Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for the first quarter of 2020, including strong net income levels, above-average asset growth and solid credit quality.
Compeer Financial reported net income of $107.5 million for quarter one, compared to $93.6 million for the same quarter last year.
Total assets grew to $22.8 billion as of March 31, 2020, compared to $22.2 billion at the close of 2019.
This increase was largely due to growth in loans, in the capital markets, food and agribusiness sectors, and Agri-Access, which provides secondary market and land loans to the agriculture industry.
Credit quality of Compeer Financial’s portfolio remains solid with only 0.7% nonaccrual loans as a percentage of total loans, compared to 0.8% as of Dec. 31, 2019. Total regulatory capital level remains strong at 15.3%.
As the first quarter came to a close, Compeer Financial took several steps to protect the health and wellbeing of clients and team members amid the COVID-19 pandemic, including temporarily closing physical office locations, providing services virtually and moving in-person events to online formats.
“Our clients are battling the pandemic like everyone else, while also maintaining their role in the food supply chain. We have to be there for them – even if it means operating differently to keep everyone safe,” said Rod Hebrink, president and CEO of Compeer Financial.
“Our clients have faced challenging times before and are resilient,” Hebrink added.
“We continue to be their partner and are working with them to navigate this situation, as we have any time adversity has hit agriculture.”
Currently, Compeer Financial is focusing on a variety of solutions available to clients facing challenges due to COVID-19, with a focus on open communication, evaluating each individual situation. These include deferred payments, interest-only payments, conversions to lower interest rates, and more.
More than 1,200 clients also received Paycheck Protection Program loans through Compeer in the first round of funding.
“Looking ahead to Q2, we know that the next few months will be particularly hard for farmers and food and agribusinesses as the impacts of the pandemic take hold across all agricultural industries. Compeer Financial will continue to provide insights, education and financial solutions as we work to meet our clients’ individual needs,” said Hebrink.
Compeer will also support clients through patronage payments to be paid in August, providing $125 million of capital to member owners for business conducted in 2019.
To help rural communities with the impacts of COVID-19, the Compeer Financial Fund for Rural America committed $830,000 to support relief efforts across the organization’s three-state territory of Illinois, Minnesota and Wisconsin. Compeer’s support includes donations to local community foundations, grants for organizations and emergency response providers, funding for local food banks, donations to rural healthcare facilities and more.
With stay-at-home orders enacted across the Compeer territory, most business is being conducted with clients over the phone or virtually through online and mobile banking, and the MyCompeer portal.
With an office located in Sun Prairie’s Smith’s Crossing neighborhood, Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities.
The $22.8 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Compeer Financial is the third largest cooperative of the Farm Credit System; learn more about Compeer Financial at https://compeer.com/.