Farm bank shows gains

August 21, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

The Farm Credit Bank of Baltimore and its district associations yesterday reported strong second-quarter gains.

The cooperative banking system is Maryland's largest agriculture lender. It said net income rose 69 percent during the quarter ended June 30, to $9.1 million from $5.4 million in the same period last year.

President Gene L. Swackerhamer attributed the gain to higher net interest income and a sharp decline (84.6 percent) in money set aside to cover loan losses. The bank said earnings for the first six months in 1993 rose 62 percent, to $22.9 million, from $14.1 million a year ago.

Net income for the first half benefited from a one-time accounting change in the first quarter that brought $7.2 million in profits.

A bank spokesman said any impact of this summer's drought, which has damaged crops on the Eastern Shore and southern Maryland, would not likely show up until the fourth quarter or early next year, as farmers sell their crops and production loans come due.

The Farm Credit System, the national banking unit that includes the Baltimore bank, reported second- quarter net income of $288 million, compared to $201 million in the same period last year. For the six months, net income was $686 million, compared to $444 million a year ago.

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