Northwest Farm Credit Services reports record income for 2012
Ag lender attributes rise to loan growth from mix of current, new customersFebruary 28th, 2013
Northwest Farm Credit Services, the big Spokane-based agricultural lender and crop insurance provider, has reported record net income of $187.3 million for 2012, up from prior-year earnings of $159.2 million, which also were a record.
The association's loan volume grew by 6.2 percent during the year to $9 billion.Meanwhile, nonaccrual loans, on which the association isn't collecting interest, declined 30 percent, ending the year at 1.9 percent of total loans.
Northwest Farm Credit provides financing, crop insurance, and related services to farmers, ranchers, agribusinesses, commercial fishermen, timber producers, and rural homeowners in Washington, Idaho, Montana, Oregon, and Alaska.
Phil DiPofi, its president and CEO, says the Northwest agricultural industry remained strong last year, a trend that the association expects will continue this year.
"Our record earnings were driven by loan growth from existing and new customers throughout the Northwest, improved credit quality of our loan portfolio and a refund of premiums previously paid to the Farm Credit System Insurance Corporation," DiPofi says.
The Farm Credit System Insurance Corp. is a federally controlled entity that ensures the timely payment of notes, bonds, and other obligations on behalf of Farm Credit System banks.
The association leases a 61,400-square-foot office building at 1700 S. Assembly on Sunset Hill, where its headquarters is located, and operates 45 branches in the five states it serves. It employs about 650 people overall.