Horizon Farm Credit Announces 2023 Third Quarter Financial Results

Horizon Farm Credit has announced its 2023 third quarter financial results. Net accruing loan volume for the first nine months of 2023 was $6.4 billion, an increase of 9.3 percent compared to the same 2022 period. Net interest income for the third quarter of 2023 was $42.3 million, a 1.2 percent decrease from the same time period in 2022. Net income for the quarter was $29.2 million, a 15.9 percent decrease compared to the third quarter of 2022. The unfavorable impact of the 2023 third quarter results is principally related to a provision for allowance for credit losses recorded and increased operating expenses in the third quarter of 2023. 

Nonaccrual loans decreased $1.7 million in the third quarter of 2023 to $30.8 million, compared to $32.5 million at December 31, 2022, and decreased $4.9 million compared to $35.7 million at September 30, 2022. The Association’s nonaccrual loans as a percentage of total loans decreased to 0.48 percent at the end of the third quarter of 2023 compared to 0.54 percent at the end of 2022, and 0.60 percent at the end of the third quarter of 2022.

“We continue to be pleased by our Association’s financial performance and hold a highly positive outlook, as we approach year-end,” said Tom Truitt, Chief Executive Officer. “Our Board of Directors and management team remains committed to ensuring that our cooperative is well positioned to serve the present and future needs of agriculture and rural communities,” he continued.  “The sustained strong performance of our Association enables us to fulfill that important mission.”

Members’ equity at September 30, 2023 totaled $1.2 billion, up 4.0 percent from December 31, 2022. Total Capital Ratio was 16.21 percent as compared with the 10.5 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulator. The Association paid a cash patronage distribution of $91 million to its member-borrowers in the first quarter of 2023.