MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, recently reported their first quarter financial results for 2014. Net income for the quarter was $10.6 million, a 5.5 percent increase compared to the first quarter of 2013. Net interest income for the first quarter was $16.9 million, a 2.5 percent increase from the same time period in 2013. Average accruing loan volume for the first three months of 2014 was $2.2 billion, an increase of 4.9 percent compared to the same 2013 period.
“In the first quarter of 2014, a $.1 million provision for loan losses was recorded as compared to $2.0 million in the first quarter of 2013,” said John Wheeler, CFO of MidAtlantic Farm Credit. He also noted that the allowance for loan losses represented over 100 percent of nonaccrual loans at March 31, 2014, compared to 48 percent at March 31, 2013.
Nonaccrual loans decreased to $25.3 million in the first quarter of 2014, compared to $26.7 million at December 31, 2013 and $41.1 million at March 31, 2013. The association’s nonaccrual loans as a percentage of total loans also decreased to 1.1 percent at the end of the first quarter of 2014, compared to 1.2 percent at the end of 2013 and 1.9 percent at March 31, 2013.
Bob Frazee, CEO of MidAtlantic Farm Credit, stated, “Despite the continuing economic challenges in our overall economy, we are particularly pleased that our level of nonaccruing loans has significantly improved to the lowest level since the second quarter of 2008. This directly reflects our borrower’s financial condition and the financial strength of our association.”
At March 31, 2014, shareholder’s equity totaled $494.6 million, up 1.1 percent from December 31, 2013, and the permanent capital ratio was 20.53 percent, compared with the 7.0 percent minimum mandated by the Farm Credit Administration (FCA).