ABA Banking Journal - September/October 2017 - 11

UPFRONT
Ag Lending Grew in 2016
Farm banks increased their agricultural lending by 5.3 percent
in 2016 and held $103.4 billion in ag loans at year's end,
according to ABA's annual Farm Bank Performance Report.
Despite overall declines in farm income, farm banks continued
to maintain healthy asset quality and capital levels. More
than 97 percent of farm banks were profitable in 2016, with
60 percent reporting increased earnings.
"We're continuing to see a decline in farm income, but the
good news is farm banks are in good shape to assist their
farm and ranch customers as the ag economy takes a turn,"
says Brittany Kleinpaste, ABA's director of economic policy
and research. "Banks hold nearly half of all farm loans and
will remain an important source of ag credit in good times
and bad."

Farm banks reported continued improvement in asset quality
in 2016, with the median noncurrent loan ratio falling five
basis points to 0.54 percent, well below the industry-wide
ratio of 1.41 percent. They also continued to build high
quality capital, with equity capital rising 3.7 percent to
$48.4 billion. In addition, loan-to-deposit ratios for farm banks
rose to 79.8 percent as farm banks saw deposits grow to
$15.5 billion, a 4.4 percent year-on-year increase.
The nation's 1,912 farm banks-defined as those whose
ratio of domestic farm loans to total domestic loans is
greater than or equal to the industry average-added more
than 2,600 jobs and employed more than 91,000 rural
Americans. Since 2007, employment at farm banks has
risen 24.3 percent.

Farm Bank Performance by Region:

5.3%

$103.4 billion

INCREASE IN
AG LENDING

FARM LOANS
[AS OF DEC. 2016]

[5.2 BILLION]

NORTHEAST

$

1

billion
WEST

$

9.9

CORN BELT

$

billion
PLAINS

$

SOUTH

39.1

$

billion
The Northeast region's
14 farm banks increased
farm loans by 26.1 percent
to $1 billion. Ag production
loans rose 21.6 percent
and farmland loans rose
27.5 percent.

45.5

billion

The South region's 202
farm banks increased farm
loans by 6.4 percent to
$7.9 billion. Ag production
loans fell by less than half a
percent and farmland loans
rose 9.3 percent.

7.9

billion
The Cornbelt region's
900 farm banks increased
farm loans by 5.5 percent to
$45.5 billion. Ag production
loans increased 2.1 percent
and farmland loans rose
8.6 percent.

The Plains region's 727
farm banks increased farm
loans by 4.3 percent to
more than $39.1 billion.
Ag production loans fell by
less than half a percent
and farmland loans rose
10.3 percent.

The West region's 69
farm banks increased farm
loans by 5.7 percent to
$9.9 billion. Ag production
loans increased 5.4 percent
and farmland loans rose
5.9 percent.

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11


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Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2017

