Farm Credit Services Posts Strong Earnings

Northwest Farm Credit Services, a Spokane-based agricultural lender, Thursday reported first-quarter earnings of $13.2 million, up from $3 million in the same quarter last year.

The gain largely was due to a $12.9 million patronage dividend from AgAmerica, a Spokane-based Farm Credit bank that provides funds to Northwest Farm Credit and a sister association in Omaha. The dividend reflects the interest income earned on loans the associations serviced during the quarter.

AgAmerica reported earnings of $37.5 million for the quarter ended March 31. That compared with earnings of $42.7 million for the first quarter of 1994, which occurred before the bank began paying patronage dividends.

As announced earlier, Northwest Farm Credit this month is refunding $27.1 million to borrower-members from the increased dividends and earnings. The association, with assets of $2.5 billion, has 20,000 members in Washington, Idaho, Montana, Oregon and Alaska.