ABA Banking Journal - July/August 2016 - (Page 11)
Banks saw ag Lending Growth in 2015
The nation's farm banks saw agricultural lending increase
by 7.9 percent last year, according to the ABA Center
for Agricultural and Rural Banking's annual Farm Bank
Performance report. The nation's 1,976 farm banks-
defined as those whose ratio of domestic farm loans to
total domestic loans is greater than or equal to the industry
average-held a total of $100.3 billion in agricultural
loans at the end of 2015, up from $94.6 billion in 2014.
With declines in farm income expected for 2016, farm
banks have prepared for turbulence by increasing
the quality of capital and assets. Regionally, farm
banks in the South and West saw an increase in
profitability in 2015, while banks in the Northeast,
corn belt and Great Plains maintained profitability.
"Farm banks saw solid performance in 2015, remain
well-capitalized and are well positioned to continue
serving the needs of their communities despite any
potential turbulence in the ag sector," says ABA
Economic Research Director Brittany Kleinpaste.
"Banks hold nearly half of all farm loans and will
remain an important source of ag credit."
Farm banks reported continued improvement in asset
quality in 2015, with non-current loans declining to a
pre-recession level of 0.47 percent of total loans. They
also continued to build high-quality capital, with equity
capital rising 4.9 percent to $47.7 billion. In addition,
more than 97 percent of farm banks were profitable in
2015, with 63 percent reporting an increase in earnings.
The report also shows that small and micro-small loans
made up almost half of bank agricultural lending in 2015.
Farm banks added more than 2,500 jobs, a 2.9 percent
increase, and employed 90,000 rural Americans.
1,976 U.S. AGRICULTURAL BANKS MAdE
[AS OF DEC. 2015]
aba.com/BankingJournal | ABA BANKING JOURNAL
Table of Contents for the Digital Edition of ABA Banking Journal - July/August 2016
HOW BANK STARTUPS BUILD LEADERS
LEADERSHIP LESSONS FROM THE WORST JOB I EVER HAD
BREAKING THROUGH $10 BILLION
PLATFORMS AND PARTNERS
EXCEEDING CUSTOMER EXPECTATIONS STARTS AT THE CORE
ABA COMPLIANCE CENTER INBOX
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
ABA Banking Journal - July/August 2016