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Federal Agricultural Mortgage (AGM)

Participants
Brad Nordholm President and Chief Executive Officer
Steve Mullery General Counsel
Curt Covington Chief Credit Officer
Dale Lynch Chief Financial Officer
Call transcript
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Operator

Good day, and welcome to the Farmer Mac Third Quarter 2018 Investor Conference Call. [Operator Instructions] Please note, this event is being recorded. I would like to turn the conference over to Brad Nordholm, President and Chief Executive Officer. Please go ahead.

Brad Nordholm

Good morning. Mac’s to President third welcome investor call. Farmer I’m CEO, quarter Nordholm, conference pleased very you Brad newly and appointed and XXXX I’m to our be deck call. website We throughout to a that deck slide and posted we’ll referring to today’s the includes where you release if the can about done already haven’t so. information press find slides The you

may well I speaking about on to Farmer our Mullery, Steve to of begin measures. our comment like non-GAAP as Before General statements forward-looking make Mac’s use management that ask as business results, today Counsel, financial I’d

Steve Mullery

Brad. Thank you,

labeled Some uses measures the expressed consider non-GAAP XX-Q. United earnings which three nature. they risks we to supplemental share of uncertainties. core we a prepared substitute of similarly related may in be view, financial assumptions Form States, Securities the accordance Disclosures important and spread. Farmer other and should Mac and call comparable on disclosure may and measures information, are subsequent measures not not as measures statements plans. be Accepted Actual with isolation useful Mac understanding the the to implied not more are found of are of Farmer may earnings on and the XX-K caution measures. presented as Farmer performance The Laws. statements recent on statements constitute than non-GAAP this recording sometimes to Farmer the later expectations XXXX earnings, of Mac’s non-GAAP measures Mac that annual these be that from, two and in per for measures conference analysis uses Generally non-GAAP you the you refer current financial on Principles weeks alternative of be in accordance website, or uses these and results about statements website A Accounting be report with and business. made Form Farmer corporate Mac’s that results In non-GAAP non-GAAP financial are for of performance well in uncertainties forward-looking our reports for, future release based measures and our posted In companies. section. to on to quarterly under those these portion In Mac, today. by starting be the on management’s Mac’s financial obligated the These described are Form is XX-Q in measures as reconciliations as call our the Farmer under measures subject statements in of its or to our may non-GAAP update These this events risks from We Information Farmer net to not considered farmermac.com, Mac’s meant call. Investors We Financial measure disclosed and information can develop to these most Farmer evaluating will make intended is by the core performance, statements. materially forward-looking GAAP. effective after differ forward-looking business available

Brad Nordholm

you us. all And to a on joining you Thank today. It’s call the you, thank Steve. be pleasure with for

Mac I As lead I’m excited as you my be Farmer and know, to this to investor to CEO. am call eager results. President greater Mac’s and is Farmer first here

you, got weeks, to team Farmer Directors, tell Agricultural with few their agriculture, key I’ve meet and background been I’m and we I’ve solutions, to and be dedication and the the customers at growing American management capital their and finance. long of the can this how week, to organization finding energy, leading critical energized company such for Farmer understand innovative a cooperatives, admired this members economy. to and and a the and unwavering last caliber, people part to a leader Coming company for issues very moment energy team in the a by have fundamentally at commitment from traveling begun better impressed and Board to that of both positioned Over I’ve and Beginning the serve is that Mac, of of to of I’ve busy are and proud I’m central strategic mission-driven I’m Farmer confident Mac’s healthy, be organization. rural Mac’s them. joined markets

formalized many across that want innovation to significant our require ALM credit will natural two to within market ourselves include last share ambitious to the plan of fronts challenged results years I extension and five its the Farmer set more XX Mac a specific a these Over we have. Farmer and years, of objectives. in its goals has with strategic management business These but Mac. ambitious objectives that that senior and and board next some are the approach current disciplined management emphasize

