Net Earnings of $3.4 Million
Williston, Vermont (November 8, 2018) Yankee Farm Credit today announced third quarter financial results for 2018. Yankee is a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire. Quarterly earnings were up from the prior year, and loan quality has worsened slightly. Yankee’s overall level of capital remains strong.
Q3 Financial Results
Quarterly net income for Yankee was $3.4 million, an increase of $744 thousand from the same period in 2017. Net interest income increased 7 percent, from the same period in 2017, to $4.7 million. Noninterest expense decreased $25 thousand from the same period in 2017.
Loans held by the Association at September 30, 2018 were $505.6 million, down $6.4 million from year-end but $27.4 million higher than September 30, 2017. The loan portfolio continues to be concentrated in the dairy industry, with 50.8 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 12.1 percent of the loan volume at quarter end, with maple being the third largest concentration with 11.3 percent.
Credit quality across Yankee’s loan portfolio worsened slightly during the quarter but remains well within the risk-bearing capacity of the Association. At quarter end, 1.7 percent of the Association loans were classified as nonperforming, up 0.8 percent from the end of 2017. The Association’s permanent capital ratio at quarter end was 18.5 percent, down from 18.8 percent at the end of 2017.
Yankee’s performance is partly attributable to several nonrecurring income items received from Farm Credit System partners, which has help keep capital and earnings strong at the Assoication. This has allowed Yankee’s Board of Directors to approve a special mid-year patronage refund in the amount of $1.8 million to our members.
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 on the website.
SVP/Chief Financial Officer