Williston, Vermont (March 12, 2020)
Net Earnings of $13.165 Million, Capital Remains Strong
2019 Patronage Payments to Customers Total $6.803 Million
Yankee Farm Credit, a farmer-owned credit cooperative serving Vermont and parts of New York and New Hampshire, today announced full-year financial results for 2019. Full-year earnings were slightly up from the previous year, and net interest income increased over the prior year while loan quality remained at acceptable levels. A patronage refund of $6.803 million will be distributed to members in March 2020. Following these distribution, Yankee’s overall level of capital remains strong.
2019 Financial Results
For the full year of 2019, net income for Yankee was $13.165 million, an increase of $20 thousand over 2018. Factors driving the change in net income were an increase in net interest income of $801 thousand, a $302 thousand lower provision for loan losses and an increase of financially related services of $107 thousand. These increases were offset by a reduction of $619 thousand of non-interest income (net of financially related services income) and a $568 thousand increase in non-interest expense. The reduction in non-interest income is related to non-recurring income received in 2018, which included refunds from the Farm Credit System Insurance Corporation and special patronage from our funding bank.
Year-end loan volume at December 31, 2019 was $547.8 million, up 4.6 percent from the prior year. While the portfolio continues to be highly concentrated in the dairy industry, we are adding diversity through a focus on lending into other agricultural sectors through both originated loans and loan purchases outside our territory. Dairy was 49 percent of loan volume at year-end, the second largest concentration is timber, with 13 percent of the loan volume at year-end, with the third largest concentration being maple, at 11 percent of loan volume at year end.
Credit quality across Yankee’s portfolio remained stable during 2019 and was well within the risk-bearing capacity of the Association. At year-end 1.20 percent of the Association loans were classified as nonperforming, compared to 1.72 percent at the end of 2018. The Association’s capital position remains strong.
The Board of Directors declared patronage refunds to members in the amount $6.803 million for 2019, to be paid 100% in cash. The December 2019 declared patronage payments will be made on or about March 26, 2020. Patronage refunds will be distributed either in the form of a check or direct deposit to members’ bank accounts.
Yankee Farm Credit is a member-owned cooperative which 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 annual report is available on the website here
Pamela Simek Erika Quick
SVP/Chief Financial Officer Marketing Coordinator