WILLISTON, Vt. — Yankee Farm Credit today announced first quarter financial results for 2020. Yankee is a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire. Quarterly earnings were down slightly from the prior year, but were still strong, and loan quality remained stable. The Association distributed over $6.8 million in patronage refunds to members during the quarter. Yankee’s overall level of capital remains strong. The Association, like many business, has been impacted by the COVID-19 pandemic. We encourage all those interested in learning more about the impacts to read our first quarter shareholder reports found on our website.
Q1 Financial Results
Quarterly net income for Yankee was $2.6 million, a decrease of $1.1 million from the same period in 2019. Net interest income increased 0.9 percent, from the same period in 2019, to $4.9 million. Noninterest income decreased $127 thousand, primarily due to a reduction in patronage from other Farm Credit Institutions compared to the same period in 2019. Noninterest expense increased $107 thousand from the same period in 2019.
Loans held by the Association at March 31, 2020 were $534.3 million, down $13.5 million from year-end but $24.9 million higher than March 31, 2019. The loan portfolio continues to be concentrated in the dairy industry, with 49 percent of the loans invested in dairy businesses. The second largest concentration is timber, at 12 percent of the loan volume at quarter end, with maple being the third largest concentration at 11 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, 1.36 percent of the Association loans were classified as nonperforming, up 0.16 percent from the end of 2019. There were no significant charge-offs or recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 18.60 percent, down from 18.62 percent at the end of 2019.
March 26, 2020 a patronage distribution was in the amount of $6.8 million and paid 100% in cash.
Yankee Farm Credit is a member-owned cooperative that 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 quarterly report is available, at no cost, on the website.
–Erika Quick, Yankee Farm Credit