Farmer Mac reported 1Q13 net income of $16.2 million, which is a decline from
The company said since its financial derivatives were not designated in hedge relationships for accounting purposes prior to 3Q12, any changes in the fair value was recorded in earnings without offsetting adjustments on the corresponding hedged items.
During the quarter, the government-sponsored enterprise grew its total outstanding business volume to a new high of $13.4 billion, compared with $13 billion as of Dec. 31, 2012 and $12.1 billion as of March 31, 2012. New business volume for first quarter 2013 was $904.1 million, including the purchase of $425 million in AgVantage securities. It bought $122.2 million of U.S. Department of Agriculture guaranteed securities.
Besides the securities purchases, Farmer Mac bought $159.9 million of newly originated farm and ranch loans. It also added $166.8 million of these loans to its portfolio through long-term standby purchase commitments.
President and chief executive Timothy Buzby said in the company’s press release, "We are optimistic about new business growth opportunities. With prepayments and paydowns expected to slow for the rest of this year consistent with seasonal trends, we expect continued growth in outstanding business volume, which should drive corresponding increases in core earnings. Our confidence in our business and its potential is further reflected in our recent dividend increase."
