The following content was originally distributed as a news release on August 6, 2021.
For Immediate Release
Yankee Farm Credit Reports Second Quarter Results for 2021
Williston, Vermont August 6, 2021.
Net Earnings of $4.0 Million
Yankee Farm Credit today announced second quarter financial results for 2021. Yankee is a farmer-owned credit cooperative serving Vermont, New Hampshire, and parts of New York. The Association did not distribute any patronage refunds to members during the quarter. Quarterly earnings were up from the prior year, and loan quality improved. Overall capital levels and earnings remain healthy at the Association.
Q2 Financial Results
Quarterly net income for Yankee was $4.0 million, an increase of $876 thousand from the same period in 2020. Net interest income, before provisional and reversal of loan losses, increased 7.3 percent, compared to the same period in 2020, to $5.1 million. There was a reversal to the provision for loan losses of $187 thousand in the second quarter of 2021 compared to a provision for loan losses of $2 thousand in the second quarter of 2020. Noninterest income increased $329 thousand year-over-year, primarily due to increases in patronage earned from other Farm Credit Institutions. Noninterest expense increased $14 thousand from the same period in 2020 primarily due to Farm Credit System Insurance Fund premium increases.
Loans held by the Association at June 30, 2021 were $594.4 million, up $8.1 million from year-end and $50.3 million higher than June 30, 2020. The loan portfolio continues to be concentrated in the dairy industry, with 43 percent of total loan volume invested in dairy businesses, compared to 43 percent at March 31, 2021. The second largest concentration is timber, at 16 percent of the loan volume at quarter end, with maple being the third largest concentration at 11 percent.
Credit quality across Yankee’s loan portfolio saw overall improvement during the quarter and continues to be well within the risk-bearing capacity of the Association. At quarter end, 2.34 percent of the Association loans were classified as nonperforming, up 0.54 percent from the end of 2020. There were no significant charge-offs or recoveries in the quarter. The Association’s permanent capital ratio at quarter end was 16.53 percent, down from 18.91 percent at the end of 2020.
Yankee Farm Credit
is a member-owned cooperative that provides loans and financial services to farmers and other rural customers. Yankee is an agricultural credit association (ACA) within the national Farm Credit System. Yankee serves all of Vermont, four counties in New Hampshire (Cheshire, Coos, Grafton and Sullivan) and two counties in New York (Clinton and Essex).
For more information about Yankee, visit the Association’s website at www.yankeefarmcredit.com
. The complete quarterly report is available, at no cost, on the website.
SVP & Chief Financial Officer