The previous two posts discuss the current health of the financial markets. There are some concerns. How about Yankee and the Farm Credit System? Are they healthy?
Yes, and third quarter results are out so you can read all about it.
Click here for Yankee's third quarter results. Loan volume is down 2% from year-end. Credit quality remains excellent. Year-to-date net income is down 17% from last year, which is one reason we are paying attention to our margins. But we remain profitable, and enough so that we continue to expect to pay a 2008 patronage refund by March 31, 2009. Capital remains strong.
Click here for a summary of the Farm Credit System's third quarter results. Look for the press release dated October 31, 2008. More detailed information can be found here. Loan volume is up 11% from year-end. Nonperforming loans increased from 0.4% of the loan portfolio at year-end to 0.7% at 9/30/08. That is still a good number. (Yankee's number was 0.3%.) Year-to-date net income is up 17% from last year. (Yup, it's a coincidence that the System is up 17% and Yankee is down 17%. The System had loan volume growth. Yankee didn't.) Capital/assets decreased from 14.2% at year-end to 13.4% at 9/30/08 due to loan volume growth. Liquidity increased, which is good in today's uncertain markets.
For comparison, I wrote about the System's second quarter results here.
You may also be interested in the following fact sheet published by the Farm Credit Council:
The Farm Credit System: Financial Strength Benefiting Rural America
