Industry Report Card: The Farm Credit System Remained Resilient Through Difficult Economic Conditions And Commodity Price Volatility In Third-Quarter 2010 Dec 10
- ID: 2092005
- December 2010
- Standard & Poors
The Farm Credit System (System) has maintained a strong financial and operating profile throughout the current financial crisis, representing the collective resilience of its constituent banks and associations. The System's capital position and profitability metrics remain solid; however, asset quality has returned to more normalized levels after several exceptional years prior to 2008. The System continues to fulfill its mission of providing sound and dependable credit for domestic agricultural producers, cooperatives, and certain farm-related businesses. Profitability benefited as the banks called approximately $55 billion of debt for the nine months ended Sept. 30, 2010, and took advantage of the low interest rate environment. The System's third-quarter net interest margin (NIM) was 2.86%, a solid increase from 2.63% the previous year,...
Companies mentioned in this report are:
- CoBank ACB
- AgFirst Farm Credit Bank
- Farm Credit System Banks
- U.S. AgBank, FCB
- Agribank FCB
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Research Type: Commentary
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