Compeer Financial Reports Strong Earnings
Wisconsin Ag Connection - 11/07/2018
Compeer Financial announced financial results for the third quarter of 2018. The Sun Prairie-based Farm Credit lender reported net after-tax earnings of $281.4 million to date, which is 11.3 percent higher than budgeted due to solid expense control and better than expected credit quality.
An $11.9 million refund from Farm Credit System Insurance Corporation in the first quarter also had a positive impact. Compeer's cash patronage program is designed to pay out 20 percent of adjusted earnings. As a result, this strong income performance is expected to deliver higher cash patronage checks to member-owners in 2019.
Meanwhile, total assets grew to $20.3 billion as of September 30, compared to $18.8 billion a year earlier. This increase was largely due to loan growth of $1.4 billion in the cooperative's capital markets, and food and agribusiness sectors, as well as Compeer's Agri-Access department.
"The diversity of our portfolio combined with in-house industry expertise and resources enables Compeer Financial to work with clients of all sizes and in all the industries we serve," said Compete CEO Rod Hebrink. "Our focus is on supporting clients as well as the other individuals, organizations and communities that define rural America."
The credit quality of the company's portfolio has remained unchanged compared to one year ago, with only 0.6 percent nonaccrual loans as a percentage of total loans.