American AgCredit, a farmer-owned financial cooperative, announced annual net income of $111 million for the 2013 calendar year compared to net income of $107 million in 2012. The increase in income was primarily due to greater net interest income from loan growth and a reduction in the provision for credit losses due to an increase in credit quality.

The company said loan volume ended the year at just over $6 billion, resulting in a year-over-year growth rate of 3.9%. Net interest income finished the year $7.8 million above plan due to higher than expected loan volume and recovery of $4.0 million of non-accrual interest income. Fee income totaled $13.8 million.

“As a cooperative, our earnings either contribute to our capital, allowing us to support our customers’ financial needs, or they are returned to producers in the form of cash-back dividends,” said Byron Enix, president and CEO. “We firmly believe that sharing the rewards with our members makes good business sense and allows them to share in the success they have created.”

Link to American AgCredit news release:
Click here.