MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit System, recently reported their third quarter financial results for 2013. Net income for the quarter was $10.0 million, a 15.6 percent decrease compared to the third quarter of 2012. Net interest income for the third quarter was $16.9 million, a 0.9 percent decrease from the same time period in 2012. For the first nine months of 2013, net income was $32.1 million compared to $38.3 million for the same period in 2012. Average accruing loan volume for the first nine months of 2013 was $2.137 billion, compared to $2.122 billion for the same period in 2012.
“In the third quarter of 2013, our noninterest income was down over $.7 million and noninterest expenses were up by a similar amount, which accounts for most of the difference in our net income for 2013 as compared to 2012. During the first nine months, 2012 included receipt of a one-time refund from our insurance carrier of $3.8 million and in 2013 our insurance expenses increased $.6 million,” said John Wheeler, CFO of MidAtlantic Farm Credit. He also noted that subsequent to the end of the third quarter, the Association was advised that it would receive a special patronage distribution of approximately $23 million which will be recorded to net income in the fourth quarter of 2013 and received in early 2014.
Nonaccrual loans decreased to $28.8 million in the third quarter of 2013, compared to $44.7 million at December 31, 2012 and $49.0 million at September 30, 2012. The Association’s nonaccrual loans as a percentage of total loans also decreased to 1.33 percent at the end of the quarter, compared to 2.09 percent at the end of 2012 and 2.27 percent at September 30, 2012. Both credit administration and the overall credit quality of the Association’s portfolio remains satisfactory.
The Association recorded a provision for loan losses and commitments of $2 million in the third quarters of 2013 and 2012. MidAtlantic Farm Credit’s capital ratios remain well in excess of regulatory minimums.
At September 30, 2013, shareholder’s equity totaled $475.1 million, and the permanent capital ratio was 19.71 percent, compared with the 7.00 percent minimum mandated by the Farm Credit Administration (FCA).
About MidAtlantic Farm Credit MidAtlantic Farm Credit is an agricultural lending cooperative owned by its member-borrowers. It provides farm loans for land, equipment, livestock and production; crop insurance; and rural home mortgages. The co-op has over 10,500 members and approximately $2.161 billion in loans outstanding. MidAtlantic has branches serving Delaware, Maryland, Pennsylvania, Virginia and West Virginia. It is part of the national Farm Credit System, a network of financial cooperatives established in 1916 to provide a dependable source of credit to farmers and rural America.