FAIRHOPE, AL – 05/07/2020
The Board of Directors of CU*SOUTH has declared an annual shareholder dividend of 2% of Book Value as of the end of the 2019 Fiscal Year.
Like the credit unions that own CU*SOUTH, the CUSO carefully weighs the options between retaining earnings on the balance sheet or paying them as income to the credit union owners. Over the past 18 months, CU*SOUTH has focused on increasing its equity per share. This resulted in 24.90% increase in Book Value between September 30, 2018, and March 31, 2020.
“When I first introduce CU*SOUTH to credit unions interested in partnering with us, one of the three major benefits I discuss is the positive return on ownership,” says Leo Vaulin, CEO of CU*SOUTH. “Not only are we offering credit unions the opportunity to control their core technology by having a seat at the table, we also deliver a Triple-Bottom-Line return.”
CU*SOUTH sees this Triple-Bottom-Line as a core statement of responsibility to owners.
First there is a focus on financial gain – in equity as well as dividends – something that both accountants and examiners can appreciate.
Second, there is an operational profit – every year, we use credit unions’ investments to create improvements in the effectiveness of credit union operations. This comes directly from the participation of owners – having a seat at the table in the design of CU*SOUTH’s toolset and service model.
Finally, there is the overall benefit to all credit unions. CU*SOUTH’s core belief is that credit unions serve a vital role in the development of their communities, and in the financial well-being of their members. Those communities may be geographic, or SEG-based. There is a common bond that served as the root of their charter, and CU*SOUTH’s mission is to preserve and grow those charters for the good of the communities they serve. For CU*SOUTH, this third benefit is the overarching purpose for its existence – and the main reason the CUSO invites credit unions to invest.
CU*SOUTH has stated that until June 1, 2020, CU*SOUTH Class A shares will sell for $50,000 to qualified investors. Credit unions may purchase up to 10 shares. To maintain a truly democratic governance of the CUSO, votes are limited to one per shareholder.
For details about the stock offering for qualified investors, CU*SOUTH invites credit unions to contact Leo Vaulin at firstname.lastname@example.org.
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