Our way of saying thank you
Congratulations to CoVantage member-owners for another record year. As a way of saying ‘thank you’ to everyone who relied on their credit union for borrowing and saving throughout 2016, a record $2.5 million in patronage has been deposited into member accounts. This is $400,000, or 18% more than 2015.
Patronage is a concept of ‘giving back’ that originated among cooperatives many years ago. Most have abandoned the practice; but we’re thrilled to say that at CoVantage, patronage has been paid to member-owners for the past 36 years. The more you borrow and save here, the more successful CoVantage will be – and in return the more patronage you’re likely to receive.
According to CoVantage Board Chairman, Matt Kolling, "Part of the CoVantage mission is to provide outstanding value, which we deliver every day with great rates and low fees. We also believe when there has been an especially strong year for growth in loans and deposits, and borrowers have been timely with repayment of loans, like CoVantage experienced in 2016, there is an opportunity to do more for members. And that’s where the board’s decision to provide $2.5 million in patronage comes into the equation. Patronage is a way to thank members and give back, so all are able to share in the credit union’s success."
This year’s patronage includes a bonus on dividends earned for those who save, and a rebate of interest paid on loans for those who borrow. For 2016, CoVantage saving members received a 5.3% bonus on dividends earned on eligible savings, term share, certificate, and variable rate accounts. Borrowers received a rebate of 5.3% of interest paid on qualifying consumer, home equity, in-house mortgage, credit card, and commercial loans. The value can really add up; for instance, if a member paid $5,000 in interest on a home loan, the patronage for that one loan would be about $265.
CoVantage President, Charlie Zanayed, added, "Each year the board determines how much income we must set aside for regular dividends, operating expenses, and capital to ensure stability in the event of tough economic times. Because 2016 was a record year for success, we were also able to provide the largest amount ever in patronage to members. I am very grateful to carry on this wonderful legacy of returning profits back to member-owners."
Bonus and rebate payments were deposited into the savings account of eligible members on December 31, 2016. To view your deposit, log into MyCoVantage or check your year-end statement.
Thank you for trusting us with your business, we look forward to serving you for many years!
To qualify for patronage, member's loans and other accounts needed to be current at year-end and patronage must have totaled at least $5.00. Additionally:
- Secondary market mortgages are not eligible for the loan interest rebate.
- IRAs, HSAs, checking, and some other types of deposit accounts are not eligible for the savings bonus, nor are accounts when there is not an open share to receive the patronage.
- If members had a negative savings, including escrow, or negative checking balance at the end of 2016, a portion or all of their rebate will be applied toward that amount.
- Members who are 30 days or more past due with any payment to CoVantage, or whose real estate taxes on a property mortgaged at CoVantage are past due, are not eligible for a rebate or bonus payment.