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B uild. Improve. Deliver.

FPI 2.0

2015 Annual Report

the fpi vision FPI creates superior value for our customers by providing:

• Exceptional customer service, building systems and processes that consistently deliver operational excellence

• Innovative solutions that drive toward the future of Farm Credit

• Superior business expertise and technical proficiency in the solutions we deliver

• Security and operational compliance by trusted partners and industry thought leaders

• A vibrant, collaborative, high-performing company culture


Our Board

Mark Littlefield

Phil DiPofi

Bill Lipinski

Bob Bahl

Chairman, President & CEO, Farm Credit West

Vice Chair, President & CEO, Northwest Farm Credit Services

CEO, Farm Credit East

President & CEO, AgCountry Farm Credit Services

Mark Littlefield has served in his

Phil DiPofi earned his bachelor’s

As CEO of Farm Credit East, head-

Bob is president and CEO of

current position since January

degree from the State University

quartered in Enfield, Conn., Bill

AgCountry Farm Credit Services,

2011. Prior to that, he served as

College of New York at Buffalo, and

Lipinski leads a team that serves

which serves more than 11,000

an executive vice president (and

his MBA with a concentration in

Maine, Massachusetts, Connecti-

farmers and ranchers in eastern

senior vice president) of Farm

accounting from Niagara Univer-

cut, Rhode Island, New Jersey,

North Dakota and northwest and

Credit West since its founding in

sity. Phil most recently served as

eastern New Hampshire and New

west central Minnesota along

2001. He has been employed in the

CoBank’s chief banking officer,

York. Farm Credit East has loans

with agribusinesses nationwide.

Farm Credit System since 1984.

where he was responsible for the

outstanding in excess of $5.8 billion

Bob leads a dynamic team that

Mark is a National Association

bank’s strategic banking functions,

and serves close to 14,000 farmers,

delivers a full spectrum of credit

of Corporate Directors (NACD)

including regional agribusiness,

agribusiness firms and rural

and financial services products to

Governance Fellow, and he serves

corporate agribusiness and banking

residence customers. In addition,

the agricultural market. Raised on a

on Farm Credit West’s corporate

services. As the president and CEO

it is a leading provider of financial

family grain and livestock farm near

governance committee. In addition,

of Northwest FCS, Phil is ultimately

services, including record-keep-

Mohall, N.D., Bob earned a B.S./B.A.

Mark is chairman of the FPI Board

responsible for the association’s

ing, tax preparation, business and

in finance and accounting with MBA

of Directors and also serves on the

$10 billion portfolio of owned and

estate consulting, appraisal and

studies from the University of North

Farm Credit Foundations Board,

serviced loans, overall financial

insurance. Bill graduated with a

Dakota. A merger between AgCoun-

which offers centralized human

performance and for more than 600

degree in agricultural economics

try and FCS of Grand Forks resulted

resources services for Farm Credit

employees in 47 offices throughout

from Cornell University, where he

in Bob assuming the position of


the Northwest. Phil also chairs FPI’s

has been named an outstanding

president and CEO of the combined

human capital and compensation

alumnus. Bill also chairs FPI’s

AgCountry association in 2008.


audit committee.


from t h e p r e s id e n t & ceo FPI 2.0: Build. Improve. Deliver. To our Friends Throughout the Farm Credit System, 2015 was a historic year for FPI as we celebrated our 21st year serving the Farm Credit System. That’s quite an accomplishment in today’s business world when many companies fail to achieve that milestone. FPI’s many significant contributions to our industry have been instrumental in helping our associations better serve their customers. We are proud of our achievements this past year, probably none more so than the

Howard Bruck

release of EmPower Collateral Web™, an innovative system built to perfect and manage the often-complex relationships between loans and collateral. Its intuitive graphical representation of these relationships, using what we call “drag-and-drop smart widgets”, minimizes data entry, reduces the learning curve and most importantly facilitates accurate data used in crucial credit decision making. Like all our software solutions, EmPOWER Collateral Web was designed in collaboration with our ACA customers, bringing first-hand business knowledge and experience directly into the development of the product. During the past year, we also completed the technical merger of Farm Credit West and Farm Credit Services Southwest. This project brought the two organizations onto the same platform and operating environment. We received many accolades from the new organization for the technical precision and superior customer support we delivered. All this was completed without interrupting the delivery of our 2015 work plan of projects to the rest of our customers. Credit Pro™, our credit analysis tool designed to enhance the analysis of each borrower’s financial information, completed its first full year of production. We focused on strengthening our support, training and user adoption for this powerful addition to our product line. Our customer-led steering committee prioritized many new

3 features and application improvements, which were

on the broader aspects of a holistic Information Security

delivered to high acclaim.

