Yankee Farm Credit reports profitMay 20,2013
Yankee Farm Credit reports profit
WILLISTON — Yankee Farm Credit, an agricultural credit association serving farmers, farm-related businesses and rural homeowners in Vermont, New York and New Hampshire, reported an increase in first quarter earnings and net interest income increased over the prior year.
The 2012 patronage refund of $4.9 million (a record amount) was distributed to members during the quarter. Yankee’s overall level of capital remains strong.
First quarter net income was $2.3 million, an increase of $195,000 over 2012. The most significant factors were increases of $323,000 in net interest income and $97,000 in other income. The increases were offset by an increase in the provision for credit losses of $92,000 and an increase of $133,000 in other expenses.
Quarter-end loans held at March 31 were $375.5 million, up 11.3 percent from the prior year. The loan portfolio continues to be concentrated in the dairy industry, with 55 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 13 percent of the loan volume at quarter-end.
Credit quality across Yankee’s loan portfolio remained strong during the quarter and well within the risk-bearing capacity of the association.
At the end of the quarter, 1.5 percent of loans were classified as nonperforming, unchanged from the end of 2012. There were no loan charge-offs, but recoveries of $7,000 in the quarter. Capital position remains strong.
The 2012 patronage refund to members in the amount of $4.9 million was paid 100 percent in cash on March 25.
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