Agriculture loans 30 days or extra late or in nonaccrual standing hit 2.4% of whole agriculture loans at U.S. banks and thrifts as of June 30, up from 2.1% in the identical quarter in 2019, however down from 2.7% within the first quarter.
Delinquencies for agricultural manufacturing loans, which finance issues like tools and seeds, stood at 2.1%, down from 2.4% in March however up in comparison with 1.8% in June 2019. In the meantime, delinquencies for farm loans, which finance land, stood at 2.6%. This was 26 foundation factors lower than the earlier quarter however 25 foundation factors greater than the identical interval final yr.
Mixed agricultural manufacturing and farm loans grew within the second quarter to $182.14 billion, up 1.5% from March, however down 3.2% yr over yr.
Olney, Texas-based Olney Bancshares of Texas Inc. noticed the delinquency ratio on its farm loans soar to 25.9% in June, 24.Four proportion factors greater than in June 2019. This marked the biggest year-over-year change in delinquencies on loans of this sort. First Bank & Belief of Sioux Falls, S.D., reported the largest change in agricultural manufacturing loan delinquencies: 25.8% of the bank’s agricultural manufacturing loans had been delinquent within the second quarter, up 25.1 proportion factors yr over yr. Olney Bancshares and First Bank & Belief didn’t reply to a request for remark.
John Deere Capital Corp. remained the biggest holder of agricultural manufacturing and farm loans amongst U.S. banks and thrifts at $16.95 billion as of June 30. Its agricultural loan portfolio grew 6.7%, in comparison with the identical interval final yr.