MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit System, recently reported their first quarter financial results for 2019. Net income for the quarter was $12.7 million, a 6.6 percent decrease compared to the first quarter of 2018. Net income for the first quarter without Farm Credit System Insurance Corporation’s distributions issued in 2019 and 2018 was $12.1 million, a 7.5 percent increase compared to the first quarter of 2018. Net interest income for the first quarter was $18.3 million, a 4.0 percent increase from the same time period in 2018. Average accruing loan volume for the first three months of 2019 was $2.75 billion, an increase of 2.4 percent compared to the same 2018 period.
“After a rather difficult growing year in 2018, we continue to make communication with our customers our priority, and encourage all to be proactive regarding their operation and its unique needs,” says Tom Truitt, CEO of MidAtlantic Farm Credit. “Our overall portfolio quality remains strong, supporting the significant role that Farm Credit plays in providing dependable and reliable financing to farmers and their families throughout our communities.”
Nonaccrual loans increased $2.5 million in the first quarter of 2019 to $46.0 million, compared to $43.5 million at December 31, 2018 and $25.0 million at March 31, 2018. The association’s nonaccrual loans as a percentage of total loans increased to 1.64 percent at the end of the first quarter of 2019, compared to 1.55 percent at the end of 2018 and 0.92 percent at the end of the first quarter of 2018.
As of March 31, 2019, shareholder’s equity totaled $643.9 million, up 1.4 percent from December 31, 2018, and the total capital ratio was 21.68 percent, compared with the 9.875 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulator. During the first quarter of 2019, the Association distributed cash patronage to its member-borrowers of $30.6 million, evidencing the strong capital position of the Association.
For more details regarding MidAtlantic Farm Credit’s financials, please visit mafc.com/about/financials.