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American AgCredit announces earnings, dividends
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SANTA ROSA, Calif. – American AgCredit, a farmer-owned financial cooperative, on Friday announced annual net income of $111 million for the 2013 calendar year along with a cash dividend distribution of $37 million to its shareholders. This compares to net income of $107 million in 2012.
“As a cooperative, our earnings either contribute to our capital, allowing us to support our customers’ financial needs, or they are returned to producers in the form of cash-back dividends,” said Byron Enix, president and chief executive officer. “We firmly believe that sharing the rewards with our members makes good business sense and allows them to share in the success they have created.”
The increase in income primarily was due to greater net interest income from loan growth and a reduction in the provision for credit losses due to an increase in credit quality. Loan volume ended the year at just over $6 billion, resulting in a year-over-year growth rate of 3.9 percent. Net interest income finished the year $7.8 million above plan due to higher than expected loan volume and recovery of $4.0 million of non-accrual interest income. Fee income totaled $13.8 million.
“Agriculture has continued to be stable throughout challenging weather, changing real estate prices, and fluctuating commodity markets,” said Chief Financial Officer Vern Zander. “Our success is a direct result of the success and stability of our customers and their businesses.”
With the $37 million in cash dividends paid out to shareholders, this brings the amount of net income distributed since 2005 to $215 million.
Serving farmers, ranchers, and agribusiness through eight locations in Kansas and Oklahoma – Concordia, Salina, Larned, Pratt, Hutchinson, Kingman, Wichita, and Ponca City, Okla. – American AgCredit recently broke ground on a Great Bend office. Described as the premier lender in agriculture, it offers customized and competitive loan packages, crop insurance, leasing and appraisal services to its customers, and continues its ownership interest in the highly-successful equipment financing program, AgDirect®.