Farm Credit Services of America Announces 2015 Mid-Year Earnings
Aug 05, 2015
OMAHA, NEBRASKA - (August 5, 2015) - 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 reported net income of $236.7 million for the first six months of 2015. This compares to $238.8 million for the same period last year.
The decrease in net income was primarily due to reduced noninterest income and higher noninterest expenses, partially offset by an increase in net interest income. Factors contributing to FCSAmerica’s net income through June 30, 2015:
- A gain on sale of other property owned, recorded in the second quarter of last year, led to a higher net income for 2014 compared to 2015. AgDirect program fees and AgriBank, FCB patronage also were down in the first six months of 2015.
- Salary, benefits and other expenses for increased staffing levels to support business initiatives and growth led to higher noninterest expenses.
- Loan volume increased $237 million from 22.1 billion at the end of 2014 to help increase interest income. Growth in loan volume was primarily due to an increase in long-term agricultural mortgage loans, partially offset by a decrease in production and intermediate term loans.
Members’ equity increased to $4.2 billion from $4.0 billion at the end of 2014. Total assets at the end of June were $23.3 billion.