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25 Years of Loan Growth

In December 2020 Yankee achieved a milestone by recording over 1 billion dollars in managed loans for the first time. In the 25 years Yankee has existed, we have increased our loans by almost 5 times. It took us 17 years to double our loan volume to over $500M but only 7 years to double that amount. During that time we have reduced our concentration in dairy from almost 80% to 30% by increasing our loans in other commodities—mostly timber and maple. Our dairy volume has not actually decreased—our other commodities have simply increased at a faster rate. Timber is now our largest commodity group by gross loan and combined with Dairy and Maple producers compose just under 80% of our loans. Our average loan size today is just over $425,000. 

We manage our concentration of risk in any one group of related borrowers by selling loans that are too big for Yankee to hold on our own. We sell these loans to our funding bank CoBank. In 1995 we only sold $9.873M of loans—in December we sold $436.4M. We also purchase loans to help diversify our commodity and geographic risk. We did not starting purchasing loans until 1998 when $5.061M of loans were introduced. In December had $92.322M of loan purchases. We are by far a net seller of loans as we sell almost 5 times as many loans as we purchase. Net loans (loans originated or purchased less loans sold) are what we record on our financial statements (ie the Annual Reports). Net loan growth has been much steadier and has increased by a factor of 2.8. It took us 22 years to double our net loan volume. Net loan volume is where we earn our interest income and is the source of the patronage we are able to distribute to our owner borrowers annually. 

Thank you to the employees who have advanced their skills and dedicated their time in service of the members. And thank you to the members who have grown their business, and trusted Yankee to grow with them.


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