WILLISTON, Vt. — Yankee Farm Credit, a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire, today announced full-year financial results for 2016. Full-year earnings were down from the previous year, but net interest income increased over the prior year and loan quality remained stable. A patronage refund of $5.1 million will be distributed to members. Yankee’s overall level of capital remains strong. Additionally, Yankee has recently made some personnel changes and promotions to position the Association for growth.
2016 Financial Results
Full-year net income for Yankee was $9.3 million, a decrease of $931 thousand over 2015. Factors driving the decrease were Yankee’s costs of conversion to a new information technology platform and the additional costs of enhanced risk management practices. Offsetting these increased costs were an increase in net interest income of $1.2 million and an increase in patronage refunds from CoBank of $219 thousand.
Year-end loan volume at December 31, 2016 was $480.6 million, up 7.0 percent from the prior year. The loan portfolio continues to be concentrated in the dairy industry, with 51 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 13 percent of the loan volume at year end.
Credit quality across Yankee’s portfolio deteriorated slightly during 2016 but was well within the risk-bearing capacity of the Association. At year-end 1.2 percent of the Association loans were classified as nonperforming, compared to 0.4 percent at the end of 2015. There were a charge-offs of $14 thousand and recoveries of $10 thousand recorded during 2016. The Association’s capital position remains strong.
The Board of Directors approved a patronage refund to members in the amount $5.1 million for 2016, to be paid 100% in cash. 2016 patronage payments will be made on or about March 23, 2017. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
Personnel Changes and Promotions
Yankee Farm Credit, ACA has hired Brenda Frank as President and CEO, succeeding George Putnam. Her agricultural career includes farm management, marketing, sales, IT, and for the past ten years, commercial lending at Farm Credit Canada. David Lane, working out of the St. Albans office, has been promoted to Senior Vice President, Northern Region. Kenneth Button, working out of the Middlebury office, has been promoted to Senior Vice President, Southern Region.
About Yankee
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.yankeeaca.com. The complete annual report is available on the website.
—Yankee Farm Credit
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