What a wonderful summer we have had so far! Yankee’s second quarter financial results are
now available and we can announce that we had a good quarter. Favorable net income resulting from increased
net interest income and other income were offset by increases in the provision
for credit losses and operating expenses.
The balance sheet shows that loans were down from year-end, and from the
previous quarter. The quality of the
loan portfolio remains strong and is expected to remain that way in the
foreseeable future. Good members taking
advantage of the favorable milk prices, growing conditions and weather are a
primary reason for these good results.
Quarterly net
income for Yankee was $2.0
million, a decrease of $154 thousand over
the same period in 2013. The
most
significant factor driving the decrease was an increase of
$424 thousand to the provision for
credit losses. This was partially offset
by an increase other income of
$205 thousand over the same period in 2013.
For the first six months of 2014, net income was unchanged
from 2013 at $.4 million. Net interest
income increased 8 percent to $7.3 million.
There was a provision for credit losses of $752 thousand through the second
quarter of 2014, as compared to a provision of $161 during the same period of
2013. Other income increased $324
thousand, primarily due to an increase in income from patronage refunds from
CoBank, ACB and income from fees for financial services.
Loans held by the Association at June
30, 2014 were $401.9 million, down 2.8 percent from year end. The loan portfolio continues to be
concentrated in the dairy industry with 51 percent of loan invested in dairy
businesses. The second largest
concentration is timber, with 14 percent of 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 previous quarter and from year end. There were loan charge-offs of $19 thousand, but no recoveries
in the quarter. The
Association’s capital
position remains strong.
Click here for the
full quarterly Report to Shareholders.
