Skip Navigation Links

Returning cash to our customers for
13 straight years

Plains Land Bank customers share in our association’s financial success because they are the owners. Our cooperative business structure allows our board of directors to pass along our profits in the form of patronage payments to our borrowers, returning a portion of the interest they have paid on their loans.

For our cooperative, 2016 was an outstanding year. As a result, the Plains Land Bank board declared a $6 million patronage payment on last year’s income.

How our patronage program works

Every borrower buys stock in the lending cooperative equal to 2 percent of his or her loan amount, up to a maximum investment of $1,000. This stock investment helps secure the loan and the association, and is retired when the loan is paid. Stock ownership also allows borrowers to participate in our patronage program.

At the end of each fiscal year, our board of directors evaluates the performance and financial condition of the association. Working with association management, they determine the size of the patronage dividend, which is generally paid at the annual stockholder meetings in April. Since 2005, our association has returned more than $48 million to our customers.

We like to think of patronage in terms of reducing the cost of financing. Over the past 13 years, Plains Land Bank has returned an average of 24 cents of every dollar that borrowers have paid in interest. In other words, a customer with a 5 percent interest rate effectively paid 3.5 percent.

Patronage 2016

The benefits of co-op membership add up

We focus on providing members the greatest value possible through our superior service, competitive rates and cash patronage payments. Our goal is to be the low-cost lender of choice.

It really does pay to do business with Plains Land Bank!