Highlights:
• Net income was $163 million in 2014. Essentially all earnings were from core operations. This compares with $156 million the year before. Most of our growth in earnings was the result of fewer credit losses and continued asset growth.
• Average earning assets grew $398 million or 6.3% in 2014. This is the highest level of growth we have seen since 2009. Total assets were $7.5 billion at December 31, 2014.
• Asset quality improved substantially, with 97.1% nonadversely classified loans at year-end 2014 compared with 95.5% at the end of 2013. We were able to reduce our nonearning asset volume to $72 million at year-end 2014 compared to $96 million the year before.
• Retained earnings increased $100 million during 2014, ending the year at $1.2 billion. The stronger capital position enhances Farm Credit West’s overall financial strength.
These positive results contributed to the Farm Credit West Board’s decision to declare a cash patronage dividend of $57 million, which was paid to eligible customer-owners in February 2015.
Mark Littlefield, President and CEO of Farm Credit West said, “Farm Credit West’s success in 2014 reflects the resilience of California agriculture. While many of our customers were impacted by the worsening drought in California, we were pleased to be able to return $57 million in cash patronage dividends in February 2015 to help them persevere through yet another year of probable drought conditions.