The Board of Directors of CoVantage Credit Union has announced $1.5 million in patronage has been returned to the credit union’s borrowing and saving members. Like the patronage paid in 2012, there are two components to the $1.5 million reward this year. A savings bonus, which provides an additional dividend based on total earnings on selected accounts during the year; and a loan interest rebate, which returns a portion of the interest paid on loans. The savings bonus has been paid for the past five years, while the loan interest rebate has been provided since 1981.
The loan interest rebate returns a portion of interest paid on qualifying loans during 2012, and is provided automatically to members with real estate loans, commercial loans, auto loans, credit card loans and nearly every type of in-house loan the credit union offers. The amounts rebated can be significant. For example, if a member paid $5,000 in interest on a home loan during the year, this year’s loan interest rebate would provide them with $200.
The savings bonus provided a bonus of up to 4 percent of interest earned during 2012. It has been paid on personal and commercial savings accounts, variable rate accounts and term share certificates.
Brian Prunty, CoVantage CEO said, “During 2012, our industry was faced with extraordinary regulatory challenges, especially in the areas of mortgage and commercial lending. We also continue to pay assessments to NCUA, our federal regulator, and since 2009, have paid a total of $8.4 million to help bail out a few failed corporate credit unions. We recognize that members are having a tough year as well, with some struggling to repay loans while others cut corners to live off extremely low returns on deposits. Because it has been such a challenging year, we are especially proud to keep the tradition of member patronage alive.”
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, Waupaca and Wood counties in Wisconsin; as well as in Iron and Dickinson counties in Michigan. The financial cooperative is headquartered in Antigo and has offices in Antigo, Shawano, Wausau, Weston, Rib Mountain, Rothschild, Rhinelander and Crandon; and Iron River and Crystal Falls, Mich.