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FARM BANKS INCREASE AG LENDING 8% IN 2015, REPORT SOLID PERFORMANCE
Mar. 18, 2016
Penton Agriculture Friday reports:
The American Bankers Association released its annual Farm Bank Performance Report Tuesday.
The report found that farm banks increased agricultural lending by 7.9% in 2015 and held $100.3 billion in farm loans.
Asset quality continued to improve at the nation's 1,976 farm banks, as nonperforming loans declined to a pre-recession level of 0.47% of total loans. Equity capital at farm banks increased 4.9% to $47.7 billion in 2015.
Farm banks -- banks where the ratio of domestic farm loans to total domestic loans is greater than or equal to the industry average -- have built strong, high-quality capital reserves and are well-insulated from risks associated with the ag sector.
More than 97% of farm banks were profitable in 2015, with 63% reporting an increase in earnings. Farm banks are also adding jobs, employing more than 90,000 rural Americans. Since 2007, employment at farm banks has risen by 20.5%.
To read the entire report click here.
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