The increase in combined net income was boosted by an increase in net interest income of $12m, a $76m decrease in the provision for loan losses and a decrease in the provision for income taxes of $2m, partially offset by an increase in net noninterest expense of $42m.
Farm Credit Banks Funding Corporation president and CEO Tracey McCabe said the system continued to achieve positive results in the first quarter of 2012.
"During the first quarter of 2012, we saw our capital position continue to grow and the credit quality of our loan portfolio generally remain strong. The System’s positive results and the healthy credit quality of its loan portfolio are reflective of System managements’ continued emphasis on sound underwriting standards and of the current favorable U.S. agricultural economy. We continue to watch the general U.S. economy and developments in the global economy as our business is fundamentally tied to both," McCabe said.
For the latest quarter period, its net interest income stood at $1.581bn compared to $1.569bn year-over-year quarter.
The net interest margin was 2.87% for the current quarter versus 2.82% during the same period last year.
The company’s provision for loan losses stood at $32m, down $76m compared to $108m during the same quarter a year ago.
