Kootenay Savings Credit Union Board of Directors have declared a two per cent patronage share dividend, based on 2019 financial results.
This means over $615,000 will be shared with members through the credit union’s Profit Sharing Program.
“Credit unions, like Kootenay Savings, operate differently than traditional banks,” said Kootenay Savings President and CEO Brent Tremblay. “As a financial cooperative, every member is also an owner, which means when we profit, they do too. The concept is pretty simple — the more business members do with us, the more Profit Shares they’ll be eligible to earn each year. It’s our way of thanking members for their commitment, loyalty and trust.”
This is the 27th year that Kootenay Savings has issued a profit sharing dividend. That’s over $72.2 million in total. Member dividends are calculated based on the amount of interest earned on deposits and the amount of interest paid on loans. Members can withdraw up to 20 per cent of the dividend in cash and invest the remainder in an RRSP for a tax credit.
Kootenay Savings is also pursuing an amalgamation of Kootenay, Columbia Valley and Boundary credit unions. Columbia Valley, East Kootenay Community Credit Union, Grand Forks, Heritage, Kootenay Savings and Nelson and District Credit Unions began discussion around the design and potential of a new united credit union in 2017.
The six credit unions are undergoing an in depth regulatory review. If the regulator provides consent, the next move would be for the credit unions to proceed with a membership vote to see if members support the merger.