Farmer Mac said it earned $22 million in 1Q12, an increase of nearly $4 million from the $18 million earned one year prior, in large part due to higher net interest income.
Net interest income totaled $34 million, up from $27 million one year prior. Farmer Mac made a $500,000 provision for the most recent period, while one year prior it was able to release $700,000 from its allowance for loan losses.
Also helping 1Q12 earnings was $10.2 million of unrealized gains on financial derivatives, compared with a $9 million gain one year prior.
In 1Q12, Farmer Mac added $616 million to its portfolio. This breaks down as $111 million in purchases of newly originated Farmer Mac I loans, adding another $180 million of Farmer Mac I loans under long-term standby purchases commitments, buying $200 million of Farmer Mac I AgVantage securities, and purchasing $24 million of loans in the Rural Utilities program and purchasing $102 million of Farmer Mac II USDA-guaranteed portions of securities.
Farmer Mac I delinquencies increased to $53 million from $41 million at the end of 4Q11, which the agency attributes to typical seasonality. For 1Q11, Farmer Mac reported $57 million of delinquencies.