Our year-to-date income at the end of the third quarter was $7.5 million. While this is down $809 thousand from the same time last year, we are well within our budget for 2016.
Some factors for this reduction include an increase of $1.1 million in the Provision for Credit Losses, primarily due to the increase seen in loan volume since last year, and an increase of $856 thousand in operating expenses. These adverse factors were partially offset by an increase of $996 thousand in net interest income and an increase of $200 thousand in other income.
Loans held by the Association at September 30, 2016 were $462.1 million, up 2.9 percent from the end of 2015. The loan portfolio continues to be concentrated in the dairy industry, with 49 percent of loans held invested in dairy businesses. The second largest concentration is timber with 14 percent of loans held, with maple being the third largest concentration with 11 percent.
Credit quality across Yankee's portfolio remained stable during the quarter and well within the risk-bearing capacity of the Association. At quarter end, 0.3 percent of the Association's loans were classified as nonperforming. This ratio was slightly better than it was at the end of 2015. There were no loan charge-offs or recoveries during the quarter. The Association's capital position remains strong.
Click here for the full quarterly Report to Shareholders and here for the quarterly financial news release.
