Farm Progress

Slow ag economy also hitting lenders

Farm Credit Mid-America reports loss in portfolio size.

September 11, 2017

1 Min Read
DOWNTURN: The credit quality of Farm Credit Mid-America’s portfolio declined slightly from year-end 2016.

Farm Credit Mid-America, a financial services cooperative serving Indiana, Ohio, Kentucky and Tennessee, saw stable performance in second-quarter 2017, reporting a slight loss in portfolio size.

Second quarter highlights include:

• Net income reached $148 million, a decrease of 3.1% from second-quarter 2016.

• Total portfolio size fell as total assets were $22.4 billion, a 1% decrease from year-end 2016.

• Total loan volume fell to $20.3 billion, a 0.9% decrease from year-end 2016.

“The current downcycle in agriculture continues to put pressure on margins for producers in our area,” says Bill Johnson, president and CEO of Farm Credit Mid-America. “However, our association’s long-term view allows us to navigate this downturn, and we are encouraged by the resilience of our customers and overall portfolio.”

The credit quality of the association’s portfolio declined slightly from year-end 2016, and adversely classified loans increased to 3.9% of the portfolio from 3.5% in December. The decline is a reflection of the current challenges in the agriculture industry, with below-average commodity prices and tight or negative margins.

For complete results, visit Farm Credit Mid-America.

Source: Farm Credit Mid-America

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