Federal Farm Credit Banks redeemed $12.05 billion of debt in quarter

By Jennifer Chiou

New York, May 3 - The Federal Farm Credit Banks Funding Corp. released its first quarter 2010 report and said it called $12.5 billion total of its debt during that period.

As already reported, the banks called debt totaling $63.6 billion in all of 2009.

FFCB said it was able to lower the cost of funds relative to their assets, which did not reprice as quickly.

According to an agency release, the system recognized provisions for loan losses of $171 million for the first quarter of 2010, compared with provisions for loan losses of $246 million recognized during the first quarter of 2009.

In addition, FFCB's liquidity position increased to 197 days of coverage of maturing debt at March 31, compared with 178 days at Dec. 31.

Meanwhile, gross loans decreased $2.328 billion, or 1.4%, to $162.502 billion at March 31 versus $164.83 billion at the end of 2009, principally due to the decline in production and intermediate-term loans.

The release added that net noninterest expense increased $11 million, or 3%, to $377 million for the first quarter of 2010, as compared with the first quarter of 2009.

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