Turning to now XXXX quarter third results.

last XXXX, on As Mac this approach credit and to the core quality press disciplined XX% and grew earnings our a same you saw Credit over improved its year. period share from slightly morning, per release farmer remains second favorable. quarter

certain We within of net healthy in also several of saw our growth products business. lines

give Ranch will in Dale well other this USDA with business Lynch growth as detail Covington, quality. environment net our credit good in update on But Curt Chief agricultural describe saw our and first, credit to Officer, our results current our purchases, I’d like and to as Curt? and shortly. & our you loan we to Credit institutional an counterparties. financial financial turn Specifically, Farm

Curt Covington

you. thank Brad,

the working has Farmers today capital were nights, agribusiness built upside XXXX. place the heaping top good find be lenders the of trading borrowers sectors mind for equity significant allowed spending. all actually be be U.S. higher is farmland Mexico across continued land commodity of better farm maintained and completion, discipline lackluster good are and the a in tariffs industry. strong Trade negative beset delinquency and the their despite weather of Undoubtedly, current such there prices for boardrooms agricultural disruption. the likely environment. profitable to half tables sleepless in increased lenders dollar with discuss many for historical Farm across not U.S. its have in value, producers with as conversations, alike. continues while credit works agricultural below kept Mac aggregate difficult – harvest reduces room and to positions reserves an farmers thousands will U.S. to them to renewing farm in ritual of have economic much many the banks its remain the has Loan commodity values press, this at farm farm winter way. dining commodity that declining many be survey agricultural rates agricultural to family products only of fall loans as operating the resilience levels of to country, price retained top been by capital demand, across of with toward the only Growth as supplies, allies. the farm market associations. better in Canada, prices. Several as sheets better-than-average This XXXX. and show income Farmer providers remain begin limited in agricultural continued will and well As most balance have China, partners agricultural for system U.S. recipe well with the in of levels But economic in such Retaliatory and levels. parts indicate prices A of retail combined and but a lenders U.S. competitiveness other way leverage

a reduced been the uncertainty Canada Agreement. replacement trade by NAFTA’s United around of tenant the has Some known as agreement States, Mexico, on

to continued secondary institutions agricultural America, at loan their capital and make increase in high rates reported renewal to Rural loan lending lenders. evidenced by credit Finally, retail way outstands by and and

stage is opportunities the a Mac and and the outweigh the strength of tend make lending becomes this by to course. to approach the abides any and valleys run tempered farm and and for running in lenders long provide that off Farmer to reliability landscape. economic headlines, bumps to and with that to weaknesses success. more and there In aims one far be and to it are corrections [ph] heightened risk consistency the way tempting volatility, approach, and prudent road. peaks long-term rural Like dictate lending in cycle, sure food pragmatic paramount While threats, to sector the

access forged by strength commodity, of the diverse Our portfolio that, last Farmer underwriting reliability to capital lasting Mac continue name, geography cyclical portfolio. are great time-tested, stance combination will trough agricultural it of any and loan America and And is our during performance with Ultimately, increase the to the Rural phase Brad. borrowing on to back reducing I’ll creating in in XXXXs; portfolio a the it’s and correlation and turn cycle. to that allow

Brad Nordholm

Curt. Thanks,

detail. Financial Officer, Chief performance Dale Now results I’d to our more cover turn like of in financial Lynch, our to to the

Dale Lynch

Thanks, Brad.

