WILLISTON, Vt. — Yankee Farm Credit, a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire, today announced full-year financial results for 2018. Full-year earnings were up from the previous year, and net interest income increased over the prior year while loan quality remained at acceptable levels. A patronage refund of $6.101 million will be distributed to members in April 2019, this is in addition to the $1.848 million distributed to members in October 2018, for a total of $7.949 million in patronage refunds related to 2018 operations. Following these distribution, Yankee’s overall level of capital remains strong. Additionally, on January 1, 2018, Yankee completed their conversion to a new information technology platform and has been successfully using the new tools to make new features available to members.
2018 Financial Results
For the full year of 2018, net income for Yankee was $13.145 million, an increase of $3.2 million over 2017. Factors driving the increase were an increase in net interest income of $1.7 million, increase in patronage income from other Farm Credit institutions of $811 thousand and an increase of noninterest income of $543 thousand. These increases to net income were additionally helped by a reduction in noninterest expense of $161 thousand.
Year-end loan volume at December 31, 2018 was $523.7 million, up 2.3 percent from the prior year. While the portfolio continues to be highly concentrated in the dairy industry we are adding diversity through a focus on lending into other agricultural sectors through both originated loans and loan purchases outside our territory. Dairy was 49 percent of loan volume at year end, the second largest concentration is timber, with 12 percent of the loan volume at year end, with the third largest concentration being maple, with 11 percent of loan volume at year end.
Credit quality across Yankee’s portfolio deteriorated slightly during 2018 but was well within the risk-bearing capacity of the Association. At year-end 1.05 percent of the Association loans were classified as nonperforming, compared to 0.89 percent at the end of 2017. The Association’s capital position remains strong.
The Board of Directors approved two patronage refunds during the year to members in the amount $7.949 million for 2018, to be paid 100% in cash, $1.848 million of that was paid in October 2018. The December 2018 declared patronage payments will be made on or about April 5, 2019. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
Yankee Farm Credit is a member-owned cooperative which provides loans and financial services to farmers and other rural customers. Yankee is an agricultural credit association (ACA) within the national Farm Credit System. Yankee serves all of Vermont, four counties in New Hampshire (Cheshire, Coos, Grafton and Sullivan) and two counties in New York (Clinton and Essex).
For more information about Yankee visit the Association’s website at www.yankeefarmcredit.com. The complete annual report is available on the website.
–Yankee Farm Credit