Farm Credit Mid-America reports total and owned assets reached $24.4 billion, which resulted in an increase in net income of $331 million, up from $274 million for the nine months ended Sept. 30, 2019, compared to the similar nine-month period during 2018.
The report comes amid a challenging harvest season precipitated by spring rains, trade uncertainties, regulation and policy questions, and price issues.
“The stress and pressures farmers have faced this year have been extraordinary,” said Bill Johnson, Farm Credit Mid-America president and CEO. “But so is their resilience, their passion for and commitment to their farms, families and operations.
“We’re fortunate to be able to use our financial strength and stability to continuously serve our customers’ needs through both good and challenging times,” said Johnson.
Third-quarter highlights for the financial services cooperative that serves farmers and rural residents in Indiana, Ohio, Kentucky and Tennessee include:
- Total loans were $22.9 billion Sept. 30, 2019, an increase of $556.6 million from end of year 2018, primarily due to increases in agribusiness and real estate mortgage loans.
- Net interest income increased to $380.8 million from $359 million from Q3 2018.
- Members’ equity totaled $4.9 billion, an increase of $206 million over year-end 2018, with a 9.2 percent return on average members’ equity vs. 8.0 percent for the nine months ending Sept. 30, 2018.
- The credit quality of Farm Credit’s portfolio improved, with 97.6 percent of loans classified as acceptable vs. 97.5 at year-end 2018.
For the complete financial report, click here.