WILLISTON, Vt. — Yankee Farm Credit recently announced third quarter financial results for 2017. Yankee is a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire. Quarterly earnings were up from the prior year, loan quality remained stable and Yankee’s overall level of capital remains strong.
Q3 Financial Results
Quarterly net income for Yankee was $2.6 million, an increase of $473 thousand from 2016. Net interest income increased 8 percent, from the same period in 2016, to $4.4 million. Other income increased $145 thousand, primarily due to increases in patronage refunds from CoBank, ACB. These increases were offset by higher expenses due to Yankee’s cost of conversion to a new information technology platform and the additional costs of enhanced risk management practices.
Loans held by the Association at September 30, 2017 were $479.9 million, down $0.7 million from year end. The loan portfolio continues to be concentrated in the dairy industry, with 52.3 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 11.8 percent of the loan volume at quarter end, with maple being the third largest concentration with 11.1 percent.
Credit quality across Yankee’s loan portfolio remained stable during the quarter and well within the risk-bearing capacity of the Association. At quarter end 1.0 percent of the Association loans were classified as nonperforming, 0.2 percent improved from the end of 2016. There were loan charge-offs of $5 thousand and recoveries of $5 thousand in the quarter. The Association’s permanent capital ratio at quarter end was 19.3 percent, up 0.4 percent from the end of 2016.
Yankee Farm Credit is a member-owned cooperative that supports rural communities and agriculture with reliable, consistent credit and financial services, today and tomorrow. 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.yankeeaca.com. The complete quarterly report is available on the website.
–Yankee Farm Credit
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