Compeer Financial announces 2018 first quarter results

Wisconsin State Farmer
Compeer Financial

SUN PRAIRIE – Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the first quarter of 2018, including record income, stable credit quality, and solid liquidity and capital. Compeer Financial began doing business on July 1, a result of a merger between 1st Farm Credit Services, AgStar Financial Services and Badgerland Financial. 

Compeer Financial reported net after-tax earnings of $102.9 million for the quarter. The cooperative reported quarter-end total assets of more than $19.5 billion. Although the quarter was impacted by competition on pricing, net income for the quarter was strong due to solid portfolio growth, excellent operational efficiency and a one-time refund from the Farm Credit Insurance Fund.    

Compeer Financial’s credit portfolio includes several diverse sectors in agriculture with primary industries of grain, dairy, and swine production. Additionally, rural housing, energy, and food processing and distribution comprise significant portfolio segments.

The credit quality of the portfolio remains sound with only 0.6 percent nonaccrual loans as a percentage of total loans which inched higher from 0.5 percent in December 2017. Compeer Financial recorded no material net loan charge-offs for the year. Total regulatory capital levels continue to build and remain well above regulatory standards at 15.5 percent creating a strong foundation to support clients while working through the difficult industry economics. 

Rod Hebrink is the new president and chief executive officer for Compeer Financial.

“In July 2017, three Farm Credit cooperatives united with a shared purpose to strengthen our commitment to advance agriculture and to serve rural communities like never before. Since merger we have distributed over $160 million of capital to member-owners demonstrating our commitment to a strong patronage program. Additional payments will be made in August of 2018 for business in 2017. In these first nine months of Compeer Financial, our financial results have been positive, by creating a diverse portfolio in a wider marketplace, all while sustaining credit quality. The Board of Directors, leadership and team members of Compeer Financial know that what we’ve achieved so far is just the start of how we will continue to champion rural America,” stated Rod Hebrink, president and CEO of Compeer Financial.

“From our products and services, to our patronage program, to our Fund for Rural America, we are delivering on our strong commitment to agriculture and the rural communities we serve with the same dedication to service, and with a greater scope of industry knowledge, resources and financial expertise,” said Hebrink.