What is NCBs stock patronage policy?
NCB is a cooperatively structured financial institution owned by its customers. Like all cooperatives, net margins (the excess of income over expenses in the cooperative), if any, are distributed to NCB stockholders in proportion to their use of the cooperative in the form of a patronage refund, which the IRS calls patronage dividends. This means that when NCB does well, stockholders share in the earnings by receiving a patronage refund. The total amount of patronage, or refund, is based, in part, on the amount of fees and interest paid by each member-owner in relation to its loan(s). Patronage refunds are a combination of cash and/or stock, as determined by the Board of Directors. The stock portion of NCB’s patronage refund is distributed in the form of Class B2 and/or Class C stock. Can NCB stockholders expect a patronage refund every year? Not necessarily. The patronage refund is based on NCB’s performance in a given year. And, as is the case in the world of business, positive finan
