With good spring weather finally arriving, the first quarter financial results are now available. Yankee can announce that we had another good quarter. While there were increases in the provision for credit losses and operating expenses, these were more than offset by increased net interest income and other income. The balance sheet shows that loans were down from year-end, but a seasonal decrease is normal for this time of year. The quality of the loan portfolio remains strong and is expected to remain that way in the foreseeable future. All of these good results have one factor in common – good members.
Quarterly net income for Yankee was $2.4 million, an increase of $135 thousand over 2013. The most significant factors driving the increase were increases of $348 thousand in net interest income and $118 thousand in other income. These increases were partially offset by an increase in the provision for credit losses of $147 thousand and an increase of $184 thousand in other expenses.
Quarter-end loans held by the Association at March 31, 2014 were $407.4 million, down 1.4 percent from year-end. The loan portfolio continues to be concentrated in the dairy industry, with 51 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 15 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 0.8 percent of the Association loans were classified as nonperforming, unchanged from the end of 2013. There were no loan charge-offs, but recoveries of $6 thousand in the quarter. The Association’s capital position remains strong.
The 2013 patronage refund to members in the amount of $4.9 million was paid 100% in cash on March 25, 2014.
Click here for the full quarterly report to shareholders.
