Farm Credit Services of America Announces Mid-Year Earnings
Aug 04, 2014
Customer-Owned Cooperative Reports Strong Financial Results
Omaha, Nebraska – (August 4, 2014) – Farm Credit Services of America (FCSAmerica), a customer-owned financial cooperative serving more than 50,000 farmers and ranchers in a four-state area, today announced financial results for the first six months of calendar year 2014.
Net income for the first six months was $238.8 million compared to $225.9 million for the same period in 2013. The increase in net income is primarily due to an increase in net interest income from growth in loan volume, a non-recurring gain from the sale of other property owned, and increases in distributions from AgDirect, LLP and AgriBank, FCB patronage. The income increases are partially offset by increases in the provision for credit losses, non-interest expense for additional staffing to support business initiatives and growth, and premiums charged by the Farm Credit System Insurance Corporation.
Doug Stark, chief executive officer at FCSAmerica, said, “Commodity prices have been volatile, with grain prices down while livestock producers generally experienced strong profits during the second quarter. As a lender owned by farmers and ranchers, it’s our mission to help producers successfully navigate these cycles. We’ve built the financial strength that allows us to continue supporting our customers while investing in new products, services and tools that add value to their business.”
Loan volume increased by $259.8 million to $20.5 billion during the first six months of 2014.
Members’ equity increased to $3.8 billion from $3.6 billion at the end of 2013.
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 $21 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 fcsamerica.com.