All Yankee Farm Credit variable interest rates increased by 0.25% on January 1, 2016. This action followed market interest rates. The Federal Reserve increased interest rates by 0.25% at its meeting on December 16, 2015. The prime interest rate immediately followed, increasing from 3.25% to 3.50%.
This is the first general increase in our interest rates since October 1, 2010.
Showing posts with label interest rate changes. Show all posts
Showing posts with label interest rate changes. Show all posts
Monday, January 4, 2016
Thursday, September 16, 2010
Interest Rate Changes 10/1
The following letter is being mailed to members with the next monthly billing statement:
September 16, 2010
Dear Member,
I am writing to let you know that all variable interest rates to members will increase by 0.25% effective October 1, 2010.
There are two primary reasons for this increase. First, market interest rates for short-term debt have increased slightly in recent months. This has increased our cost of funds. Second, the risk profile in our loan portfolio has increased in the past two years as a result of the general economic downturn which has affected nearly every industry we serve. More risk calls for higher interest rates to compensate for the increased possibility of default and loss.
We understand that many of our borrowers are facing difficult times. We lowered our variable interest rates considerably during the financial crisis of 2008, to the lowest rates in our history. We waited as long as possible before increasing rates, but we now find it necessary to increase rates to maintain the Association’s strong financial position. We believe that this modest increase of 0.25% for all borrowers, our first general interest rate increase since July 1, 2006, is appropriate given the increased level of risk in our loan portfolio.
Please feel free to ask your loan officer any questions you may have about your interest rate.
Thank you for your continued patronage and best wishes for your financial success.
Sincerely,
George S. Putnam
President and CEO
September 16, 2010
Dear Member,
I am writing to let you know that all variable interest rates to members will increase by 0.25% effective October 1, 2010.
There are two primary reasons for this increase. First, market interest rates for short-term debt have increased slightly in recent months. This has increased our cost of funds. Second, the risk profile in our loan portfolio has increased in the past two years as a result of the general economic downturn which has affected nearly every industry we serve. More risk calls for higher interest rates to compensate for the increased possibility of default and loss.
We understand that many of our borrowers are facing difficult times. We lowered our variable interest rates considerably during the financial crisis of 2008, to the lowest rates in our history. We waited as long as possible before increasing rates, but we now find it necessary to increase rates to maintain the Association’s strong financial position. We believe that this modest increase of 0.25% for all borrowers, our first general interest rate increase since July 1, 2006, is appropriate given the increased level of risk in our loan portfolio.
Please feel free to ask your loan officer any questions you may have about your interest rate.
Thank you for your continued patronage and best wishes for your financial success.
Sincerely,
George S. Putnam
President and CEO
Wednesday, December 24, 2008
Interest Rate Changes 1/1/09
On December 16, 2008 the prime interest rate changed from 4.00% to 3.25% in response to actions taken by the Federal Reserve that day.
All Yankee Farm Credit variable interest rates will be decreased by 0.75% effective January 1, 2009.
All Yankee Farm Credit variable interest rates will be decreased by 0.75% effective January 1, 2009.
Monday, November 10, 2008
Interest Rates
The following letter is being mailed to members with the next monthly billing statement:
November 10, 2008
Dear Member,
Yankee decreased its variable interest rates to members by 0.25% effective November 1.
The commercial bank prime interest rate fell twice in October. It fell by 0.50% (from 5.00% to 4.50%) following an unexpected action by the Federal Reserve (Fed) on October 8. Yankee did not decrease rates in response to that event. See my letter dated October 10. The prime rate fell again by 0.50% (from 4.50% to 4.00%) following Fed action at its regularly scheduled meeting on October 28-29. Our 0.25% decrease effective November 1 was in response to this event.
Why didn’t Yankee decrease its rates by the full 1.00%, or at least the 0.50% in the latest action?
Our cost of funds has been materially impacted by current events in the financial markets. We have seen an increase in both the level of our cost of funds relative to U.S. Treasury debt and in the volatility of our cost of funds. We believe it is important to maintain the financial health of your association. We also understand that many of you are facing financial stress in your businesses. At this time we believe that a 0.25% decrease is an appropriate balance between the needs of the association and your needs.
We considered making no decrease at all. But there have been recent signs that credit markets are beginning to improve, just slightly. As a result we felt confident enough to make a 0.25% decrease. We continue to monitor financial markets closely, and will make future adjustments as needed. Future adjustments may be either upward or downward.
While the current situation in the financial markets has affected our cost of funds, it has not to date affected the availability of funds to the Farm Credit System. We still have funds available to lend and we continue to make loans the same as always.
I continue to post occasional comments about the current financial situation on Yankee’s blog at www.yankeeaca.blogspot.com. You can also find links there to current financial information for Yankee and the Farm Credit System, which both remain strong.
Thank you for your continued support and patronage.
Sincerely,
George S. Putnam
President and CEO
November 10, 2008
Dear Member,
Yankee decreased its variable interest rates to members by 0.25% effective November 1.
The commercial bank prime interest rate fell twice in October. It fell by 0.50% (from 5.00% to 4.50%) following an unexpected action by the Federal Reserve (Fed) on October 8. Yankee did not decrease rates in response to that event. See my letter dated October 10. The prime rate fell again by 0.50% (from 4.50% to 4.00%) following Fed action at its regularly scheduled meeting on October 28-29. Our 0.25% decrease effective November 1 was in response to this event.
