2022 ANNUAL REPORT

Jeremy M Anderson President & CEO

To our customers and shareholders,

Farm Credit of Southern Colorado reports a record year for net income and patronage to be paid to you, our customer owners. 2022 began with continued loan growth for the Association, as rates remained lower. As the Federal Reserve took actions to slow inflation, rates rose significantly which slowed growth. Despite the decline in loan volume growth, your Association remains strong and continues to be in a position to deliver capital to farmers, ranchers, and rural America.

We had record operating results with net earnings of $23.2 million, which allows the Association to return $9.5 million in cash patronage in the spring of 2023, to you, our shareholders. Total loans outstanding at December 31, 2022 were $1.45 billion, an increase of $75.7 million, or 5.5 percent, from loans of $1.38 billion at December 31, 2021. Our average accrual loan volume increased $144.5 million or 11.5 percent from $1.25 billion at December 31, 2021.

Additional Association highlights for 2022 included:

Company Culture

We continue to focus on our company culture and have fully adopted the core values of Fun, Integrity, Respect, Service, and Trust. You will likely see the FIRST values present in many of our materials and in our interactions with all of our shareholders and employees. While many companies began to require staff to return to the office, we embrace the future of remote work, with over 50% of our workforce now working remotely or in some form of a hybrid work arrangement. The Association was again recognized as one of the best workplaces in 2022 by the Colorado Springs Gazette.

Related Services

We enjoyed another successful year of partnering with our customers to increase our multi-peril and hail insurance service business. We have doubled the coverage sold to eligible customers and are proud to be a part of their risk management strategies.

Other Items

We have worked diligently to improve customer communication and the turnaround time it takes to get you an answer on loan requests. While we continue to focus on this and will in years to come, we made significant and measured improvement in the time it takes to deliver an answer to a request for financing.

Governance remains a focus for Farm Credit of Southern Colorado and I am proud of our Board for investing in continued education. In 2022, the Board made an investment in the Farm Credit Premier Governance Series which is a detailed training program for Farm Credit directors. This requires a significant amount of learning, travel, and time commitments.

At Farm Credit of Southern Colorado, we understand that our customers expect competitively priced products and services, exceptional customer service, convenient credit delivery, knowledgeable staff, and a dedicated management team. It is a pleasure to serve, you, our member owners. We are proud to present our 2022 Farm Credit of Southern Colorado Annual Report of Financial Condition.

As a mission based cooperative, we look forward to enriching the lives of our customers, employees, and the communities we serve. Thank you for your business and continued support.

Jeremy M Anderson President & CEO

5110 Edison Avenue, Colorado Springs, CO 80915

Office: 1-800-815-8559 | aglending.com