CHAIRMAN’S VIEW
UPFRONT
PICTURE THIS
LEGAL BRIEFS
POWER UP PROFILE
THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
MAKING FRIENDS WITH FINTECH
LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
LET’S TALK PAYMENTS
IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
THE CECL RIPPLE EFFECT
FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
FINDING THE PERFECT NICHE
THREE ELEMENTS OF BANK LEADERSHIP
REAL ESTATE LENDING
ABA COMPLIANCE CENTER INBOX
WEALTH MANAGEMENT
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
FROM THE VAULT
ABA Banking Journal - September/October 2017 - Intro
ABA Banking Journal - September/October 2017 - bellyband1
ABA Banking Journal - September/October 2017 - bellyband2
ABA Banking Journal - September/October 2017 - cover1
ABA Banking Journal - September/October 2017 - cover2
ABA Banking Journal - September/October 2017 - 3
ABA Banking Journal - September/October 2017 - 4
ABA Banking Journal - September/October 2017 - 5
ABA Banking Journal - September/October 2017 - 6
ABA Banking Journal - September/October 2017 - 7
ABA Banking Journal - September/October 2017 - CHAIRMAN’S VIEW
ABA Banking Journal - September/October 2017 - 9
ABA Banking Journal - September/October 2017 - 10
ABA Banking Journal - September/October 2017 - UPFRONT
ABA Banking Journal - September/October 2017 - 12
ABA Banking Journal - September/October 2017 - 13
ABA Banking Journal - September/October 2017 - 14
ABA Banking Journal - September/October 2017 - 15
ABA Banking Journal - September/October 2017 - PICTURE THIS
ABA Banking Journal - September/October 2017 - 17
ABA Banking Journal - September/October 2017 - LEGAL BRIEFS
ABA Banking Journal - September/October 2017 - 19
ABA Banking Journal - September/October 2017 - POWER UP PROFILE
ABA Banking Journal - September/October 2017 - 21
ABA Banking Journal - September/October 2017 - THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
ABA Banking Journal - September/October 2017 - 23
ABA Banking Journal - September/October 2017 - 24
ABA Banking Journal - September/October 2017 - 25
ABA Banking Journal - September/October 2017 - 26
ABA Banking Journal - September/October 2017 - 27
ABA Banking Journal - September/October 2017 - PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
ABA Banking Journal - September/October 2017 - 29
ABA Banking Journal - September/October 2017 - 30
ABA Banking Journal - September/October 2017 - 31
ABA Banking Journal - September/October 2017 - MAKING FRIENDS WITH FINTECH
ABA Banking Journal - September/October 2017 - 33
ABA Banking Journal - September/October 2017 - LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
ABA Banking Journal - September/October 2017 - 35
ABA Banking Journal - September/October 2017 - LET’S TALK PAYMENTS
ABA Banking Journal - September/October 2017 - 37
ABA Banking Journal - September/October 2017 - 38
ABA Banking Journal - September/October 2017 - IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
ABA Banking Journal - September/October 2017 - THE CECL RIPPLE EFFECT
ABA Banking Journal - September/October 2017 - 41
ABA Banking Journal - September/October 2017 - 42
ABA Banking Journal - September/October 2017 - FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
ABA Banking Journal - September/October 2017 - 44
ABA Banking Journal - September/October 2017 - 45
ABA Banking Journal - September/October 2017 - 46
ABA Banking Journal - September/October 2017 - FINDING THE PERFECT NICHE
ABA Banking Journal - September/October 2017 - 48
ABA Banking Journal - September/October 2017 - 49
ABA Banking Journal - September/October 2017 - 50
ABA Banking Journal - September/October 2017 - THREE ELEMENTS OF BANK LEADERSHIP
ABA Banking Journal - September/October 2017 - 52
ABA Banking Journal - September/October 2017 - 53
ABA Banking Journal - September/October 2017 - REAL ESTATE LENDING
ABA Banking Journal - September/October 2017 - 55
ABA Banking Journal - September/October 2017 - 56
ABA Banking Journal - September/October 2017 - 57
ABA Banking Journal - September/October 2017 - 58
ABA Banking Journal - September/October 2017 - 59
ABA Banking Journal - September/October 2017 - ABA COMPLIANCE CENTER INBOX
ABA Banking Journal - September/October 2017 - 61
ABA Banking Journal - September/October 2017 - WEALTH MANAGEMENT
ABA Banking Journal - September/October 2017 - FROM THE STATES
ABA Banking Journal - September/October 2017 - CORPORATE SOCIAL RESPONSIBILITY
ABA Banking Journal - September/October 2017 - INDEX OF ADVERTISERS
ABA Banking Journal - September/October 2017 - FROM THE VAULT
ABA Banking Journal - September/October 2017 - cover3
ABA Banking Journal - September/October 2017 - cover4
ABA Banking Journal - September/October 2017 - outsert1
ABA Banking Journal - September/October 2017 - outsert2
ABA Banking Journal - September/October 2017 - outsert3
ABA Banking Journal - September/October 2017 - outsert4
ABA Banking Journal - September/October 2017 - outsert5
ABA Banking Journal - September/October 2017 - outsert6
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