Annual Report 2015 | Page 9

LOAN PORTFOLIO Loan Portfolio Total loans were $3.5 billion at December 31, 2015, an increase of $241.0 million from December 31, 2014. Components of Loans (in thousands) As of December 31 Accrual loans: Real estate mortgage Production and intermediate term Agribusiness Other Nonaccrual loans Total loans 2015 2014 2013 $1,923,999 774,342 572,932 172,103 9,065 $1,758,386 767,791 528,292 143,245 13,693 $1,698,730 736,787 522,813 76,501 15,220 $3,452,441 $3,211,407 $3,050,051 The other category is primarily comprised of communication, energy, and other diversified industries in our capital markets portfolio. The increase in total loans from December 31, 2014 resulted primarily from continued demand for productive crop land in our territory along with growth in our capital markets portfolio. We offer variable, fixed, capped, indexed, and adjustable interest rate loan programs to our borrowers. We also offer leases through Farm Credit Leasing. We determine interest margins charged on each lending program based on cost of funds, credit risk, market conditions, and the need to generate sufficient earnings. As part of the AgriBank Asset Pool program, we have sold participation interests in real estate loans to AgriBank. The total participation interests in this program were $170.5 million, $197.3 million, and $228.6 million at December 31, 2015, 2014, and 2013, respectively. Portfolio Distribution We are chartered to serve 102 counties in Missouri. Approximately 87.6% of our total loan portfolio was in H