MECHANICSBURG, Pa. — Horizon Farm Credit has announced 2023 first quarter financial results. Net accruing loan volume for the first three months of 2023 was $6.2 billion, an increase of 109.0 percent compared to the same 2022 period. Net interest income for the first quarter of 2023 was $45.2 million, a 134.9 percent increase from the same time period in 2022. Net income for the quarter was $34.2 million, a 100.2 percent increase compared to the first quarter of 2022. The favorable impact of 2023 first quarter results is principally related to the merger between AgChoice Farm Credit and MidAtlantic Farm Credit to form Horizon Farm Credit, effective July 1, 2022.
Nonaccrual loans increased $1.6 million in the first quarter of 2023 to $34.1 million, compared to $32.5 million at December 31, 2022, and decreased $2.9 million compared to $37.0 million at March 31, 2022. The association’s nonaccrual loans as a percentage of total loans remained at 0.54 percent at the end of the first quarter of 2023 compared to the end of 2022, and 1.2 percent at the end of the first quarter of 2022.
Members’ equity at March 31, 2023 totaled $1.2 billion, up 1.7 percent from December 31, 2022, and the Total Capital Ratio was 16.63 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 cash patronage distribution of $91 million to its member-borrowers in the first quarter of 2023.
“The first quarter of 2023 indicates solid positioning for both our Association and the agricultural industry, as a whole,” said Tom Truitt, Horizon Farm Credit’s Chief Executive Officer. “These results, especially the increases in loan volume, net income, and total capital ratio, underscore the highly positive financial impact of last year’s merger and ensure that our cooperative is well equipped to serve the needs of our members now and in the future.”
For more information about the financial results and Horizon Farm Credit, visit horizonfc.com.
About Horizon Farm Credit
Horizon Farm Credit is a member-owned agricultural lending cooperative, providing short-, intermediate- and long-term financing and related services to full- and part-time farmers, agricultural-related businesses and rural landowners. It serves Delaware, Pennsylvania, and parts of Maryland, Virginia, and West Virginia. The Association has more than 22,100 members and over $6.2 billion in loans outstanding. Learn more at horizonfc.com.
–Jenny Kreisher, Horizon Farm Credit