MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit System, recently reported their first quarter financial results for 2016. Net income for the quarter was $10.2 million, a 5.7 percent decrease compared to the first quarter of 2015. Net interest income for the first quarter was $16.3 million, a 2.0 percent decrease from the same time period in 2015. Average accruing loan volume for the first three months of 2016 was $2.4 billion, an increase of 7.7 percent compared to the same 2015 period.
“We have seen steady loan growth in all segments of our portfolio,” says John Wheeler, CFO of MidAtlantic Farm Credit. He notes that over the same period, credit quality has continued to improve such that Acceptable Loans are almost 98 percent of loans outstanding.
Tom Truitt, CEO of MidAtlantic Farm Credit states, “As the Farm Credit System celebrates its centennial, we are proud to be serving the financing needs of over 11,000 member-borrowers in our service area. Agriculture is a volatile business, and there is a lot of volatility in the financing community as well, particularly as local banks merge and agriculture is no longer their primary focus. Many of the members that we’re adding are looking for a stable provider of credit, a lender that will serve agriculture no matter what the local markets are doing.”
Nonaccrual loans decreased $1.9 million in the first quarter of 2016 to $23.0 million, compared to $24.9 million at December 31, 2015 and $25.7 million at March 31, 2015. The association’s nonaccrual loans as a percentage of total loans decreased to 0.9 percent at the end of the first quarter of 2016, compared to 1.0 percent at the end of 2015 and 1.1 percent at the end of the first quarter of 2015.
At March 31, 2016, shareholder’s equity totaled $546.8 million, up 1.3 percent from December 31, 2015, and the permanent capital ratio was 20.36 percent, compared with the 7.0 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulators.