Full-year net income for Yankee was $9.3 million, an increase of $640 thousand over 2012. The most significant factor driving the increase was net interest income which increased 14.8 percent to $14.3 million, up from $12.4 million in 2012. Also contributing to the increase in net income was an increase of $263 thousand in patronage refunds from CoBank. These increases were offset by an increase of $790 thousand in expenses other than interest expense and a decrease in refunds from the Farm Credit System Insurance Corp (FCSIC) of $393 thousand.
Year-end loan volume at December 31, 2013, was $413.3 million, up 7.3 percent from the prior year. The loan portfolio continues to be concentrated in the dairy industry, with 53 percent of the loans invested in dairy businesses. The second largest concentration is timber, with 13 percent of the loan volume at year-end.
Credit quality across Yankee’s loan portfolio improved during 2013 and remained well within the risk-bearing capacity of the Association. At year-end 0.8 percent of the Association loans were classified as nonperforming, compared to 1.5 percent at the end of 2012. There were no charge-offs and a recovery of $6 thousand recorded during 2013. The Association’s capital position remains strong.
The Board of Directors approved a patronage refund to members in the amount of $4.9 million for 2013, to be paid 100% in cash, which is approximately the same amount that was paid for 2012. 2013 patronage payments will be made on or about March 25, 2014. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
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