This excellent income and loan quality combined with a strong capital position allowed the board of directors to approve a record all-cash patronage refund of approximately $7.1 million.
Mechanicsville, Virginia (PRWEB) March 17, 2015
Agricultural lender Colonial Farm Credit reported excellent net income for the year ending December 31, 2014. Total net income was $16.3 million, up from $16.1 million in 2013, on loan volume of $613.6 million.
“Loan demand was strong across all sectors for working capital, equipment, real estate, and construction,” noted Greg Farmer, president and CEO of Colonial Farm Credit. “Loan quality improved in 2014 and at year-end non-earning assets were 1.2% of total loan assets, the lowest level since 2008.”
This excellent income and loan quality combined with a strong capital position allowed the board of directors to approve a record all-cash patronage refund of approximately $7.1 million. This patronage amount is the equivalent of 25% of the interest earned on loan accounts during the year.
Hugh Jones, a Nottoway, Virginia, dairy farmer and chairman of the Colonial Farm Credit board of directors, said, “2015 may be a challenging year for some of our farmers depending on how commodity prices behave and what type of growing conditions we encounter. The board is especially pleased to be able to increase our patronage amount this year.”
Colonial Farm Credit has returned more than $88.1 million dollars in patronage refunds to the rural areas they serve in Virginia and Maryland since the program began in 1998.
Recently, Colonial Farm Credit was honored with the Farm Credit Council’s coveted Phelps-Martin Award for Community Service in recognition of the company’s outreach activities to young, beginning, and small farmers and commitment to making rural communities better places in which to live and work. The award was presented at Farm Credit Council’s annual meeting in San Francisco in January 2015.
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 2014 annual report is available at http://www.colonialfarmcredit.com.
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