Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the first quarter of 2019. The organization’s diversified portfolio and strong performance have allowed the organization to increase patronage returns in 2019.
Net after-tax earnings were reported at $93.2 million for Q1 2019, compared to $103.0 million during Q1 2018. This change in earnings was primarily due to refunds received from the Farm Credit System Insurance Corporation being $4.5 million in Q1 2019, compared to $10.8 million in Q1 2018. Credit stress within select accounts also attributed to this net after-tax earnings decrease; however, overall credit quality remains stable with only 0.7% of all loans being nonaccrual at March 31, 2019, compared to 0.6% on December 31, 2018.
Total assets were $21 billion as of March 31, compared to $20.7 billion at the close of Q4 2018. Most of this growth comes from an increase in loans within Compeer Financial’s capital markets and food sectors.
In February, Compeer Financial and its board of directors returned more than $52 million in patronage payments to member-owners. A second payment of more than $99 million will be issued later this year. Through these two payments, member-owners will see their patronage increase by more than $42 million in 2019, for a total payout of $150 million. The organization hopes that this increase, made possible by a diversified portfolio, will help farmers through a volatile market.
“Compeer Financial’s patronage program is a way to bring value to our member-owners, especially in challenging times,” said Rod Hebrink, President and CEO. “That $52 million returned in February is cash in farmers’ pockets that they can use to reinvest in their family, farms and businesses.”
The organization hosted a number of educational events in the first quarter, tapping into the strong industry expertise of Compeer Financial team members to offer insight on issues that are top of mind for clients. The Resilient Farms Conference encouraged farmers looking to add additional revenue streams to their farm operations to explore and develop new business ideas.
At the Pork Industry Outlook Meetings, Compeer Financial’s swine team shared the latest in risk management, benchmarking, market outlook and financial advice for the swine industry. And, during Women’s Seminars hosted at 12 locations across the organization’s territory, clients throughout increased their knowledge about generational differences, communication and managing stress to help them be better at home and on the farm.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $21.0 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 about Compeer Financial’s patronage program.