Coastal Credit Union Returns $3.7 Million to Members

Coastal Credit Union


Coastal Credit Union Returns $3.7 Million to Members

Friday, February 14, 2020 10:40 AM

Largest-ever Loyalty Bonus dividend part of $35 million financial impact

RALEIGH, NC / ACCESSWIRE / February 14, 2020 / This morning, Coastal Credit Union issued more than $3.7 million in special dividends to eligible members through its Loyalty Bonus program. The payout was shared among more than 69,000 members, making it Coastal's largest bonus dividend in terms of both dollars paid and number of recipients.

The total Loyalty Bonus dividend was based on Coastal's overall performance in 2019. Individual shares of the payout were then calculated based on each member's aggregate relationship (year-end loan balances plus average deposits) with Coastal, as well as their length of membership. Individual members received anywhere from $5.00 up to $300.

"Loyalty Bonus Day has become somewhat of a company celebration here," said Chuck Purvis, Coastal's President and CEO. "It's so much more than a monetary payout to our members. It's a day where we celebrate the very reason we're able to return that money to them. As a member-owned cooperative, we're not obligated to extract huge profits from consumers and pay them out to investors. Instead, the money we earn belongs to the members who use our products and services, and when we have a good year, we can give some of it back to them."

Over the past nine years, Coastal has returned $21.1 million to members as special dividends. The credit union also looks at the overall positive impact it has by saving money for members on their everyday financial needs.

"Loyalty Bonus is just part of how Coastal returns value to our members; our purpose is to do what's financially right for them, at every interaction" added Joe Mecca, VP of Communication. "Each year, we try to quantify that value, and have identified more than $35 million in member savings during 2019, or $130 per member. We calculate the difference between our loan rates, deposit dividends and fees, compared to the banks in our market, and add in the value of other incentives and programs that we provided as membership benefits throughout the year."

About Coastal

Coastal Credit Union is a not-for-profit, member-owned, financial cooperative, offering a full range of financial products and services. Coastal was chartered on August 31, 1967 with the mission of fostering the credit union philosophy of "people helping people." Today, with $3.4 billion in assets, Coastal serves 270,000 members from 1,700 business partners and is among the leading financial institutions in North Carolina. Coastal operates 23 branches in central North Carolina and serves members in all 50 states through a network of 5,000 shared branches, 80,000 surcharge-free ATMs, mobile banking featuring mobile check deposit, and a robust offering of online services at www.COASTAL24.com. For more Coastal news, visit our online newsroom.


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Ways Coastal saves members money

2019 Savings*

Loan Rates

 

Refinancing Mortgages

$883,430

Auto Refinance Savings Guarantee

$123,330

Refinancing Auto Loans

$742,430

Auto Loans

$6,534,770

Home Equity Lines of Credit

$872,770

Credit Card Hurricane Relief Campaign

$106,000

Deposit Dividends

 

Go Green Checking Dividends

$2,313,260

Money Market Dividends

$4,506,900

Certificate Dividends

$3,651,630

IRA High Yield Savings Dividends

$506,720

Health Savings Accounts Dividends

$181,580

Fees

 

First Time Homebuyer Origination Fee

$194,010

Mortgage Underwriting Fee

$734,400

Bounce Guard/NSF Fee

$843,830

Overdraft Forgiveness Program

$3,618,850

Overdraft Transfer Fee (eliminated 2017)

$1,285,940

Non-Coastal ATM fee (eliminated 2019)

$175,000

Other Eliminated Fees

$293,960

Incentives & Discounts

 

Loyalty Bonus Dividends

$3,720,230

Daymark Realty Member Savings

$664,730

Join Days

$215,680

Credit & debit card bonus incentives

$27,570

Youth Certificate Incentive

$4,880

Fast Lane at Coastal Credit Union Music Park

$41,710

Coastal Music Park Concessions Discount

$10,430

idAlly Identity Theft Recovery Services

$2,430,690

Carolina Hurricanes discounts

$6,370

NCFC / NC Courage Discounts

$26,190

Coastal Family Day

$375,290

Coastal Midtown Park Food Truck Events

$21,500

Durham Bulls Sweepstakes

$1,600

Total Member Giveback

$ 35,115,600

 

*Member Giveback is estimated by comparing the average interest and dividend rates of Coastal's loan and deposit product portfolios versus average local bank rates for similar products from external sources like bankrate.com and S&P Global. We also compared Coastal's fees to the advertised fees of Bank of America, Wells Fargo, PNC, BB&T, First Citizens and SunTrust. Additionally, we quantify the actual cash value of product incentives and discounts that Coastal offers to members.

Contact:

Joe Mecca
VP, Communication / Spokesperson
919-420-8044
[email protected]

SOURCE: Coastal Credit Union


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