Saturday, November 8, 2014

Q3 2014 Financial Results

Summer was good and so was autumn.  Now as we start into the winter season, we can hope that the trend continues!  Yankee’s third quarter financial results are now available and we can announce that we had another good quarter.  Favorable net income resulting from increased net interest income and a negative provision for credit losses were offset by an increase in expenses.  The balance sheet shows that loans were down from year-end, but volume was up from the previous quarter.  The quality of the loan portfolio remains strong and is expected to remain that way in the foreseeable future.  Good members taking advantage of the continued favorable milk prices, growing conditions and weather continued to be a primary reason for these good results.

Quarterly net income for Yankee was $2.4 million, an increase of $167 thousand over the same period in 2013. The most significant factors driving the increase were an increase of $132 thousand in net interest income and a $71 thousand negative provision for credit losses, as compared to a provision for credit losses of $83 thousand for the same period in 2013. These were partially offset by an increase in other expenses of $168 thousand over the same period in 2013.

For the first nine months of 2014, net income was $6.8 million, an increase of $148 thousand over the same period in 2013. Net interest income increased 6% to $11.0 million. There was a provision for credit losses of $661 thousand through the third quarter of 2014, as compared to a provision of $244 during the same period of 2013.  Other income increased $374 thousand, primarily due to an increase in income from patronage refunds from CoBank, ACB and income from fees for financial services.

Loans held by the Association at September 30, 2014 were $405.0 million, down 2.0% from year end.  The loan portfolio continues to be concentrated in the dairy industry with 50% of loan volume invested in dairy businesses. The second largest concentration is timber, with 14% 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 0.7% of the Association loans were classified as nonperforming, 0.1% improved from the previous quarter and from year endThere were no loan charge-offs and no recoveries in the quarter.  The Association’s capital position remains strong.

Click here for the full quarterly Report to Shareholders.

Friday, November 7, 2014

Promotion - Pam Simek

I am pleased to announce that Pam Simek has been promoted to Chief Financial Officer. Pam has been Acting Chief Financial Officer since June.

Pam started her career at Yankee Farm Credit as an administrative assistant in the Williston office in May 1995, just five months after Yankee was formed from the merger of Farm Credit of the Connecticut Valley and Champlain Valley Farm Credit. In 1997 Pam was promoted to Assistant Treasurer/Personnel Coordinator and in 2003 she was promoted to Controller. Now stationed out of our Middlebury office, Pam has played an integral part in the financial operations of our Association for many years. She is enthusiastic about her new position and welcomes the opportunity to help shape the future of the Association.

Before coming to Farm Credit, Pam worked for several employers including a law firm and the General Electric plant in Burlington. Pam holds two bachelors degrees from Trinity College in Burlington (now part of UVM), in history and accounting. She has also attended many Farm Credit specific training events including the Leadership Development Program, the Gettysburg Leadership Experience, and numerous Farm Credit System CFO conferences.

Please join me in congratulating Pam on this promotion.