Farmer Mac had net income of $18 million in the first quarter, enhanced by a $9 million gain in the fair value of financial derivatives. The government-sponsored enterprise also saw increased net interest income because of an increase in business volume and releases from its allowance for loan losses.
In the first quarter 2010, net income was below $2 million.
New program business volume was $964 million, led by the purchase of a $500 million Farmer Mac I AgVantage bond issued by MetLife, said president and CEO Michael Gerber. Farmer Mac I loan purchases increased 172% over the same period last year to $212 million, while Farmer Mac II purchases increased by 26%, including $117 million of USDA-guaranteed loans.
Guarantee and commitment fees totaled $6.4 million for the first quarter, up from $5.9 million in 2010's first quarter.
Typically Farmer Mac 90-day delinquencies are highest at the end of the first and third quarters of a fiscal year when compared with the quarter immediately before due to the annual and semiannual payments due on most Farmer Mac I loans. But the GSE said that 90-day delinquencies improved to $57 million or 1.33% of the portfolio as of March 31, compared with $70 million or 1.63% as of Dec. 31, 2010.
