Northwest Farm Credit reports drop in earnings last year
Co-op’s total loans rose by 6.5 percent, however
Katie RossMarch 12th, 2015
Northwest Farm Credit Services, the Spokane-based agricultural lending cooperative, has posted earnings of $228.1 million for 2014, a decline of just under 4 percent from $236.9 million in 2013.
Phil DiPofi, the cooperative’s CEO, says in a press release that Northwest FCS’ slight downturn in net income is due to larger credit loss reversals in 2013. However, he says, “Our credit quality continues to improve, which—in combination with increased capital—positions us well for economic or weather-related downturns.”
The co-op’s total capital for 2014 increased 8.6 percent to $1.9 billion.
Meanwhile, Tom Nakano, CFO for Northwest FCS, says its loan portfolio grew 6.5 percent, compared to 1.8 percent growth in 2013.
“Ag (in general) has continued to do well over the last few years, and our customers’ doing well affords them more growth opportunities,” he says.
He says the cooperative doesn’t release its yearly earnings predictions, but says he believes earnings will be positive going forward.
“There are a few hot spots out there, like with possible drought (this summer) in our territory, and … the port slowdown, and how that might affect exports out,” Nakano says. “We don’t know how that’s going to play out.”
Northwest FCS provides about $13 billion in financing and related services to farmers, ranchers, agribusiness, commercial fishermen, timber producers, rural homeowners, and crop insurers. The cooperative is headquartered at 1700 S. Assembly. However, late last year it bought the former Ambassador’s building at 2001 S. Flint, near Spokane International Airport, for about $9 million, and it plans to move to the 133,000-square-foot space later this year.