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SW MN | I was talking to a guy about his financing of cattle and he told me what he was quoted for a rate from Compeer, and I about crapped myself. I wondered how they could offer that kind of rate and lack of spread.
Found some interesting nuggets in their annual financial disclosure:
Their allowance for credit losses increased $98 million YOY and are now up to $211 million. For context, in 2022, it was at $52 million.
They have grown their loan volume by $4.68 billion from 2022, net interest income is up $161 million but net income after other expenses and provisions is down from 2022's $514 million to $405 million in 2025.
Non-Interest expense has increase $74 million since 2023, and in 2025 a large portion of this increase was due to fraudulent activity (guessing close to $36-40 million based on YOY change). I wonder what this was, and was it disclosed?
Their net interest margin is 2.4%. Their ROA is down to 1.2% and ROE is down to 7.6% down from 2022 numbers of 1.9% and 11.3% and have been trending downward every year. Yet they are trying to maintain their patronage dividends though they are down $10 million since 2022.
They are sitting on a $2.2 billion mark to market loss on investment securities, up from $1.6 billion in 2022.
And the biggest thing I saw was that of their $31.557 billion in loans held, only 54% of these loans are to members/patrons of the counties they serve. They hold $16.4 billion in participations, with $7.78 billion to other Farm Credits, and $8.59 billion to non-farm credit institutions to try and diversify their risk. Their top ten largest borrowers account for 3% of their loan volume.
Fun fact Monday :) | |
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Compeer Financials
