Brady Land Bank declares patronage to stockholders

The board of directors of the Brady Land Bank, FLCA, which serves Concho, McCulloch, Menard and San Saba counties, has announced that it has declared a Patronage in the amount of $500,000 for fiscal year 2001. This marks the eighth consecutive year the Association has returned excess capital to its stockholder/borrowers. Including this year’s patronage declaration, the Brady Land Bank, FLCA has distributed $5,645,831.67 in excess capital to its stockholder/borrowers over the last eight years. W. Ellis Klett, chairman of the board, made the announcement during the Association’s annual stockholders meeting held April 24. In making the announcement, Klett stated that the board of directors and management were delighted to be able to once again reduce the cost of credit to the Association’s stockholder/borrowers and emphasized that this is only one of the many benefits of obtaining agricultural credit from the Brady Land Bank, FLCA. As Association President J. A. Ranne III stated, “Although there are many Land Bank associations across our state, no other association has returned as much capital to the individual stockholder/borrower as the Brady Land Bank, FLCA. Our association not only provides the most stable and dependable source of long-term agricultural credit, but our policy is to return as much capital to our stockholder/borrowers as is prudently possible.” The $500,000 Patronage will be distributed to stockholder/borrowers on June 1. On average across the entire loan portfolio, this distribution translates into a 23.76 percent reduction in the amount of net interest borrowers paid on their loans during 2000. The payment of the Patronage is made possible by the continuing strong financial position of the Brady Land Bank, FLCA. The capital strength of the Association continues to far exceed the regulatory requirements and also exceeds the level the board of directors and management believe is necessary to adequately provide for the future viability of the Association. Because the Brady Land Bank, FLCA is a member-owned cooperative, the board and management feel that the stockholder/borrowers should receive the benefit of the capital strength of the Association. This return of capital translates into a significant interest rate reduction to all association stockholder/borrowers. The Brady Land Bank, FLCA provides long-term financing for agricultural, rural housing and certain agri-business purposes in Concho, McCulloch, Menard and San Saba counties. All loans are secured by a first lien on real estate. J.A. Ranne III is president of the Association and Ronnie L. Reinisch is chief operating officer. Board members include W. Ellis Klett, chairman; Ricky B. McKinnerney, vice-chairman; Raymond Barrier, Jr.; Larry Donop; Cohler Jameson; Mickey D. Dillard; Frankie Holubec and Jerell D. Hemphill. The board and management remain committed to maintaining the financial integrity of the Association while offering competitive loan products that meet the financial needs of all eligible borrowers.

Leave a Comment