February 22, 2019
FOR IMMEDIATE RELEASE
Northwest Farm Credit Services Reports Record Earnings
Customer-members receive nearly half of cooperative’s net income in cash patronage
SPOKANE, Wash. (Feb. 22, 2019) – Northwest Farm Credit Services, the Northwest’s leading agricultural financial cooperative, announced 2018 earnings of $302.0 million, compared to $250.6 million in 2017, an increase of 20.5 percent. Total capital increased 6.8 percent during the year to $2.5 billion and average loan volume grew by 4.5 percent.
“2018 was another year of strong performance for Northwest FCS, which is a reflection of our diverse loan portfolio and our customer-members’ strength and ability to manage through volatility,” said President and CEO Phil DiPofi. “Despite global uncertainties and economic downturns in some commodities, Pacific Northwest producers continue to adapt and position their businesses for the future.”
DiPofi noted that increased earnings were primarily the result of continued loan growth, lower provision for credit losses, increased patronage income and a premium refund from the Farm Credit System Insurance Corporation.
“Our board and management team are committed to operating a high-performing association, which includes maintaining a strong financial profile, investing in the business for the future, and providing meaningful, reliable annual cash patronage dividends for our customer members,” DiPofi said.
Effective 2018, the Northwest FCS board increased the cooperative’s cash patronage from 1.0 percent to 1.25 percent of a customer-member’s eligible average daily loan balance. Patronage for 2018 totaled $138.4 million compared to $108.1 million for 2017. “The continuing strong performance of our customer base allows us to maintain both our risk-bearing capacity and resources to meet future credit demands – in addition to increasing our level of patronage,” DiPofi said. Since the patronage program began in 2000, Northwest FCS has returned more than $936 million in cash to customer-members.
Northwest FCS is a $12 billion financial cooperative providing financing and related services to farmers, ranchers, agribusinesses, commercial fishermen, timber producers, rural homeowners and crop insurance customers in Montana, Idaho, Oregon, Washington and Alaska. Northwest FCS is a member of the nationwide Farm Credit System that supports agriculture and rural communities with reliable, consistent credit and financial services. For more information, go to northwestfcs.com.
Deb Strohmaier, Communications Specialist