|Alabama Ag Credit Returns Record $5.45 Million Cash to Customers|
Alabama Ag Credit, a Montgomery-based lending cooperative, sent a record all-cash patronage totaling $5.45 million back to its customers during May 2012.
Alabama Ag Credit’s Board of Directors declared the impressive patronage return to its customers due to the institution’s outstanding results in 2011. For the year, Alabama Ag Credit grew its loan volume to over $677 million while generating more than $13.1 million in net income.
"When you consider those facts along with our strong credit quality and capital positions, you can quickly see why this board of directors declared another record-breaking cash patronage," said Thomas Dozier, chairman of the board of directors.
"We continue to be that reliable source of credit to agriculture and rural Alabama during a time when many lenders have turned away from this market," said Douglas Thiessen, chief executive officer. "We are using our strengths to help our stockholders be positioned for a rapidly changing market."
As a member of the Farm Credit System, a network of rural lending cooperatives, Alabama Ag Credit has a long history of sharing earnings with its customers. The association has returned more than $24 million in cash to its borrowers since 2006. Patronage payments effectively lower borrowers’ interest rates.
Alabama Ag Credit provides financing for farms, timber and forestry operations, agribusinesses, recreational land and other rural property in 40 counties in southern Alabama. The financing co-op operates offices in Demopolis, Dothan, Enterprise, Loxley, Montgomery, Opelika, Selma and Tuscaloosa.