MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, recently reported their second quarter financial results for 2019. Average accruing loan volume for the first six months of 2019 was $2.76 billion, an increase of 2.4 percent compared to the same 2018 period. Net income for the quarter was $12.4 million, a 2.8 percent increase compared to the second quarter of 2018. For the first six months of 2019, net income of $25.1 million, a 2.2 percent decrease from the same period in 2018. The difference was a result of higher distributions from the Farm Credit System Insurance Corporation in 2018 compared to 2019. Net interest income for the second quarter was $18.2 million, a 2.7 percent increase from the same time period in 2018.
Nonaccrual loans of $49.6 million at June 30, 2019 were up $6.0 million from December 31, 2018 and up $24.6 million from June 30, 2018. The Association’s nonaccrual loans as a percentage of total loans also increased to 1.75 percent at the end of the second quarter of 2019, compared to 0.91 percent at June 30, 2018. The Association recorded a $2 million provision for loan losses in the first six months of 2019 and 2018. The allowance for loan losses represented 64 percent of nonaccrual loans at June 30, 2019, compared to 112 percent at June 30, 2018.
“As we progress further into the year, we continue to support our members and assist them in strengthening their operations after a rather difficult growing year in 2018,” says Tom Truitt, CEO of MidAtlantic Farm Credit. “Our average accruing loan volume and net income have both increased from the second quarter last year, proving that we remain reliable to farmers and rural land owners by providing dependable financing through the good times and the bad.”
As of June 30, 2019, shareholders’ equity totaled $652.6 million, up 2.8 percent from December 31, 2018, and the Total Capital ratio was 21.71 percent. That number is compared with the 9.875 percent minimum mandated by the Farm Credit Administration (FCA), the lender’s independent regulator. The Association distributed cash patronage to its member-borrowers of $30.6 million in 2019.
For more details regarding MidAtlantic Farm Credit’s financials, please visit mafc.com/about/financials.