MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, recently reported their third quarter financial results for 2020. Accruing loan volume for the first nine months of 2020 was $2.79 billion, an increase of 1.18 percent compared to the same 2019 period.
“Servicing and supporting our members has continued to be the highest priority of our Association into the third quarter of this unprecedented year,” says Tom Truitt, CEO of MidAtlantic Farm Credit. “We are confident that through our Member Assistance Program, our Patronage program, and other unique services like our loan deferral program, our borrowers will remain resilient through these tough times.”
Net interest income for the third quarter was $17.0 million, an 8.09 percent decrease from the same period of 2019. For the first nine months of 2020, net interest income of $53.2 million, a 3.21 percent decrease from the same period of 2019. Net income for the quarter was $11.8 million, a 9.27 percent decrease compared to the third quarter of 2019. For the first nine months of 2020, net income of $36.7 million, a 3.71 percent decrease from the same period in 2019. The decrease is principally a result of the impact of a loan deferral program in response to the COVID-19 epidemic.
Nonaccrual loans of $52.7 million at September 30, 2020 were up $6.4 million from December 31, 2019, and up $1.8 million from September 30, 2019. The Association’s nonaccrual loans as a percentage of total loans also increased to 1.83 percent at the end of the third quarter of 2020, compared to 1.79 percent at September 30, 2019. The Association recorded a $4 million provision for loan losses in the first nine months of 2020, compared to a $3 million provision for loan losses in the first nine months of 2019. The allowance for loan losses represented 68.71 percent of nonaccrual loans at September 30, 2020, compared to 64.71 percent at September 30, 2019.
Members’ equity at September 30, 2020 totaled $671.0 million, up 1.44 percent from December 31, 2019, and the Total Capital Ratio was 21.85 percent. That number is compared with the 10.5 percent minimum, including the capital conservation buffer, mandated by the Farm Credit Administration (FCA), the lender’s independent regulator. The Association distributed cash patronage to its member-borrowers of $42.5 million in 2020.
For more information about our financials, visit mafc.com/about/financials.