Omaha, Nebraska – (August 9, 2010) – Farm Credit Services of America (FCSAmerica) reported continued growth in loan volume and net income. Net income for the first six months of 2010 was $163.6 million compared to $73.8 million in the same period in 2009. The growth in net income was caused primarily by a one-time refund of Farm Credit insurance fund premiums paid in prior years, a sharp decrease in the provision for credit losses and growth in new business.
“A number of things have contributed to the growth in earnings this year,” commented President and CEO, Doug Stark. “In addition to the one-time impact of refunded insurance premiums, last year at this time, we increased our provisions or reserves for possible loan losses given stress in certain industries. This year, our provisions have been relatively lower, as a cooperative we will continue to work with our customer-owners who are experiencing financial stress. Our main focus is to maintain a financially strong cooperative and share profits in the form of patronage dividends once the year is complete.”
Other financial highlights:
- Loan volume increased $353 million in the first six months of 2010 to $13.9 billion.
- Total member’s equity increased to $2.4 billion from $2.2 billion at the end of 2009.
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 83,000 customers and assets of more than $14.5 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.