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Bank cooperative sees huge jump in net income

AUSTIN, Texas — Farm Credit Bank of Texas (FCBT) reports net income for the quarter ended March 31, 2013, totaled $53.8 million, a 57 percent increase from the same period of 2012.

The increase was due largely to a $6.4 million increase in noninterest income, combined with a $13.7 million decrease in provision for loan losses.

Return on average shareholders’ equity increased to 16.8 percent for the first quarter of 2013 from 11.2 percent for the first quarter of 2012.

Farm Credit Bank of Texas is owned by 17 rural financing cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas, which in turn are owned by their customers — agricultural producers, agribusinesses, country homeowners and other rural landowners. Together, the bank and its affiliated lenders comprise the Texas Farm Credit District, the largest rural lending network in the five-state region.

Collectively, the district lenders reported $115.8 million in net income for the first quarter of 2013, a 20.7 percent increase from the first quarter of 2012. District loan volume increased to $17.09 billion at March 31, 2013, up 1.3 percent from year-end 2012.

“Agriculture continues to remain a very bright spot in the nation’s economy,” said Jimmy Dodson, FCBT board chairman. “Farm Credit Bank of Texas and our local lending co-ops are proud of our healthy financial performance, which enables us to fulfill our mission to serve the financing needs of farmers, ranchers and agribusiness firms.”

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