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MCUA subsidiary awards patronage rebate
JEFFERSON CITY, Mo. (4/11/08)--The Missouri Credit Union Association (MCUA) is rewarding member credit unions--through its subsidiary--for their use of core, fee-supported services. Credit Union Partnership (CUP), an association for-profit subsidiary, distributed a rebate totaling $123,500 to participating credit unions April 2 (Courier Net April 9). The four core products that contribute revenue to CUP are check processing, the credit union shared branch network, credit and debit cards, and CUNA Mutual Group insurance. CUP maintains a standard return-on-equity (ROE) threshold of 10% annually. During years in which this amount is not practical or prudent, the CUP board of directors may determine a different rate of return. For 2007, the board decided to use a 5% ROE in determining the patronage rebate. After deducting CUP’s assigned ROE amount, the remaining earnings are determined. Credit union patronage rebates are then based on each credit union’s contribution to gross income for each core product. “We have been able to award a patronage rebate each year since initiation in 2000,” noted Rosie Holub, MCUA president/CEO. “The return to credit unions differentiates our organization from competitors and provides an incentive for credit unions to use products within the credit union system.”


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