WILLISTON, Vt. — Yankee Farm Credit, a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire, announced today full-year financial results for 2020. Full-year earnings and net interest income were down slightly from the previous year. Loan quality improved and remained at acceptable levels. A patronage refund of $7.577 million will be distributed to members in March 2021. Following these distributions, Yankee’s overall level of capital remains strong.
2020 Financial Results
For the full year of 2020, net income for Yankee was $12.726 million, a decrease of $439 thousand over 2019 (3.3%). Factors driving the change in net income were a decrease in net interest income of $472 thousand, largely due to changes in interest rates, and a $206 thousand provision for loan losses as compared to a recovery for loan losses of $6 thousand in 2019. Increases to the provision were mostly attributable to increased loan volume. Non-interest income increased $621 thousand, which includes an increase in fee income of $372 thousand, and non-interest expense increased $376 thousand.
Year-end loan volume at December 31, 2020 was $586.4 million, up 6.6% from the prior year. While the portfolio continues to be highly concentrated in the dairy industry, Yankee is adding diversity by lending into other agricultural sectors through both originated loans and loan purchases outside our territory. Dairy was 44% of loan volume at year-end (down from 49% at year-end 2019), the second largest concentration is timber, with 15% of the loan volume at year-end, with the third largest concentration being maple, at 11% of loan volume at year-end.
Credit quality across Yankee’s portfolio remained stable during 2020 and was well within the risk-bearing capacity of the Association. At year-end, 1.42% of the Association loans were classified as nonperforming, compared to 1.20%at the end of 2019. The Association’s capital position improved slightly from a total regulatory capital ratio of 19.56% at the end of 2019 to 19.75% at the end of 2020.
The Board of Directors declared patronage refunds to members in the amount $7.577 million for 2020 to be paid 100% in cash. The December 2020 declared patronage payments were made on March 9, 2021 to members who requested ACH payments and checks will be mailed on or about March 19, 2021 for all other members.
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