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 2017. 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 $6.3 million will be distributed to members. Following this increased patronage pool, Yankee’s overall level of capital remains strong. Additionally, on January 1, 2018, Yankee completed their conversion to a new information technology platform on time and under budget.
2017 Financial Results
Full-year net income for Yankee was $9.9 million, an increase of $612 thousand over 2016. Factors driving the increase were an increase in interest income of $1.1 million, a $327 thousand lower provision for credit losses and an increase of $230 thousand in patronage refunds from CoBank, ACB. These increases to net income were partially offset by an increase of $905 thousand in other expenses, directly related to the information technology conversion and the Associations continued enhancement of risk management practices.
Year-end loan volume at December 31, 2017 was $511.9 million, up 6.5 percent from the prior year. The loan portfolio continues to be concentrated in the dairy industry, with 51 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 12 percent of the loan volume at year end, with the third largest concentration being maple, with 10 percent of loan volume at year end.
Credit quality across Yankee’s portfolio deteriorated slightly during 2017 but was well within the risk-bearing capacity of the Association. At year-end 0.9 percent of the Association loans were classified as nonperforming, compared to 1.2 percent at the end of 2016. There were a charge-offs of $168 thousand and recoveries of $15 thousand recorded during 2017. The Association’s capital position remains strong.
The Board of Directors approved a patronage refund to members in the amount $6.3 million for 2017, to be paid 100% in cash. 2017 patronage payments will be made on or about March 23, 2018. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
Change in Information Technology
On January 1, 2018 Yankee Farm Credit, ACA successfully completed a year-long project to change their information technology provider and systems. Beginning the first of the year, AgFirst Farm Credit Bank of Columbia, South Carolina began providing services and software to the Association. Significant efforts took place during 2017 to facilitate the conversion. Along with the new platform came enhanced opportunities in on-line banking for the Association’s members. The Association’s maintains its funding relationship with CoBank, ACB.
About Yankee
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
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