Mid-Rivers Mails Over $1 million in Capital Credit checks to Members
On Friday, August 1, 2014, Mid-Rivers Telephone Cooperative, Inc. mailed capital credit checks of approximately $1,031,000 to its members. The 2014 distribution of capital credits represents 30% of the remaining balance of the 1993 patronage allocation, as well as 15% of the 2013 patronage allocation.
Receiving capital credit checks is just one of the many benefits of being a member of a cooperative. Any profits generated by the cooperative (the difference between income and operating costs for the year) are returned to member-owners in the form of capital credits. A member’s capital credits are derived from the amount of business he or she does with the cooperative during a given year. Mid-Rivers Telephone Cooperative uses both the “first-in, first-out” and the percentage methods of distribution to allow new as well as past members the opportunity to share in the benefits of cooperative membership by receiving capital credit checks.
Payment of capital credits can be made only if the financial condition of the cooperative permits. Although Mid-Rivers' financial condition has allowed regular and substantial payment of capital credits in recent years, decreased revenue caused by changes in the telecommunications industry may affect Mid-Rivers' ability to continue to make regular and/or substantial capital credit payments in the future.
Including the 2014 payment, Mid-Rivers has returned approximately $37.6 million in capital credits to its members.