Full-year net income for Yankee was $8.7 million, an increase of $1.6 million over 2011. The most significant factor driving the increase was net interest income which increased 5.4 percent to $12.4 million, up from $11.8 million in 2011. Also contributing to the increase in net income were a one-time refund from the Farm Credit System Insurance Corp (FCSIC) of $393 thousand, a $353 thousand lower provision for credit losses, an increase of $199 thousand in patronage refunds from CoBank, and an increase in other income of $162 thousand. These increases to net income were offset by an increase of $111 thousand in other expenses.
Year-end loan volume at December 31, 2012 was $385.1 million, up 13.3 percent from the prior year. The loan portfolio continues to be concentrated in the dairy industry, with 56 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 12 percent of the loan volume at year-end.
Credit quality across Yankee’s loan portfolio improved during 2012 and remained well within the risk-bearing capacity of the Association. At year-end 1.5 percent of the Association loans were classified as nonperforming, compared to 1.6 percent at the end of 2011. There was one charge-off of $110 thousand and a recovery of $6 thousand recorded during 2012. The Association’s capital position remains strong.
The Board of Directors approved a patronage refund to members in the amount of $4.9 million for 2012, to be paid 100% in cash, which is approximately 34% more than the $3.6 million that was paid for 2011. 2012 patronage payments will be made on or about March 25, 2013. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
