MidAtlantic Farm Credit, a members-owned cooperative and an institution of the national Farm Credit system, reported its second quarter financial results for 2018. Average accruing loan volume for the first six months of 2018 was $2.70 billion, an increase of 3.05 percent compared to the same 2017 period. Net income for the quarter was $12.0 million, a 3.16 percent increase compared to the second quarter of 2017. For the first six months of 2018, net income of $25.6 million was up $2.1 million, a 9.12 percent increase from the same period in 2017. Net interest income for the second quarter was $17.7 million, a 4.7 percent increase from the same time period in 2017.
Nonaccrual loans of $25.0 million at June 30, 2018, were up $2.1 million from Dec. 31, 2017, and up $4.6 million from June 30, 2017. The Association's nonaccrual loans as a percentage of total loans also increased to 0.91 percent at the end of the second quarter of 2018, compared to 0.77 percent at June 30, 2017. The Association recorded a $2 million provision for loan losses in the first six months of 2018, compared to $1 million recorded in the same 2017 period. The allowance for loan losses represented 112 percent of nonaccrual loans at June 30, 2018, compared to 123 percent at June 30, 2017.
At June 30, 2018, shareholders' equity totaled $625.4 million, up 2.97 percent from Dec. 31, 2017, and the Total Capital ratio was 21.43 percent. That number is compared with the 8.0 percent minimum mandated by the Farm Credit Administration, the lender's independent regulator.
MidAtlantic Farm Credit provides farm loans for land, equipment, livestock and production; crop insurance; and rural home mortgages. Headquartered in Westminster, the co-op has branches serving Delaware, Maryland, Pennsylvania, Virginia and West Virginia.