cAoM Cobafq bApq | OMNM ANNrAi obmloq
matronage distributions pubject to the carm Credit Act and oegulations there underI and the Association’s Capitalization mlanI each Association’s Board of airectors may authorize the distribution of Association earnings in the form of patronage refundsK matronage dividends based on one year’s operating results are distributed in the subsequent yearK qhe table below summarizes the patronage distributions since OMMUK barnings not distributed are retained as unallocated surplusK barnings vear
Cash aistribution
Allocated purplus aistribution
qotal matronage
OMNM OMMV OMMU
A PRIMMM A OPIQMM A NPIVQU
A M A M A VIMRO
A PRIMMM A OPIQMM A OPIMMM
An cCA regulation empowers it to direct a transfer of funds or equities by one or more pystem institutions to another pystem institution under specified circumstancesK qhe Association has not been called upon to initiate any transfers and is not aware of any proposed action under this regulationK lther Comprehensive fncome lther comprehensive income is comprised of NF net income and OF certain changes in cash flow hedgesK bffective as of fiscal OMMUI the change in the minimum pension liability is also included in other comprehensive incomeK lther comprehensive income was AVSINSPI ASQIOQNI and AQTIPOP for the years ended aecember PNI OMNMI OMMVI and OMMU respectivelyK klqb U – fncome qaxes qhe provision for income taxes consists of the followingW
As outlined in the carm Credit bast Capitalization mlanI if the Association continues to meet its financial goalsI it plans to redeem its existing allocated surplus by the year OMNQK mlanned redemptions have occurred in jay of OMNMI OMMVI and OMMUK Allocated surplus is retired at the discretion of the Association’s Board of airectors after considering the capitalization plan as well as regulatory and other requirementsK
As of aecember PN CurrentW cederal ptate qotal current provision for income taxes aeferredW cederal ptate qotal deferred EbenefitF expense from income taxes
oegulatory capitalization requirements and restrictions cCA’s capital adequacy regulations require the Association to achieve permanent capital of seven percent ETKMBF of riskJ adjusted assets and offJbalanceJsheet commitmentsK cailure to meet the TKMB capital requirement can initiate certain mandatory and possibly additional discretionary actions by cCA thatI if undertakenI could have a direct material effect on the Association’s financial statementsK qhe Association is prohibited from reducing permanent capital by retiring stock or making certain other distributions to shareholders unless prescribed capital standards are metK cCA regulations also require that additional minimum standards for capital be achievedK qhese standards are summarized belowW
mermanent Capital oatio qotal purplus oatio Core purplus oatio
cCA oegulatory jinimum
oatios at aecember PNI OMNM
TKMB TKMB PKRB
NRKUNB NRKRPB NQKTMB
OMNM A
fncrease EdecreaseF in deferred tax asset valuation allowance mrovision for income taxes
OMMV
UPO NTR NIMMT
A
RV TT NPS
OMMU A
OTM UN PRN
EPIUONF ERSOF
RISVS NINPN
EOUVF ESF
EQIPUPF
SIUOT
EOVRF
QIMSV
ESIUOTF
OVR
A SVP
A
NPS
A
PRN
qhe provision for income tax differs from the amount of income tax determined by applying the applicable rKpK statutory federal tax rate to pretax income as followsW
As of aecember PN cederal tax at statutory rate ptate taxI net bffect of nontaxable activities matronage distribution triteJoff of loss carryforwards Change in valuation allowance lther
tith respect to participation loansI the amount of participation certificates purchased and sold between Associations or an Association and CoBank may be negotiated within bylaw limits or may be undercapitalized with suitable negotiated compensation to the participating entityK
mrovision for income taxes
PR
OMNM A PRIRVR NNQ EOQIVSPF ENPINUSF M QIMSV EVPSF A
SVP
OMMV A OPIONQ RM ENRIUNMF EUINVMF UIMQM ESIUOTF EPQNF A
NPS
OMMU A ONINOU RP ENPINPQF EUIMRMF M OVR RV A
PRN