Mid-Rivers returns over $1 million in capital credits

On Friday, Aug. 18, Mid-Rivers Telephone Cooperative, Inc. mailed capital credit checks of approximately $1.04 million to its members and patrons. The 2017 distribution of capital credits represents 100 percent of the remaining balance of the 1993 patronage allocation, 11 percent of the remaining unretired balance of the year 1994, as well as 5 percent of the 2016 patronage allocation.

Receiving capital credit checks is just one of the many benefits of utilizing the services of a cooperative. A cooperative business is owned and democratically controlled by its member patrons. Any profit is distributed to patrons in proportion to their use, or “patronage,” of the cooperative’s services. Mid-Rivers Telephone Cooperative uses both the “first-in, first-out” and the percentage methods of distribution to allow both new and past patrons the opportunity to share in the benefits of the cooperative by receiving capital credit checks.

Payment of capital credits is made only if the financial condition of the cooperative permits, as determined by the Board of Trustees. Mid-Rivers’ financial condition has allowed regular and substantial payment of capital credits in recent years. However, decreased revenues caused by regulatory and other changes in the telecommunications industry, and the need for member capital to extend broadband services in rural areas, may affect Mid-Rivers’ ability to continue to make regular and/or substantial capital credit payments in the future.

Including the 2017 payment, Mid-Rivers has returned approximately $41.7 million in capital credits to its members.

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