CoBank reports financial results for first quarter 2008

CoBank announced financial results for the first three months of 2008, reporting exceptional growth in loan volumes and net earnings. In addition, credit quality remained strong.

Net earnings rose 45 percent in the first quarter to $149.6 million, compared with $103.5 million for the same period in 2007. Net interest income rose 36 percent to $217.7 million, from $159.5 million the year before. Total loans and leases outstanding for CoBank increased to $46.8 billion at March 31, 2008, compared to $40.5 billion at year-end 2007.

Higher commodity prices for grain and oilseeds were a primary driver of loan growth and earnings for the quarter. While all of the bank’s lending units experienced growth in average loan volume, the most significant increases were in loans to agribusiness customers serving the grain and oilseeds markets. Increased prices and demand for farm supplies were also important factors.

“We continue to serve our agribusiness customers during what are extraordinary conditions in U.S. agricultural markets,” said Robert B. Engel, president and chief executive officer. “Since its formation, CoBank has established itself as a trusted financial partner to the nation’s grain cooperatives and other agribusinesses in virtually every key sector of the American farm economy. Today, those deep relationships are proving to be a significant source of value for our customer-owners throughout the country.” [News release: Download cobank_1q08_financial_results.pdf ]