Alabama Ag Credit, a rural lending cooperative serving Central and Southern Alabama, recently distributed a $5.1 million cash patronage to its customers. This record amount was based on the co-op’s solid 2010 earnings, and was approved by the association’s board of directors.
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 co-op has returned more than $35 million in stock reductions, dividends and patronage payments to its borrowers since 1996.
"This all-cash patronage is yet another example of how Alabama Ag Credit is committed to honoring our cooperative principle of sharing our earnings with our borrowers," said Thomas Dozier, chairman of the board of directors. "Sending cash back to those who do business with us, and in turn strengthening our local economies make us all very proud to be a part of Alabama Ag Credit."
This patronage payment highlighted outstanding 2010 year-end financial results reported by Alabama Ag Credit earlier this month. Loan volume at Dec. 31, 2010, was $654.21 million, up from the $637.80 million reported a year earlier. Net income for 2010 totaled $13.8 million, and credit quality remained strong.
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 is headquartered in Montgomery and operates offices in Demopolis, Dothan, Enterprise, Loxley, Montgomery, Opelika, Selma and Tuscaloosa.
For more information, contact Ashley Layson, Director of Marketing, at (334) 270-8687.