MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, recently reported their third quarter financial results for 2015. Net income for the quarter of $11.3 million was down $1.0 million from the $12.3 million for the same quarter of 2014. For the first nine months of 2015, net income decreased 5.6 percent to $32.9 million. This decrease in profitability is largely due to a decrease in Net interest income attributable to increased competition in the Association’s marketplace. Net interest income for the third quarter of $16.1 million a 4.4 percent increase compared to the same time period in 2014. Average accruing loan volume for the first nine months of 2015 was $2.29 billion, an increase of 4.0 percent compared to the same 2014 period.
“The allowance for loan losses represented over 94 percent of nonaccrual loans at September 30, 2015, compared to 92 percent at September 30, 2014,” said John Wheeler, CFO of MidAtlantic Farm Credit. “That is a sign of both our strong reserve, as well as the continuing strength of the agricultural sector in our territory.”
Nonaccrual loans of $26.7 million at September 30, 2015 were up $1.7 from December 31, 2014 but down $0.5 million from September 30, 2015. The Association’s nonaccrual loans as a percentage of total loans also decreased to 1.1 percent at the end of the third quarter of 2015, compared to 1.2 percent at September 30, 2014.
Bob Frazee, CEO of MidAtlantic Farm Credit, stated, “Our performance is continuing on a strong and positive trajectory. Earnings were $32.9 million and credit quality continues to improve and loans are growing. Our volume is increasing as accruing loans are up over 5.7 percent from the same time last year.”
At September 30, 2015, shareholders equity totaled $541.8 million, up 4.6 percent from December 31, 2014. The permanent capital ratio was 20.70 percent, compared with the seven percent minimum mandated by the Farm Credit Administration (FCA).
Subsequent to the end of the quarter, the Association was advised that it would receive a special distribution of approximately $12 million dollars which will be reflected in fourth quarter income.
You can find the full report here along with financial reports back to 2010.