Compeer Financial
Press Release

Compeer Financial Shares Q3 2019 Results

Total assets were $21.4 billion as of September 30, 2019, an increase from $20.8 billion in assets at December 31, 2018.

By - Nov 12th, 2019 07:06 am

Sun Prairie, Wis. (November 12, 2019) – Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the third quarter of 2019. The results show stable increase in earnings and assets, and continued strong overall credit quality.

Total assets were $21.4 billion as of September 30, 2019, an increase from $20.8 billion in assets at December 31, 2018. In August, Compeer Financial returned more than $99 million in patronage payments to member-owners, for business conducted with Compeer Financial in 2018. In total, member-owners received $150 million in patronage returns this year.

“This August, our team was proud to deliver over 30,000 checks to farmers, rural homeowners and others with ag-related businesses in Illinois, Minnesota and Wisconsin,” said Rod Hebrink, President and CEO. “Because we serve clients in dairy, swine, grain and more in agriculture, Compeer Financial is positioned to support a variety of industries in good times and challenging times. Our board of directors increased patronage this year after seeing strong financial results in 2018, due in part to our diverse portfolio.”

Net after-tax earnings were reported at $293.0 million for the first nine months of 2019, compared to $281.4 million for the same period in 2018. This increase in net earnings was driven primarily by growth in the loan portfolio of 1.8%, resulting in a $10.2 million increase in net interest income during the nine month period. Also contributing was a $23.8 million increase in patronage income, primarily due to timing of payments relative to the prior year.  These increases in net income were partially offset by increases in salary and equipment expenses related to strategic investments during 2019.

Overall credit quality remains strong, with a small increase in nonaccrual loans – 0.8% being nonaccrual as of September 30, 2019, compared to 0.6% on December 31, 2018. Total delinquencies remain unchanged at 0.8% of total loans. In addition, provision for loan losses expense for the third quarter 2019 was $6.9 million less than during the third quarter 2018. Provision expenses reflect lower charge-offs in 2019 than during 2018, and are directly tied to credit quality changes within the portfolio.

Compeer Financial continues to work with clients to navigate a challenging time in the market. Recently, the cooperative has lowered variable interest rates by 50 basis points in total, with a 0.25% drop effective September 1, 2019, and another 0.25% drop effective October 1, 2019. The Federal Reserve also recently lowered rates again in October, which will be reflected on December statements. Collectively, this means variable rate loans to customers have dropped 75 basis points since June 30, 2019. Beginning in September, dairy clients gained access to Compeer’s Dairy Margin Manager, an online tool created to help clients manage risk on their farm by calculating projected income, expenses and profits to determine break even points. And in August, the cooperative began to roll out MyCompeer, an enhanced platform that gives clients a deeper view of their account information, access to personalized and interactive educational resources and tools to more easily share documents with their support team at Compeer.

Through the Compeer Financial Fund for Rural America and their mission-related financing arm, Compeer financial continues to support rural communities throughout the Midwest. This summer, the Illinois State Fair unveiled one of three newly renovated livestock buildings the cooperative has committed to funding over the next three years. In addition, the organization’s mission financing invested in the upgrade and expansion of the Morrison Community Hospital in Illinois.

About Compeer Financial

Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $21.4 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.

Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services. Learn more about Compeer Financial’s patronage program.

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