AgStar Financial Services announces 2009 earnings, patronage allocations
AgStar Financial Services, a value-added financial services company owned by its client-stockholders, reported earnings for the year ending Dec. 31, 2009. The company reported net after-tax earnings of $50.3 million. 2009 earnings will result in a patronage allocation of $27.5 million to stockholders in 2010.
“Despite the continued volatility in agriculture and the global economy during 2009, our net earnings and overall business performance were solid,” stated Paul DeBriyn, president and chief executive officer of AgStar Financial Services. “AgStar’s commitment to helping clients navigate through today’s volatility, in addition to our disciplined credit practices has helped the organization remain financially sound.”
The reported net after-tax earnings fell below 2008 earnings of $63.4 million. AgStar recognized significant provision expenses for loan losses due to continued economic challenges for clients in the swine, dairy and renewable energy sectors.
Regardless of these industry challenges, earnings from AgStar’s core operations were 8 percent ahead of last year’s rate. Company revenues were boosted by a double-digit increase in loan fees, solid crop insurance revenues and strong net interest income due to volume growth.
AgStar reported an 11 percent growth of their year-to-date average daily balance of loans and leases outstanding over one year ago. Total assets for 2009 reached $5.5 billion compared to $5.3 billion in 2008.
AgStar Financial Services, headquartered in Mankato, Minn., employs more than 610 full-time team members. The company is part of the national Farm Credit System and has a public mission to serve 69 counties in Minnesota and northwest Wisconsin.
