Omaha-based Farm Credit Services of America on Wednesday reported a 2012 year-end net income of $481.1 million, up from $456.4 million in 2011.
The financial cooperative said the bump was due to interest income from 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.
Last year, the cooperative’s loan volume grew to $18.5 billion, up from $15.9 billion in 2011, while members’ equity increased to $3.2 billion in 2012 from $2.9billion in 2011.
President and CEO Doug Stark said that despite the drought, agriculture in the cooperative’s four-state area continued to grow and expand in 2012.
“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,” he said. “Our cooperative’s strong financial performance enabled us to once again pay significant cash-back dividends to our customer-owners.”
Partly offsetting net income was an increase in the provision for credit losses and in noninterest expense for hiring more staff to support business initiatives and growth.
In December, the cooperative’s board approved a cash-back dividend that will distribute $130million of the income earned in 2012 to customer-owners, marking the ninth consecutive year of cash-back dividends. Since 2004, the cooperative has given nearly $700 million in cash-back dividends.
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