AgChoice Reports Third Quarter Financial Results
AgChoice Farm Credit, a customer-owned financial services cooperative, and a member of the national Farm Credit System, reported its 2020 third quarter financial results.
The Association’s loan volume grew 5.6% to $2.27 billion, year-to-date through September 30. There were three primary drivers behind the loan growth – new loans to agricultural producers and rural home and land customers, new loans to Capital Markets borrowers and loans related to the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
Year-to-date net earnings are nearly $3.4 million above the same period in 2019 due primarily to improved net interest income and patronage refunds from other Farm Credit institutions. Despite strong loan growth in 2020, the Association remains well capitalized with a Total Capital Ratio of 17.85%.
Credit quality is resilient with acceptably risk rated loans comprising 94.3% of the total loan portfolio. Customer programs such as internal payment extensions along with PPP loans and government payments for agricultural producers benefited credit quality. Additionally, AgChoice distributed $34.0 million of cash patronage to its customers in April 2020.
Non-accrual loans remain low at $9.8 million. Due primarily to loan growth, the Association has recorded a $403 thousand provision for loan loss year-to-date through the end of Q3.
“Now more than ever, AgChoice remains committed to supporting agriculture and our rural communities by providing reliable and consistent access to credit,” said Darrell Curtis, AgChoice CEO and President. “Our strong financial position allows us to continue serving our customer-owners during these unprecedented times.”
Find and read third quarter financial results here.
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