Program targeted to meet the highest standards within

2016 is already a historic year for me, being selected as FPI’s next president and CEO. I could not be more thrilled to join the Farm Credit System and be part of the next

the financial services industry. We will work closely with the FCA during this process and will strive to be a leader within the Farm Credit System.

generation of this wonderful company. We have great

Developing committed relationships with borrowers and

plans for 2016.

providing true industry expertise is a hallmark of the Farm

EmPOWER™, our flagship product, uniquely provides a full end-to-end loan management platform purposely designed for the Farm Credit System. In production since 2003, it has faithfully processed more than 500,000 loans for our ACA customers. It is quite the workhorse and still a very serviceable system; however, it is time for modernization. Fortunately, we have a strong model of what the future looks like with the release of EmPOWER Collateral Web, and the future is exciting. The frontend design is complete and has been enthusiastically reviewed by our customers. We are already well into development. FPI also provides the core infrastructure systems and support for our customers, everything from email to networking; from information security to system administration, tech support and procurement. In 2016, we will migrate our West Coast data center from an in-house environment to a Tier-3 professionally managed site. For those interest-

Credit System. Having great digital technology for borrowers can enhance that relationship and the value that ACAs provide. We plan to continue enhancing our Customer MySite Portal™, used by more than 15,000 farmer-borrowers. Borrowers will be able to upload financials and execute documents with electronic signatures. We have also created the Farm Credit Digital Alliance (FCDA), in partnership with CoBank. We expect FCDA to deliver bestin-class online banking and customized customer-facing solutions to the Farm Credit System. As I wrap up my thoughts for 2016, I want to say a few words about my predecessor, Tom Moran. I’ve spent much of my first few weeks visiting ACAs and attending industry conferences. During these events, I hear praise for Tom and his contributions to our industry. I want to join the many FPI employees throughout the past 21 years and thank Tom for his vision and dedication.

ed in high technology, we are completing the deployment

The atmosphere at FPI could not be more exciting.

of new solid-state data storage systems that dramatically

We can’t wait to deliver on our plans and continue to

increase performance and reliability, an essential require-

enhance our services to the Farm Credit System.

ment as the amount of information we manage continues to grow at dramatic rates. FPI has always been mindful of the importance of Information Security and has a robust set of technical safeguards using the industry’s leading products and services. We are dedicating a significant effort this year to continue building up our technical fortifications while also focusing




howard bruck

dan carey

dan caron

President & CEO

Executive Vice President, Chief Administrative Officer & Chief Risk Officer

Senior Vice President, Chief Information Officer

Howard Bruck joined FPI in 2016 as

Dan Carey joined FPI in 2015 as its

Dan Caron leads our infrastructure

president and CEO. His prior work

chief administrative officer, being

and operations functions, which are

experience includes serving as

additionally named its chief risk

responsible for servers, networks,

chief information officer at Sterling

officer in early 2016. Prior to

client technology, security engineer-

National Bank, managing director of

joining FPI, Dan led administrative

ing and daily computer operations.

technology at the New York Stock

and risk groups for large and

His team implements and supports

Exchange and group manager of

mid-sized organizations in multiple

technology for 2,500 employees at

information systems at PepsiCo

industries, including serving on the

more than 125 locations, including

International. For the past 12

executive management team of an

two data centers. With more than

years, Howard has been an adjunct

international photofinishing R&D

20 years’ experience in software

professor at NYU-Polytechnic Uni-

and manufacturing company, based

engineering, Dan joined FPI in 2010

versity and the Fordham University

in Zurich. Dan also practiced law,

after leading Microsoft application

Business School where he teaches

both in private practice with a focus

development for MassMutual and

courses in business operations and

on employment and labor law and

prior to that Internet development

IT strategy. He has served on the

as an assistant district attorney

for Tweeter Home Entertainment

business banking strategy commit-

in Massachusetts. Dan received

Group. During his first years with

tee for Fiserv and the midmarket

his B.A. from the University of

FPI, Dan’s team developed several

advisory council for IBM. Howard

Massachusetts, returning later

new products, including intranets,

regularly speaks at industry events

to receive his MBA from the univer-

websites, customer portals, auditor

and publishes articles in business

sity’s Isenberg School of Business.

portals and enterprise risk man-

journals. He earned his MBA from

Additionally, Dan received his Juris

agement dashboards. In 2015, Dan

Fordham University and his

Doctor from Western New England

transitioned from leading eBusiness

B.S. from Long Island University.

College School of Law.

to infrastructure and operations.



