FORT WORTH, Texas: Lone Star Ag Credit is distributing a total of $24.1 million in patronage dividends to its customer-owners, based on its continued strong growth in net income, earning assets, and capital in 2021.
The cash patronage payment is a record for the rural lending cooperative.
“As a cooperative, we’re committed to returning surplus earnings to our members,” said Joe Hayman, Lone Star Ag Credit’s chief executive officer. “Lone Star’s continued financial strength in 2021 allows us to distribute another record patronage dividend to our customers. Paying patronage dividends is a key element of the value our cooperative provides to members.”
In February, patronage dividend checks totaling $24.1 million mails out to eligible customer-owners.
“As a board, we’re committed to maintaining a financially strong cooperative that provides customer value and supports our commitment to agriculture and rural communities,” said Brent Neuhaus, Lone Star Ag Credit chairman of the board. “When determining a patronage distribution, we take into consideration several variables, including loan demand; interest rate forecasts; Association financial performance; as well as how much capital is necessary to sustain the organization over the long term. We also evaluate external considerations, including the current economic and political environment.”
At the end of each year, Lone Star Ag Credit’s board determines the required income for capital needs. Then it returns the remainder as patronage dividends to members.
Lone Star has distributed approximately $146.5 million in patronage dividends to borrowers over the past ten years.
With approximately $2.33 billion in assets, Lone Star Ag Credit finances rural land, country homes, agribusinesses, livestock, agricultural equipment, and operating expenses. The rural lender is headquartered in Fort Worth and has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Georgetown, Hillsboro, Lampasas, Mount Pleasant, New Boston, Paris, Sherman, Stephenville, Sweetwater, Waco, and Weatherford.
For more information, contact a local Lone Star branch office or visit LoneStarAgCredit.com.
The financial results discussed here are preliminary and unaudited. Please visit our website this spring to see our complete results.