Jack Henry & Associates (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars division today announced that Farm Credit Services of Mid-America selected its PROFITstar ALM Reporting Service.
Farm Credit Services of Mid-America is an $18 billion agricultural lending cooperative serving more than 95,000 farmers, agribusinesses, and rural residents with various farm loans or other ag-related financing options. It is part of the $73 billion AgriBank, FCB, one of the largest banks within the Farm Credit System.
ProfitStars' ALM reporting service is an outsourced asset/liability management and financial reporting solution that helps financial institutions manage current and projected interest rate and liquidity risk, allowing management to spend more time implementing strategies and less time on analytics. ProfitStars' independent review and analysis is widely accepted by auditors and regulatory examiners.
Agricultural lending is growing, as shown in the American Bankers Association's annual Farm Bank Performance Report, with farm and ranch lending reaching $3.8 billion in 2011, up 5.6 percent from the year prior. As a result, Farm Credit Services of Mid-America wanted to more precisely measure interest rate risk amidst its own growing number of assets.
Mark Hancock, vice president of finance and treasurer of Farm Credit Services of Mid-America, said, "With our growth in recent years, we needed a more granular, loan-level type analysis. ProfitStars' ALM reporting provides us with the tools to make more strategic loan pricing decisions."
According to David Foss, president of ProfitStars, "Farm credit banks are rapidly expanding their businesses and they need insight into their portfolios' condition and performance to manage that growth in a healthy manner. Farm Credit Services of Mid-America is able to leverage our ALM reporting service to understand various portfolio segments in a way that actually drives how it is evaluating the risk and pricing of products."
This is the fourth of five farm credit banks to do business with ProfitStars. The Farm Credit System is a federally chartered network of borrower-owned lending institutions and related organizations exclusively supporting agricultural and lending communities. It provides more than $174 billion in loans to farmers, ranchers, agribusiness, and rural utilities as well as more than one-third of the credit used by those living and working in rural America.