MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, recently reported their second quarter financial results for 2016. Average accruing loan volume for the first six months of 2016 was $2.45 billion, an increase of 8.2 percent compared to the same 2015 period. Net income for the quarter was $11.6 million, a 14.3 percent increase compared to the first quarter of 2016. For the first six months of 2016, net income of $21.8 million was up $.2 million from the same period in 2015. Net interest income for the second quarter was $16.5 million, a 2.0 percent increase from the same time period in 2015.
“While we have seen a very strong loan demand over the past year,the competitive environment for quality loan volume has resulted in little net change in our net interest income for the past year,” says John Wheeler, CFO of MidAtlantic Farm Credit.
Nonaccrual loans of $19.7 million at June 30, 2016 were down $5.2 million from December 31, 2015 and down $4.8 million from June 30, 2015. The association’s nonaccrual loans as a percentage of total loans also decreased to 0.8 percent at the end of the second quarter of 2016, compared to 1.1 percent at June 30, 2015. The allowance for loan losses represented 122 percent of nonaccrual loans at June 30, 2016, compared to 103 percent at June 30, 2015.
Thomas Truitt, CEO of MidAtlantic Farm Credit states, “The increased loan volume during the past year of over eight percent, and an increase of over five percent in membership, further illustrates the significant role that Farm Credit fills in providing dependable financing to agriculture in our marketplace. We celebrated our 100th anniversary in July, and it is rewarding to see that Farm Credit is still a vibrant and critical part of our local communities.”
At June 30, 2016, shareholders’ equity totaled $554.8 million, up 2.8 percent from December 31, 2015, and the permanent capital ratio was 20.15 percent. That number is compared with the 7.0 percent minimum mandated by the Farm Credit Administration (FCA), the lender’s independent regulators.