AUSTIN, Texas — Farm Credit Bank of Texas (FCBT) reported increased earnings and loan volume in the third quarter.
The cooperatively owned funding bank reported net income of $43.5 million for the third quarter of 2013, a 4.7 percent increase from the same period in 2012.
Net income for the nine months ended Sept. 30, 2013, was $139.9 million, up 7.5 percent from the first nine months of 2012.
Gross loan volume at Sept. 30, 2013, was $11.49 billion, compared with $11.34 billion at Dec. 31, 2012. The increase reflects growth in the bank’s diverse portfolio of participation loans and direct loans to its affiliated lending cooperatives and other financing institutions in the five-state area it services.
The quality of loans in the portfolio led to a $4.7 million, or 76.7 percent, decrease in provision for credit losses in the third quarter compared to the same period of 2012. Loans classified as acceptable or special mention made up 98.0 percent of total loans, compared with 97.5 percent at Dec. 31, 2012.
Total assets increased to $15.6 billion at Sept. 30, 2013, from $15.4 billion at year end.
Headquartered in Austin, Texas, Farm Credit Bank of Texas is one of four funding banks in the nationwide Farm Credit System. Together, the bank and its 17 affiliated rural financing cooperatives reported net income of $105.9 million for the quarter and $325.3 million for the nine months ended Sept. 30, 2013, up 7.9 percent and 1.4 percent, respectively, from the same periods a year earlier.
Nationally, the System reported combined net income of $1.253 billion and $3.499 billion for the three-month and nine-month periods ended Sept. 30, 2013. This compares with combined net income of $1.039 billion and $3.158 billion for the same periods last year.