Farm Credit Services of America (FCSAmerica), a farmer-owned financial cooperative with approximately 90,000 customers in four states including Iowa, has more than $16 billion in assets. The large regional lender, which makes a significant number of loans to farm borrowers in Iowa, on May 4 announced its financial results for the first quarter of calendar year 2011. FCSAmerica's net income is showing a significant rise compared to the previous year.
Net income for the first quarter was $99.2 million compared to $85.7 million a year ago, which is an increase of 15.8%. Total loan volume increased $153.3 million, from $15.5 billion at year-end 2010 to $15.7 billion at the end of the first quarter of 2011. Member's equity increased by $98.2 million from year-end 2010 to $2.6 billion on March 31, 2011.
"The strong first quarter results provide us the foundation to continue to serve agriculture and to execute on our value proposition which includes an intense focus on the customer experience," says Doug Stark, president and CEO of the farm lender. "Our strong first-quarter performance also allows us to build on our financial strength which enables us to continue to support our customers through the economic cycles of agriculture and an evolving global economy."
Loan volume grows, slight increase in margin, and reduced loan losses
The increase in net income was due to growth in loan volume, a slight increase in net interest margin and a reduction in provision for loan losses, partially offset by a reduction in noninterest income and an increase in noninterest expense. The decrease in noninterest income and increase in noninterest expense is primarily due to non-recurring items recorded in the first quarter of 2010.
"Farm Credit Services of America is proud to finance the growth of rural America, including the special needs of young and beginning producers," says Stark. With approximately 90,000 customers and assets of more than $16 billion, FCSAmerica is one of the region's leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in Iowa, Nebraska, South Dakota and Wyoming. Learn more at www.fcsamerica.com.