Finally! The rain has slowed down, the sun has come out and
summer has decided to arrive in Yankee’s territory. It feels good and so does
Yankee’s financial health. Yankee’s second quarter financial results are now
available and we can announce that we had another good quarter. Favorable net
income was primarily due to a negative provision for loan losses. This is a
result of the improving quality of the loan portfolio, which remains strong. It
is expected to remain that way in the foreseeable future. The balance sheet
shows that loans were down from year-end, but up from the previous quarter. Great
members and staff are two reasons for these results.
Quarterly net
income for Yankee was $3.1 million, an increase of $1.1 million over the same period in 2014. The most significant
factor driving the increase was a negative provision of $468 thousand to the provision for credit losses, as compared
to a provision of $424 for the same period in 2014. This was due to the
improving quality of our loan portfolio.
For the first six months of 2015, net income was $5.7
million, an increase of $1.3 million from 2014. There was a negative provision
for credit losses of $604 thousand through the second quarter of 2015, as
compared to a provision of $732 during the same period of 2014. Other income
increased $197 thousand, primarily due to an increase in income from fees for
financial services.
Loans held by the Association at June
30, 2015 were $423.4 million, down 2.3 percent from year end but up 0.9 percent
from March 31, 2015. The loan portfolio continues to be concentrated in the
dairy industry with 49 percent of loan invested in dairy businesses. The second
largest concentration is timber, with 15 percent of 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 0.6 percent of the Association loans were classified as nonperforming, 0.1 percent improved from the
previous quarter and unchanged from year end. This statistic was 0.2
percent improved from the same period in 2014. There were
no loan charge-offs, but $1 thousand in recoveries
in the quarter. The Association’s
capital position remains
strong.
