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Plains Land Bank Returns $8.5 Million in Cash Patronage to Borrowers

At Plains Land Bank, our customers share ownership and earnings, an advantage of doing business with a co-op. Based on our strong 2019 financial results, our Board of Directors is pleased to declare a record $8.5 million in patronage.

Payments like this one lower our members’ effective interest rate, thus reducing their cost of borrowing.

How our patronage program works

Every borrower buys stock in the lending cooperative equal to 2 percent of their loan amount, up to a maximum investment of $1,000. This stock investment helps secure the loan, and is retired when the loan is paid. Stock ownership 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 amount of the patronage dividend to be paid out to stockholders. Since 2005, our Association has returned more than $72 million to our customers.

“We understand that land is an investment, not a get-rich-quick scheme. Some years will be good and others not so good, and no matter how much you plan for the season, many decisions will have to be made at a moment’s notice,” said Gregg Lloyd, Plains Land Bank Chief Executive Officer. “Like you, we know that there are no shortcuts to building a legacy.”

Plains Land Bank provides mortgage financing for agricultural producers and rural property owners. Part of the nationwide Farm Credit System, the Amarillo-based lending cooperative has branch offices in Amarillo, Pampa, Perryton, and Plainview.

Plains Land Bank has been around for over 100 years and we are here for the duration.