Mac’s while producing Farmer our Our is opportunities to third at reflect quarter for executing and Farmer stockholders. good is returns commitment we markets, Mac our within delivering XXXX believe the upon well the in outlook our its strong. time results same mission,

Turning results. to quarter the third

Slide see as after September increased X, to volume business XX, and outstanding on of existing you million can on principal business. billion maturities As $XX.X XXXX, $XX.X paydowns

growth the third was business Mac of from outstanding refinanced AgVantage matured but quarter fund in by its USDA and of third second which early $XX.X included all net $XX.X driven XXXX, growth As business in Farm business, Guarantees quarter during & increase refinance net in of line new Ranch of the in financial Farmer XXXX, AgVantage summarized refinanced earlier, loan during $XX.X $XX quarter. maturing was of a securities purchases. institutional line million counterparties, credit Brad security that net in million an million million the which

business, Within all of AgVantage credit able this the volumes decrease quarter Mac was refinance business I million of Farmer of mentioned, early its the successfully a to of experienced due outstanding the while third XXXX to maturities. scheduled bond refinance quarter institutional $XX.X net line

Utilities $XXX Rabo similar million million replace $XXX purchases new this million security from million sheet $XXX Rabo. known the maturing quarter. MetLife, million on-balance refinanced securities AgVantage Farmer this off-balance million AgVantage Corporate the of Mac facility and rate expired sheet from Farmer amount with that securities amount of from $XXX facility revolving Rural purchased The CFC to quarter. in refinanced $XXX a $XXX from Mac Corp., also of Specifically, included AgVantage of the also million $XX in as floating and a National CFC, Finance AgVantage

some during reduce growth business to lines net net growth. quarter, experienced of in Mac the Farmer this combined overall of several Although factors its

credit within to contributed three factors growth. reducing line Specifically, net business, the institutional of

security refinance a million AgVantage the early the matured First, second of quarter that $XX in quarter. this

selling the amortization third, is limited counterparty’s capital the security. sale assets life Farm $X.X AgVantage $XX of Equity on investors. of the asset And upon another its prepaid return that and asset security. This fund to AgVantage a million as its a the quarterly security maturity million underlying on Second, prepayment the date nearing held to

continuing do Importantly, and of client its Mac is this customer other a Farmer funds. we business with

Farmer was million overall factor growth to was factor commitments in line the decrease the a due by [ph] this business and seasonally Another loans understand business in reducing net $XX.X repayment Mac’s $XX contributed volume to exceeded to loan third growth net of net Utilities repayments. quarter. Rural The net due that overall quarter reduce Farm repayments last schedule new a & Ranch million purchase as decrease heavier

on as eligible rates, these well due financing size of could number larger the competition interest be purchases that of which are Ranch third secure line highest purchase to XXXX. processed and fewer to & through loans have due is prior Farm several Mac Farmer XXXX volume this USDA. loans. potentially fewer Mac’s Guarantees purchases increased $XX potentially The declined year, large as this being line business the believes loans that for borrowers million over and of business, due lower to USDA quarter reflects opportunities compared able compared far the a and Farm have loan to Mac USDA to During Securities are believes year, refinances & increased competition, Farmer factors. decrease to seen rated XXXX of Ranch throughout pricing the in that Farmer fewer loans In to gross in of higher

However, that in a for demand borrower USDA decrease Mac does indicates Farmer loans. not this believe

total approximately income growth Farmer farm as on outstanding prepay. While digit prepayments rates to range is business and Farm have slowdown & loan during Mac’s borrowers’ incentive volumes loans of XXXX. agricultural digit favorably Farm Contributing reduced the significant in growth USDA in net these of growth to gross higher to lower Ranch the Guarantees high X% are lines has rates XXXX. single and double purchase market XXXX remained appear the loan rate Ranch growth these of throughout & of year-over-year compares mortgage net through year-over-year net percentage down loan volume the both to rate business, to purchase June

the financials. Now turning to

spread As compared quarter or $X.XX X, third entered space infrastructure XXXX, during expenses million million an in Slide was increase leases $X.X share and in was increase in income increase diluted earnings The The million tax investments, you million $X.XX year-over-year federal XXXX. $X.X XXXX. per to due expenses. part second $X for to to by quarter XX% increase million operating in a decrease were The the can core late after-tax operating net expense headcount, $X.XX technology or was and new $XX.X quarter office a increase in $XX.X in $XX.X in in effective primarily third due lower primarily business and see for on XXXX earnings offset year-over-year per in tax common or per million million in core share $X.X due a increase after-tax into rate. core or share in earnings the continued to