Bob hoffman

scott rousseau

karen walker

Senior Vice President, Software Development

Senior Vice President, Chief Financial Officer

Senor Vice President, Product Management

Bob Hoffman heads FPI’s software

Scott Rousseau leads the finance

Karen Walker is the program

development and application

and accounting functions as well

manager for FPI’s largest project:

architecture. His team focuses on

as the general ledger and loan

EmPOWER Web, which will upgrade

software development for FPI’s

accounting software product units

FPI’s flagship product to a web-

strategic initiatives, such as

at FPI. Scott joined FPI in 2007 as

based technology solution while

modernization of EmPOWER into

controller and was named chief

bringing key usability and function-

a browser-based web application.

financial officer in 2009. A certified

ality improvements to the applica-

His team also supports and en-

management accountant, Scott

tion. These improvements translate

hances FPI’s six client applications.

brings more than 20 years of finan-

into an improved experience and

In addition, Bob concentrates on

cial management and accounting

more efficiency gains for FPI cus-

best-of-breed software develop-

experience to his role. Prior to

tomers. After joining FPI in 2002,

ment practices, such as our secure

joining FPI, Scott worked for

Karen has held a project manage-

coding initiative. Bob began his

McKesson Technology Solutions,

ment role for the majority of her

FPI career in 1994 as a contractor

The Hartford and State Street Bank

career, managing some of FPI’s

leading the development of BASIS ,

where his primary focus was on

largest projects. In addition, she

FPI’s initial client-server applica-

financial management of tech-

has served in customer onboarding,

tion and then became design lead

nology costs within the financial

quality assurance and customer

for EmPOWER development. After

services industry. Scott holds a

service. Karen holds an M.S. in

completing the original design

B.S. in finance and an MBA from

communications and information

and development of EmPOWER

Bentley University.

management from Bay Path College

mobile , Bob was named FPI’s

and a B.A. in mathematics from

chief architect. Bob earned his B.S.

Mount Holyoke College.

in computer engineering from the University of Hartford.

7 FPI is a full-service provider of technology and financial services to the Farm Credit System. Our products and services start with foundational technologies, such as networks, storage, data center management and security, and extend to a full suite of employee efficiency tools, including email, intranets and desktop/mobile devices. FPI’s core products enable business processes for Farm Credit associations. From loan origination and underwriting to accounting, we support every aspect of the lending process. We also provide a broad set of risk management tools, including portfolio analysis reporting, ERM dashboards, audit tools and legal services. In addition, FPI extends each association’s reach with its customers through borrower-facing technologies, like websites, customer portals and mobile banking.

Here’s more on FPI’s extensive suite of products and services:

™ As FPI’s flagship product, EmPOWER™ provides our customers with a

centralized, highly customized, fully-integrated application that serves

the entire lifecycle of their businesses: customer relationship manage-

ment, loan origination and servicing, money movement transactions (including participations and syndications), marketing and portfolio analysis. EmPOWER is fully integrated with other FPI products, such as loan accounting, general ledger, FC Credit Pro and a Business Objects reporting warehouse. This level of integration translates to fewer points of data entry, a seamless user experience and fewer systems to learn. One powerful feature of EmPOWER is our new collateral management module which presents the relationships between legal entities, loans, collateral and underlying documentation. Using a simple but powerful user interface, each collateral component is graphically represented by icons with relationships between components clearly highlighted. Entering new or changing existing information is easily done by answering contextually relevant questions in data entry wizards (think TurboTax). Collateral management represents the innovation born of FPI’s Farm Credit expertise.

EmPOWER mobile™ is our enterprise mobile app companion for

EmPOWER. It provides relationship managers or loan officers with the tools they need to be productive and focused while out of the office

visiting customers. The EmPOWER mobile app streamlines tasks, such as account inquiries, customer activities management and customer information updates.

Doc Engine

FPI’s Doc Engine is a powerful tool that links with EmPOWER to create custom loan legal documents. Doc Engine automatically pulls borrower information from EmPOWER and places it into the lender’s loan

documents, improving the efficiency and quality of what has been a very manual process. Loan documents are customized by customer to accommodate each customer’s unique legal and company branding requirements.


Core Financial Systems

FPI’s core financial systems are the Lawson Financial Management and Fiserv DNA Loan Accounting systems.

Both are fully integrated with EmPOWER and a Business Intelligence data warehouse to provide a seamless flow of information from loan origination through loan accounting and general ledger. This integration not only creates efficiency for our customers but also improves the quality and accuracy of financial data. Our DNA loan accounting system was developed by Fiserv, the trusted industry leader in midmarket loan accounting applications. Our customers rely on DNA to track payments, disbursements and interest accruals as well as for loan maintenance, such as payment schedule updates and rate changes.

“The electronic balance sheet has been a great step forward that allows our association to provide an easy-to-use tool

Lawson Financial Management consists of a suite of applications, including general ledger, accounts payable, fixed asset and cost allocations. FPI customers are configured in Lawson for multiple entities, locations and cost centers to accommodate various required levels of internal and external financial reporting. Automated interfaces are processed nightly from multiple internal and external subsidiary

for staff to collect financials

systems, such as loan accounting, leasing and payroll.

securely and efficiently.

