The Federal Land Bank Association (FLBA) of North Alabama recently mailed patronage checks totaling $2.75 million to customers. The patronage distribution was based on the rural lending cooperative’s solid financial results for 2008.
“We are extremely pleased that we were able to return a portion of last year’s earnings to our customer-stockholders in the form of patronage, particularly given the current global financial crisis,” said Ben Gore, FLBA of North Alabama chief executive officer. “As a cooperative, the Land Bank is owned by our customers; therefore, they benefit when we do well.”
The recent $2.75 million patronage payment reduced Land Bank borrowers’ 2008 effective interest rate by 0.68 percent.
The FLBA of North Alabama has declared a total of $11.6 million in patronage payments and dividends since 1999. This amount includes $3.6 million in dividends distributed to customers from 1999 through 2005, and more than $8 million in patronage payments distributed since 2006.
