"We are proud of the fact that farmers are doing well in our region and that they are able to pay down their debt," says Bob Frazee, CEO of MidAtlantic Farm Credit.
Westminster, MD (PRWEB) August 16, 2012
Net income for the second quarter and first half of 2012 was $15.8 million and $26.5 million, compared with $10.3 million and $21.1 million, respectively, for the same periods in 2011. Average loan volume for the first half was $2.185 billion, compared to $2.301 billion for the same period in 2011.
"While it's always tempting to want more growth," says Bob Frazee, CEO of MidAtlantic Farm Credit, "we are proud of the fact that farmers are doing well in our region and that they are able to pay down their debt. We know that farming is cyclical, and it is a good sign that our borrowers are taking advantage of the trend of higher commodity prices, and preparing for the next down cycle."
Members have been cautious about incurring more debt in MidAtlantic’s five-state territory; the lender’s portfolio has been showing a positive trend in credit quality. Nonaccrual loans decreased to $62.3 million at June 30, 2012, compared to $69.6 million at December 31, 2011 and $95.9 million at June 30, 2011. The Association’s nonaccrual loans as a percentage of total loans also decreased to 2.89 percent at the end of the quarter, compared to 3.21 percent at the end of 2011.
During the second quarter of 2012, the Association recorded a provision for loan losses of $1.75 million, compared to $4.0 million in the second quarter of 2011. For the first half of 2012, the provision for loan losses with was $3.5 million, compared to $6.0 million in the first half of 2011.
MidAtlantic’s capital ratios remain well in excess of regulatory minimums. At June 30, 2012, shareholder’s equity totaled $440.2 million, and the permanent capital ratio was 17.64 percent, compared with the 7.00 percent minimum mandated by the Farm Credit Administration (FCA).
Results for the second quarter of 2012 included a $3.8 million distribution from the Farm Credit System Insurance Corporation, which insures the System’s debt obligations.
About MidAtlantic Farm Credit
MidAtlantic Farm Credit is an agricultural lending cooperative owned by its member‐borrowers. It provides farm loans for land, equipment, livestock and production; crop insurance; and rural home mortgages. The co‐op has over 10,500 members and approximately $2.3 billion in loans outstanding. MidAtlantic has branches serving Delaware, Maryland, Pennsylvania, Virginia and West Virginia. It is part of the national Farm Credit System, a network of financial cooperatives established in 1916 to provide a dependable source of credit to farmers and rural America.