WILLISTON, Vt. — Yankee Farm Credit today announced second quarter financial results for 2020. Yankee is a farmer-owned credit cooperative serving Vermont, New Hampshire, and parts of New York. Quarterly earnings were up from the prior year, and loan quality remained stable. The Association, like many businesses, has been impacted by the COVID-19 pandemic and we encourage stakeholders to read our quarterly shareholder reports found on our website to learn more about those impacts. Overall capital levels and earnings remain healthy at the Association.
Q2 Financial Results
Quarterly net income for Yankee was $3.1 million, an increase of $166 thousand from the same period in 2019. Net interest income decreased 4.9 percent, compared to the same period in 2019, to $4.7 million. Noninterest income increased $232 thousand, primarily due to processing fees received related to the Payroll Protection Plan. Noninterest expense decreased $4 thousand from the same period in 2019.
Loans held by the Association at June 30, 2020 were $544.2 million, down $3.6 million from year-end but $14.0 million higher than June 30, 2019. The loan portfolio continues to be concentrated in the dairy industry, with 49 percent of total loan volume invested in dairy businesses. The second largest concentration is timber, at 13 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, 1.25 percent of the Association loans were classified as nonperforming, up 0.05 percent from the end of 2019. There was approximately $138 thousand in charge-offs and no recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 18.59 percent, down slightly from 18.62 percent at the end of 2019.
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
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