Farm Credit Services of America Announces Financial Results for First Nine Months of 2016
Nov 04, 2016
Omaha, Nebraska (November 4, 2016) – Farm Credit Services of America (FCSAmerica), a customer-owned financial cooperative serving more than 50,000 farmers and ranchers in a four-state area, reported net income of $343.9 million in the first nine months of 2016. This compares to net income of $369.3 million for the same period in 2015.
Factors contributing to lower net income included:
- An increase in provision for loan losses, primarily in the grain and beef feedlot industries.
- Higher noninterest expenses, largely related to staffing and business initiatives and an increase in Farm Credit System Corporation insurance premiums.
- Lower noninterest income, primarily due to a decrease in AgriBank, FCB patronage.
Offsetting the decreases in net income was an increase in net interest income due to continued growth in loan volume.
“Producers are adjusting to lower commodity prices and evaluating their cost structure and marketing strategies given the cycle” said Doug Stark, FCSAmerica’s president and CEO. “Fortunately, FCSAmerica has the financial strength and a willingness to commit financial and human resources to working with producers to help them make appropriate adjustments to the current cycle. While we have increased our provisions for loan losses, charge-offs remain low. We remain optimistic about the future of agriculture as a whole.”
Loan volume increased $1 billion, or 4 percent, from $23.6 billion at the end of 2015. Members’ equity increased to $4.7 billion from $4.3 billion at year-end. Total assets were $25.8 billion through September 2016.
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 $25.8 billion in assets and $4.7 billion in members’ equity, 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.