2021 Second Quarter Financial Results - MAFC
MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, recently reported their second quarter financial results for 2021. Accruing loan volume for the first six months of 2021 was $2.86 billion, an increase of 2.8 percent compared to the same 2020 period.
“As things picked back up during the second quarter of this year, we remained dedicated to our members and supporting their continuing growth,” says Tom Truitt, Chief Executive Officer of MidAtlantic Farm Credit. “The increases in our financial results compared to last year prove the strength of the agriculture industry and the resilience of our members.”
Net income for the second quarter was $13.3 million, an 11.9 percent increase compared to the second quarter of 2020. For the first six months of 2021, net income of $25.4 million, a 2.3 percent increase from the same period in 2020. Net interest income for the second quarter was $18.9 million, a 9.3 percent increase from the same time period in 2020.
Nonaccrual loans of $40.1 million at June 30, 2021 were down $3.5 million from December 31, 2020 and down $12.7 million from June 30, 2020. The Association’s nonaccrual loans as a percentage of total loans decreased to 1.36 percent at the end of the second quarter of 2021, compared to 1.84 percent at June 30, 2020. No provision for loan losses was recorded in the first six months of 2021, compared to a $3 million provision for loan losses in the first six months of 2020. The allowance for loan losses represented 91 percent of nonaccrual loans at June 30, 2021, compared to 67 percent at June 30, 2020.
Members’ equity at June 30, 2021 totaled $673 million, up 1.1 percent from December 31, 2020, and the Total Capital ratio was 21.84 percent. That number is compared with the 10.5 percent minimum, including the capital conservation buffer, mandated by the Farm Credit Administration (FCA), the lender’s independent regulator. The Association paid a record-breaking cash patronage distribution of $54.5 million to its member-borrowers in March 2021.