Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the second quarter of 2019. The results show stable increase in earnings and assets, and continued strong overall credit quality.
Total assets were $21.3 billion as of June 30, 2019, an increase from $20.8 billion in assets at December 31, 2018. In addition, Compeer Financial increased its patronage, or repayment to member-owners, by about $42 million in the past year.
Net after-tax earnings were reported at $194.7 million for the first half of 2019, compared to $191.4 million during the first half of 2018. These earnings were driven primarily by an increase in net interest income from $233.4 million at June 30, 2018 to $240.2 million at June 30, 2019. This change in net interest income, primarily due to $900 million of loan volume growth over the last year, was partially offset by increases in provisions for loans losses, salary expenses and equipment expenses.
Although the spring and summer months were challenging for many farmers and rural communities across the Midwest, Compeer Financial’s team of financial and agricultural experts have been working with clients to navigate a challenging time in the market. Overall credit quality remains strong, with a small increase in nonaccrual loans – 0.8% being nonaccrual as of June 30, 2019, compared to 0.6% on December 31, 2018.
“Compeer Financial is committed to farmers of all sizes, in all industries and in all economic conditions,” said Rod Hebrink, President and CEO. “We are focused on supporting our clients and encourage them to work with their financial officer to evaluate their options in the current economy. While we are a financial lender, our team includes experts in agriculture, some who farm themselves, and can help uncover options some farmers may not have considered before.”
The cooperative has also announced it will be lowering variable interest rates by 25 basis points, or 0.25%, in alignment with the Federal Reserve’s decision to lower interest rates on July 31, 2019. Compeer Financial’s variable interest rate change will go into effect on September 1, 2019.
The Compeer Financial Fund for Rural America, the corporate giving program of Compeer Financial, provided funding to a variety of farmers and organizations throughout the organization’s 144-county territory in the second quarter. The Fund awarded 294 grants and scholarships in Q2, to high school seniors, agriculture education programs and county fair facility upgrades. For the first time this year, the Fund also awarded farmers market grants to individual vendors and farmers market organizations for assistance with marketing, technology and education.
The organization also hosted a series of women’s seminars in April to support women interested in business, leadership and networking in agriculture. Experts shared important information for participants including working with multiple generations and addressing stress management and mental health in rural communities.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $21.3 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.