FINANCIAL REPORT -- CoBank, a cooperative serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the U.S., has reported an increase in net earnings for its third quarter and first nine months, due largely to its first-quarter merger with U.S. AgBank.
CoBank reported that net earnings for its quarter rose from $169.9 million last year to $217.7 million this year and that net income for its three quarters rose from $562.7 million last year to $700.5 million this year. The bank said total loan volume at the end of the third quarter totaled $69.9 billion.
Overall credit quality in the bank's portfolio remains strong, according to CoBank's financial report, with 1.03% of loans classified as adverse, down from 1.25% at the end of last year.
CoBank said agribusiness loan volume for the first nine months declined 9% from the first three quarters of last year due to lower prices for grains and other agricultural commodities earlier this year and to reduced inventory financing by agricultural cooperatives.
However, the bank said there was also a 9% increase in loans to rural infrastructure customers. CoBank noted that loans to Farm Credit associations also increased.