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Serving: West
CoBank, Northwest Credit, Issue 2nd Quarter Financial Results

CoBank, Northwest Credit, Issue 2nd Quarter Financial Results

West's major lenders reveal mixed reports for April-June period.

CoBank and Northwest Farm Credit Services released their latest financial reports for the second quarter of the year, posting mixed results for the two lending institutions.

Denver, Colo.-headquartered CoBank posted a 20% increase for the quarter compared with the second quarter of  2010: $180.7 million compared with last year's second quarter at $150.4 million.

Northwest officials say their second quarter numbers were down from the same period in 2010. The Spokane, Wash.-based firm reported $29.4 million in second quarter earnings this year, compared with $34.1 million for the same time in 2010.

Earnings for the fist half of 2011 at Northwest were posted at $71.6 million, compared with $75.2 million at June 30, 2010.

Total capital increased 8.6% to $1.4 billion when compared to the previous year, Northwest notes. "Our earnings and capital growth remain strong, reflecting the current condition of the general agricultural economy," says Phil DiPofi, Northwest's president and CEO.

"With most commodities having high prices and strong demand, many customers are paying down debt which strengthens their balance sheets. While the long-term prosperity for agriculture in the Northwest remains positive, the markets will likely remain volatile and Northwest FCS  is continuing  to build its financial strength to serve our customer-owners through the expected cycles in the future."

Association loan volume increased by 3.3% to $10 billion when compared to the second quarter of 2010.

At CoBank, net interest income for the quarter was posted at $276.5 million, compared with $217.9 million a year ago. Average loan volume for the second quarter was $52.1 billion, compared to $43.2 billion for the same period in 2010.

"The increase in average loan volume we've experienced this year has largely been the result of commodity price volatility and its impact on our borrowers in the grain and farm supply industries," says Robert B. Engel, CoBank president and CEO.

"Demand for financing in many of the other sectors we serve has weakened, consistent with slow economic growth in the broader U.S. economy."

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