The Capital Markets department manages the Bank’s commercial loan portfolio. The department works in partnership with other lenders, such as commercial banks, insurance companies, Associations and other Farm Credit Institutions, to deliver credit to the agribusiness industry.
Individual Capital Markets loan officers are assigned to a specific industry specialty, such as dairy, timber, grains, nursery, energy, telecom, broilers, hogs, turkey, sugar or citrus. With their industry expertise and connections, Capital Markets loan officers serve as a resource for Associations and also offer support for local and regional advocacy efforts.
The Capital Markets unit provides support to the Associations, including the purchase of Association overlines. AgFirst also serves as a conduit focusing on building Association volume by selling sub-participations in large, high-quality, multi-lender agribusiness loans. AgFirst supports this service through our Advanced Commercial Banking System (ACBS) loan servicing system. This system has been configured to support the automated purchase and sale of loan assets among AgFirst and our affiliated Associations. This enables purchases, sales and ongoing loan actions and servicing to be facilitated by AgFirst, allowing Associations to monitor activity in ACBS rather than requiring them to process transactions in the system.
As of December 2014, AgFirst serviced a $9.3 billion portfolio with a total exposure of $7 billion and maintained an average daily balance of more than $3.6 billion. Over the last decade, the Capital Markets portfolio has cumulatively generated more than $528 million of net profit to AgFirst, which is important to offset the cost of providing market leading services and systems to AgFirst Associations.
The Capital Markets unit is committed to providing dependable, value-added services and market competitive products to Associations and their customers.