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NORMAL, ILL. – 1st Farm Credit Services today announced loan
assets totaling $1.74 billion in 2004, making 1st Farm
Credit the largest lender focusing solely on agriculture in
Illinois.
Earnings from core operations in 2004 totaled $31.0 million
as compared to $27 million in 2003. Also, in 2004, a
one-time event resulted in the recognition of $20.9 million
of non-cash earnings net of tax. Combined net earnings for
2004 were $51.9 million, $24.9 million more than 2003. In
the 4th quarter of 2004, 1st Farm Credit, along with other
associations in the Seventh District, adopted a revised
methodology for determining the allowance for loan losses.
This resulted in a significant reversal of our loan losses
allowance, which increased capital.
President and Chief Executive Officer Wayne Gustafson said
growth in the association’s target markets, including
traditional and commercial clients as well as agribusinesses
have led to an increase in new real estate loans surpassing
$274 million. 1st FCS mortgage volume has grown by more than
$501 million in the past four years. "That, coupled with
significant growth in the demand for risk management
products like crop insurance, have led to the association’s
overall success," he said.
Demand for risk management products remains vigorous as
evidenced by crop insurance income that surpassed $4 million
in 2004. During the past several years, the association has
expanded the team of crop insurance professionals to more
than 20 in 2004.
The agribusiness market segment showed record growth in
2004, with commercial loan volume increasing, as well as a
dealer point-of-sale finance program. Now more than 80
equipment dealers in the 1st FCS territory are providing 1st
Farm Credit loans at a point of sale in their dealership.
The real estate appraisal service achieved a significant
milestone in 2004, generating more than $160,000 in fee
appraisal income. The 1st FCS team appraises rural property
ranging from small, part-time farms to large, complex and
agribusiness properties as well as livestock operations.
In addition, premier services offered to young, small and
beginning farmers have grown the association’s involvement
in this sector. At year end, 11.2 percent of 1st FCS loans
were to young farmers, 12.2 percent to beginning farmers,
and 50.9 percent to small farmers.
1st Farm Credit Services leads the industry in farm real
estate loans, and provides various services such as crop
insurance, life insurance, loan and lease options, and
farmland appraisals. The cooperative serves 42 counties in
the northern half of Illinois through its 21 local offices. |
