Home » NEWS » Banking & Finance » Bank reports shrinking loan portfolio

Bank reports shrinking loan portfolio

AUSTIN, Texas — Farm Credit Bank of Texas (FCBT), a wholesale bank that provides funding for rural lending cooperatives, reported strong financial results for 2009, in spite of last year’s weak economy.

FCBT net income for 2009 totaled a record $106.6 million, an increase of 38.9 percent over 2008 net income. This increase was driven principally by an increase of $49.8 million, or 41.7 percent, in net interest income, but offset partially by higher operating expenses and an increased provision for loan losses.

Return on average assets and return on average shareholder’s equity increased to 0.74 percent and 13.07 percent, respectively, at Dec. 31, 2009, from 0.54 and 10.19 percent, respectively, a year earlier.

“Given the downturn in the nation’s economy and the difficulties that certain sectors of the agriculture industry faced last year, a modest decline in the size and quality of our loan portfolio was expected,” said Larry Doyle, FCBT chief executive officer. “In spite of these challenging conditions, however, we are proud that we were able to achieve record earnings and thus improve our capital position.”

After several consecutive years of growth, the Austin-based bank’s loan portfolio totaled $11 billion at Dec. 31, 2009, which was a 3.2 percent decrease from 2008. At year-end 2009, the bank had assets totaling $13.8 billion, compared with assets of $14.8 billion a year earlier.

FCBT provides funding to its owners — 19 rural lending cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas and four other financing institutions.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Wally Northway

Leave a Reply