Patronage Profit Sharing Program
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Texas Land Bank distributed $3 million in cash patronage to its stockholder-customers. Checks were mailed to borrowers in mid April.
In addition, the lending co-op has allocated $4.5 million that will be distributed to its stockholder-customers after five years. The board of directors approved the cash patronage and additional equity allocation based on the co-op’s financial performance in 2007.
Texas Land Bank has a long history of returning profits to its stockholder-customers through its patronage program. The co-op has returned more than $34 million to its borrowers since 1994. Patronage payments are based on the amount of business a borrower does with the association and lower the borrowers’ effective interest rate.
“We are pleased to continue our patronage program with this $3 million cash distribution,” said Charles Gant, Texas Land Bank chief executive officer. “And we are glad to take our profit-sharing program a step further by allocating equity that will benefit our customers even more in the future. This type of payment allows us to keep a strong capital base to fund future growth, while at the same time returning the majority of our earnings to our owner-borrowers over a five-year cycle.”
|
Patronage Payment History
Year Paid |
Cash
Patronage |
Allocated
Patronage |
Dividend |
Stock
Reduction |
Grand
Total |
| 2003 |
$ 750,000 |
|
|
|
$ 750,000 |
| 2004 |
$1,300,000 |
|
|
|
$1,300,000 |
| 2005 |
$2,200,000 |
|
|
|
$2,200,000 |
| 2006 |
$2,500,000 |
|
|
|
$2,500,000 |
| 2007 |
$2,800,000 |
$4,100,000 |
|
|
$6,900,000 |
| 2008 |
$3,000,000 |
$4,500,000 |
|
|
$7,500,000 |
|
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