Farm Credit Mid-America, an agricultural lender in the nationwide Farm Credit System, announced its financial results for the second quarter of 2013. Net income for the first six months totaled $139.7 million, which was in range of the company's current business plan. Earnings during the same period in 2012 totaled $155.9 million. The company also saw owned and managed assets grow by more than $1 billion to $19.9 billion, a 5.3% increase compared to June 2012.
Spurred by stabilizing economic conditions and an improving housing market across the association, Farm Credit Mid-America saw modest growth in its loan portfolio, primarily driven by increased mortgage and long-term lending activity. Even with elevated cash levels among producers from crop insurance proceeds and strong net farm income in 2012, the association grew its portfolio by $375 million in the first half of 2013.
"Even in the midst of volatile markets, changing weather conditions and elevated cash levels the lending portfolio continues to grow and strengthen," says Bill Johnson, president and CEO, Farm Credit Mid-America. "But with the real estate markets advancing and as we approach a strong harvest in 2013, we're confident that improved economic conditions will continue to bolster our business."
The association's risk assets continued to remain at acceptable levels with non-accrual loans representing 1.3% of the portfolio.
In addition to posting strong financial results through the first two quarters of 2013, Farm Credit Mid-America invested more than $800,000 in the communities it serves. Contributions to university expansion initiatives and food bank distribution programs receiving financial support are just a few examples of Farm Credit Mid-America's commitment to rural America.
"We strive to go above and beyond in serving our customers, and part of that is dedicated to community investments," says Johnson. "Through activities such as contributions to programs that foster growth in our local communities and lending products that sustain the long-term viability of our customers' operations, we are committed to providing value to those who live and work in rural America."
To see the complete results, go to www.e-farmcredit.com, select News, then Quarterly Report.