CoBank Board Approves Special All-Cash Patronage Distribution
Approximately $40 Million In Additional Patronage Will Be Paid To Eligible Customer-Owners In March 2020
CoBank Also Announces 2020 Board Officers
DENVER (December 19, 2019) — CoBank, a cooperative bank serving agribusiness, rural infrastructure providers and Farm Credit Associations throughout the United States, today announced that its board of directors has unanimously approved a special, all-cash patronage distribution for eligible customer-owners.
The distribution, totaling approximately $40 million, will be made in March 2020. The distribution will be incremental to the standard patronage payments the bank typically makes to member-borrowers in the spring of each year under its various patronage plans.
“We are in a position to make this special distribution due to CoBank’s continuing strong financial performance and robust capital levels,” said Kevin Riel, chair of the CoBank board of directors. “Patronage is a core element of the CoBank value proposition, and our board remains committed to delivering strong patronage returns to our customer-owners.”
This special patronage distribution to eligible customer-owners will be based on average daily loan balances held by the bank during the year. It will also vary by patronage pool, as detailed in the following table:
|Type of borrower||Standard patronage rate*||Special patronage rate*|
|Agribusiness, communications & project finance||95 bps||12 bps|
|Electric, power & water||80 bps||10 bps|
|Purchased participations patrons||95 bps||12 bps|
|* Based on average daily balance of qualifying outstanding loan volume during 2019.|
Final patronage amounts, including the standard and special patronage distributions, will be released in February as part of CoBank’s year-end earnings announcement.
CoBank today also announced board officers for 2020. The CoBank board elects its officers to serve a one-year term commencing January 1 and expiring December 31 each year.
Kevin Riel will continue to serve as board chair. Riel has been a director since 2014, and board chair since 2018, and served as first vice chair in 2017. He is the president of Double ‘R’ Hop Ranches, Inc., a diversified farming operation primarily growing hops, in Harrah, Washington. He is a former director of Northwest Farm Credit Services, one of CoBank’s affiliated Farm Credit associations, where he served as vice chair and chair.
Jon Marthedal will continue to serve as first vice chair. Marthedal has been a director since 2013, and has served as the first vice chair since 2018 and served as second vice chair in 2017. Marthedal is the owner and operator of Marthedal Farms in Fresno, California, a grape, raisin and blueberry farming operation, and serves as vice chair of The Farm Credit Council. Marthedal also serves as a director of several agricultural cooperatives and trade associations.
Kevin Still will continue to serve as the second vice chair. Still has been a director since 2002, served as the Risk Committee chair from 2008 through 2017 and served as the second vice chair in 2015, 2016, 2018 and 2019. He is the president and chief executive officer of Co-Alliance, LLP, a partnership of five cooperatives supplying energy, agronomy and animal nutrition, producing swine and marketing grain in Avon, Indiana. He is also the owner and president of Still Farms, LLC, a grain farm, and serves as an executive or director of various agricultural retail and energy cooperatives.
“I look forward to working closely with Jon, Kevin and the rest of our directors in the coming year,” Riel said. “Our board and executive management team are fully committed to preserving and building the long-term financial strength of the bank so it can continue fulfilling its mission and delivering dependable credit and financial services to our customers.”
CoBank’s 2020 board will consist of 14 directors elected by customer-owners from six voting districts across the country, as well as two outside directors and two appointed directors.
CoBank is a $136 billion cooperative bank serving vital industries across rural America. The bank provides commercial loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.
Certain of the statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual future business may differ materially and adversely from our expectations expressed in any forward-looking statements. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “target,” “may,” “will,” “should,” “would,” “could,” or similar expressions. Although we believe that the information expressed or implied in such forward-looking statements is reasonable, we can give no assurance that such projections and expectations will be realized or the extent to which a particular plan, projection or expectation may be realized. These forward-looking statements are based on current knowledge and subject to risks and uncertainties. We encourage you to read our Annual Report and Quarterly Reports located on the bank’s website at www.cobank.com. We undertake no obligation to revise or publicly update our forward-looking statements for any reason.
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