FPI works with our customers on a daily basis to provide seamless support of these

We’ve found that, in many

applications and business processes.

cases, information is returned to us quicker than a paper

request. Another benefit is

that information is directly

loaded into Credit Pro and available for future use. I look

Financial Benchmark™ compiles groups of financial statements to create an average, or benchmark, for comparing

the financial situation of similar farms. Highly integrated into FC Credit Pro, the Benchmark tool uses years of credit analysis data to generate reports and publish a summarized industry benchmark back to Credit Pro. Once published to Credit

forward to continued program

Pro, Benchmark statements can be included in customer trends and reports for

enhancement so we can

comparison purposes.

continue to maximize tools that make it easier to do business with us.” E ric Henny, relationship manager, Northwest Farm Credit Services, Salem, Ore.

Business Intelligence

Our Business Intelligence (BI) platform is a collection of dedicated BI products designed to satisfy our customers’ total

data and reporting requirements. The platform includes high-quality data from many core FPI applications (EmPOWER, loan accounting, general ledger, eReview™, etc.) and is the source of information for countless daily extracts and automated reports. With a full-featured, ad-hoc querying tool set, subject matter experts have the ability to mine their data, unlock actionable insights and provide operational and strategic data to decision makers in risk management, operations and finance. FPI recognizes the value of advanced business intelligence and continues to invest in this important and fast-changing discipline. With a focus on data governance,

9 location analytics and predictive analytics, FPI is well positioned to take advantage of its deep collection of customer data and exciting new technologies that are exploding in the BI industry. Farm Credit (FC) Credit Pro™ is a web-

based, mid-market credit analysis tool designed to modernize how Farm Credit

associations enter and analyze borrower financial information. From balance sheets to earnings statements and from projections to complex consolidations, Credit Pro is an intuitive platform with a powerful calculation engine for seamless and simplified trending, stressing and reporting. Customizable balance sheet and earnings statement templates provide flexibility at the association level, while ensuring consistency across industries within each ACA. Statement-linking capabilities facilitate easy tracking of cash to accrual adjustments, part of Credit Pro’s

“FPI is a great company to

proprietary net worth reconciliation calculation. The application is fully integrated

work with because their

with EmPOWER, collateral and the customer portal to minimize data entry and

teams are always willing to

ensure data consistency.

go the extra mile to ensure

eReview™ is a tool for internal auditors

and risk managers to review and assess credit decisions and risk. The practical

web interface enables the review of loans, appraisals and various financial services,

our products and services are strategic and innovative. I look forward to seeing

such as crop insurance, tax returns, farm records and payroll services. Internal

what FPI has in store for the

reporting features as well as a dedicated data warehouse allow for comprehensive

future so our association

management reporting at the branch, region or enterprise portfolio level.

can continue to succeed.”

Websites & Customer Portals

We host and help manage our customers’ external facing-websites. Using the Sitecore Content Management System,

customers maintain complete control over this important marketing tool while relying on FPI for security, design and web development expertise. FPI also provides a fully integrated, mobile-friendly borrower web portal called Customer MySite. It features a secure login, borrower specific account information, targeted marketing and a secure messaging portal — everything an association needs to digitally interact with its borrowers safely and conveniently.

FPI builds and maintains branded intra-


nets for each of our customers as well as an extranet that enables collaboration

between FPI and our customers. FPI leverages Microsoft SharePoint to provide customers with the ability to broadcast company news and information, share and collaborate across their organizations, manage and search content and implement consistent business processes through workflow automation.

 rittany Black, credit analyst, B Farm Credit West, Tulare, Calif.


Infrastructure Services

With dual-site data center locations and a state-of-the-art technology infrastructure, FPI provides a full-service

computing environment for ACAs. Our total solution includes servers, storage, networking, purchasing and information security. As part of the Farm Credit System, we are regulated by the Farm Credit Administration (FCA) and adhere to rigorous audit standards with annual SOC Type-1 and Type-2 reviews. Our infrastructure services deliver file sharing, email, office automation tools and technical support for our customer association applications. With operation centers on the East and West coasts, our team keeps association computing systems running throughout the day, and our customer center of excellence (CCOE) delivers industry specific technical and application support.

“As part of my responsibilities,

Information Security

Our information security team takes a

I verify collateral to ensure

its accuracy. In the past, it

was difficult to get accurate

monitor for malicious or anomalous activity, respond to security events and

real estate figures and values

systematic approach to managing our customers’ security needs. We actively

incidents and create policies and procedures that govern our environment to ensure our customers’ information is safe and meets compliance requirements.

for the real estate we had as security. Now Collateral

Security Administration

The security administration team is the

Web makes this process

100 percent easier and more

efficient. I can easily pull

applies added security to organizational assets, applications, directories and more.

numbers with confidence that the figures are correct. This change has improved our system.”  ary Mondry, senior credit technician, M AgCountry Farm Credit Services, Grand Forks, N.D.

gatekeeper to our secured applications and directories. This dedicated team

The team also manages access controls across multiple environments, applications and customers, ensuring the appropriate level of security is maintained and audited.

