Q2 2016 Financial Results

I’m hoping that everybody is having a wonderful summer.  As we get close to the mid-way point, Yankee can announce that we had another good quarter. We saw a slight decrease in net income as compared to the same period last year.  Most of this can be attributed to the Association taking a small provision for credit losses in Q2 2016 as compared to a negative provision for credit losses during the same period in 2015.  The Association also saw increases in operating expenses.  Both increases were offset by favorable net interest income and fees for financial services as compared to the same period last year. The balance sheet shows that loan volume was up from year-end and the quality of the loan portfolio remains stable through the second quarter. All of these good results have one factor in common – good members.

Quarterly net income for Yankee was $2.7 million, down $439 thousand from the same period in 2015. Increases in the provision for loan losses of $473 thousand and an increase in other expenses of $482 thousand were partially offset by an increases of $330 thousand in net interest income and $186 thousand other income.

Loans held by the Association at June 30, 2016 were $453.2 million, up 1.0 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 15 percent of the loan volume at quarter-end.

Credit quality across Yankee’s loan portfolio remained stable 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 loan charge-offs of $1 thousand and recoveries of $10 thousand 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.