PARKERSBURG, W.Va.
Members of the West Virginia Central Credit Union were surprised this New Year’s Day when they found unexpected deposits in their accounts, thanks to owner dividends being distributed.
Michael Tucker, the President and CEO, explained that the credit union decided to return funds to its members after assessing its capital situation and concluding that it was safe to do so. “We evaluated our capital ratios and determined we could give some of that money back with minimal risk. Since our members own the credit union, it made the decision quite straightforward,” Tucker noted.
Dividends Based on Membership Length
This time, the dividends were allocated based on how long a member had been with the credit union rather than their account balance, a change from the past. Members who joined before December 31, 2024, received $48, while those who signed up afterward got $12.50. “It doesn’t matter how much individual money is held; every member is treated equally,” Tucker remarked, explaining the rationale behind the amounts distributed.
Overall, the credit union dispersed just over $993,000 from a total of $1 million earmarked for its approximately 22,000 members.
Tax Considerations Addressed
For those worried about tax implications, Tucker reassured members that the credit union would provide them with the necessary documentation. “These dividends are considered taxable income and will be included in the tax reports we send out,” he explained.
Positive Feedback from Members
The reaction from the community has been overwhelmingly positive. Members expressed their gratitude and shared how the funds aided them as they welcomed the new year. One individual mentioned using the money for her daughter’s tumbling class, which elicited a number of thanks and appreciative comments. “I’m really pleased to see such recognition and gratitude,” Tucker added.
Tucker highlighted that credit unions have certain advantages over traditional banks, particularly in how they can offer better services without the pressure of shareholder interests. He also shared his hope to continue providing dividends to members annually, if feasible.
