Farm Credit Bank of Texas Reports Record Earnings in 2013
For Immediate Release February 19, 2014
AUSTIN, Texas – Farm Credit Bank of Texas (FCBT), a cooperatively owned wholesale bank that provides funding for rural retail lenders, has released preliminary unaudited financial highlights and results for the year ended Dec. 31, 2013, reporting record earnings for the eighth consecutive year.
The Austin-based bank reported $179.8 million in net income in 2013, a 3.0 percent increase over its 2012 earnings. Total assets grew 5.4 percent to $16.2 billion.
Gross loan volume was $11.8 billion at Dec. 31, 2013, an increase of 3.9 percent over the previous year’s volume. This increase included growth in the bank’s participation loan volume and in its direct notes to its affiliated lending institutions.
The bank’s asset quality improved further in 2013 due to its underwriting practices, loan servicing and portfolio management, as well as improved economic conditions in its five-state territory. At the end of the year, 98.2 percent of the bank’s overall portfolio was considered acceptable and special mention, up from 97.5 percent the year before.
“We had a very strong year all the way around financially,” said Larry Doyle, FCBT chief executive officer. “We are well-positioned to provide low-cost funds to our affiliated lenders so that they can provide sound and dependable credit in the rural communities they serve.”
The federated cooperative shares its earnings with its owners and other patrons, and recently distributed a $71.5 million cash patronage payment and allocated another $3.3 million for future cash payouts. Through this patronage declaration, the bank shared more than 41.6 percent of its 2013 net income with its affiliated rural lending cooperatives and other financing institutions.
Together, the bank and its affiliated cooperatives declared $291.5 million in patronage, based on 2013 earnings, effectively lowering the cost of borrowing for the agricultural producers, agribusinesses and rural property owners they serve.
“Farm Credit’s cooperative business structure is one of its greatest assets,” said FCBT Board Chairman Jimmy Dodson. “The bank provides rural lenders the lowest possible cost of funds so that they can extend the benefit to farmers, ranchers and rural citizens.”
Established in 1916, Farm Credit Bank of Texas receives its funding through the sale of highly rated Farm Credit notes and bonds. In 2013 it provided funding and services to 17 rural lending cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas, and three other financing institutions. Collectively, the bank and its affiliated cooperatives compose the Texas Farm Credit District.
District net income was a record $419.3 million for the year ended Dec. 31, 2013, compared with $409.4 million for the previous year. Total assets for the district were $22.4 billion at Dec. 31, 2013, up 5.9 percent from the previous year’s total assets. Combined district loan volume totaled $17.7 billion at Dec. 31, 2013, up from $16.9 billion at year-end 2012.
The results discussed herein are preliminary and unaudited. The bank’s financial statements and the combined statements of the Texas District for the year ended Dec. 31, 2013, are expected to be available on or about Feb. 28, 2014.
The bank is part of the Farm Credit System, the nation’s oldest and largest source of financing for agriculture and rural America. Nationally, the Farm Credit System reported preliminary unaudited combined net income of $4.64 billion at Dec. 31, 2013, compared with $4.12 billion a year earlier. The System’s financial statements for the year ended Dec. 31, 2013, are expected to be available on or about Feb. 28, 2014.