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Net after-tax earnings were reported at $191.4 million for the first half of 2018, which is more than 12.6 percent higher than budgeted due to solid expense control, as well as an $11.9 million refund from Farm Credit System Insurance Corporation.
Growth in the cooperative’s capital markets, food and agribusiness sectors as well as the AgriAccess real estate portfolio helped Compeer Financial maintain strong earnings despite the downturn in the agricultural economy.
Total assets exceeded $19.97 billion at mid-year, compared to $19.55 billion at the end of 2017. This increase was largely due to a $355.4 million rise in the amount of loans held to maturity compared to December 31, 2017. Compeer Financial also works with other lenders to serve rural America experiencing a strong increase of $4.3 million in rural home loans that are sold to and securitized by a third party investor.
The credit quality of Compeer Financial’s portfolio has remained relatively stable, with only 0.7% nonaccrual loans as a percentage of total loans compared to 0.5% in December 2017. Compeer Financial’s core credit objectives include working with clients to promote risk management, ensure high quality financial statements and production reports, encourage disciplined marketing plans, and provide individualized servicing plans and strategies.
“It’s been one year since three Farm Credit cooperatives united to create Compeer Financial, strengthening our commitment to advance agriculture and to serve rural communities like never before,” said Rod Hebrink, President and CEO of Compeer Financial. “As expected, the increased diversity of our portfolio combined with our broader range of industry knowledge, resources and financial expertise is enabling Compeer Financial to continue to work with farmers and others in agriculture even in volatile times, while also supporting the individuals, organizations and communities that define rural America.”
Through the organization’s Fund for Rural America, Compeer Financial’s Board of Directors has dedicated one percent of annual net earnings to support education, youth engagement, rural development, community enrichment, agricultural advocacy and development, client development and team member giving. During the first six months of 2018, this has been formally realized in part through $150,000 in grants for agriculture education initiatives, $157,000 in college scholarships to high school seniors, and $60,000 in grants for county fairground maintenance and enhancements. Additional outreach, to include general use and emergency response grants, are expected to be reported in the second half of 2018.
“Compeer Financial places a high priority on supporting the initiatives that are important to our clients and to the success of rural America,” Hebrink said. “We are proud to partner with those who are making a difference in the communities where we work and live.”
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $19.97 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.
Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services. For more information about Compeer Financial, visit Compeer.com.
Compeer Financial®, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the second quarter of 2018. Compeer Financial performance continues to be strong, allowing the organization to continue to support clients even in today’s volatile environment.For example, Compeer Financial is returning profits through the cooperative’s patronage program. “We are pleased to pay out $65 million to more than 30,000 patronage-eligible, member-owners in Illinois, Minnesota and Wisconsin,” shared Mark Cade, Compeer Financial Board of Directors chair. The payment recognizes business member-owners had with Compeer Financial and its prior organizations in 2017.
Net after-tax earnings were reported at $191.4 million for the first half of 2018, which is more than 12.6 percent higher than budgeted due to solid expense control, as well as an $11.9 million refund from Farm Credit System Insurance Corporation.
Growth in the cooperative’s capital markets, food and agribusiness sectors as well as the AgriAccess real estate portfolio helped Compeer Financial maintain strong earnings despite the downturn in the agricultural economy.
Total assets exceeded $19.97 billion at mid-year, compared to $19.55 billion at the end of 2017. This increase was largely due to a $355.4 million rise in the amount of loans held to maturity compared to December 31, 2017. Compeer Financial also works with other lenders to serve rural America experiencing a strong increase of $4.3 million in rural home loans that are sold to and securitized by a third party investor.
The credit quality of Compeer Financial’s portfolio has remained relatively stable, with only 0.7% nonaccrual loans as a percentage of total loans compared to 0.5% in December 2017. Compeer Financial’s core credit objectives include working with clients to promote risk management, ensure high quality financial statements and production reports, encourage disciplined marketing plans, and provide individualized servicing plans and strategies.
“It’s been one year since three Farm Credit cooperatives united to create Compeer Financial, strengthening our commitment to advance agriculture and to serve rural communities like never before,” said Rod Hebrink, President and CEO of Compeer Financial. “As expected, the increased diversity of our portfolio combined with our broader range of industry knowledge, resources and financial expertise is enabling Compeer Financial to continue to work with farmers and others in agriculture even in volatile times, while also supporting the individuals, organizations and communities that define rural America.”
Through the organization’s Fund for Rural America, Compeer Financial’s Board of Directors has dedicated one percent of annual net earnings to support education, youth engagement, rural development, community enrichment, agricultural advocacy and development, client development and team member giving. During the first six months of 2018, this has been formally realized in part through $150,000 in grants for agriculture education initiatives, $157,000 in college scholarships to high school seniors, and $60,000 in grants for county fairground maintenance and enhancements. Additional outreach, to include general use and emergency response grants, are expected to be reported in the second half of 2018.
“Compeer Financial places a high priority on supporting the initiatives that are important to our clients and to the success of rural America,” Hebrink said. “We are proud to partner with those who are making a difference in the communities where we work and live.”
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $19.97 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.
Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services. For more information about Compeer Financial, visit Compeer.com.
