Wednesday, November 8, 2017

3rd Quarter Financial Results





It's November, and as we face holidays and year-end in the not too distant future I can't help but continue to ask, "where has the year gone"?

November is also when the third quarterly financial results for Yankee are published. We can announce that we have had another good quarter with $2.6 million in net income. A healthy net income is important for us to be able to provide credit and keep a strong patronage program. This is slightly higher than the same three month period in 2016, due to higher net interest income and higher patronage from CoBank, ACB. These increases, however, were partially offset by continued higher expenses due to the investments we are making in our new information technology platform and enhanced risk management practices.

Quarter end loans held at September 30th were $479.9 million, down slightly from year-end. These are the loans Yankee holds onto after selling other loans as a risk mitigation tool. The portfolio continues to be concentrated in the dairy industry with 52.3 percent of loans invested in dairy businesses. Our second largest concentration is timber with 11.8 percent of loan volume. Maple comes in at number three, with 11.1 percent of the portfolio at quarter-end.

Credit quality across the portfolio is seeing some pressures from the continue downturn in the dairy economy, but remained strong during the quarter and well within the risk bearing capacity of the Association. At quarter-end 1.0 percent of the Association loans were classified as nonperforming, a 0.2 percent improved from the end of 2016.

Click here for the full quarterly Report to Shareholders.