How can my Credit Union give back a Patronage Dividend?
Because of years of sound financial management, LCCU has 21% capital to asset ratio, which is over twice the average capital to asset ratio. Since the Credit Union is highly capitalized and is financially sound we are able to put more money directly back into our members' pockets.
Will you be doing this every year?
Lincoln County Credit Union hopes to be able to share its earnings with members in the future.
How was the dividend amount calculated?
The patronage dividend was paid to members with active accounts in good standing. Categories were developed using several factors, including: years of membership, average balances of loans and shares, checking account, estatements, or debit card. An example of a category is, years of membership and average balances of loans and shares.
How much was the patronage dividend?
The total patronage dividend was $600,000 divided and paid to members who met the criteria of the categories.
Was the patronage dividend already deposited into my account?
Yes. It was credited to your savings account on 9/30/17 and titled as Patronage Dividend.
Do I need to do anything to get my patronage dividend?
No. If you met the criteria, it will automatically by deposited into your savings account on 9/30/17.
I wasn’t paid a patronage dividend. Why not?
The more products you use and the higher the balances you maintain on your accounts, the greater opportunity for a patronage dividend. Although a Patronage Dividend Payment is never guaranteed, the best way you can ensure you can earn one in the future is by continuing to expand your relationship with us and by encouraging other members to do so as well.
Was I paid a patronage dividend?
Please consult your savings account. If you were paid a patronage dividend, you will see a line item titled Patronage Dividend with the designated amount credited to your account.
What is a patronage dividend?
A dividend or distribution that a co-operative pays to its members. Patronage dividends are given based on a proportion of profit made by the business. Once this amount is figured out, the dividend is calculated according to how much each member has used the co-operative’s services.
Will this be included in my 1099-INT for the 2017 tax year?
Yes, the amount you receive for the patronage dividend will be included on your 1099-Int form for 2017 tax year.