FCA Seeks to Reduce Regulatory Burden While Profits and Growth Soar
Merger activities within the Farm Credit System (FCS) are continuing. The Farm Credit Administration (FCA) has announced approval for the merger of the Western Farm Credit Bank with and into the Farm Credit Bank of Wichita. The continuing bank will be known as U.S. AgBank, FCB (AgBank) with headquarters located in Wichita, Kan.
The proposed effective date for the merger is October 1, 2003. AgBank will have 30 associations, $17 billion in combined assets, and 44,000 stockholder-borrowers. FCA said the merger will provide improved commodity and geographic diversification in the loan portfolio. In other action, the FCA Board approved a notice of intent and request for comments on regulations and policies that "duplicate other requirements, are ineffective, or impose burdens that are greater than the benefits received." The notice will soon be published in the Federal Register with a 60-day comment period.
The FCA has also published on its Web site selected financial indicators for the past five years. This document shows that for the five-year period from 1998 through 2002, the FCS's gross loan volume increased from $68 billion to $90 billion; net interest margin was 2.76% in 2002; and net income has increased from $1.25 billion in 1998 to $1.77 billion in 2002. The document can be accessed at the following Web site: www.fca.gov/Download/5yrtrend12-31-02.pdf.