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Farm Credit Services of America announces 2012 year-end financial results PDF Print E-mail

Farm Credit Services of America (FCSAmerica), a financial cooperative with more than $19 billion in assets, announced financial results for the calendar year 2012.
Net income for 2012 was $481.1 million compared to $456.4 million for 2011. The increase in net income primarily was due to interest income from the growth in loan volume, refunds of Farm Credit insurance fund premiums paid in prior years, and program fees and distributions received under the AgDirect trade credit financing program. Net income was partically offset by an increase in the provision for credit losses and an increase in noninterest expense for increased staffing levels to support business initiatives and growth.
Loan volume increased to $18.490 billion from $15.891 billion in 2011. Most of the increase came in the real estate portfolio.
Members’ equity increased to $3.224 billion from $2.874 billion at the end of 2011.
“Despite areas of drought, agriculture in our four-state area continued to grow and expand in 2012,” said Doug Stark, president and CEO. “Producers financed new real estate purchases, upgraded farm equipment and invested in farm improvements at the same time livestock producers were challenged by higher input costs. Our cooperative’s strong financial performance enabled us to once again pay significant cash-back dividends to our customer-owners.”
The FCSAmerica Board of Directors in December approved a cash-back dividend that will distribute $130 million of the income earned in 2012 to customer-owners. This marks the ninth consecutive year of cash-back dividends, which have totaled nearly $700 million since 2004.