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Farm Credit Mid-America Net Interest Income Up 6%
Ohio Ag Connection - 05/16/2019

Farm Credit Mid-America reports first quarter net income at $94.6 million with net interest income increasing nearly six percent due to an increase in assets. Year over year net income for Q1 was 13 percent lower due to special net income items during the first quarter of 2018.

Total assets for the cooperative on March 31, 2019 were $23.7 billion, $348 million above year-end 2018 figures. Total loans reduced by $47 million to $22.3 billion with the reduction attributed to expected seasonal repayments on production and intermediate-term loans, partially offset by an increase in agribusiness loans.

For 2019, the United States Department of Agriculture (USDA) is forecasting net farm income to increase $6.3 billion (10.0%) from 2018 levels to $69.4 billion. This follows a $12.0 billion (16.0%) decline forecast to 2018.

First quarter Farm Credit Mid-America results:

- Net income total $94. 6 million on March 31, 2019 vs. $108.7 million on March 31, 2018.

- Net interest income increased to $126.6 million from $119.5 million from Q1 2018.

- Members' equity increased $61.4 million over Dec. 31, 2018 -- primarily due to net income for the period, partially offset by patronage distribution accruals.

- Credit quality remained stable from end of year, with adversely classified loans representing 3.5 percent of portfolio.

During the first quarter, Farm Credit Mid-America distributed more than $146 million to eligible customers as part of its Patronage Program. In 2018, the Association returned $88 million to Patronage-eligible customers.

"Our ability to share profits with our farmers through Patronage, this being our third consecutive year, demonstrates our strength," said Bill Johnson, Farm Credit Mid-America president and chief executive officer.

"While USDA is forecasting 2019 to be slightly better for farmers, we've been in a down agriculture economy for a number of years," said Johnson. "Farmers continue to be stressed and there's uncertainty due to weather, trade and other market forces.

"Our relationships and partnerships with customers are forged with a commitment to provide reliable, consistent credit and counsel in good and not so good times," he said.

For the complete financial report, visit e-farmcredit.com/about.

Farm Credit Mid-America is a financial services cooperative and has served the credit needs of farmers and rural residents across Indiana, Ohio, Kentucky and Tennessee for more than 100 years. Backed by the strength of nearly 100,000 customers and $23 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.

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