Westminster, MD (PRWEB) April 01, 2014
MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit System, recently reported their fourth quarter financial results for 2013. Net income for the quarter was $35.9 million, a 16.9 percent increase compared to the fourth quarter of 2012. Net interest income for the fourth quarter was $17.3 million, a 1.3 percent increase from the same time period in 2012. For the twelve months of 2013, net income was $68.0 million compared to $51.7 million for the same period in 2012. Average accruing loan volume for the twelve months of 2013 was $2.2 billion, an increase of 0.6 percent compared to 2012.
“In the fourth quarter of 2013, we received a special patronage distribution of $23.1 million which was $19.6 million greater than that received in the fourth quarter of 2012,”said John Wheeler, CFO of MidAtlantic Farm Credit. In addition, he also noted that with the improved credit quality of the loan portfolio, no provision for loan losses was required in the fourth quarter of 2013, while a $3.5 million provision was recorded in the same 2012 period.
Nonaccrual loans decreased to $26.7 million in the fourth quarter of 2013, compared to $44.7 million at December 31, 2012 and $69.6 million at December 31, 2011. The Association’s nonaccrual loans as a percentage of total loans also decreased to 1.2 percent at the end of the year, compared to 2.1 percent at the end of 2012 and 3.2 percent at December 31, 2011.
Bob Frazee, CEO of MidAtlantic Farm Credit, stated, “Despite the lingering economic challenges in our overall economy, we are particularly pleased that the credit quality of our portfolio has significantly improved. This directly reflects in our borrower’s financial condition. As a result of these improvements, we have been able to make record cash dividend payments to our members.”
At December 31, 2013, shareholder’s equity totaled $489.3 million, up 8.5 percent from December 31, 2012, and the permanent capital ratio was 20.21 percent, compared with the 7.0 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 $2.2 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.