AUSTIN, Texas – Farm Credit Bank of Texas (FCBT) reported increased earnings and loan volume in the third quarter, continuing its track record of strong financial performance.
The cooperatively owned funding bank reported net income of $43.5 million for the third quarter of 2013, a 4.7 percent increase from the same period in 2012. Net income for the nine months ended Sept. 30, 2013, was $139.9 million, up 7.5 percent from the first nine months of 2012.
Gross loan volume at Sept. 30, 2013, was $11.49 billion, compared with $11.34 billion at Dec. 31, 2012. The increase reflects growth in the bank’s diverse portfolio of participation loans and direct loans to its affiliated lending cooperatives and other financing institutions in the five-state area it services.
The high credit quality of loans in the portfolio led to a $4.7 million, or 76.7 percent, decrease in provision for credit losses in the third quarter compared to the same period of 2012. Loans classified as acceptable or special mention made up 98.0 percent of total loans, compared with 97.5 percent at Dec. 31, 2012.
“For the past several years, the bank has had record results, and we continue to see strong earnings, loan volume and asset quality, even amid the recovering economic environment,” said CEO Larry Doyle.
Total assets increased to $15.6 billion at Sept. 30, 2013, from $15.4 billion at year end, reflecting the bank’s ongoing strategy of offering competitive loan products while maintaining high levels of capital and liquidity. The bank’s regulatory permanent capital ratio and shareholders’ equity benefited from the issuance in July of $300 million of Class B, Series 2, noncumulative subordinated perpetual preferred stock, that increases the bank’s capacity to manage risk and fund growth.
“We are thankful for the ongoing financial success,” said Jimmy Dodson, chairman of the FCBT board. “This stability helps us to satisfy the Farm Credit mission, which is to provide sound credit for agriculture and rural America.”
Headquartered in Austin, Texas, Farm Credit Bank of Texas is one of four funding banks in the nationwide Farm Credit System. Together, the bank and its 17 affiliated rural financing cooperatives reported net income of $105.9 million for the quarter and $325.3 million for the nine months ended Sept. 30, 2013, up 7.9 percent and 1.4 percent, respectively, from the same periods a year earlier.
Nationally, the System reported combined net income of $1.253 billion and $3.499 billion for the three-month and nine-month periods ended Sept. 30, 2013. This compares with combined net income of $1.039 billion and $3.158 billion for the same periods last year.