CoBank credits merger in strong performance
CoBank, a cooperative agricultural bank serving U.S. agribusinesses and Farm Credit announced that its third-quarter net income rose 28 percent to $217.7 million, compared with $169.9 million in the same quarter last year.
Net interest income for the quarter was $305.1 million, compared with $252.0 million a year ago, the company said in a statement. Average loan volume for the quarter was $70.3 billion, compared to $47.6 billion for the same period in 2011.
For the first nine months of 2012, net income increased 24 percent to $700.5 million from $562.7 million for the same period in 2011. Net interest income increased 12 percent to $925.2 million.
"The bank's results reflected the benefits of its merger with U.S. AgBank, which closed on January 1, 2012. Through the merger, the bank acquired U.S. AgBank's assets and liabilities, including approximately $20 billion in wholesale loans to 25 Farm Credit associations," the company said.
"We're pleased with CoBank's performance through the first three quarters of the year," said Robert B. Engel, president and chief executive officer. "Our customers count on us to maintain the financial strength and flexibility required to meet their credit needs no matter what conditions are like in the market. The merger with U.S. AgBank was undertaken with that goal in mind and is now delivering significant benefits for the bank and its customers across all the industries we serve."