12th Consecutive Year of Returning Earnings to Borrowers
AMARILLO, TEXAS—Plains Land Bank will distribute $6.75 million of its 2015 earnings to borrowers in early April. Over the past 12 years, Plains Land Bank has returned an average of 23 cents of every dollar that borrowers have paid in interest in the form of patronage checks at stockholders meetings.
Plains Land Bank's borrowers are stockholders in the customer-owned lending cooperative and share in the earnings. Patronage is one of the greatest benefits of co-op membership since it effectively lowers the cost of borrowing. A customer with a 5 percent interest rate effectively pays only 3.8 percent.
Borrower Jimmy Uptergrove said, "The patronage payments at Plains Land Bank are great. They are paid in cash so I can invest it into my operation, use it for equipment on the farm or take my family on vacation. We're always excited to get our patronage."
"We've been able to pay patronage to our association members and that's been quite a benefit, a real plus and a nice bonus," said Board Chairman Don James, "It reminds our customers that they're part of the ownership and in a sense are rewarded for being a part of Plains Land Bank. It is all part of the great customer service people have come to expect from us."
2016 also marks the 100th anniversary of Farm Credit and 100 years of Plains Land Bank helping customers own a piece of Texas.