GreenStone’s Board of Directors approves the amount of distribution to be returned to customers each year. In recent years, customers, on average, have received anywhere from .75 percent to 1.25 percent of their average loan balance in a cash payment.
For example, if you are paying an annual percentage rate of 4.5 percent on your loan, you could receive a patronage payment that would reduce your net borrowing costs to 3.25 percent. This average could change on an annual basis, based on the ﬁnancial performance of the cooperative and the ﬁnal determination of the Board of Directors as to the distribution amount. Though the intent is for an annual payment, there is always the possibility of no patronage being paid.