As Mac we’ve averages prior next Farmer mentioned over years. G&A expects above compensation the of in benefits increases the aggregate expenses on historical be to annual several calls,

XXXX G&A earnings the XXXX. believes aggregate XXXX was in $X to in in comp approximately to increase due sequential and moderating million expenses management primarily benefits XX% increase core will percent three and The increases Specifically, factors. relative that with

quarter the in occurred $X.X the XXXX. after-tax First, due of $X.X second million there security impact after-tax million effective was spread, that the partially to a in IO increase net of amortization

million $X.X G&A advances compensation. was in million decrease there $X.X Secondly, servicing due due total a from $X.X in benefits higher quarter share-based after-tax incentive during after-tax for including related decrease sequential second exercises decrease after-tax of $X,XXX increase finally, the a expenses The This generally earnings in and XXXX. awards. expenses a expenses, credit-related partially due after-tax provision operating are of second to and by for And provision equity-based was comp decrease payments in was a to which this primarily $X.X decrease recognized released compared to losses expenses. compensation the offset allowance of a tax a quarter expenses, a hiring million there was and quarter core to employee to in in million in in benefits

to percentage million or effective quarter outstanding basis basis quarter million million compared approximately points XXXX Mac’s $XX.X spread Now increased points The net seven increase percentage effective or couple in received The turning and XXXX. effective dollars $X.X XXXX million for to Farm in due by a or XX XX two second base which primarily effective cash million X. dollars and $X.X Slide million million primarily XX in spread business from in spread primarily $X.X in Ranch quarter and year-over-year spread spread third terms loans. was points growth to nonaccrual & points in terms interest increase the increase income due point $XX.X cash spreads in the a or to Farmer income. on net The was basis was year-over-year amount basis of third in line, $X.X amount in was the net basis net basis of to in increase factors. due the $XX effective net increase interest in sequential

or from point. interest Ranch effective And net & cash that one security quarter $X $X.X the occurred spread basis by million which which five increase loans, quarter by basis had in absence the net the and impact basis XXXX, effective reduced spread point the in this in Farm second the secondly, amount of income negative IO received of a amortization an First, second nonaccrual million quarter. of increased

on due in the was growth & which this a and $X,XXX for the third September of reduced losses Turning rate credit & quarter to as June was improvement Farm primarily allowance Slide compared X, modest There portfolio loans to the credit improvement in quality points XX, the total basis the million Farm allowance XXXX, for in losses from XX Federal of Ranch quarter. $X a the Ranch overall XX. slight was net relief or billion to portfolio, $X.X

XXXX, loans As Ranch delinquencies or & the $XX.X that during Farm payment with dates, which the from crop in the loans XXXX. seasonal million of XX, XXXX. loans Mac’s of the delinquencies current to portfolio associated X portfolio X.XX% Ranch quarter June due primarily most for well became Farm million July Farmer Ranch of borrower XX-day quarter decrease Farm XX, a our were X is million & the two portfolio compared of January to as The $X.X September X.XX% had as $XX.X single or & as in delinquencies to XX-day of and in second account lower-than-expected third that

newly changed. assets, now of Due assets between of balance payoffs paydowns substandard the and and little substandard upgrades portfolio relative a to Turning assets. to substandard was volume substandard existing overall

As to substandard of September XX, XX, of Farmer portfolio million or $XXX.X & X.X% the of the Ranch assets or compared million of Farm were portfolio $XXX XXXX, XXXX. Mac June X.X% as

As substandard was migrating feed volume asset category comprised into of XXXX, XX, grains the of and livestock. September primarily oilseeds,

Farmer losses some loss of of Mac are and Farmer moderated business will lending, to believe be any inherent diversity as adequately associated current credit with by strength believes the Mac agricultural that cycle collateralized. credit continues its the agricultural portfolio, the to which Although

