Westminster, Maryland (PRWEB) November 15, 2012
Net income for the third quarter and first nine months of 2012 was $11.8 million and $38.3 million, compared with $8.8 million and $30.0 million, respectively, for the same periods in 2011. Average loan volume for the first nine months was $2.179 billion, compared to $2.228 billion for the same period in 2011.
“This quarter’s results show a continuing trend of our borrowers paying down their debt," says Bob Frazee, CEO of MidAtlantic Farm Credit, “and we are happy to see that. We want our marketplace to be a healthy one.”
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 $49.0 million at September 30, 2012, compared to $69.6 million at December 31, 2011 and $87.7 million at September 30, 2011. The Association’s non-accrual loans as a percentage of total loans also decreased to 2.27 percent at the end of the quarter, compared to 3.21 percent at the end of 2011 and 3.99 percent at September 30, 2011.
During the third quarter of 2012, the Association recorded a provision for loan losses of $2.0 million, compared to $6.0 million in the third quarter of 2011. For the first nine months of 2012, the provision for loan losses was $5.5 million, compared to $12.0 million in the first nine months of 2011.
MidAtlantic’s capital ratios remain well in excess of regulatory minimums. At September 30, 2012, shareholder’s equity totaled $448.5 million, and the permanent capital ratio was 18.05 percent, compared with the 7.00 percent minimum mandated by the Farm Credit Administration (FCA).
Results for the first nine months 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.