Technical Support

Our customer center of excellence (CCOE) provides help desk Tier-1 support for our customers. With teams

on both the East and West coasts, we provide coverage during extended business hours regardless of customer location. The CCOE handles and directs calls for hardware and software issues, training questions, password resets and production issues. Behind the CCOE are Tier-2 support teams that investigate more serious problems and make system changes to resolve issues.

Legal Services

The FPI legal department provides legal services and consultation to customers. As Farm Credit industry experts, this

team understands the broad array of issues that face Farm Credit System institutions. They help our customer associations understand Farm Credit Administration regulations, consumer lending laws and other federal laws specific to Farm Credit.


FPI provides cost effective and innovative products and services that drive profitability and competitive advantage for our customers. How do we do it? Customer-driven solutions. The enhancement prioritization committee (EPC) is composed of a senior business leader from each of our owner-associations. These individuals work together to develop FPI’s strategic direction and determine the products and services that we offer. Working closely with our customers, we strive for clear, ongoing communication with association CEOs, credit supervisors, branch managers and other association staff. This level of involvement ensures that we deliver value in both the short and long term. Innovation. A common theme throughout our history has been the level of innovation that comes from the FPI customer partnership. Working closely with our customers to identify business opportunities and

12 challenges in their marketplaces, FPI has become an innovation hub for solutions that help our customers compete in their marketplaces. Common vision. FPI and our customers share a common vision for the organization: to be the premier technology and service provider in the Farm Credit System. Every day, we strive to provide the highest quality products and services while furthering our collective strategic vision. To be the best solution provider, we hire great people, maintain a steadfast focus on customer service and constantly look to the future for the next great idea. Partnership. Our customers view FPI as a trusted business partner. We work cooperatively with each association as an integral part of their organization. Each

“FPI was a great help as we transitioned our network and application access requests to an online self-help process.

customer has a dedicated relationship manager who understands, communicates and champions their association’s short- and long-terms needs. Farm Credit experience. The FPI staff and management understand association business challenges because many have Farm Credit lending experience. We understand credit analysis, loan origination and maintenance, loan accounting,

FPI was very helpful assisting

money movement and the Farm Credit legal and regulatory environment. This

and guiding staff through

experience influences each of our products and services to ensure we provide

the process, because they

solutions that meet our customers’ needs.

understand how IT changes

Comprehensive portfolio of products. Our core services center on infrastructure,

affect staff. This understand-

technology and daily operations, but we also offer a wide range of products and

ing creates a good working relationship between FPI and Farm Credit East. We receive best-in-class customer

services that are essential to managing a Farm Credit association. Business intelligence, website hosting, loan document creation, legal consulting and information security are just a few of the services that complete our offering. Technology professionals. Our staff brings a wealth of information technology experience to create high quality and innovative solutions. As experts in IT

service and technology

infrastructure, application development and hosting and production support,

solutions — a significant

we offer highly available, custom solutions that meet the needs of the Farm

contributor to our continued success.”  aryn Deveau, director of information security, D Farm Credit East, Enfield, Conn.

Credit System.


2015 Financials

20 14

Management’s Discussion and Analysis Overview

The following comments address the operations and financial position of Farm Credit Financial Partners, Inc. (FPI). These comments should be read in conjunction with the accompanying financial statements and notes to the financial statements. During 2015, FPI achieved financial results favorable to plan in all key areas, including net income, capital levels, and liquidity. Carefully managed operating expenses, capital spending and project spending led to FPI’s financial performance exceeding earnings targets. FPI’s total operating income for 2015 was $39.7 million. This amount represents an increase of $4.2 million over 2014. Operating expenses for 2015 were $39.0 million, an increase of $3.8 million over 2014. Net income after other income and expenses, including provision for income taxes, was $268 thousand for the year as compared to $133 thousand in 2014.

Funding sources FPI operates with two primary sources of funding:

1. Operating income for “core” services provided. 2. Capital funding from owners.

In addition, FPI maintains a $3.75 million open-ended line of credit with CoBank. There were no borrowings on this line of credit as of December 31, 2015. Funding levels are established and approved annually during the budget planning cycle. Capital funding is planned over a five-year cycle and reviewed annually. The current capital plan focuses on building capital funds appropriate to continue FPI’s vision to be a leading-edge provider of technology solutions. The capital plan identifies key strategic projects. Completion of these projects and others is setting FPI on a strong course for effectively meeting demands related to systems, the marketplace, and governance.

