First quarter net income for Yankee was $2.3 million, an increase of $195 thousand over the same quarter in 2012. The most significant factors driving the increase were increases of $323 thousand in net interest income and $97 thousand in other income. These increases were offset by an increase in the provision for credit losses of $92 thousand and an increase of $133 thousand in other expenses.
Loans held by the Association at March 31, 2013 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 quarter-end 1.5 percent of the Association's loans were classified as nonperforming, unchanged from the end of 2012. There were no loan charge-offs, but recoveries of $7 thousand in the quarter. The Association’s capital position remains strong.
The 2012 patronage refund to members in the amount of $4.9 million was paid 100% in cash on March 25, 2013.
