AMARILLO, Texas – Plains Land Bank has good news for its customers. It will distribute a record $8.5 million in cash patronage to its stockholders in April.
The rural lending cooperative declared the patronage distribution based on its strong financial results in 2019.
"For our association, 2019 was a fantastic year," said Gregg Lloyd, Plains Land Bank chief executive officer. "We are pleased to be able to return a portion of last year's earnings to our borrowers, particularly during this era of uncertainty. Our focus is our customers' success and well-being and seeing them through these challenging times."
As a cooperative, Plains Land Bank is owned by its borrower-stockholders — farmers, ranchers, agribusinesses, rural homeowners and landowners. When the co-op does well, it retains only enough income each year to cover operating expenses. The surplus is returned to stockholders as patronage, which effectively reduces their cost of borrowing.
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.