2019 Year End Financials
For Immediate Release
Nora Nolden, Communications Consultant
[email protected] or (651) 245-6804
Compeer Financial Announces 2019 Annual Results
Sun Prairie, Wis., (March 10, 2020) – Compeer Financial, a member-owned Farm Credit cooperative based in the Upper Midwest, announced financial results for year-end 2019, including record patronage to member-owners, strong net income levels, above-average asset growth and solid credit quality.
The organization’s strong financial performance in 2019 led the Compeer Financial Board of Directors to increase patronage payments to member-owners this year. In total, the organization will be paying out nearly $177 million of patronage in 2020, an increase of $26 million year-over-year.
Compeer Financial reported net income of $396 million for the year. Non-interest income, including patronage and fee income, increased $20.9 million from the previous year and was partially offset by increases in salary and income tax expenses. Total assets grew to $22.2 billion as of December 31, 2019, compared to $20.8 billion one year ago. This increase was largely due to growth in total loans, particularly in the capital markets, Agri-Access and food and agribusiness sectors.
Credit quality of Compeer Financial’s portfolio remains solid with 0.8% nonaccrual loans as a percentage of total loans, up only slightly from 0.6% one year ago. Total regulatory capital level remains strong at 15.9%, compared to 15.6% one year ago.
Compeer Financial’s Fund for Rural America allocates 1% of the organization’s net income annually to give back to and support agriculture and rural America, which equated to about $3.7 million in 2019. Since 2018, the Fund for Rural America has given back $6.9 million to agriculture and rural communities. This includes 141 annual and one-time gifts, 1,106 grants and 256 scholarships.
“We’re pleased to end 2019 strong, exceeding our financial targets,” said Rod Hebrink, president and CEO of Compeer Financial. “Our performance this year allowed us to increase our support to agriculture and rural communities, despite volatility in the market. Compeer Financial is committed to serving our clients and communities by providing specialized expertise, differentiated products and services, a unique patronage program and the Fund for Rural America.”
Furthering the organization’s commitment to rural America, Compeer now offers clients free access to the new LifeWorks Resource Program, which provides guidance for managing common, but stressful, life situations. The program, previously only available to Compeer team members, privately connects clients and their families with tools and resources to help navigate challenges related to work, family, life and health.
“Through enhanced knowledge of the current economy, our team worked with clients to navigate, and in some cases, help them capitalize on the environment,” said Hebrink. “They were able to make decisions that helped preserve their liquidity and improve profitability amid uncertainty.”
In 2019, Compeer Financial also launched MyCompeer, an enhanced online platform that gives clients the opportunity to make online operating renewals, and provides a deeper view of account information, access to personalized educational resources and tools to more easily connect with their contacts at Compeer.
Compeer’s full 2019 financial results and annual report can be found at compeer.com/Financial-Reports.
About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $22.2 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.
Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services. Learn more about Compeer Financial.