15 Results of operations As noted above, FPI’s net income for 2015 increased by $134 thousand over 2014 net income. Changes in the significant components affecting net income are summarized on the following table ($ in millions): Effect on Change in Net Income Change in Total Operating Income Increase in core and custom income Increase in research and development (R&D) revenue

2015 versus 2014: Increase / (Decrease)

$3.9 0.3

Subtotal change in total operating income


Change in Total Expense Increase in project labor expense Increase in infrastructure expense Increase in other operating expenses Increase in non-operating expenses (primarily income tax provision)

3.3 0.3 0.2 0.3

Subtotal change in total expenses


Total change in net income


During 2015, FPI’s operating income totaled $39.7 million and was comprised of core and extended core billing to customers of $29.2 million, R&D funding of $5.3 million, and custom project income of $5.2. As noted in the overview section, this represents an increase of $4.2 million, or 12.0 percent over 2014. This increase is primarily due to increases in custom project and core services income. Operating expenses totaled $39.0 million during 2015, an increase of $3.8 million, or 10.8% over 2014. The primary area of change as compared to 2014 is in project labor costs. These costs represent the increased resource levels associated with growth in both core and custom project services. Project related staff and contract labor costs, which are offset by increased R&D and custom project revenue, increased by $3.2 million over 2014. Remaining operating expenses increased by $0.6 million, primarily driven by continued investments in infrastructure, reflecting targeted expenditures in the technology and security areas. Non-operating expenses (primarily income tax provisions) increased by $0.3 million as well. FPI ended 2015 with cash and cash equivalent balances of $3.6 million, a reduction of $3.8 million from prior year. This reduction is primarily due to the return of previously contributed and unspent R&D funds to a prior FPI owner. FPI met its financial targets during 2015 and positioned itself for future success. We completed a full work plan including the successful completion and delivery of EmPOWER Collateral Web and the successful technology merger of two customers: Farm Credit West and Southwest Farm Credit Services. In addition to new product rollouts, FPI continued to reduce outstanding production support case volumes and improved quality metrics, all while maintaining budget discipline. By year-end 2015 FPI had successfully completed its work plan, delivered strong operational performance, and was positioned to continue to deliver value-added solutions in the future.

16 Ownership and capital As of December 31, 2015, FPI had four owners with stock investments totaling $10.0 million. Total equity at December 31, 2015 equaled $5.4 million, down $1.0 million from 2014. The decrease in equity reflects the impact of $0.3 million in 2015 earnings and an increase of $1.3 million in accumulated other comprehensive losses. The increase in accumulated other comprehensive loss is primarily due to a corresponding increase in FPI’s defined benefit retirement plan liability. FPI’s capital plan provides for a five-year buildout and implementation schedule for strategic projects with capital spending and implementation dates being reviewed and adjusted annually to reflect the needs of the FPI customer base. Capital remains adequate for continued operations and approved projects. The CEO of each owner-association serves as a member of the FPI Board of Directors. FPI’s board operates under a committee structure. The committees are: • Human capital and compensation committee. This committee is an advisory group dealing with CEO compensation and FPI’s overall human capital strategy.

• Audit committee. This committee is an oversight committee working with FPI on enterprise risk management processes and financial controls.

Future FPI enters 2016 with strong financial resources, well-positioned products and solid, high-quality and increasingly efficient operations. As a result, FPI’s financial plan for the years through 2020 was developed with the following themes in mind:

• Complete the development of next-generation credit and lending systems and plan strategic growth. Core services income is based on market pricing and is adequate to cover necessary costs of operations and resources available for normal system enhancements/work plan initiatives. The goal over the fiveyear plan period is to drive for modernization through the development of next-generation systems, increase value to current customers and pursue growth opportunities that are consistent with FPI’s strategic vision.

• The FPI capital plan has the expressed goal of generating capital replacement funds for major projects. Available funds are used to complete targeted and planned projects as approved annually by the board. As required by GAAP, FPI capitalizes and depreciates appropriate projects.

• FPI invests in targeted strategic areas designed to continue to modernize our systems and provide value to our owner-customers. In doing so, FPI delivers value-added products and will continue to do so in the years to come.

In 2015, FPI continued its focus on delivering tangible value to associations, while maintaining the quality, consistency and predictability that have been key areas of focus over the last several years. During 2016 and beyond, FPI will continue to focus on planning and strong financial and project management discipline. Associations will continue to be very active partners, shaping products as they are developed and implemented.

17 With $30 billion in footings, combined loan volume of FPI’s owner-associations, and excellent additional growth opportunities, FPI remains very well positioned to achieve our long-term strategic objective of:

Building FPI into a highly sought-after business partner by achieving superior empowerment of association operations and an unparalleled value proposition.

