Annual Report - CoBank

Consolidated Income StatementsCoBank, ACB($ in Thousands)Year Ended December 31, 2011 2010 2009Interest IncomeLoans $ 1,518,073 $ 1,408,565 $1,446,663Investment Securities 271,074 257,740 329,344Total Interest Income 1,789,147 1,666,305 1,776,007Interest Expense 718,120 715,460 830,044Net Interest Income 1,071,027 950,845 945,963Provision for Loan Losses 58,000 60,000 80,000Net Interest Income After Provision for Loan Losses 1,013,027 890,845 865,963Noninterest Income/ ExpenseNet Fee Income 117,741 102,620 89,947Prepayment Income 24,691 18,820 13,745Losses on Early Extinguishments of Debt (50,421) (26,537) (18,234)Total Other-Than-Temporary Impairment Losses (8,756) (49,851) (48,036)Portion of Loss Recognized in Other Comprehensive Income/Loss (1,244) 5,851 33,036Net Other-Than-Temporary Impairment Losses Included in Earnings (10,000) (44,000) (15,000)Other, Net 35,925 47,656 14,503Total Noninterest Income 117,936 98,559 84,961Operating ExpensesEmployee Compensation 117,531 98,971 101,868Insurance Fund Premium 20,245 13,281 53,968Information Services 18,846 16,115 16,387General and Administrative 25,415 42,789 17,093Purchased Services 18,958 20,559 7,578Occupancy and Equipment 7,404 6,479 6,806Travel and Entertainment 12,425 10,922 8,895Farm Credit System Related 7,446 7,094 6,636Total Operating Expenses 228,270 216,210 219,231Income Before Income Taxes 902,693 773,194 731,693Provision for Income Taxes 196,106 159,427 166,277Net Income $ 706,587 $ 613,767 $565,416The accompanying notes are an integral part of the consolidated financial statements.CoBank 2011 Annual Report64