Farm Credit Reports Steady First Quarter Earnings
Louisville, Kentucky (May 20, 2009) - Farm Credit Services of Mid-America (FCS), an ag lending cooperative serving over 85,000 farmers, rural residents and agribusinesses throughout Indiana, Kentucky, Ohio and Tennessee, announced earnings of $40.2 million for the first quarter of 2009. Additionally, loan volume, including owned and managed loans, totaled $13.5 billion at quarter-end, a $48 million increase from December 31, 2008.
President and Chief Executive Officer Donnie Winters said despite the continued global economic and financial crisis, the association is off to a solid start this year with activity picking up late in the quarter and continuing through the spring. “Farm Credit staff converted almost $1 billion in current customer loans to lower interest rates, helping maintain volume levels and saving customers an estimated $53.7 million in interest expense.”
Non-accrual loans were 1.5% percent of the portfolio, up from 1.36 percent from the end of last year but still better than standards. Winters said the overall diversification of FCS’s lending portfolio has contributed to the association’s ability to deliver net earnings growth at profitable levels. “We have seen a slight slip in credit quality in some areas of our portfolio – particularly the ethanol, livestock and poultry sectors where product demand has slowed and the agri-consumer sector where off farm income has been challenged by the recession. However, grain producers make up the largest ag commodity in our portfolio and generally, they have had several good years and sound financial and liquidity positions as a result.”
“Our cost of funds to customers continues to be the lowest in the Farm Credit System. In the end, it’s our goal to meet our mission of providing the best and most competitive products and services available to farmers and rural residents and we will continue to do what it takes to meet marketplace demands, whatever those demands might be,” he said.
To see the complete results, go to www.e-farmcredit.com and select News, then Quarterly Report.
About Farm Credit Services
Farm Credit Services of Mid-America is a $15 billion financial services cooperative serving over 85,000 farmers, agribusinesses and rural residents in Kentucky, Ohio, Indiana and Tennessee. The association provides loans for farm and rural living purposes including real estate, operating, equipment and housing and related services such as crop and life insurance and vehicle, equipment and building leases. For more information about Farm Credit, call 1-800-444-FARM or go online at www.e-farmcredit.com.
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