Once spring arrives, it’s time for Yankee to announce the first quarter financial results. Yankee can announce that we had another good quarter. Net income was level as compared to the same period last year. The Association saw increases in net interest income and fees for financial services offset by a provision for credit losses and increased 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 through the first quarter. All of these good results have one factor in common – good members.
Quarterly net income for Yankee was $2.6 million, unchanged from the same period in 2015. Increases of $408 thousand in net interest income and $101 thousand in fees for financial services were mostly offset by an increase in the provision for loan losses of $375 thousand and a $148 thousand increase in other expenses.
Quarter-end loans held by the Association at March 31, 2016 were $449.3 million, down 0.2 percent from year-end. The loan portfolio continues to be concentrated in the dairy industry, with 49 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 16 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 0.4 percent of the Association loans were classified as nonperforming, unchanged from the end of 2015. There were no loan charge-offs or recoveries in the quarter. The Association’s capital position remains strong.
The 2015 patronage refund to members in the amount of $4.9 million was paid 100% in cash on March 23, 2016.
Click here for the full quarterly Report to Shareholders, and here for the quarterly financial news release.
