We pay Profit Share every December in both cash and common shares based on how much profit we earn and how much our shares are worth. Our Profit Share program has three parts: patronage, common share dividends and investment share dividends.

How do credit unions distribute profits?

Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to members (all who have accounts at the credit union) in the form of lower loan rates, higher interest on deposits, lower fees, and enhanced technology and convenience.

Where do credit union profits go?

Any profit earned by a credit union is either invested back into the organization or paid out to members as a dividend [source: Federal Reserve]. As a not-for-profit institution, credit unions pay no state or federal taxes, meaning they can charge lower interest rates than banks for most financial services.