Sharing Our Earnings - The Cooperative Difference
When Heritage Land Bank does well financially, you benefit. That’s the basic philosophy behind the patronage program and also a basic financial reason for doing business with a Farm Credit Lending cooperative. Every borrower is a stockholder of the cooperative and receives part of the earnings. The more you borrow, the bigger your share of the earnings.
Heritage Land Bank’s commitment to sharing our earnings with you comes from our cooperative structure. No other type of lender offers you such an advantage.
Each year the board of directors decides how much of our earnings are available to be returned as a patronage to stockholders.
The most important benefit of our patronage program is that it lowers your effective interest rate. You not only receive a competitive rate up front, but you also receive a patronage refund each year when Heritage Land Bank does well financially.
The following example shows the percent and amount of a Patronage Dividend paid to a typical customer over the past ten years with an outstanding loan balance of $100,000.
to not pay a patronage due to net losses.
TYLER, Texas - Heritage Land Bank announced it will pay $2.6 million in cash patronage to its customers in March 2016. This year’s patronage distribution represents 65 basis points and is based on the association’s solid 2015 net earnings of $5.6 million and total assets of $385.5 million.
Because of Heritage Land Bank’s cooperative structure, its customers share in its ownership – and its earnings. When the association does well financially, a portion of the earnings is paid to borrowers in the form of a patronage dividend. Patronage is a cornerstone of the co-op business model, and payments like this one reduce the cost of borrowing from Heritage Land Bank. With this year’s patronage dividend, we have returned more than $39 million to stockholders since 1994.
“The Board of Directors of Heritage Land Bank is pleased to return a cash patronage to our valued stockholders. The Farm Credit System was established 100 years ago and has proven to serve its stockholders well. The Farm Credit System remains strong by providing a valuable service to valuable people. We look forward to another 100 years of serving our customers/stockholders,” stated Roger Claxton, Chairman of the Board.
A part of the nationwide Farm Credit System, Heritage Land Bank has been financing the needs of farmers, ranchers, agribusinesses, rural landowners and country homeowners for nearly 100 years. The lending cooperative is headquartered in Tyler, and operates branch offices in Athens, Fort Worth, Greenville, McKinney, Nacogdoches, Palestine, Lufkin, Lindale, and Tyler.