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.


Patronage Example

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.

Year Percent
2008 0.84% $840
2009 0.56% $560
2010 0.78% $780
*2011 0.00% -
2012 0.50% $495
2013 0.65% $650
2014 0.65% $650
2015 0.65% $650
2016 0.65% $650
2017 0.65% $650
2018 0.70% $700
AVERAGE 0.60% $602


* In 2010, the Board of Directors made the decision
to not pay a patronage due to net losses.

Recent News

TYLER, Texas - Heritage Land Bank announced it will pay $3.5 million in cash patronage to its customers in April 2019.  This year’s patronage distribution represents 70 basis points and is based on the association’s solid 2018 net earnings of $7.83 million and total assets of $524 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 cooperative 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 $49 million for 24 of the last 25 years.


“The Board of Directors of Heritage Land Bank is pleased to return a cash patronage to our valued stockholders. Heritage Land Bank was established over 100 years ago and has proven to serve its stockholders well. The Association remains strong by providing a valuable service to valuable people. We look forward to another 100 years of serving our customers/stockholders,” stated Scott Line, 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, Jacksonville, McKinney, Nacogdoches, Palestine, Lufkin, Lindale, and Tyler.