The board of directors of the Central Texas Farm Credit, ACA, which serves a 20 county area in Central and West Texas, has announced that it has approved another cash patronage distribution to eligible association borrowers for fiscal year 2010. This marks the eighteenth consecutive year the association has returned excess capital to its borrowers. Including this year's patronage, Central Texas Farm Credit, ACA has distributed over $40 million in excess capital to its borrowers over the past 18 years. This capital has been distributed either through patronage distributions, dividends, stock reductions, or stock equalizations. Patronage distributions alone have accounted for over $30 million of the total amount of capital returned to association borrowers.
This year's $3.2 million patronage was distributed to borrowers on March 18th and, on an average across the entire core loan portfolio, amounts to a full one percent reduction in the rate of interest borrowers paid on their loans during 2010.
In making the announcement, board chairman Brent Heinze stated that the board of directors and management were delighted to once again reduce the cost of borrowing to the association's stockholders and emphasized that this is only one of the many benefits of obtaining agricultural and rural area credit from the Central Texas Farm Credit, ACA. He noted that the association's financial strength allows the board and management to maintain an efficient and profitable operation and to continue the policy of returning excess earnings back to our shareholders.
Association CEO Boyd J. (Jimmy) Chambers also noted that despite the adversity some financial institutions continued to experience in 2010, Central Texas Farm Credit, ACA remains financially strong and able to once again make a patronage distribution for the benefit of our stockholders.
The Central Texas Farm Credit, ACA, with over $395 million in loan assets, provides financing for agricultural, rural housing and certain agri-business purposes in Central and West Texas. Association headquarters are located in Coleman, with branch offices in Brownwood, Brady, Haskell and San Angelo. Board members include Brent Heinze, Robby Halmann, Cody Richmond, Jerry Don Klose, Philip Hinds, Mike Finlay, Mickey Dillard, Wayland Shurley and Glenn Miller. 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.