| Articles - February 16, 2006 |
| Bank Pays 30-Basis-Point Cash Patronage |
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The Farm Credit Bank of Texas announced a 2005 cash patronage of 30 basis points to its customer-stockholders in December. These include 21 financing cooperatives in the Tenth Farm Credit District and four Other Financing Institutions (OFIs). The patronage was paid on average direct-note volume through December 29, 2005, and was exclusive of participation pool patronage. The 2005 cash patronage of 30 basis points translates to more than $20 million of earnings returned to the bank’s affiliated lending associations and OFIs. It compares to a 20 basis-point patronage paid in 2004 and a 10 basis-point patronage paid in 2003. Patronage payments have the effect of reducing the lending institutions’ cost of funds from the bank. |