Clark County Credit Union’s ($757.5M, Las Vegas, NV) first branch was a table, chair, and cashbox just outside the evidence vault in the county building in downtown Las Vegas, and it was open Friday afternoons. Now CCCU has six branches and serves public employees as well as multiple SEGs including all medical groups and prominent new employers such as Zappos.com.
Matt Kershaw, CEO, Clark County Credit Union
Matt Kershaw has been with CCCU for 13 years, as its president and CEO for the past three. As a retail sales and commercial lending executive prior to taking the top job, he’s worked with members through economic ups and downs in his sand state market. Here, he explains how membership at CCCU pays extra dividends.
How does the credit union determine it can pay a dividend?
MK: This is determined at the end of the year, but essentially we are trying to maintain 12% net worth and grow around 10%. To do that, we need to have about a 1.75% ROA.
CU QUICK FACTS
Clark County Credit Union
Data as of 06.30.18
HQ: Las Vegas, NV
12-MO SHARE GROWTH: 8.1%
12-MO LOAN GROWTH: 11.8%
How do you calculate how much to return and to whom?
MK: We pay a minimum of $20 per member. Then, we pay a portion to depositors and borrowers based on average balance throughout the year. We have a calculator on our website that gives our members an idea on how much they will receive.
What is the advantage of returning value in this way?
MK: It’s an obvious way of signifying to our members the value we provide. We could spend $3 million a different way, but I am not sure that value would be as appreciated.
What communication channels do you use to announce and communicate the value of the dividend?
MK: Email, newsletters, statements, and marketing campaigns.
How do you return the money? How much did you return in your latest round?
MK: We deposited a total of $3,355,881.43 into members’ primary savings accounts on Jan. 29, 2018.
This interview has been edited and condensed.
Whether and when a credit union offers a patronage dividend varies across organizations. As does how they calculate the return and communicate the occasion. Read more QAs from CreditUnions.com’s ICU Day special feature.