DCECU is having one of, if not, the best year in its history

To the valued members of Dow Chemical Employees’ Credit Union (DCECU):

First, I want to thank you for your membership in our financial service cooperative. My previous message to you noted DCECU remains strong financially and operationally, with a future that looks very positive.

Today, I want to discuss our annual patronage dividend (sometimes known as the Loan Interest Rebate and Member Saver Reward). Back in 1955, DCECU started sharing our excess revenue with its members in the form of a Patronage Dividend. We have continued that annual practice every year since, with one exception (1979), and it is our intention to continue offering a Patronage Dividend going into the future. In fact, today I want to let you know that we are looking at one of our best years ever. Our growth and results as measured by size and numbers of Deposits, Loans, and Members, is all on positive trajectories likely to reach record highs. Even though we have not closed the books on 2018, I want to let you know that we will expect to be able to pay a larger dollar Patronage Dividend for 2018 than any time in our 81-year history. In fact, your adoption of our rebate-eligible products has never been higher, meaning more members will participate in the value of the rebate! Consequently, a broader adoption, will likely impact each individual’s percent of the rebate.

While the final size of the Dividend needs to be ratified by our Board of Directors, which is typically done at our December Board Meeting and paid on January 1, 2019, for 2018, just as we have done in years past. For 2018’s dividend I also want to let you know that we intend to use the same allocation and calculation methodology as we have done in the recent years.

However, as we have done periodically in our history, in 2019, we will be reviewing how the allocation of the Patronage Dividend is calculated. Many options will be considered, including how loan interest rebates, Member Saver Reward, debit and credit card rebates are calculated and paid. The past few years, subsequent to the Great Recession, have provided an opportunity to pay abnormally high loan rebate percentages of which many of you have benefitted from. As DCECU’s net worth position is moving toward its intended target level and interest rates continue to normalize, the loan interest rebates and Member Saver Reward percentages should return closer to levels seen prior to the Great Recession.

We will keep you posted throughout this process as we desire to provide superior financial services and continually increase the value of membership.

Again, thank you for your time, attention, and most importantly, your membership and your business.


Dennis M. Hanson

community membership

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