Farm Credit Services of America (FCSAmerica) on November 4 reported continued growth in loan volume and net income for the quarter that ended September 30, 2010. Net income for the first nine months of 2010 was $284.8 million compared to $134.0 million in the same period in 2009.
The growth in net income is attributable to various factors including new business, a decrease in the provision for credit losses, a one-time refund of Farm Credit insurance fund premiums paid in prior years, a reduction in the insurance fund premium rate, and a decrease in tax expense.
Number of factors are adding to increase in 2010 earnings
"A number of factors are contributing to our 2010 earnings," says Doug Stark, president and CEO of the farmer-owned cooperative lender. "Our reserves for loan losses have been relatively lower in 2010, which is the result of the strength of our portfolio during a volatile period for agriculture. Strong earnings enable us to build upon our financial strength and fulfill our mission. We will continue to focus on being a valued financial partner that provides reliable and competitive financing, works with customers through volatile economic times, and provides a meaningful cash patronage dividend."
Stark adds, "Working with our board, we've been setting the stage for solid financial performance for many years. We have made strategic technology investments that provide organizational efficiencies. Combine those investments with our cooperative structure and a four-state network of engaged employees who proudly serve America's farmers and ranchers and we believe we have a very powerful business model that offers tremendous value to rural America."
Other financial highlights cited by the latest report:
• Loan volume increased $985 million in the first nine months of 2010 to $14.5 billion.
• Total member's equity increased to $2.5 billion from $2.2 billion at the end of 2009.
Farm Credit Services of America helps finance the growth of rural America, including the special needs of young and beginning producers. With more than 85,000 customers and assets of $15.3 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