Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the third quarter of 2020. The results show record earnings and assets, and solid overall credit quality.
Total assets were $23.7 billion as of September 30, 2020, up from $22.2 billion in assets on December 31, 2019.
“Compeer Financial is committed to providing financial solutions and insights to our clients, no matter the climate,” said Rod Hebrink, president and CEO of Compeer Financial. “COVID-19 has brought its challenges for our member-owners, but we are working in partnership with each of them to navigate the market in this challenging time. Benefits like patronage payments, interest rate conversions and the Paycheck Protection Program (PPP) loans helped many of our clients over the past six months.”
In August, Compeer Financial returned $125 million in patronage payments to member-owners. Combined with $52 million in allocated equities paid out in February, member-owners received over $177 million in patronage returns this year. This is an increase of $26 million in comparison to 2019’s patronage benefit.
“When the Board of Directors chose to increase patronage payments after strong results in 2019, we couldn’t have predicted the unprecedented challenges our member-owners and the agriculture industry would be facing this year,” said Hebrink. “This infusion of extra capital can make a big difference for our clients, especially now.”
During the third quarter, Compeer Financial reopened their office locations with COVID-19 safety guidelines in place, having closed temporarily in March out of an abundance of caution. They continue to serve clients in person, while maintaining virtual service through a variety of tools, including an upgraded online banking system, automated renewals and a mobile banking app.
Compeer also continued to provide educational opportunities to clients and others in the industry as they navigated the effects of COVID-19. In quarters two and three, Compeer financial hosted more than 25 webinars on a wide range of topics including Farm Financial Checkups, Handling Stress in the Midst of Chaos and Marketing Pork Post-COVID.
The cooperative’s net income was reported at $326.9 million for the past nine months, compared to $293 million for the same period in 2019. Net interest income was $382.4 million, up from $361.6 million. Non-interest income was $205.6 million, up from $162.3 million. This growth was driven by a $21 million increase in fee income due to conversion fees, Rural Living Solutions loan originations and PPP loan fees. Interest rate conversions have saved Compeer Financial clients over $30 million of annualized interest savings to date in 2020.
Despite the effects COVID-19 has had on the food and agriculture industries, overall credit quality remains solid as clients continue to work with Compeer Financial’s team of financial and agriculture experts on strategies for managing their particular situation. Compeer saw a small decrease in nonaccrual loans – 0.6% being nonaccrual as of September 30, 2020, compared to 0.8% on December 31, 2019. Total regulatory capital remains strong at 15.2%.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $23.7 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.