WILLISTON, Vt. — Yankee Farm Credit announced third quarter financial results for 2021. Yankee is a farmer-owned credit cooperative serving Vermont, New Hampshire, and parts of New York. The Association did not distribute any patronage refunds to members during the quarter. Quarterly earnings were down from the prior year and loan quality improved. Overall capital levels and earnings remain healthy at the Association.
Q3 Financial Results
Quarterly net income for Yankee was $2.8 million, a decrease of $1.1 million from the same period in 2020. Net interest income, before provisional and reversal of loan losses, increased 1.26 percent, compared to the same period in 2020, to $5.0 million. There was an increase to the provision for loan losses of $386 thousand in the third quarter of 2021 compared to a decrease to the provision for loan losses of $622 thousand in the third quarter of 2020. Noninterest income decreased $13 thousand year-over-year, due to decreases in fees for financially related services. Loan fee income, however, increased $121 thousand year-over-year. Noninterest expense increased $152 thousand from the same period in 2020 primarily due to Farm Credit System Insurance Fund premium increases.
Loans held by the Association at September 30, 2021 were $608.4 million, up $22.1 million from year-end and $64.4 million higher than September 30, 2020. The loan portfolio continues to be concentrated in the dairy industry, with 42 percent of total loan volume invested in dairy businesses, compared to 43 percent at June 30, 2021. 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 overall improvement during the quarter and continues to be well within the risk-bearing capacity of the Association. At quarter end, 2.12 percent of the Association loans were classified as nonperforming, up 0.32 percent from the end of 2020. There were no charge-offs or recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 16.66 percent, down from 18.91 percent at the end of 2020.
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.yankeefarmcredit.com. The complete quarterly report is available, at no cost, on the website.
–Yankee Farm Credit