Dollars and Sense - October 2012
I am pleased to report that things continue to go well at CFA. We are in the process of completing the audited financials, but we’re far enough along that I can give you a preliminary perspective.
CFA had a record earnings year in 2011 and 2012 has bettered that. Assuming that you did the same amount of business with CFA as a year earlier, then your patronage for fiscal 2012 will be about 110% of what you received last year. The members who chose to utilize CFA’s services will be handsomely rewarded.
This financial performance results from our growth in loan volume, which was principally within the Input Finance Program. Our members continue to increase their use of IFP in growing their business and improving their earnings. Our loans to coops had lower outstanding balances on those commitments than we had budgeted, for all the operational dynamics that played out for coops this past year. The earnings were also supported by a couple of non-recurring items; 1) we recovered some attorney’s fees on legal matters (which doesn’t always happen), and 2) we recovered a significant amount of non-accrued interest on a problem credit. Put it all together and 2012 is a very successful year of earnings.
CFA’s members generally had good performance of their own and our credit quality improved resultantly. As of August 31st, we only have 0.2% of our loans in the adversely classified categories. A quality level of 99.8% is quite a strong position. I do have some anxiety about loan collections on the production ag loans for the 2012 production cycle. It seems unlikely that there is a single perspective that I could share about the adverse weather conditions of which you are not already fully informed. I will say that this is the most wide-spread occurrence that I have experienced in my tenure. Essentially all of CFA’s trade territory is affected to at least a small degree and some parts greatly. We will remain vigilant but I know we are all aware of the implications for both our member coops and ag producers.
So 2012 is in the books, and we can feel good about another great year. Now it’s on to addressing what’s next in supporting our members’ success over the coming year. Thank you for your business and let us know how we can serve you even better throughout fiscal 2013.
- Dean L. Searcy, President
Avoiding Information Superhighway Road Rage
We all increasingly rely on online applications. At The Cooperative Finance Association, Inc. it is our goal to support the latest system platforms and/or devices. We are always looking to make our online application better, which mean frequent application changes. We all know how frustrating it can be when online applications don’t work seamlessly. Therefore, it is critical that you keep your web browsers, plug-ins, extension, virus, phishing and other needed software updated at all times. Maintaining system updates will keep you cursing the CFA Autobahn and reduce road rage on the Information Superhighway. You can obtain a list of recommended system requirements here or you can download the list from our login page, or under the Information link at www.cfafs.com.