Patronage FAQ

What is patronage?
Patronage is a unique benefit that returns a portion of our earnings back to member-owners, essentially reducing the costs of the funds they’ve borrowed.

How does it work?
The Compeer Financial Board of Directors designed the patronage program to balance the needs of the organization with an appropriate return of equity to those who use the cooperative.

Each year, our Board evaluates the organization’s financial status to determine how much income will be distributed to member-owners as patronage. The amount of patronage paid to each member-owner aligns with the amount of business they have with Compeer.
 
The patronage program rewards member-owners for trusting us with their business while allowing us to keep an eye to the future, ensuring that the organization stays financially stable through prosperous and challenging economic cycles.

How does patronage benefit Compeer Financial?

Compeer Financial is owned by its member-owners and structured as a cooperative. At the same time, our capital structure relies greatly on equity accumulated through earnings. Compeer Financial’s patronage program balances the needs of the organization with providing an appropriate return on the equity to those who use our services. 

How much patronage is paid to each member-owner?

The amount of patronage paid to each member-owner aligns with the amount and type of business they had with Compeer Financial. Not all products are eligible for patronage. Patronage payments are allocated only on the loans or portions of loans Compeer Financial owns and in good standing. They’re also allocated on loans sold for capital management purposes. Clients with lower spreads will have a lower patronage allocation than clients whose loans have wider spreads.

What is the difference between revolving and non-revolving allocated equities? 

Revolving refers to equities the Compeer Financial Board of Directors intends to pay, while non-revolving equities are expected to be indefinitely retained by Compeer Financial. The Board of Directors currently has no intention of issuing additional revolving equities. Issuing non-revolving equities provides the Board of Directors flexibility as conditions change in the future while creating no downside for our member-owners.

How can clients sign up for direct deposit for their patronage funds?

Clients can sign up to have their future patronage payments deposited directly into the account of their choice by logging into their MyCompeer account and navigating to ‘Tools & Forms’. They can also make changes to their patronage payment preference anytime in MyCompeer, including changing their account information for deposit and cancelling direct deposit. Clients can also call the Contact Center at 844-426-6733 to sign up.