The Board of Directors has approved a patronage refund for 2012 of $4,918,000, payable 100% in cash. The 2012 patronage refund is 1.25% of average member loan volume and 57% of net income.
The patronage refund of $4.9 million and the patronage refund rate of 1.25% are both the highest they have ever been. The Association had a good year in 2012 thanks to the good financial performance of members and the hard work of staff. We are pleased to share this success with members via this patronage refund. For reference, last year's patronage refund was $3,664,000 which was 1.00% of average member loan volume and 52% of net income.
Payment of the patronage refund is contingent upon satisfactory completion of the 2012 audit and the Association's receipt of its 2012 patronage refund from CoBank. Both conditions are expected to be satisfied in March. For customers receiving payment by check, we are tentatively planning on mailing checks on March 25, 2013.
Payment will be made via ACH for customers who were signed up for electronic funds transfer as of December 31, 2012. The plan for ACH customers is to mail a statement on Monday, March 25 and initiate the ACH transaction on Tuesday, March 26. Most ACH customers should receive the funds in their bank account on Wednesday, March 27.
