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You have $10 million reasons to be a member!In the philosophy of “people helping people,” credit unions return their accumulated capital back to their member-owners throughout the year by offering lower loan rates, higher yields, new branches and more. In addition to these valuable offerings, this year Arizona Federal’s Board of Directors were honored to announce the distribution of $10 million to our member-owners as a way to thank and reward them for participating in our not-for-profit financial cooperative. “It’s part of our purpose as a credit union to create value for our members,” said CEO Ron Westad. “The greater the utilization of our services, the greater the benefits we can generate on our members’ behalf,” he added. “This member return is a rather profound example of creating value, and is also indicative of the financial stability we’ve achieved over the years through members’ participation with us and our retention of their account relationships,” he continued. Ten million dollars is our largest return ever! The amount each member received was determined by their dividends earned on shares and interest paid on loans. This means the more you used the credit union, the more you earned. Members who met the following criteria received a return:
Rodney E. Hood, Vice Chairman of the National Credit Union Administration (NCUA), celebrated the historic member return at an official announcement to declare the good news. “The value that members gain from the member-owned cooperative structure of their credit union illustrates the ‘credit union difference’ in a community,” said NCUA Vice Chairman Hood in his remarks during the announcement. He continued, “Arizona Federal is putting the credit union philosophy into practice in an impressive and visible manner that demonstrates their commitment to their members; their high quality of member service that built the earnings they are returning to their members; their commitment to investing in their community by returning dollars that will stimulate economic growth; and their reputation for the future as a trusted financial partner for over 200,000 members.” We know we wouldn’t have had such great financial success without our members. We will continue to provide you with value each day by offering competitive rates on our financial products and by standing behind our promise to be “the credit union for the way you define service.” Interest rebates will reduce the amount of interest paid on loans by the amount of the rebate; and the reduced amount will be the amount reported to the IRS. The rebate is not taxable as dividend income, but is classified as an interest rebate on interest paid in 2006. Bonus dividends are taxable dividend income in 2006 and will be reported to the IRS. |
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Edited by Jeff Thomason, Kristin Leabo, Kara Kahnke and Melissa Culbertson