Annual Report - CoBank

Note 3 – Loans, Loan Quality andReserve for Credit ExposureLoans OutstandingLoans outstanding by operating segment are shown below.($ in Millions)December 31,2011 2010 2009Amount % Amount %AmountAgribusiness $ 18,86941 % $ 22,67645 % $ 17,46939 %Strategic Relationships 15,236 33 15,392 31 15,271 35Rural Infrastructure 12,180 26 11,924 24 11,434 26Total $ 46,285100 % $ 49,992100 % $ 44,174100 %Loans Purchased $ 8,600$ 8,403$ 8,650Loans Sold 8,617 8,291 6,859%Loans are outstanding in all 50 states as well as 31 foreigncountries and a limited number of U.S. territories.Our agricultural export finance loan portfolio, included in ourAgribusiness operating segment, reflects significantconcentration in U.S. government-sponsored trade financingprograms which guarantee payment in the event of default bythe borrower of generally 98 percent of loan principaloutstanding and varying percentages of interest due. Of the$3.8 billion in agricultural export finance loans outstanding asof December 31, 2011, 76 percent were guaranteed by theU.S. government under one of these trade financing programs,primarily the General Sales Manager program of the U.S.Department of Agriculture’s Commodity Credit Corporation.We make loans to customers in various industries.Industries that represent 10 percent or more of total loansoutstanding for any of the periods presented below are asfollows:Loans to our affiliated Associations represented24 percent, 23 percent, and 25 percent of total loansoutstanding at December 31, 2011, 2010 and 2009,respectively. As of December 31, 2011, our four affiliatedAssociations provided financing and other financial services toapproximately 28,000 farmer-owners for rural real estate,equipment, working capital, agricultural production andoperating purposes in geographic regions in the northwesternand northeastern United States. Participations in loans madeby other System banks to their affiliated Associationsrepresented 9 percent, 8 percent, and 9 percent of our totalloans outstanding at December 31, 2011, 2010 and 2009,respectively.Unamortized loan premiums and discounts, andunamortized deferred loan fees and costs totaled$70.0 million, $69.0 million and $70.7 million as ofDecember 31, 2011, 2010 and 2009, respectively.December 31,2011 2010 2009Farm Supply and Grain Marketing 16 % 22 % 14 %Electric Distribution 11 10 10CoBank 2011 Annual Report73