Omaha, Nebraska – Farm Credit Services of America (FCSAmerica), a financial cooperative with more than $19 billion in assets, today announced financial results for the calendar year 2012.
Net income for 2012 was $481.1 million compared to $456.4 million for 2011. The increase in net income primarily was due to interest income from the growth in loan volume, refunds of Farm Credit insurance fund premiums paid in prior years, and program fees and distributions received under the AgDirect trade credit financing program. Net income was partially offset by an increase in the provision for credit losses and an increase in noninterest expense for increased staffing levels to support business initiatives and growth.
Loan volume increased to $18.490 billion from $15.891 billion in 2011. Most of the increase came in the real estate portfolio.
Members’ equity increased to $3.224 billion from $2.874 billion at the end of 2011.
“Despite areas of drought, agriculture in our four-state area continued to grow and expand in 2012,” said Doug Stark, president and CEO. “Producers financed new real estate purchases, upgraded farm equipment and invested in farm improvements at the same time livestock producers were challenged by higher input costs. Our cooperative’s strong financial performance enabled us to once again pay significant cash-back dividends to our customer-owners.”
The FCSAmerica Board of Directors in December approved a cash-back dividend that will distribute $130 million of the income earned in 2012 to customer-owners. This marks the ninth consecutive year of cash-back dividends, which have totaled nearly $700 million since 2004.
About Farm Credit Services of America
Farm Credit Services of America is proud to finance the growth of rural America, including the special needs of young and beginning producers. With assets of more than $19 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. Learn more at www.fcsamerica.com.
# # # #