WILLISTON, Vt. — Yankee Farm Credit announced first quarter financial results for 2019. 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 $6.1 million in patronage refunds to members during the quarter. Yankee’s overall level of capital remains strong.
Q1 Financial Results
Quarterly net income for Yankee was $3.8 million, a decrease of $109 thousand from the same period in 2018. Net interest income increased 0.4 percent, from the same period in 2018, to $4.9 million. Noninterest income decreased $266 thousand, primarily due to a reduction in refunds received from the Farm Credit System Insurance Corporation compared to the same period in 2018. Noninterest expense increased $116 thousand from the same period in 2018.
Loans held by the Association at March 31, 2019 were $509.4 million, down $8.1 million from year-end but $15.1 million higher than March 31, 2018. The loan portfolio continues to be concentrated in the dairy industry, with 49.1 percent of the loans invested in dairy businesses. The second largest concentration is timber, at 12.5 percent of the loan volume at quarter end, with maple being the third largest concentration at 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, 1.99 percent of the Association loans were classified as nonperforming, up 0.3 percent from the end of 2018. There were $52 thousand of charge-offs and no recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 18.01 percent, down from 18.47 percent at the end of 2018, a drop experienced after distribution of patronage payments.
The second of two distributions of 2018 patronage refunds was distributed to members on April 4, 2019. This distribution was in the amount of $6.1 million and paid 100% in cash. This follows a distribution of $1.8 million made in October 2018.
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.
–Yankee Farm Credit