, “Part of the CoVantage mission is to provide outstanding value, which we deliver every day with great rates and low fees. We also believe when there has been an especially strong year for growth in loans and deposits, and borrowers have been timely with repayment of loans, like CoVantage experienced in 2016, there is an opportunity to do more for members. And that’s where the board’s decision to provide $2.5 million in patronage comes into the equation. Patronage is a way to thank members and give back, so all are able to share in the credit union’s success.”
This year’s patronage includes a bonus on dividends earned for those who save, and a loan interest rebate for those who borrow. CoVantage saving members received a 5.3% bonus on the amount of dividends earned on eligible savings, term share certificates and variable rate accounts. Borrowers received a rebate of 5.3% of their total 2016 interest paid on qualifying vehicle, home equity, in-house mortgage, credit card, and commercial loans. For example, if a member paid $5,000 in interest on their home loan, the patronage for that one loan would be about $265.
CoVantage President, Charlie Zanayed, added, “Each year the board determines how much income we must set aside for regular dividends, operating expenses, and capital to ensure stability in the event of tough economic times. Because 2016 was a record year for success, we were also able to provide the largest amount ever in patronage to members. I am very grateful to carry on this wonderful legacy of returning profits back to member-owners.”
Further information about the patronage program can be found at www.covantagecu.org/patronage.
CoVantage Credit Union is a community chartered credit union that serves members throughout Brown, Clark, Florence, Forest, Langlade, Lincoln, Marathon, Menominee, Oconto, Oneida, Outagamie, Portage, Price, Shawano, Taylor, Vilas, Waupaca and Wood Counties in Wisconsin; as well as in Iron and Dickinson Counties in Michigan. The financial cooperative is headquartered in Antigo, Wisconsin, and has branch offices in Shawano, Wausau, Weston, Rib Mountain, Rothschild, Stevens Point, Rhinelander, Crandon, and Elcho; along with two Michigan offices in Iron River and Crystal Falls.