Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for year-end 2018, including record income, asset growth, solid credit quality and increased patronage to member-owners.
Compeer Financial reported net after-tax earnings of $403.8 million for the year. Total assets grew to $20.8 billion as of December 31, 2018, compared to $19.5 billion one year ago. This increase was largely due to loan growth of $1.0 billion in the cooperative’s real estate mortgage and food and agribusiness sectors, as well as Compeer’s Capital Markets and Agri-Access departments.
Credit quality of Compeer Financial’s portfolio remains solid with 0.6% nonaccrual loans as a percentage of total loans, up only slightly from 0.5% one year ago. Their total regulatory capital level remains strong at 15.6%, compared to 15.1% one year ago.
“We have now experienced our first full year as Compeer Financial,” said Rod Hebrink, President and CEO, in reference to the merger between 1st Farm Credit Services, AgStar Financial and Badgerland Financial in July 2017 that created Compeer Financial. “Our diverse portfolio, industry expertise and resources have shown the strength of Compeer and our ability to serve rural America. We are strongly committed to agriculture and rural communities as shown through our products and services, patronage program and Fund for Rural America.”
The organization’s strong financial performance in 2018 led the Compeer Financial Board of Directors to increase patronage payments to member-owners this year. In total, the organization will be paying out nearly $152 million of patronage in 2019.
“We know our member-owners are navigating challenging market conditions and are proud to offer this increased patronage benefit to them as they work with our team in the year to come,” said Hebrink.
Compeer Financial’s Fund for Rural America annually allocates one percent of the organization’s net income to give back to and support agriculture and rural America. This equated to about $3.2 million in 2018 and included 64 county fair facility upgrade grants, 163 emergency response equipment grants, 105 high school senior scholarships, 67 agriculture education and classroom equipment grants and $130,000 to support 4-H and FFA.
Additionally, Compeer Financial donated $50,000 to those who suffered substantial home, farmstead and building damage as a result of devastating rain and flooding that hit the territory last year.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $20.8 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. Learn more