LOUISVILLE, Ky. — Farm Credit Services of Mid-America announced earnings of $40.2 million for the first quarter of 2009.
Additionally, loan volume, including owned and managed loans, totaled $13.5 billion at quarter-end, a $48 million increase from December 31, 2008.
President and Chief Executive Officer Donnie Winters said despite the continued global financial crisis, the association is off to a solid start, with activity picking up late in the quarter and continuing through the spring.
“Farm Credit staff converted almost $1 billion in current customer loans to lower interest rates, helping maintain volume levels and saving customers an estimated $53.7 million in interest expense,” he said.
Non-accrual loans were 1.5 percent of the portfolio, up from 1.36 percent from the end of last year but still better than standards.
The overall diversification of Farm Credit’s lending portfolio has contributed to the association’s ability to deliver net earnings growth at profitable levels.
“We have seen a slight slip in credit quality in some areas of our portfolio — particularly the ethanol, livestock and poultry sectors where product demand has slowed and the agri-consumer sector where off farm income has been challenged by the recession.
“However, grain producers make up the largest ag commodity in our portfolio and generally, they have had several good years and sound financial and liquidity positions as a result.”
To see the complete results, go to www.e-farmcredit.com, select News, then Quarterly Report.