The late spring in our market area has delayed crop and vegetable planting, delaying the normal operating line draws by our borrowers,” commented John Wheeler, CFO of MidAtlantic Farm Credit.
WESTIMINISTER, Md. (PRWEB) May 22, 2018
MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit System, recently reported their first quarter financial results for 2018. Net income for the quarter was $13.6 million, a 15.0 percent increase compared to the first quarter of 2017. Net interest income for the first quarter was $17.6 million, a 0.51 percent decrease from the same time period in 2017. Average accruing loan volume for the first three months of 2018 was $2.69 billion, an increase of 3.1 percent compared to the same 2017 period. Outstanding accruing loans at the end of the first quarter of 2018 were flat as compared to year end 2017.
“The late spring in our market area has delayed crop and vegetable planting, delaying the normal operating line draws by our borrowers,” commented John Wheeler, CFO of MidAtlantic Farm Credit.
Tom Truitt, CEO of MidAtlantic Farm Credit, stated, “While the credit quality of our portfolio has remained strong, current trade discussions and the pending Farm Bill are creating some concern within the industry. As a result, many farmers are being more cautious when it comes to enhancing or expanding their operations.”
Nonaccrual loans increased $2.2 million in the first quarter of 2018 to $25.0 million, compared to $22.8 million at December 31, 2017 and $19.9 million at March 31, 2017. The association’s nonaccrual loans as a percentage of total loans increased to 0.92 percent at the end of the first quarter of 2018, compared to 0.84 percent at the end of 2017 and 0.75 percent at the end of the first quarter of 2017.
As of March 31, 2018, shareholder’s equity totaled $618.0 million, up 1.8 percent from December 31, 2017, and the total capital ratio was 21.24 percent, compared with the 9.25 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulators. During the first quarter of 2018, the Association distributed cash patronage to its member-borrowers of $28.8 million evidencing the strong capital position of the Association.
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 11,000 members and approximately $2.7 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.