Owner Shares are Now Profit Shares!

December 28, 2017 - One of Kindred’s core values is stewardship. As a values-centred, faith-inspired financial cooperative, we’re called to manage the funds entrusted to us with integrity as we walk with our members on their journey to be good stewards of their finances.

For Kindred, stewardship also means choosing to give back to our members and the communities in which we live and work. We share a portion of our annual earnings with members through Profit Shares, our new name for Owner Shares.

Profit Shares for all members!
Through a series of profit sharing focus groups conducted in 2017, we consistently heard a few key themes from our members:

  • the concept of sharing profits is woven into our fabric at Kindred – it’s symbolic of who we are;
  • a desire for the program to be more meaningful and fair for all members – that’s why beginning in 2018 all members will receive a minimum of $5 in additional Profit Shares each year; and
  • the need to provide an incentive for members to do more of their business with Kindred – that’s why we’ve introduced a new balance in Profit Shares for Deposits and Loans.

Unlike other financial institutions, financial cooperatives are an organic, locally-based system where one member’s deposit is another member’s loan and we succeed when these two parts of our business are in balance. And that’s why the new formula used to calculate Profit Shares places greater emphasis on member deposits.

Sharing our collective success while ensuring sustainability
As shared through past communications and member meetings, capital levels are an important element in maintaining our credit union’s health. Although the future is never certain, we’ve structured Profit Shares to balance the need for adequate capital to be retained for Kindred’s future sustainability and growth with a return to our members that reflects the value of cooperative banking. Beginning in 2018, Kindred will retain 75% of its 2017 core earnings and distribute 25% to our members as Profit Shares in February. Members who have accumulated $50,000 in Profit Shares receive any additional amounts as 100% cash.

Kindred remains quite unique amongst credit unions – we continue to share a significant percent of our annual profits with members. In fact, over the last 10 years we’ve shared over $13 million with you!

To learn more about Profit Shares, call or visit your local branch and speak with a member of our Investment Team.

 
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