Yankee’s third quarter financial results are now available and we can announce that we had another good quarter. In the third quarter we saw favorable net interest income, along with higher amounts in other income from the same quarter last year. The balance sheet shows that loans held by the Association were down slightly from year-end, but up from the previous quarter.
Quarterly net income for Yankee was $2.5 million, an increase of $100 thousand over the same period in 2014. The most significant factors driving the increase were favorable net interest income and other income as compared to the same period last year.
For the first nine months of 2015, net income was $8.3 million, an increase of $1.4 million from 2014. There was a negative provision for credit losses of $691 thousand through the third quarter of 2015, as compared to a provision of $661 during the same period of 2014. Other income increased $502 thousand, primarily due to an increase in income from fees for financial services and in patronage refunds from CoBank, ACB.
Loans held by the Association at September 30, 2015 were $432.2 million, down 0.3 percent from year end but up 2.1 percent from June 30, 2015. The loan portfolio continues to be concentrated in the dairy industry with 49 percent of loans 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 0.5 percent of the Association loans were classified as nonperforming, 0.1 percent improved from the previous quarter and from year end. This statistic was 0.2 percent improved from the same period in 2014. There were no loan charge-offs or recoveries in the quarter. The Association’s capital position remains strong.
Click here for the full quarterly Report to Shareholders and here for the quarterly financial news release.
