Heritage Land Bank sets record

Heritage Land Bank, ACA, reported record earnings for year-end 2006 in the amount of $8.5 million, resulting in a return on average stockholder's equity of 15.4 percent. Due to this positive performance in 2006, the Board of Directors approved the largest patronage ever to stockholders in the amount of $7.2 million. This patronage is scheduled for distribution in April 2007, with 60 percent to be paid in cash and the remaining 40 percent in allocated equities.

"Thanks to our strongly motivated and experienced staff, Heritage Land Bank continues to strengthen its financial position and provide better returns to its stockholders," stated Stephen R. Ogletree, chief executive officer.

The financial report for year ending Dec. 31, 2006 reported loan volume of $364.7 million; up from $286.2 million at yearend 2005. This increase of $78.5 million, or 27 percent in loan volume, is attributed to new business with the closing of over 729 new loans for $189 million. In addition to the growth in the loan portfolio, credit quality remained historically high with 96 percent acceptable loan volume reported at the end of December 2006.

"This high level of credit quality is due to the timely repayments by the Association's borrowers, and the efforts of our staff to book high quality loans," stated Robert Echols, chief credit officer.

In addition, "The Association's capital position remained strong with a permanent capital ratio of 14.6 percent at the end of 2006, which exceeded the 7 percent minimum set by the regulator, Farm Credit Administration," said Jenny Sloan, chief financial officer.

Heritage Land Bank, ACA is a $376 million customerowned cooperative, and is part of the nationwide Farm Credit System established in 1916 to meet the financing needs of farmers and ranchers.