This patronage amount is equivalent to 24% of the interest earned on loan accounts during 2013 and will be distributed in May, making this is the 16th consecutive year we have returned a portion of our profits to our customers.
Mechanicsville, VA (PRWEB) March 18, 2014
Agricultural lender Colonial Farm Credit reported excellent net income for the year ending December 31, 2013. Total net income was $16.1 million, up from $13.0 million in 2012, on loan volume of $601.0 million.
“Favorable weather conditions produced average or above average crop yields for most areas and commodities in Maryland and Virginia,” noted Greg Farmer, president and CEO of Colonial Farm Credit. “The combination of good yields with wise marketing and risk management decisions resulted in another year of profitability for most of our customers.”
“Beginning in the fourth quarter of 2012 and continuing throughout 2013, loan demand returned to pre-recession levels. Loan quality, while never severely stressed, continued to improve during 2013. The forestry and nursery industries continued to strengthen, as did the non-farm economy and real estate markets.”
Hugh Jones, a local farmer and chairman of the Colonial Farm Credit board of directors said, “this strong income, combined with an excellent capital position and an unanticipated special distribution from our funding bank, allowed us to do some exciting things. First, a cash patronage refund of $6.7 million dollars will be distributed to customers. This patronage amount is equivalent to 24% of the interest earned on loan accounts during 2013 and will be distributed in May, making this is the 16th consecutive year we have returned a portion of our profits to our customers. Second, to better educate our next generation of rural leaders, we have contributed $1.5 million to the Colonial Agricultural Educational Foundation. This will allow the Foundation to increase the 88 existing annual scholarships by $500 each and create three new $5,000 scholarships for students with an agricultural background who are pursuing an agriculture or forestry degree.”
Colonial Farm Credit has returned more than $81.4 million dollars in patronage refunds to the rural areas they serve in Virginia and Maryland since the program began in 1998.
ABOUT COLONIAL FARM CREDIT
Colonial Farm Credit is a customer-owned financial cooperative and member of the nationwide Farm Credit System, which loans funds and provides financing expertise to farmers, agribusinesses and rural homeowners for land, homes, and farm operating purposes. The cooperative has over 4,625 members and $600 million in loans outstanding, with twelve offices serving eastern Virginia and southern Maryland. The complete Colonial Farm Credit 2013 annual report is available at http://www.colonialfarmcredit.com.