Denver-based CoBank reports a net income of $856.5 million for last year, up from $853.9 million a year for the previous annual period
The increase was driven mainly by improvements in credit quality, and the fact that no provision for loan losses was recorded in 2013, compared to $70 million in provisions in the prior year.
Net interest income decreased 6% to $1.2 billion, primarily due to the impact of lower interest rates had on the bank's returns on invested capital.
For the fourth quarter of 2013, net income for CoBank increased to $227.6 million, from $153.4 million in the same period of the prior year.
During the quarter, the co-operative bank serving agribusiness the bank reversed $20 million in loan loss provisions recorded earlier in the year, compared to a $50 million provision in the fourth quarter of 2012.
Net interest income declined 8% during the quarter, to $288 million. Average loan volume for the quarter was essentially unchanged from the fourth quarter of 2012.
"We're delighted with CoBank's business and financial performance in 2013," says Robert B. Engel, chief executive officer. "The bank recorded its 14th consecutive year of growth in profitability on behalf of customer-owners, while thoughtfully growing our loan portfolio in a highly competitive environment.
"Credit quality is exceptionally strong, and our capital and liquidity levels remain solid. Most importantly, we continue to fulfill our mission in rural America by meeting the borrowing needs of our customers across all the industries we serve."
The bank, which serves customers throughout the nation, provides loans to rural infrastructure providers and Farm Credit associations in many states.
During 2013, the bank saw increased loan demand from affiliated Farm Credit associations and rural electric co-ops. Combined, that more than offset a significant decline in seasonal agribusiness lending, driven by lower inventories, lower prices and strong cash positions at grain elevators.