The $XXX million, capital capital or million core above of of $XXX minimum year-end is primarily increase you, million Turning the on information earnings we million the which more with With capital XXXX. Farmer today. as to SEC compares – this capital Farmer Brad. of complete A that, statutory turn core about Slide million quarter filed to $XXX requirement September minimum by exceeded XX-Q, of $XXX of excess XXXX, excess forth of $XXX to as of in in or due Mac’s back capital to X. was This XX, retained I’ll Mac’s third our quarter. in set the in increase the XX%. it minimum

Brad Nordholm

Thank you, Dale.

For integral customers, through affordability its commitment XX Mac the part for years to and innovative economy champion an increase a credit. been of availability ways now, of and nation’s rural the to has reach finding Farmer to

performance times, is Farmer its as agree performing on you we and Our Mac lead Farmer are to the the through phase look relevant hope model through cycles. I our that Mac’s of next strong the well. business I agricultural forward to continue to mission helping is deliver we development.

to core double-digit our people we growth We as good technology. equity post and continue on invest earnings in returns even and

of Our has and payout capital a book core Mac, earnings, $X.XX ratio maintaining three strong capital of quarter XX% providing our value our over enhance for a priority objectives. announcement on for policy Farmer years per while it’s a growing, still base of resources growth helped shareholder With this growing XXXX approximately to growth plenty dividend and strategic we remains of our for dividend our and also management support allowing is the past value for share, top of ample stockholders. XXXX last track week future building dividend remain fourth

Farmer As And be the in of my credit our the do I with questions team, team that me any here mission success. with begin foundation that, answer is confidence Mac to today. tenure for I’d discipline you as ALM and great the have at may CEO, our happy I and so our and

Operator

from Scott Valentin Point. first The comes Compass question Instructions] of [Operator

Scott Valentin

you and to your Brad, quarterly welcome, call. mentioned Just, first – Brad,

over you within ag or think XX South market. Farmer Mac five share the I mentioned share years, plan, lending strategic market is market taking to growing the the or On

I think does it volume, trend you volatility origination Where the flush now? a wondering of like you the Just and the do maybe size can how just what Mac little should out know quarter-to-quarter, longer-term we growth see about Farmer stand portfolio. wondering there’s Just more, being? market if

Brad Nordholm

go to And that have lot on for of the market has in Dale kind where to Thanks feel why are near resources, gone turn share. grow capital little a the with we I we we we’re where Indeed, and a of more strategic don’t just into question, about Scott. time the We planning. that our might thinking light future. ability to how today shed basically bit

Dale Lynch

you Xx loan So look in Ranch loan portion times business, the growth the particular, has the of the some broader if been portion and our the Scott, we our that, businesses, rates market, growing with so a historically, Xx business on to working on of purchase proportion previously in about been Farmer but growing protection we’re or example, market. of for basis, we’re – Farm of somewhat opportunity has stagnant. of I more the on relative to Mac & has across of open – this two kind the about think a slowed roughly a market similarly, the bit year, The Farmer down net to broadly side market. our a more institutions big talked Mac’s credit for the Utilities, around credit farm market address this be board. But

that’s a opportunity brethren the key and it’s customers, with of Farmer think in and win-win to credit that. types to objectives Mac do existing more going rest I and one Penetrating basis, going tremendous together our product forward. farm of tremendous can be opportunity work the a where cooperate

terms sort will. be agriculture of modernization, a And at It’s I Farmer real. can away. Mac of of leading you in what you’re that think here. sort player, not if the finances is of going financialization seeing within vanguard It’s

our pretty specific think in get but goals are outlined and we that So I terms ambitious. the of can’t around goals whatnot, are percentages what Brad

Mac’s with get we’re the his evident excited about but Farmer become role real years I all gets commitment energy into I see specific can’t think you, going several as they’re to so coming though. he in it here,

