AUSTIN, Texas – Farm Credit Bank of Texas (FCBT) reported strong growth in its loans and earnings in the first quarter of 2020.
First-quarter net income totaled $50.5 million in 2020, a 13.1% increase compared with the same period of 2019.
Total assets increased 8.5% in the first quarter to $27.8 billion at March 31, 2020. Total loan volume increased 4.1% to $20.3 billion. Growth was particularly strong in capital markets participation loans to agribusinesses and rural infrastructure providers. Credit quality remained stable, with 99.6% of loans classified as acceptable or special mention.
The bank continues to fulfill its mission to support agriculture and rural communities during these unprecedented times by providing access to reliable and consistent credit. The overall impact of COVID-19 is evolving rapidly, and future events are uncertain. The bank will continue to monitor the situation closely in coming quarters.
“We all recognize, especially in this environment, how important food production and supply are to the entire country,” said Larry Doyle, FCBT chief executive officer. “Farm Credit provides this essential industry with critical support to keep it running smoothly. The bank is financially strong and able to meet the needs of customers.”
The cooperatively owned wholesale bank provides funding and support services to 14 Farm Credit cooperatives — also called associations — and two other financing institutions. Those lenders, in turn, provide credit and financial services to farmers, ranchers, rural homeowners, landowners and agribusinesses. The bank also participates with other lenders in capital markets loans to businesses that serve agriculture and rural communities.
“Farm Credit’s mission to support agriculture and rural communities is most critical in times of uncertainty,” said FCBT Board Chair Jimmy Dodson. “Fortunately, we are in a good position to do that today.”
The bank carries significant cash and liquidity investments to meet its operational needs and those of the associations and their borrowers. Cash and investments totaled $7.1 billion at the end of the first quarter. The bank also had a total capital ratio of 15.4% and shareholders’ equity of $1.9 billion.
It is part of the Farm Credit System, a nationwide network of cooperatives established in 1916. The System reported combined net income of $1.4 billion for the first quarter of 2020, compared with $1.3 billion a year earlier.
The financial results discussed here are preliminary and unaudited.