News ReleaseFor Immediate Release Another Patronage Payment On Its Way BRYAN, Texas — Capital Farm Credit has a present for its customers — another patronage payment! At its September meeting, the Capital Farm Credit Board of Directors approved a resolution to retire $15 million in allocated equities this year. In other words, customers will receive a second patronage check in 2010. The checks will be mailed in mid-December. Earlier this year, in March, Capital Farm Credit distributed a $57.6 million patronage to customers. As in prior years, it was distributed as 30 percent in cash and 70 percent as allocated equities eligible for future cash payouts. In previous years, the board has approved allocations, in addition to cash distributions. Allocated equities are essentially funds that are allocated to a borrower based on the interest the customer pays to the association. Capital Farm Credit retains these equities as a way to fund growth and, at the same time, to keep all of its earnings allocated to borrowers. Now, based on the association’s financial and capital strength, the board has decide to retire a portion of those allocated equities, which will result in an additional cash payout to customers. “We believe this retirement of previous allocated equities will be a testimony to our stockholders of our desire and resolve to operate as a cooperative and to be good stewards of the association’s capital, even in trying economic times,” said Ben Novosad, chief executive officer. “We can take great pride in this accomplishment and celebrate with our customers that we operate in a manner that contributes to their financial success.” |
