Farm Credit Mid-America, a financial services cooperative in Indiana, Ohio, Kentucky and Tennessee, reported stable performance in first quarter 2017, including an increase in net income and a rise in members’ equity.
First-quarter highlights:
- Net income reached nearly $85 million, an increase of $4.75 million from year-end 2016
- Total members’ equity increased $73.6 million from last year
- Total loan volume is at $20.2 billion, a decrease of $232.6 million from December 31, 2016
“We attribute the decrease in total loan amount to expected seasonal repayments on production and intermediate-term loans,” said Bill Johnson, president and CEO, Farm Credit Mid-America. “Our association will continue to adapt as the agricultural and financial marketplaces evolve.”
The credit quality of Farm Credit Mid-America’s portfolio declined slightly from year-end 2016, and adversely classified loans increased to 3.8 percent of the portfolio at March 31, 2017, from 3.5 percent of the portfolio at December 31, 2016. The increase in adversely classified loans was expected, as prices for most agricultural commodities remain below average, resulting in tight or negative margins for many crop and livestock producers.
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