|Ag Credit announces earnings for first quarter of 2013|
|Written by Sentinel-Tribune Staff|
|Tuesday, 21 May 2013 09:17|
FOSTORIA - Ag Credit, a financial cooperative with over $1.3 billion in assets, recently announced financial results for the first quarter of calendar year 2013.
Net income for the first quarter was $7.6 million compared to $7.4 million for the same quarter in 2012, reflecting an increase of 2.49 percent.
The increase in net income is primarily due to increased net interest income generated by increased loan volume over the past twelve months. This was partially offset by increases in operating expenses to support business initiatives and growth.
Loan volume decreased by $84.7 million during the first quarter to $1.29 billion. This reduction is a normal seasonal trend as many members pay down operating loans and make scheduled payments on real estate loans. Loan volume did increase by $111.8 million (9.46 percent) compared to March 31, 2012.
Members' equity increased to $207.5 million compared to $200.1 million at the end of 2012.
"Our financial success enables us to fulfill our mission as a financially strong cooperative with the ability to pay cash-back dividends to our customer-owners," said Neil Jordan, President and CEO. "We will continue our ongoing efforts to meet the needs of an evolving agriculture and provide an intense focus on the customers and communities we serve."
Ag Credit's financial results and continued strength enabled it to make a $14.2 million patronage distribution to its customer-owners under the 2012 patronage program. This distribution consisted of $9.2 million in cash (checks) and $5.0 million in allocated equities and amounts to 25.36 cents on every dollar of loan interest accrued last year.
The cash portion of the distribution is the largest cash payment in Ag Credit's history.
In the past 26 years, customer-owners of Ag Credit have earned more than $166 million in dividends from their ownership of the cooperative.
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