With good spring weather finally arriving, the first quarter financial results are now available. Yankee can announce that we had another good quarter. Favorable net income resulting from increased net interest income, a negative provision for credit losses and other income were offset by an increase operating expenses. The balance sheet shows that loans were down from year-end, but the decrease is traditional 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 $2.6 million, an increase of $252 thousand over 2014. The most significant factors driving the increase were increases of $94 thousand in net interest income and $89 thousand in other income, along with a decrease in the provision for credit losses of $299 thousand. These favorable factors were offset by an increase $229 thousand in other expenses.
Quarter-end loans held by the Association at March 31, 2015 were $419.5 million, down 3.2 percent from year-end. The loan portfolio continues to be concentrated in the dairy industry, with 50 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 0.7 percent of the Association loans were classified as nonperforming, this was up 0.1 percent from the end of 2014. There were no loan charge-offs, but recoveries of $3 thousand in the quarter. The Association’s capital position remains strong.
The 2014 patronage refund to members in the amount of $4.6 million was paid 100% in cash on March 24, 2015.
Click here for the full quarterly Report to Shareholders, and here for the quarterly financial news release.