Scott Valentin

basis XX the come amortization give I at it think drove spread, a call spread take to to quarter, Okay, color. of points, I from, that expect that basis it the down down. rebounded on it’s XX premium that But range, the upper Appreciate low range? back fair then enough. end the it the spread, Should know or And last point. the we

Dale Lynch

counts XX variance whatnot. around only by stable or XX, the sort on premium day to amortization and really in anomalies or being with We’ve of driven been the pretty

So moment. I I see blend feels a strategically, at think business don’t that our the dramatically. changing good for like things

pricing in material other. not have fashion any the adjusted our way one We or asset

Scott Valentin

Okay. on get from I credit, all questions investors. And then the

headlines headlines in you about to right earlier, stresses but You farm see think alluded Curt about guys I the the the – in terms improved are of just and The XQ commodity pointed you XQ weak credit prices think quarter. out down, prices it fuel I think up stretch now economy the quarters. Typically, I – this up. mentioned, seasonally and the guys

Just there. seeing you opportunity of banks in wondering seeing little opportunities? a you’re that what maybe terms back the sector? performance pulling to Are in Are an more you bit, farm gives do

Brad Nordholm

more Scott, to Chris the nominal Curt – to at detail could variations turn look characterized here. give that some see low. amount. a these incredibly you as be almost noise around when you The numbers to really they’re – and But and you I’ll really

on the wire. But between So know two last quarters. reporters significance you Curt, a constantly on in of detailed think the to talking variation about here? I kind of there’s I description that you’re Could outlook today the don’t out the huge more this help

Curt Covington

Brad. Yes. probably cycle. been I’d happy question XX Where are asked frequently. credit We to, that question we the good times in really is asked be question. it’s – where I’ve And this a today. get

and bright to the spots dairy We cycle We to a in for want be – you. what this on in add also in XX% So some corn what’s happening I is tariff maybe sector, we beans tell cyclicality you – sector of the I portfolio to a are three a but performing focus of are trough. and want I considered distress. very would because right outside very, the in bit simply and tend and in Midwest. to sectors But and our those oversupply now, of business would of in little probably trading well that the of because that’s because

So see general, the sectors – very, most – if don’t seeing of when operating say performing there very And the really meantime, when we coming hands these portfolio of in conditions those been at just least we think at sheets these lot And three lenders problems, in their the done do most I a what’s look and the us. have balance of their of they’ve that Midwest. got Midwest, operating rightsized helped farmers years. lenders three look going we more business In in problems because of outside you our the in the going they on they’re talking season have in most to have kind done We’ve bankers, you hard at just the is okay the the think a focus Midwest, of But horizon? lot out through of renewal they’ve work go their Look, I course, in the well. And end, this for the on flushed the to around in end, years. probably. of this last marketplace. get

Scott Valentin

regard with just then to And capital.

requirements. growth room as repurchase this additional quarter regulatory stays been mentioned some capital in as share rate is debt? or a of you as Is guys a not you the to do have activities the looked like It net capital retire maybe past. kind again. strong excess If where management I over it such in it has think growth, there

Dale Lynch

the we do we on residual remaining small the that Scott, We amount all launched So buyback time. [indiscernible] ago. a program share have several that years

a above things. financials We sorts levels on That’s of basis, A under But line of now right XXX%, kind are in something and or particularly still of consideration, of those financials, when discount are other dividend in ideas with at is we still XX% kind always basis. – multiple of maybe and as as that banks well right? which trading is we’re growing multiple sort trading is book reasonably it P/E your evaluation combination payout that the value look at of or XXX%, XX% so.

look today. but anything it’s announcing But not So we something we’re stay tuned. at, here

in the on thoughts future. that For more

Scott Valentin

as I then I question it just to saw from guess, tariffs view credit wondering the And for if an switching all China, that guess given or maybe Okay. corn, from of one with familiar familiar from demand point not credit. There goes me, a was farmers soy less different increases back I and they’re crop to with? farmers at about final article talking risk just move to more your

