Full-year net income for Yankee was $10.1 million, an increase of $749 thousand over 2013. One of the most significant factors driving the increase was net interest income which increased 3.0% to $14.7 million, up from $14.3 million in 2013. Also contributing to the increase in net income was an increase of $572 thousand in other income, due to the sale of Association property in Middlebury, Vermont, and an increase of $282 thousand in patronage refunds from CoBank. These increases were offset by an increase of $856 thousand in expenses other than interest expense.
Year-end loan volume at December 31, 2014 was $428.1 million, up 4.9 percent from the prior year. 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 14 percent of the loan volume at year end.
Credit quality across Yankee’s portfolio remained stable during 2014 and was well within the risk-bearing capacity of the Association. At year-end 0.6 percent of the Association loans were classified as nonperforming, compared to 0.8 percent at the end of 2013. There was a charge-off of $18 thousand and a recovery of $6 thousand recorded during 2014. The Association’s capital position remains strong.
The Board of Directors approved a patronage refund to members in the amount $4.6 million for 2014, to be paid 100% in cash. 2014 patronage payments will be made on or about March 25, 2015. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
