CoBank reports third quarter financial results
DENVER — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, recently announced financial results for the third quarter of 2014.
Net income for the quarter increased 8 percent to $224.7 million, from $208.1 million in the third quarter of 2013, largely due to stronger net interest income. For the first nine months of 2014, net income increased 10 percent to $688.9 million, primarily as a result of increased net interest income and improvements in credit quality. The bank recorded a $25.0 million loan loss reversal in the first nine months of 2014, compared to a $20.0 million provision in the same period last year.
Net interest income for the quarter rose 8 percent to $299.2 million, compared to $276.4 million in the same period last year. For the first nine months of 2014, net interest income increased 5 percent to $919.5 million. The increases were driven primarily by higher loan volume as well as improved earnings from the bank’s balance sheet positioning.
Average loan volume for the quarter rose 7 percent to $75.0 billion, compared to $70.3 billion in the same quarter last year. For the first nine months of 2014, average loan volume rose 6 percent to $76.1 billion. The increases resulted from higher levels of borrowing in a number of customer segments, including food and agribusiness companies, affiliated Farm Credit associations and rural power providers.
“CoBank continues to deliver very solid financial performance on behalf of customer-owners across rural America,” said Robert B. Engel, CoBank’s chief executive officer. “We are benefiting from the underlying strength of the industries we serve, with increased loan volume along with continuing good credit quality. We also continue to focus intently on gaining market share, delivering exceptional customer service and positioning our balance sheet appropriately in the current low interest rate environment.”