Omaha, Nebraska – (March 1, 2009) – Farm Credit Services of America (FCSAmerica), a financial cooperative with more than 80,000 customers and $14 billion of assets, today announced financial results for calendar year 2009.
Net income for 2009 was $229.8 million compared to $242.8 million for 2008, a decrease of 5.4 percent. Total loan volume increased 8.6 percent to $13.5 billion from $12.4 billion in 2008. Members’ equity ended 2009 at $2.2 billion an increase of 8.7 percent for the year.
“While 2009 was a challenging year for producers across the four states we serve, we are very pleased with FCSAmerica’s financial performance” said Doug Stark, President and Chief Executive Officer. “We remain committed to maintaining the financial strength of the cooperative so that we can continue to be a dependable partner for our customers well into the future.”
The lower net income was primarily caused by increases in the provision for loan losses. The increase in the provision for loan losses was due to charge-offs taken during the year and an increase in the general and specific allowance for loan losses. The charge-offs were primarily in the renewable fuels and livestock portfolios and the increase in the general and specific allowance for loan losses was related to the renewable fuels, swine and dairy industries. The increase in tax expense is primarily due to the reversal of a tax liability in the third quarter of 2008 and an increase in 2009 taxable income.
Stark also noted that the Board of Directors once again declared a patronage distribution and FCSAmerica will distribute $52 million in cash to eligible shareholders in early 2010.
Farm Credit Services of America is proud to finance the growth of rural America, including the special needs of young and beginning producers. With more than 80,500 customers and assets of $14 billion, FCSAmerica is one of the region’s leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in Iowa, Nebraska, South Dakota and Wyoming.