LOUISVILLE, Ky. (August 26, 2015) – Lower prices for grain commodities were offset by favorable pricing in the animal protein sector and continued stability in the non-farm economy, helping Farm Credit Mid-America report strong performance in second quarter 2015 and solid gains, year over year, in its loan portfolio. Net income was at $142 million, down 4.7 percent from second quarter 2014, but FCMA’s total portfolio size grew 5.3 percent to total assets of $21.0 billion.
Total loan volume reached $19.0 billion, a 6.7 percent increase over second quarter 2014, the company reported.
Louisville-based Farm Credit Mid-America is a financial services cooperative serving the credit needs of farmers, agribusinesses and rural residents across Indiana, Ohio, Kentucky and Tennessee for nearly a century. Backed by nearly 100,000 customers and $21 billion in assets, Farm Credit Mid-America provides loans for real estate, operating, equipment, housing and related services such as crop insurance, and vehicle, equipment and building leases.
Continued low customer debt-to-asset ratios indicated resiliency among Farm Credit Mid-America agricultural loan customers, supported by ongoing growth in the company’s rural real estate mortgage portfolio. As a cooperative, the diversified nature of the organization’s portfolio spreads risk and enables it to serve as a stable and dependable source of credit for farmers and rural communities in good times and bad.
“We believe our diverse customer base is equipped to withstand the current softening in the agricultural economy,” said Bill Johnson, president and CEO, Farm Credit Mid-America. “We prepared during successful years, positioning our customers and cooperative as a whole to navigate the ups and downs of our industry, and that approach continues to pay dividends.”
The association’s portfolio credit quality slightly declined from year-end 2014 as adversely classified loans increased to 2.5 percent of the portfolio, an increase from 2.2 percent in December 2014. The declines were expected given the downturn in grain prices.
Complete results are available at e-farmcredit.com/about/corporate-governance.