Why didn’t Yankee decrease its rates by the full 1.00%, or at least the 0.50% in the latest action?
Our cost of funds has been materially impacted by current events in the financial markets. We have seen an increase in both the level of our cost of funds relative to U.S. Treasury debt and in the volatility of our cost of funds. We believe it is important to maintain the financial health of your association. We also understand that many of you are facing financial stress in your businesses. At this time we believe that a 0.25% decrease is an appropriate balance between the needs of the association and your needs.
We considered making no decrease at all. But there have been recent signs that credit markets are beginning to improve, just slightly. As a result we felt confident enough to make a 0.25% decrease. We continue to monitor financial markets closely, and will make future adjustments as needed. Future adjustments may be either upward or downward.
While the current situation in the financial markets has affected our cost of funds, it has not to date affected the availability of funds to the Farm Credit System. We still have funds available to lend and we continue to make loans the same as always.
I continue to post occasional comments about the current financial situation on Yankee’s blog at www.yankeeaca.blogspot.com. You can also find links there to current financial information for Yankee and the Farm Credit System, which both remain strong.
Thank you for your continued support and patronage.
Sincerely,
George S. Putnam
President and CEO
Friday, October 10, 2008
Interest Rates
The following letter is being mailed to members with the next monthly billing statement:
October 10, 2008
Dear Member,
The Federal Reserve (Fed), in conjunction with other global financial institutions and governments, recently responded to continued weak economic data and unsettled market conditions by lowering interest rates. The Fed cut the federal funds rate from 2.00% to 1.50% on October 8, 2008. The commercial bank prime rate decreased from 5.00% to 4.50%.
Yankee’s practice in recent years has generally been to change its variable interest rates to members on the 1st of the month following changes in the commercial bank prime rate. This time Yankee will not be reducing member variable rates.
This decision is due to current conditions in the financial markets. Nearly every sector of the credit markets has seen increasing costs and volatility in recent months, and these conditions have adversely affected Yankee’s earnings. Until market conditions settle down, we believe it is prudent to maintain member variable rates at present levels.
We recognize that many of the industries Yankee serves are also struggling with lower earnings and higher input costs. We believe that current interest rates offered by Yankee are still competitive in today’s tough financial markets. Yankee remains committed to returning excess profits to our members in the form of a patronage dividend, and we expect to pay a 2008 patronage dividend to members around March 31, 2009.
Yankee remains financially strong, as does the overall Farm Credit System. Rest assured that we continue to have funds available to meet your credit needs. We are dedicated to agriculture and the members we serve and we will continue to do our best to keep your cooperative sound and on solid financial footing.
If you would like more information on how current conditions in the financial markets are affecting Yankee and the overall Farm Credit System, you can visit Yankee’s blog at www.yankeeaca.blogspot.com. There are two postings dated September 30, 2008, titled Financial Markets, Part 1 & Part 2. We will post updates as warranted.
Thank you for your business and allowing us to serve you.
Sincerely,
George S. Putnam
President and CEO
October 10, 2008
Dear Member,
The Federal Reserve (Fed), in conjunction with other global financial institutions and governments, recently responded to continued weak economic data and unsettled market conditions by lowering interest rates. The Fed cut the federal funds rate from 2.00% to 1.50% on October 8, 2008. The commercial bank prime rate decreased from 5.00% to 4.50%.
Yankee’s practice in recent years has generally been to change its variable interest rates to members on the 1st of the month following changes in the commercial bank prime rate. This time Yankee will not be reducing member variable rates.
This decision is due to current conditions in the financial markets. Nearly every sector of the credit markets has seen increasing costs and volatility in recent months, and these conditions have adversely affected Yankee’s earnings. Until market conditions settle down, we believe it is prudent to maintain member variable rates at present levels.
We recognize that many of the industries Yankee serves are also struggling with lower earnings and higher input costs. We believe that current interest rates offered by Yankee are still competitive in today’s tough financial markets. Yankee remains committed to returning excess profits to our members in the form of a patronage dividend, and we expect to pay a 2008 patronage dividend to members around March 31, 2009.
Yankee remains financially strong, as does the overall Farm Credit System. Rest assured that we continue to have funds available to meet your credit needs. We are dedicated to agriculture and the members we serve and we will continue to do our best to keep your cooperative sound and on solid financial footing.
If you would like more information on how current conditions in the financial markets are affecting Yankee and the overall Farm Credit System, you can visit Yankee’s blog at www.yankeeaca.blogspot.com. There are two postings dated September 30, 2008, titled Financial Markets, Part 1 & Part 2. We will post updates as warranted.
Thank you for your business and allowing us to serve you.
Sincerely,
George S. Putnam
President and CEO
Wednesday, April 30, 2008
Interest Rate Changes 5/1
Today the Federal Reserve lowered interest rates by 0.25%.
All Yankee Farm Credit variable interest rates will be decreased by 0.25% effective May 1.
All Yankee Farm Credit variable interest rates will be decreased by 0.25% effective May 1.
Thursday, January 31, 2008
Interest Rate Changes 2/1
Yesterday the Federal Reserve lowered interest rates by 0.50%. Earlier, on January 22, they lowered interest rates by 0.75%.
All Yankee Farm Credit variable interest rates will be decreased by 1.25% effective February 1.
All Yankee Farm Credit variable interest rates will be decreased by 1.25% effective February 1.
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