Background Organized in 1995, FPI is a dedicated service entity providing a full realm of “backroom services” to its customers. It is the first successful, dedicated backroom shop in the Farm Credit System, effectively breaking the mold of bank-owned and bank-controlled service centers in favor of an association-controlled model. It is a leading advocate of employing cutting-edge, fully-integrated technology in a perpetual quest to drive value into the association delivery process. The FPI tool set and service delivery process are unparalleled in the Farm Credit System and provide a distinct advantage to the owner-customers. FPI is based on an ideology of associations with a common vision banding together and standardizing to create superior products and efficiency. It is dedicated to one-stop shopping for its customers. But, in its simplest form, FPI was started — and has prospered — based on one fundamental, unshakeable principle:

FPI is a customer-controlled and customer-driven organization. Based in Agawam, Massachusetts and Spokane, Washington, FPI operates with approximately 200 employees at these locations. Additional remote staff members are distributed in key areas across the United States working successfully out of offices in their homes. The staff and management of FPI bring a strong sense of customer-driven problem-solving to the table. There is a strong blend of association lending experience, Farm Credit Bank technology and operations experience, and newly added talent, all bringing a wide range of corporate experience to the table. FPI prides itself on adherence to the following key principles as fundamental to our operations and customer relationships: • A complete customer focus • A strong focus on consensus building and best practice sharing among customers • A dedication to employing heavily integrated, empowering technology and staying abreast of developments in technology that can be implemented to the distinct advantage of the customer base • A partnership with our owners. This requires extensive give and take on the part of both parties and a heavy problem-solving atmosphere • Striving toward a “no-surprises-to-the-customer” credo • Continually testing and reinventing the services model to meet the changing demands and challenges of the marketplace • An open, empowered environment within which employees grow and develop

18 FPI’s delivery strategy is closely focused on one-stop shopping for our customers. This, by necessity, does not mean that FPI will build all the systems or products that our customers require. Rather, we often become procurers of products and services for our customers, looking for the best value at all times. If it is a common need for our associations, FPI helps provide the service or we coordinate service through outside vendors. FPI’s ultimate goal is to:

Allow our customers to focus on what they do best. FPI is a seasoned technology company capable of continually reinventing and reenergizing itself to be a market leader. We always look forward to our next major opportunity or challenge. FPI proudly reflects on our accomplishments and remains committed to continual development in the future.


Balance Sheet As of December 31, 2015, 2014, and 2013 December 31, 2015 2014 2013 Assets Current assets Cash and cash equivalents $ 3,606,615 $ 7,366,703 $ 9,490,681 Accounts receivable 794,762 281,604 260,779 Prepaid assets 3,242,534 2,106,480 1,089,885 Total current assets 7,643,911 9,754,787 10,841,345 Long-term assets Fixed assets, net 5,477,964 5,849,026 6,157,624 Intangible assets 6,682,166 7,746,316 6,034,141 Deferred tax asset 5,220,929 4,285,859 2,602,375 Other long-term assets 662,875 560,222 503,248 Total long term-assets 18,043,934 18,441,423 15,297,388 Total assets $ 25,687,845 $ 28,196,210 $ 26,138,733 Liabilities Current liabilities Accrued expenses and other liabilities $ 4,160,675 $ 2,171,585 $ 2,779,321 Deferred revenue and customer deposits 1,749,324 7,975,525 9,171,319 Total current liabilities 5,909,999 10,147,110 11,950,640 Long-term liabilities Accrued employee benefits 12,306,424 9,994,636 6,180,801 Deferred tax liability 2,087,452 1,612,070 641,319 Total long-term liabilities 14,393,876 11,606,706 6,822,120 Total liabilities 20,303,875 21,753,816 18,772,760 Equity Class A preferred stock, $5.00 par value, 2,000,000 shares authorized, 2,000,000 shares issued and outstanding as of December 31, 2015 and 2014; 928,182 shares issued and outstanding as of December 31, 2013 10,000,000 10,000,000 4,640,910 Class B preferred stock, $5.00 par value, 2,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2015 and 2014; 830,000 shares issued and outstanding as of December 31, 2013 – – 4,150,000 Accumulated other comprehensive loss (5,761,127) (4,434,903) (2,313,894) Accumulated earnings 1,145,097 877,297 888,957 Total equity 5,383,970 6,442,394 7,365,973 Total liabilities and equity $ 25,687,845 $ 28,196,210 $ 26,138,733 The accompanying notes are an integral part of these statements.


Statement of Income Years-ended December 31, 2015, 2014, and 2013 Year-Ended December 31, 2015 2014 2013 Revenue Core and custom services $ 34,418,812 $ 30,507,954 $ 30,372,633 Research and development services 5,258,541 4,922,812 2,223,189 Total revenue 39,677,353 35,430,766 32,595,822 Operating Expenses Salaries and employee benefits 22,626,180 19,198,746 17,406,963 Purchased services 4,536,709 4,659,066 3,926,423 Occupancy and equipment 7,592,549 7,249,134 6,906,208 Other operating expenses 4,242,236 4,085,807 4,254,215 Total operating expenses 38,997,674 35,192,753 32,493,809 Net income from operations 679,679 238,013 102,013 Other Income/(Expense) Interest income 25,348 25,141 25,766 Interest expense 0 (10,235) 0 Other gains/(losses) 20,777 4,866 874 Total other income 46,125 19,772 26,640 Income before income taxes 725,804 257,785 128,653 Income tax expense 458,004 124,471 27,929 Net income $ 267,800 $ 133,314 $ 100,724 The accompanying notes are an integral part of these statements.


