Cash Patronage Distribution
American AgCredit increased its cash patronage distribution for 2018 to a full 1%, resulting in a record $86 million cash back to our loyal customers, and $26 million more than last year. The nation’s fifth largest agricultural lending cooperative, American AgCredit also announced today a record net income of $169.4 million for the year ended December 31, 2018.
“Our Association had an outstanding year in 2018 — not just in our financial results, but in the significant progress we are making in positioning our company for competitive and sustainable success,” said Byron Enix, Chief Executive Officer. “Our focus on improving our internal efficiency set the stage for our record net earnings year along with our increase in cash patronage distribution.”
2018 Results of Operations
The Association produced after-tax net income of $169.4 million in 2018, compared to $159.1 million in 2017 and $104.5 million in 2016. The $10.3 million increase in net income from 2017 was primarily due to a $12.6 million increase in net interest income as a result of strong organic loan growth and a $17.4 million increase in non-interest income. The 2018 net interest income was $267.7 million, compared to $255.1 million in 2017 and $212.5 million in 2016. The 2018 increase of $12.6 million represents a 4.9% increase over 2017 and was primarily due to strong growth in loan volume. Average earning assets grew by $663.0 million during 2018, representing an annual growth rate of 7.5%.
“Our accrual loan growth rate of 7.5% enabled the Association to exceed $10.9 billion in assets,” added Chief Financial Officer Vern Zander. “Because of our efforts, we are able to share more profits than ever before.”