WILLISTON, Vt. — Yankee Farm Credit today announced first quarter financial results for 2021. Yankee is a farmer-owned credit cooperative serving Vermont, New Hampshire, and regions of New York. The Association distributed $7.6 million in patronage refunds to members during the quarter. Quarterly earnings were up from the prior year, and loan quality improved. Overall capital levels and earnings remain healthy at the Association.
Q1 Financial Results
Quarterly net income for Yankee was $3.2 million, an increase of $627 thousand from the same period in 2020. Net interest income increased 0.1 percent, compared to the same period in 2020, to $4.9 million. There was a reversal to the provision for loan losses of $152 thousand in the first quarter of 2021 compared to a provision for loan losses of $537 thousand in the first quarter of 2020. Noninterest income increased $167 thousand year-over-year, primarily due to fees obtained from the Small Business Administration for Paycheck Protection Program loans. Noninterest expense increased $232 thousand from the same period in 2020 due to increased salary expense and Farm Credit System insurance premium increases.
Loans held by the Association at March 31, 2021 were $581.7 million, down $4.6 million from year-end but $47.4 million higher than March 31, 2020. The loan portfolio continues to be concentrated in the dairy industry, with 43 percent of total loan volume invested in dairy businesses, compared to 44 percent at December 31, 2020. The second largest concentration is timber, at 17 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 saw slight overall improvement during the quarter and continues to be well within the risk-bearing capacity of the Association. At quarter end, 1.91 percent of the Association loans were classified as nonperforming, up 0.11 percent from the end of 2020. There were no significant charge-offs or recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 16.57 percent, down from 18.91 percent at the end of 2020.
–Yankee Farm Credit