CENTRAL TEXAS FARM CREDIT, ACA
MAKES CAPITAL DISTRIBUTION
COLEMAN, TEXAS - 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 declared another cash patronage distribution to eligible association borrowers for fiscal year 2007. This marks the fifteenth consecutive year the association has returned excess capital to its borrowers. Including this year’s patronage, Central Texas Farm Credit, ACA has distributed over $33 Million in excess capital to its borrowers over the past 15 years. This capital has been distributed either through patronage distributions, dividends, stock reductions, or stock equalizations. Patronage distributions alone have accounted for approximately $22 Million of the total amount of capital returned to association borrowers.
This year’s $2.5 Million patronage was distributed to borrowers on March 21st and amounts to an average 86 basis points, or nearly 1 percent, reduction in the rate of interest borrowers paid on their loans during 2007.
In making the announcement, board chairman Cody B. Richmond 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. Association CEO James R. Isenhower also noted that although most Farm Credit institutions pay a patronage of some kind, Central Texas Farm Credit, ACA distributes its entire patronage in cash and does not allocate a part of such patronage for possible, but not guaranteed, payment at some later date.
The Central Texas Farm Credit, ACA, with over $420 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 Cody Richmond, Chris West, Lavon Beakley, Richard Johnson, Ricky McKinnerney, Mickey Dillard, Larry Damron, Brent Heinze, Wayland Shurley, Robby Halfmann, 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.
ASSOCIATION RECEIVES SHORT AND
INTERMEDIATE-TERM LENDING AUTHORITY
COLEMAN, Texas – Effective July 1, 2006, the Association received authority to make and service short and intermediate-term loans in addition to the long-term lending authority it has had for years. This expansion of lending authority follows approval by the Association's stockholders and the Farm Credit Administration (the Association's federal regulator) to restructure the Association to an Agricultural Credit Association.
This restructuring provided for the creation of a new Production Credit Association (PCA) and the consolidation of this new PCA with the existing Federal Land Bank Association of Texas, FLCA (FLCA) to create a new Agricultural Credit Association (ACA) wherein the PCA and FLCA are wholly-owned subsidiaries of the ACA. With this structure change, the Association now has the ability to make short, intermediate and long-term loans, along with providing related financial services, to more fully meet the credit needs of its member-borrowers.
Upon finalization of the restructuring, the name of the Association was changed to Central Texas Farm Credit, ACA, with the subsidiary entities being Central Texas PCA and Central Texas Land Bank, FLCA.
James Isenhower, Association CEO, noted that the structure change will enable the Association to better serve its existing and future customers by providing "one-stop shopping" for both long-term mortgage credit and short and intermediate-term commercial credit. In addition, the added lending authority will allow the Association to expand its market to include customers seeking only production financing, provide for greater diversity in the Association's portfolio, increase the Association's competitiveness in the marketplace, and provide an enhanced level of overall service to its member-borrowers.
The Association headquarters remains located in Coleman, Texas, with branch offices in Brady, Brownwood, Coleman, Comanche, Haskell and San Angelo.
Central Texas Farm Credit, ACA provides financing to rural landowners, rural homeowners and agribusinesses in 19 counties in West and Central Texas.
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