2017 Financial Results Announced
ROCKLIN, CA. (March 13, 2018) – Farm Credit West, a cooperative lending institution focusing exclusively on the agricultural industry, today announced strong financial results for 2017 with continued growth in net income, earning assets and capital. Farm Credit West has benefited from strong earnings as well as geographic and commodity diversity as a result of its territory in California and Arizona.
Net income for 2017 was $220 million. This compares with $206 million in 2016. The 2017 earnings were positively impacted by the increase to net interest income resulting from the continuing benefit related to the exceptional loan growth experienced last year and a significant reduction in its provision for loan losses in 2017.
Earning assets grew to $9.8 billion by the end of 2017 from $9.6 billion at the end of 2016. Average earning assets were $9.5 billion for 2017 compared to $9.2 billion for 2016. Earning asset growth in 2017 was lower than in 2016 but was expected given that there was a conscious effort to exit certain loans that were not core business to Farm Credit West. Total assets were $10.3 billion at December 31, 2017.
Asset quality declined slightly to 95.9% non-adversely classified loans at year-end 2017 compared with 96.3% at year-end 2016. Nonearning asset volume decreased to $117 million at the end of 2017 compared to $142 million at the end of 2016. There were significant pay downs and pay offs of nonearning loans as well as improved performance in some nonaccrual loans that allowed for them to be returned to accrual status by the end of the year.
Total capital at the end of 2017 was $2.1 billion compared to $1.9 billion at the end of 2016. Maintaining a strong capital position is critical to ensure the association is protected from unexpected future losses and enhances Farm Credit West’s overall financial strength.
These positive results contributed to the Farm Credit West Board’s decision to declare a record cash patronage distribution of $82.7 million, which was paid to eligible customer-owners in February 2018.
Mark Littlefield, President and CEO of Farm Credit West said, “We are very pleased with Farm Credit West’s success in 2017. Our success would not be possible without the continued support and contributions from our Board, our staff and our members. Our mission for more than 100 years has not changed – to ensure that farmers, ranchers and agribusinesses have a consistent, affordable and reliable source of funding – in good times and bad despite the challenges that agriculture faces. Farm Credit West is proud to be of service to the agricultural industry.”
Farm Credit West, including wholly-owned subsidiary, Farm Credit Services Southwest, are lending institutions of the Farm Credit System with California branch offices in Bakersfield, Dinuba, Hanford, Imperial, Santa Maria, Templeton, Tulare, Ventura, Woodland and Yuba City; and Arizona branch offices in Tempe, Safford, and Yuma. The corporate headquarters is located in Rocklin, California. The Farm Credit System is a nationwide network of borrower-owned lending institutions and specialized service organizations created by Congress in 1916. The System provides loans, leases, and related services to farmers, ranchers, rural homeowners, agribusinesses and agricultural and rural utility cooperatives nationwide. Visit www.farmcreditwest.com.