Quarterly net income for Yankee was $2.5 million, an increase of $621 thousand over 2011. Net interest income increased 4.1 percent to $3.0 million, up from $2.9 million in 2011. The most significant factor driving the increase in net income is an increase of $484 thousand in other income as compared to 2011. The increase in other income resulted primary from $393 thousand in refunds from the Farm Credit System Insurance Corporation (FCSIC).
For the first six months of 2012, net income increased 18.0 percent to $4.5 million, up from $3.8 million a year ago. Net interest income increased 3.1 percent to $6.0 million. There was a reversal of the provision for credit losses of $112 thousand through the second quarter of 2012, as compared to no provision for credit losses for the same period in 2011. Other income increased by $503 thousand, primarily due to the FCSIC refund of $393 thousand.
Loans held by the Association at June 30, 2012 were $351.6 million, up 3.4 percent from year end. The loan portfolio continues to be concentrated in the dairy industry, with 55.2 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 12.0 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 1.7 percent of the Association loans were classified as nonperforming, up slightly from 1.6 percent at the end of 2011. There were no loan charge-offs or recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 20.6%, unchanged from the end of 2011.
The 2011 patronage refund to members in the amount of $3.7 million was paid 100% in cash on March 23, 2012.
