WILLISTON, Vt. — Yankee Farm Credit today announced third 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.
Q3 Financial Results
Quarterly net income for Yankee was $2.9 million, a decrease of $435 thousand from the same period in 2018. Net interest income increased 6.2 percent, from the same period in 2018, to $5.0 million. Noninterest income decreased $601 thousand and noninterest expense increased $127 thousand from the same period in 2018.
Loans held by the Association at September 30, 2019 were $543.0 million, up $19.3 million from year-end and $37.5 million higher than September 30, 2018. The loan portfolio continues to be concentrated in the dairy industry, with 49.2 percent of the loans invested in dairy businesses. The second largest concentration is timber, at 13.5 percent of the loan volume at quarter end, with maple being the third largest concentration at 11.7 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, 2.22 percent of the Association loans were classified as nonperforming, up 0.56 percent from the end of 2018. There were $65 thousand of charge-offs and $1 thousand in recoveries during the quarter. The Association’s permanent capital ratio at quarter end was 18.26 percent, down from 18.47 percent at the end of 2018, a drop experienced after distribution of patronage payments.
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, Coös, 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