Farm Credit Mid-America, an agriculture lending cooperative serving more than 97,000 customers throughout Indiana, Ohio, Kentucky and Tennessee announced year end 2012 results reporting strong levels of net income, assets and credit quality. Earnings reached $288.6 million, a 3.6 percent increase over 2011 and an earnings record for the cooperative. The increase was due to loan volume growth driven by strong business activity in mortgage lending. Owned and managed assets were $19.7 billion, a 7.5 percent increase over 2011. Loan losses decreased 34 percent representing less than 0.1 percent of the association’s loan volume. Loan portfolio credit remains strong with less than 1.5 percent in non-performing loans. “Even in a year of severe drought, volatile commodity prices and global economic uncertainties, agriculture performed well and Farm Credit benefited from that success,” says Bill Johnson, president and chief executive officer. “Farmers wisely used risk mitigation strategies such as crop insurance and fixed rate farm real estate financing to sustain them during challenging times. The rural housing market continues to show improvement. Opportunities to finance new purchases or refinance at historically low rates have added to the strength of the overall results as well.”
In 2012, almost 32,500 Farm Credit loans representing $5.5 billion in volume were converted to lower rates which will save customers an estimated $127.9 million over the next three years. “As a cooperative it’s always been Farm Credit’s goal to bring the best value to our customers. The Farm Credit Loan Conversion Program offers a simple way to take advantage of a more competitive interest rate environment without the fees and headaches of a traditional refinance,” says Johnson.
Additionally, in 2012, Farm Credit unveiled a new branding strategy which included a name change for the near century-old cooperative. On February 1, 2013, Farm Credit Services of Mid-America officially changed its name to Farm Credit Mid-America. “The new look and name demonstrates our commitment to farmers and rural America and positions us to serve our customers in a rapidly changing agriculture market,” says Johnson. “It also creates consistency across our 93 offices. Whether you’re in Indiana, Ohio, Kentucky or Tennessee, when you see us, you’ll know it’s us.”
Click here for the 2012 Annual Report.