The Farm Credit System, the US government lender to rural and farm customers, has reported a net income of $882m for the second quarter ended June 30, 2010, up 29% compared to $682m in the same quarter of 2009.
Net interest income for the second quarter of 2010 increased to $1.43bn from $1.33bn in the corresponding quarter last year.
Net income in the first half of 2010 increased to $1.68bn from $1.29bn in the same half of 2009. Net interest income for the first six months of 2010 was $2.84bn compared to $2.6bn in the same period last year.
The net interest margin increased 19 and 22 basis points to 2.80% and 2.78% for the quarter and six months ended June 30, 2010, as compared with 2.61% and 2.56% for the same periods of the prior year.
The Farm Credit System recognized provisions for loan losses of $145m and $316m for the three- and six-month periods ended June 30, 2010, as compared with provisions for loan losses of $228m and $474m for the three- and six-month periods ended June 30, 2009.
Jamie Stewart, president and CEO of Federal Farm Credit Banks Funding, said: “We are very pleased with the Farm Credit System’s results for the first half of 2010. Notwithstanding the volatility associated with the current uncertain economic conditions and the slow pace of the US and global economic recovery, the System achieved strong earnings for the second quarter and the first six months of 2010.
“In addition, System capital as a percentage of total assets increased to 14.7%, as compared with 13.9% at December 31, 2009.”