Farm Credit East Reports Strong Financial Results
March 22, 2021
Farm Credit East reported solid 2020 financial results today, showing continued growth in loans coupled with strong earnings, which allowed the financial cooperative to distribute a record $89 million in patronage dividends to eligible customer-owners on 2020 earnings.
“Despite the impacts of COVID-19 on our members’ businesses, Farm Credit East continued to meet our members’ capital needs which drove loan growth during the year,” said Mike Reynolds, CEO of Farm Credit East. “Our financial strength was imperative in the past year as our lending and financial services staff worked with customers facing challenges from the pandemic as they adapted their businesses to continue to operate and serve their local communities and beyond.”
Farm Credit East’s 2020 net income grew to $194 million. Following more than two decades of growth, the cooperative closed out the year with $8.2 billion in loan volume and $1.7 billion in capital. This level of equity allows the cooperative to finance customers’ growth and to work with customers through industry challenges, such as those faced in 2020. Farm Credit East maintains competitive interest rates for its customers and continues to return a portion of its earnings to eligible customer-owners through patronage dividends.
Farm Credit East Board Chair Laurie Griffen commented, “Despite 2020’s challenges, we are pleased to report strong financial results, allowing us to continue to work with customers during this challenging period. These strong results also enabled the board to approve $89 million in patronage dividends on 2020 earnings to farmers, commercial fishermen and forest products operations in the seven states we serve.”
This $89 million patronage distribution was split between a $30 million patronage advance paid to customer-owners in July 2020 to provide additional liquidity and cash flow, and the remaining $59 million patronage was paid to customers in February 2021. Over the past 25 years, Farm Credit East and its predecessor associations have declared a combined $977 million in patronage.
Farm Credit East’s 2020 Annual Report is being mailed to customers in March. It is also available on Farm Credit East’s website. Visit FarmCreditEast.com to learn more.
For more information:
Contact: Kristie Matuszewski