Quarterly net income for Yankee was $2.1 million, an increase of $66 thousand over 2011. Net interest income increased 2.1 percent to $3.0 million, up from $2.9 million in 2011. The most significant factor driving the increase in net income was the provision for credit losses; which was $76 thousand lower in 2012 due to an improvement in credit quality. The decrease in the provision for credit losses was offset by a decrease of $17 thousand in other income and an increase in other expenses of $88 thousand.
Quarter-end loans held by the Association at March 31, 2012 were $337.4 million, up 2.7 percent from the prior year. The loan portfolio continues to be concentrated in the dairy industry, with 56.5 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 12.5 percent of the loan volume at quarter-end.
Credit quality across Yankee’s loan portfolio improved slightly during the quarter and remained well within the risk-bearing capacity of the Association. At quarter-end 1.6 percent of the Association loans were classified as nonperforming, unchanged from the end of 2011. There were no loan charge-offs, but recoveries of $6 thousand in the quarter. The Association’s permanent capital ratio at quarter end was 20.7%, up from 20.6% at the end of 2011.
The 2011 patronage refund to members in the amount of $3.7 million was paid 100% in cash on March 23, 2012.
The complete quarterly report is available on our web site.
