Ownership & Profit Sharing

Ownership is the biggest difference between credit unions and banks.

When you join a credit union, you share in the financial institution’s ownership, vision, and profits. When you deal with a bank, you are just a client with no voice, rather than an owner with a say in how things are run. Credit unions share their profits with members and focus on exceptional member service. Credit unions provide members with outstanding financial benefits, including no fees for many products and services.

Profits paid to members through patronage distributions (rebates) and dividends are based on Moya’s financial performance as a credit union throughout the year. The Board determines the total profit payout at the end of each fiscal year.

Moya Financial shareholders will receive the following:

  • Membership shares: For the fourth year in a row, a 4% cash dividend will be paid.
  • Class A investment shares: For the first time, a 4% cash dividend will be paid.

Dividends are based on share balances as of December 31, 2021. Members will see a cash payment into their savings account (look for the transaction labeled “member distribution”). If you do not have a savings account, the payment will be deposited into your chequing account.

Learn more about Moya Financial membership shares, capital patronage shares (Class B), and Class A investment shares below.

Membership Shares

At Moya Financial we strive to offer great products and services at very competitive rates. The profit we make from providing these services is either re-invested in the credit union or returned to you, our members. Remember, you are an owner of the credit union, so you share in its profits! Sharing profits is one of our credit union’s core values and it’s what makes us different from the big banks!

Frequently Asked Questions

When you join Moya Financial, you become a member/owner of the credit union by purchasing $50 in membership shares. Each member who is of legal age and holds the minimum $50 in membership shares is entitled to one vote on major decisions. This means you have a say in how your credit union is run.

  • Members can increase their membership shares, if they wish, up to $1,000 to take advantage of any possible future dividend payouts. The more shares you own, the more dividends you can receive.
  • Membership shares are the member’s money, and if a member ever decides to leave the credit union, these funds are returned to them.
  • In the event of a member’s death, membership shares can be transferred to the estate of the deceased.

Yes, you can own up to $1,000 in membership shares at any time.

Yes. The dividend is determined by the Board of Directors and depends on the credit union’s financial performance.

For example, a $50 membership share will receive a $2 dividend, if a 4% dividend is paid that year.

No, membership shares are NOT covered by the Financial Services Regulatory Authority of Ontario (FSRA). For more information, visit  FSRA’s website.

Capital Patronage Shares

A patronage distribution (rebate) is our way of thanking you, our members, for doing business with us – it gives the credit union an opportunity to share our profits, while maintaining a strong equity position. Credit unions distribute patronage returns based on the amount of interest the credit union pays and earns. The more that members entrust their financial lives to us and the more business they do with us, the larger the potential patronage return. Truly, we win together!

Frequently Asked Questions

A capital patronage share account (Class B) is an account the credit union opens on behalf of the members. It accumulates through

  • Patronage distributions (rebates)
  • Share dividends paid on the capital patronage share account (Class B)
  • Share dividends paid on the membership share account

Your capital patronage shares (Class B) remain in your account for a minimum of five years and are partially redeemable at 10% per year. They are fully redeemable if you decide to leave Moya Financial. The share dividend payment is one component of Moya’s planned strategy to build our regulatory capital and to strengthen our financial position. This share dividend payment is counted as part of our regulatory capital.

No, you cannot. Capital patronage shares (Class B) cannot be purchased – they can accumulate only with share dividend distributions on membership shares, capital patronage shares (Class B), and patronage distributions.

A patronage distribution is a way of sharing the credit union’s profits with its members. As an owner of the credit union, you may receive a patronage distribution from time to time at the discretion of the Board of Directors.

Each member’s share of the distribution is based on the interest the credit union earned on deposits (including registered plans) and the interest it paid on loans or mortgages.

The distribution is shared equally among the credit union’s savers and borrowers. It is calculated by applying the member’s proportion of total interest earned and/or paid by the credit union during the fiscal year to the total distribution declared. The minimum distribution is $1.

Half of the patronage distribution is allocated to members who received interest on their savings and term deposits, and the other half is allocated to members who paid interest on their loans and mortgages.

A simplified example for a patronage distribution of $250,000 is illustrated below ($125,000 goes to savers and $125,000 to borrowers):

1. In a given fiscal year, if a member had invested $100,000 in a five-year term deposit at 2.75%, that member would have earned $2,750 in interest that year. Say Moya Financial paid $2.5 million in interest on savings and term deposits that year. That member would receive a patronage distribution of $137.50:

$2,750 interest earned ÷ by $2.5 million interest paid × $125,000 paid to savers = $137.50

2. Similarly, if a member had borrowed $100,000 in a five-year mortgage at 3.25%, that member would have paid $3,250 in interest that year. If Moya Financial earned $6.0 million in interest on loans and mortgages that year, that member would receive a patronage distribution of $67.71:

$3,250 interest paid ÷ by $6.0 million interest earned × $125,000 paid to borrowers = $67.71

Patronage distributions benefit borrowers by effectively reducing their cost of borrowing. They benefit depositors by paying a bonus on their deposits.

If the Board of Directors declares a patronage distribution, it is usually paid out the following year into a capital patronage share (Class B) account. Members will see “capital patronage share account” on their online banking page. The amount paid to each eligible member is based on that member’s business with the credit union, with a minimum benefit of $1.

No, capital patronage share (Class B) accounts are unlimited.

