Pilgrim Bank in good shape, officials say

Local Pilgrim Bank Texas officials have been busy this week allaying customers’ concerns following the bankruptcy filing of the bank’s corporate namesake – Pilgrim’s Pride Corporation.

“Pilgrim Bank and Pilgrim Bank Texas are not owned or operated by Pilgrim’s Pride Corporation nor any of its affiliates,” said the banks’ regional president Dana Bell.

The banks, which have offices in Clarendon, Wellington, Pittsburg, Mt. Pleasant, and Sulfur Springs, are owned by a holding company, which in turn is owned by Bo Pilgrim, who was the founder of Pilgrim’s Pride.

“The banks are strong,” Bell said. “Now the chicken company has problems. No doubt about it.”

Pilgrim’s Pride filed for Chapter 11 bankruptcy last Monday, December 1, according to the company’s website.

Time magazine reported last week that Pilgrim’s Pride has been hurt by a large debt load and “volatile feed prices.” The article said the poultry company had “$3.75 billion in assets and $2.72 billion in debts” as of September 27 and that part of its debt load was caused by the $1.3 billion purchase of rival Gold Kist, Inc. last year.

Bell said the Pilgrim Banks have not and do not lend any money to Pilgrim’s Pride and will not be directly affected by the bankruptcy filing. The banks are also not used as collateral for the Pilgrim Pride Corporation.

“The banks have a combined average assets of $306,356,000 and combined equity of $32,341,000 as of November 30, 2008,” he said.

Bell also said the Pilgrim Banks have high ratings from the regulators and auditors and are not subject to any formal criticism from the auditors.

“In fact, the banks have been approved for a new acquisition,” Bell said, “and we plan on being here and serving our customers and our communities for a long time to come.”