CoBank earnings fall 17 percent in third quarter
CHICAGO, Nov 5 (Reuters) - CoBank, a major lender to U.S. agriculture with the federal government through its role in the Farm Credit System, said on Thursday its third quarter net earnings were down 17 percent, reflecting a $25 million provision for credit losses.
Net earnings for the quarter fell to $116.8 million from $140.9 million for the same period last year.
The bank also recorded a $15 million impairment on investment securities.
CoBank saw net interest income rise 0.3 percent in the quarter to $223.1 million.
Total loans and leases for CoBank were $42.4 billion as of Sept. 30, compared to $44.6 billion at year-end and $43.1 billion at Sept. 30, 2008.
Lending to agribusiness customers declined markedly in 2009 from 2008 due to the big drop in grain and farm input prices over the past year.
However the bank saw growth in U.S. government-guaranteed loans for exports, energy projects, and loans to Farm Credit System partners.
CoBank is a $60 billion co-op bank and member of the Farm Credit System, a government-sponsored enterprise created by Congress in 1916 to a provide reliable source of credit to the U.S. agricultural sector. Denver-based CoBank and the other four FCS banks are liable for FCS debt. CoBank and its debt are not formally guaranteed by the U.S. government.
(Reporting by Christine Stebbins; Editing by David Gregorio)