No, capital patronage shares (Class B) issued by the credit union are NOT covered by the FSRA. For more information, visit FSRA’s website.

You must have membership shares to be a member of Moya Financial Credit Union. Members can increase their membership shares, if they wish, up to $1,000 to take advantage of possible future dividend distributions (rebates) by the credit union.

Credit unions open capital patronage share (Class B) accounts on behalf of members. The capital patronage share (Class B) account accumulates through share dividends declared on membership shares, share dividends declared on the capital patronage share (Class B) account, and patronage distributions based on interest paid or earned by the credit union.

You may have money in a chequing account, without any other deposit or loan products. Since we don’t pay interest on our no-fee chequing accounts, they do not qualify for the distribution.

Any cash or share dividends paid out on membership shares, Class A investment shares, and capital patronage shares (Class B), as well as any patronage distributions (rebates), are taxable in the year received and will be included on your T5 statement.

Not necessarily. But we hope to declare patronage distributions more often. The Board of Directors is authorized to make that decision based on yearly financial profits, while ensuring the long-term financial success of Moya Financial.

Yes. The dividend is determined by the Board of Directors and depends on the credit union’s financial performance.

For example (if a 4% dividend is paid that year):

  1. A $50 capital patronage share (Class B) receives a $2 dividend.
  2. A $60 capital patronage share (Class B) receives a $2 dividend (rounded down).
  3. A $70 capital patronage share (Class B) receives a $3 dividend (rounded up).

Investment Shares

Grow with us with investment shares. Every so often, credit unions give their adult members the opportunity to invest in the success and financial well-being of their chosen financial institution. This is done by allowing members to purchase investment shares in the credit union itself.

Investment shares are an investment in the capital of Moya Financial. These shares offer members the potential to realize an excellent rate of return while helping build the credit union’s capital base for future growth, development, stability, and investment in the community.

Members can feel good about investing in a financial institution 100% owned by its members. All of Moya’s profits are re-invested in delivering exceptional products and services for our members and investing in the growth and development of our communities.

While not new to the credit union industry, investment shares are a new product for Moya Financial. We issued our first Class A investment shares for sale to members in 2021.

See below for legal descriptions of our offerings, the related terms and conditions, and a summary of how investment shares work.

Good to Know

Investment shares are a moderate-risk investment. Each share is worth one Canadian dollar and the value will stay constant over time. These shares are securities that are non-cumulative, non-voting, and non-participating. It is important to note that investment shares, and returns on them, are not insured or guaranteed by the Financial Services Regulatory Authority of Ontario. For more information, visit FSRA’s website.

Frequently Asked Questions

These are the main differences between common stocks/shares and Moya’s Class A investment shares, Series 1:

  • Subscriptions for the Class A investment shares, Series 1, are available to Ontario-resident Moya members only.
  • Income earned on non-registered Class A investment shares is taxed as interest/other income. Income typically earned on common shares is taxed as dividends.
  • You cannot trade (buy or sell) Moya Class A investment shares on any secondary market (stock exchange).
  • You can have confidence in your investment, knowing your Class A investment shares, Series 1, have a fixed redemption value,* unlike common shares, which are constantly revalued by the market based on many variables.
*Redemptions are not permitted in the first five years after the shares are issued, and are limited to 10% of the shares issued and outstanding on the credit union’s financial statements at the end of the preceding fiscal year.

This investment should be considered very long term. The shares cannot be redeemed until after five years from the issue date, unless the shareholder dies or is expelled from membership in the credit union.

If a member wishes to redeem their shares after the initial five-year period, they can do so only through a Moya branch; there is no secondary market for Moya’s Class A investment shares, Series 1. Moya Financial will first attempt to facilitate a transfer by matching the seller with a buyer. If no buyer can be found, the shares will be redeemed.

Annual redemptions are limited to 10% of the amount of shares outstanding at the beginning of the year. Redemption requests above that limit will be carried forward to the following year. All redemptions and transfers must be approved by the Moya Financial Board of Directors and are subject to applicable law.

The regulations regarding investment shares require that members who wish to sell must complete Moya’s Investment Shares Transfer Request – Seller form. Members are then added to a waiting list of sellers, which is periodically matched with a corresponding list of potential buyers, so that the transfer of shares can be completed. If a member wishes to sell their shares before the initial five-year period, they can do so only through a Moya branch.

Members who wish to sell their investment shares should be aware that requests to transfer shares can take some time. Members cannot count on immediate liquidity should they need to access funds unexpectedly.

Members who wish to purchase investment shares can complete Moya’s Investment Shares Transfer Request – Buyer form, and be added to the waiting list.

The Board has defined 4% of the redemption amount as the appropriate dividend rate on investment shares for the first five fiscal years after the shares are issued.

Dividends (taxed as interest/other income) are not guaranteed to be declared annually and are non-cumulative (for example, if they are not paid one year, they are not doubled the following year). No dividend at all, or a dividend of less than 4%, may be declared in any particular fiscal year.

If declared, the payment of investment share dividends will be in cash; in additional Class A investment shares, Series 1; or in a combination of the two, and on such terms as may be determined from time to time by the Board of Directors.

No, Moya’s Class A investment shares, Series 1, are not covered by deposit insurance from the Financial Services Regulatory Authority of Ontario. For more information, visit FSRA’s website.

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