Each year, the Northwest FCS Board of Directors approves a capital plan for the association based on projected asset levels, earnings, economic conditions, possible loan losses and other contingencies. When target capital levels are met, the board typically approves the payment of a portion of net income to customers through the Northwest FCS Patronage Program.
Cash patronage is allocated among stockholders based on their eligible average daily loan balance. Patronage dividends are paid during the first quarter for the previous calendar year. Assuming the association meets its financial goals and other factors do not adversely impact the association, the board’s objective is to annually declare cash patronage of 1.25 percent of a customer's eligible average daily loan balance.
For more information about Northwest FCS’ capital and patronage programs, see the Northwest FCS 2019 Capital Plan.