Horizon Farm Credit Announces 2022 Second Quarter Financial Results
Horizon Farm Credit has announced the 2022 second quarter financial results from its two legacy Associations, AgChoice Farm Credit and MidAtlantic Farm Credit. The two Associations merged on July 1, 2022, at the conclusion of the second quarter, forming Horizon Farm Credit.
“AgChoice Farm Credit and MidAtlantic Farm Credit had strong second quarter financials, resulting in the start of a consistent, reliable new cooperative this July as Horizon Farm Credit,” says Tom Truitt, Horizon Farm Credit CEO. “Both legacy Associations saw increases in net accruing loan volume and net interest for the first half of 2022, proving the strength of the agricultural industry and our cooperative despite the economic challenges we all continue to face.”
AgChoice Farm Credit’s net accruing loan volume for the first six months of 2022 was $2.7 billion, an increase of 12.8 percent compared to the same 2021 period. Net interest income for the second quarter of 2022 was $16.3 million, an 8.8 percent increase from the same time period in 2021. Net income for the quarter was $4.4 million, a 66.8 percent decrease compared to the second quarter of 2021, principally related to a donation of $3 million to the Farm Credit Foundation for Agricultural Advancement in 2022, as well as one-time merger related costs.
Nonaccrual loans decreased $1.2 million in the second quarter of 2022 to $5 million, compared to $6.2 million at December 31, 2021 and $7.6 million at June 30, 2021. The association’s nonaccrual loans as a percentage of total loans decreased to 0.18 percent at the end of the second quarter of 2022, compared to 0.24 percent at the end of 2021 and 0.31 percent at the end of the second quarter of 2021.
Members’ equity at June 30, 2022 totaled $477.5 million, up 1.1 percent from December 31, 2021, and the Total Capital Ratio was 16.03 percent. That number is compared with the 10.5 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulator. The Association paid a record-breaking cash patronage distribution of $50.2 million to its member-borrowers in March 2022.
MidAtlantic Farm Credit’s net accruing loan volume for the first six months of 2022 was $3.1 billion, an increase of 7.1 percent compared to the same 2021 period. Net interest income for the second quarter of 2022 was $19.6 million, a 3.6 percent increase from the same time period in 2021. Net income for the quarter was $11.9 million, a 10.2 percent decrease compared to the second quarter of 2021, principally related to the Paycheck Protection Program (PPP) loan fees received in 2021, as well as one-time merger related costs.
Nonaccrual loans decreased $2.1 million in the second quarter of 2022 to $35.5 million, compared to $37.6 million at December 31, 2021 and $40.1 million at June 30, 2021. The association’s nonaccrual loans as a percentage of total loans decreased to 1.14 percent at the end of the second quarter of 2022, compared to 1.24 percent at the end of 2021 and 1.36 percent at the end of the second quarter of 2021.
Members’ equity at June 30, 2022 totaled $672.0 million, up 0.10 percent from December 31, 2021, and the Total Capital Ratio was 20.55 percent. That number is compared with the 10.5 percent minimum mandated by the Farm Credit Administration (FCA), the Association’s independent regulator. The Association paid a record-breaking cash patronage distribution of $83.9 million to its member-borrowers in March 2022.
For more information about the financial results and Horizon Farm Credit, visit horizonfc.com.