The American Bankers Association (ABA) posts a quarterly report of the 100 largest Ag Banks (Non-Farm Credit). In the first quarter report for this year, the #1 bank for Ag loans was Wells Fargo with $7.229 billion of farmland ($2.231 billion and $4.998 billion of other ag loans). #2 was Rabobank with $3.957 billion followed by Bank of the West ($3.342 billion), Bank of America ($2.471 billion) and First National Bank of Omaha ($2.050 billion) to round out the top 5 banks.
There are currently 11 banks with more than $1 billion in Ag loans with Bremer Bank based in Minnesota at $1.005 billion being #11. John Deere Financial is # 8 on the list with $1.497 billion of machinery loans and about 77% of its assets are composed of farm loans which is the highest percentage in the Top 50, tied with First Financial Bank of El Dorado, Arkansas. In recent years, having a large concentration in Ag Loans has been a good thing. Over the next five years, maybe not so good. You can understand a bank like John Deere Financial having a large concentration of Ag loans, but a smaller bank like First Financial may face greater regulatory scrutiny.
Banks in the Top 100 banks with exposure greater than 60% that have not yet been mentioned are:
#15 United Bank of Iowa, Ida Grove, Iowa - 76%
#21 American State Bank, Sioux Center, Iowa - 63%
#38 Investors Community Bank, Manitowoc, Wisconsin - 63%
#50 Carroll County State Bank, Carroll, Iowa - 61%
#64 Peoples Bank, Rock Valley, Iowa - 68%
#74 American Bank and Trust, Wessington Springs, South Dakota - 61%
#89 First State Bank of North Dakota, Arthur, North Dakota - 74%
#96 Premier Bank, Rock Valley, Iowa - 70%
#97 Security Savings Bank, Canton, SD - 73%
#99 The Farmers Bank of Prophetstown, Prophetstown, Illinois - 74%
Three of these banks are located in Northwest Iowa and two in the same town of Rock Valley, Iowa (which I drove through a week ago Saturday along with Sioux Center). This is the part of Iowa that has seen farm land prices in excess of $20,000. If you want to see a list of the top 100 Ag banks by loan concentration, see the list here.