Profits at Farm Credit Services of America fell about 7 percent during the first quarter of 2015 — to $113.5 million from $121.5 million a year ago.
Officials at the Omaha-based financial cooperative said the decline in profitability was due mostly to an increase in the volume of money set aside for bad loans during the quarter and to increased expenses elsewhere in the organization.
Loan volume also decreased from the year-ago period on lower demand for certain loans used for financing production and intermediate-term loans.
FCSAmerica reported total loan volume fell $227.5 million from $22.1 billion at the end of 2014; year-ago loan volume was $20.3 billion.
The organization reported that increases in other, longer-term loans helped offset declines.
FCSAmerica is owned by its members, whose equity in the organization grew to $4.1 billion from $4 billion at year-end 2014. Those members reaped a record $160 million in dividend payments in March, thanks to stronger-than-normal loan demand in 2014.
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