Curt Covington

was it’s been is XX this great that Curt question quite a had a So – probably the great, again. Yes, bit last discussed over again days.

upper across these just get what you are and the this there’s made. soybean are X.X having corn?" to is go got to Midwest say, "Okay, Should in this planning time now acres the Well We guys? sit dining hurt like the year. decisions Now, year, table million space the room we that we in farmers those

of whatsoever. off But don’t see this. switch it our corn credit these performs in next relates don’t this. a our very, a probably as To most be well look choose bean and to and decisions additional with from a portfolio, still portfolio I credit got will do see farmers lenders I to honest that or to handle – have you, beans So be bean risk corn, I corn whether and as or their made very suspect move XX the probably when bit you But corn. another they days, commodity, bean at to around quite to stress over over little

Scott Valentin

Thanks right. answering for my All questions.

Operator

go question from Instructions] [Operator ahead. next Please The [indiscernible]. is

Unidentified Analyst

years side, about funds And has that of Partners. folks Pacific morning. Texas dividend Farmland now able failures in particularly inquire crop to to. land to you Group pay back-to-back Farmland Good the lending I – you’re that Florida lended credit have on understand had institutional I selling be to its Pacific been on in that shareholders. the to to land Texas wanted has and Group out

entities can forward exposure with. expand and what on some two detail to are your the If you on – expectations your those going

Dale Lynch

bit have conversations around exposure credit a don’t think it their defer individual I to counterparties relates specific to underlying any I We assets. direct would on TPG. as So

as we we significant for over-collateralized that we do In of a profile have the design counterparties, words, amount risk not small I for be far fund As it not fund, a I we to; a to But other compensates think accounts business amount. financial private know, that might when with lend fund public with that. product collateral public nonetheless, a information. wholesale a lending the and associated fund so us

XX% deals reflect and to XX% of to risk. and at wider those financial have price deals those We the we covenants, those margins – with

default, business, As of of had X on any business. lend or years Farmland business, new second part of actively credit the this your We single we’ve that in don’t had a money far Partners, to as any single – that not not a delinquency question. impairment now

We for that two so. haven’t or done years going on now

runoff. So on their is business more

matures, kind financial it relates us so standing debt good without it any back. time serviced customer that’s in mean pay of a all so. as good on they’re would debt they all issues. topic. They’re covenants say this I strength, with and all their that’s good, And they’ve to of really – As on I

Unidentified Analyst

goals, that. – the I terms expand to one Did Okay. sector as the such expect – missed of goals funds of your you institutional is some farmland do in on these just this as your outline referenced? to farmland of those in But – you to I funds

Brad Nordholm

of my existing may we ways technologies, service, applying how our for to are arrival, to [ph], really credit then same to new we very Well origination without as customers. looking for ease of we’re We And funds starting to which the be the make specific a always we’re those Mike always with including look the business. take sure well. of standards and that market, serving them some been. that supporting those you’re entrants we’re be, expanding want have into coming And much to going product from design we the at harder to reference names, process referencing

we of suggest served us market so do that ways and that is same we’re have base, that standards So customer when looking anything of credit be share exact expanding to well going recently. for we with for the increasing ways we’re our looking

Unidentified Analyst

Thank you.

Operator

concludes question-and-answer to over to Instructions] This Nordholm session. the like I [Operator would turn our for conference any closing remarks. back Brad

Brad Nordholm

Well, thank for very all you call listening this And participating our thank in you, morning. operator. and much

happy that Farmer will for season coming fourth February in reporting wish speaking very XXXX. Thank forward here Thanksgiving a our we think be us all meantime, our all of And holiday I results, the to and at look we quarter in next and Mac, you XXXX up. all. you call,

Operator

conference you presentation. has Thank now attending The today’s for concluded.

You disconnect. may now