Patronage Profit Sharing Program

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Texas Land Bank Distributes $7.5 Million Patronage

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