The USA’s National Cooperative Bank (NCB) has announced a $13.5m patronage refund to 1,608 co-operative stockholders nationwide, including over $2m in cash.
The bank, dedicated to providing banking solutions to co-operatives, their members, and socially responsible organisations, says the refund is distributed in cash and additional stock. It adds that stockholders receiving patronage paid interest and/or fees on a patronage basis in 2023. NCB is a member-owned co-operative, meaning that its voting stock can only be owned by its members or those eligible to become its members.
“As a co-operatively owned financial institution, the benefits of ownership can be very rewarding,” said president & CEO Casey Fannon. “We greatly value the business we have with our co-operative customers, many of which have been committed to our success for a very long time. Our success is their success.”
Related: National Coop Bank highlights $384m support for low-income communities
The bank dates back to 1978 when the US Congress passed legislation to create a financial institution to meet the need for a financial institution dedicated to consumer and small business co-operatives. With the new institution, Congress aimed to encourage the development of new and existing co-operatives eligible for its assistance by providing specialised credit and technical assistance.
In its first year, NCB originated less than $10m in loans to a customer base composed largely of natural food co-operatives and a handful of New York City housing co-operatives.
Since then, the bank, which has been trading as National Cooperative Bank since 1985, has continued to support co-ops and non-profit organisations providing affordable housing, healthy food, renewable energy, small businesses, and community-driven health care.
In 2023, NCB made loans and investments of $383m to benefit low-and moderate-income families and communities. Around 40.6% of NCB’s portfolio is comprised of loans serving low-and moderate-income communities and co-op development.
