Our non-accural loans as a percentage of the total portfolio have been reduced to the lowest level since the end of the second quarter of 2009, and this positive trend is continuing into the second quarter, says CFO John Wheeler.
Westminster, Maryland (PRWEB) May 31, 2013
MidAtlantic Farm Credit, a member-owned cooperative and lending institution of the nationwide Farm Credit System, recently announced their financial results for the first quarter of 2013.
Net income for the first quarter of 2013 was $10.023 million, compared to $10.735 million for the same period in 2012. Average accruing loan volume for the first three months was $2.112 billion, compared to $2.120 billion for the same period in 2012.
The lender's portfolio continues to show a positive trend in credit quality as members in MidAtlantic's five-state territory have been cautious about incurring more debt. Non-accrual loans decreased to $41.1 million at March 31, 2013, compared to $44.7 million at December 31, 2012 and $64.4 million at March 31, 2012. The Association's non-accrual loans as a percentage of total loans also decreased to 1.93 percent at the end of the quarter, compared to 2.09 percent at the end of 2012 and 3.00 percent at March 31, 2012.
"Our non-accural loans as a percent of the total portfolio have been reduced to the lowest level since the end of the second quarter of 2009," says John Wheeler, CFO of MidAtlantic Farm Credit, "and this positive trend is continuing into the second quarter."
During the first quarter of 2013, the Association recorded a provision for loan losses of $2.0 million, compared to $1.8 million in the first quarter of 2012.
MidAtlantic's captial ratios remain well in excess of regulatory minimums. At March 31, 2013, shareholder's equity totaled $458.1 million, and the permanent capital ratio was 19.49 percent, compared with the 7.00 percent minimum mandated by the Farm Credit Administration (FCA).
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 $2.1 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.