Statement of Cash Flows Years-ended December 31, 2015, 2014, and 2013 Year-Ended December 31, 2015 2014 2013 Cash Flows from Operating Activities Net income $ 267,800 $ 133,314 $ 100,724 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,897,468 4,652,186 3,680,354 ( Loss) gain from sales of fixed assets (11,667) 504 Increase in accounts receivable (513,158) (20,825) (39,810) ( Increase) decrease in deferred tax asset (935,070) (1,683,484) 918,847 ( Increase) decrease in prepaid and other assets (1,238,707) (1,073,570) 610,663 Increase (decrease) in deferred revenue and customer deposits (6,226,201) (1,195,793) 527,792 Increase (decrease) in accrued expenses and other liabilities 1,989,090 (2,728,747) 3,088,856 Increase (decrease) in deferred tax liability 475,382 970,751 (70,186) Increase (decrease) in accrued employee benefits, net 985,564 3,813,835 (3,119,453) Total adjustments (577,299) 2,734,857 5,597,063 Net cash (used in) provided by operating activities (309,499) 2,868,171 5,697,787 Cash Flows from Investing Activities Purchase of fixed assets (2,588,489) (1,058,698) (1,654,633) Proceeds from sales of furniture and equipment 44,044 – 2,023 Capitalized software development costs (906,144) (4,997,569) (4,616,039) Net cash used in investing activities (3,450,589) (6,056,267) (6,268,649) Cash Flows from Financing Activities Advances on notes payable with CoBank, ACB 2,614,077 5,217,830 3,162,002 Repayment of notes payable to CoBank, ACB (2,614,077) (5,217,830) (3,162,002) Preferred stock issued – 8,022,727 – Preferred stock retired – (6,813,636) – Decrease in retained earnings – (144,973) – Net cash (used in) provided by financing activities – 1,064,118 – Net decrease in cash and cash equivalents (3,760,088) (2,123,978) (570,862) Cash and cash equivalents at beginning of year 7,366,703 9,490,681 10,061,543 Cash and cash equivalents at end of year $ 3,606,615 $ 7,366,703 $ 9,490,681

Supplemental Cash Information: Cash paid during the year for: Interest $ – $ 10,235 $ – Income taxes $ 1,107,225 $ 525,300 $ 261,800 Change in minimum pension liability $ (1,326,224) $ (2,121,009) $ 2,207,074

The accompanying notes are an integral part of these statements.


Statement of Changes in Equity Years-ended December 31, 2015, 2014, and 2013 Accumulated Class A Class B Other Preferred Stock Preferred Stock Comprehensive Accumulated Shares Amount Shares Amount Loss Earnings Total Balance at January 1, 2013 928,182 $ 4,640,910 830,000 $ 4,150,000 $ (4,520,968 ) $ 788,233 $ 5,058,175 Net income 100,724 100,724 Other comprehensive income 2,207,074 2,207,074

Balance as of December 31, 2013




4,150,000 (2,313,894 )

888,957 7,365,973

Net income 133,314 133,314 Other comprehensive loss (2,121,009 ) (2,121,009 ) Shares issued to owners 1,604,545 8,022,725 8,022,725 Shares retired from owners (532,727 ) (2,663,635 ) (830,000 ) (4,150,000 ) (6,813,635 ) Retirement of accumulated earnings (144,974 ) (144,974 ) Balance as of December 31, 2014

2,000,000 10,000,000

(4,434,903 )

877,297 6,442,394

Net income 267,800 267,800 Other comprehensive loss (1,326,224 ) (1,326,224 ) Balance as of December 31, 2015 2,000,000 $ 10,000,000 0 $ 0 $ (5,761,127 ) $ 1,145,097 $ 5,383,970 The accompanying notes are an integral part of these statements.


Accumulated Other Comprehensive Loss Years-ended December 31, 2015, 2014, and 2013 The components of Accumulated Other Comprehensive Loss are as follows:

Minimum Postretirement SERP Pension Liability Liability Liability

Balance as of January 1, 2013 $ (4,007,734 ) $ (330,558 ) $ (182,676 ) $ Change in period 3,321,649 126,191 118,042 Tax effect of change in period (1,265,144 ) (48,586 ) (45,078 ) Balance as of December 31, 2013 (1,951,229 ) (252,953 ) (109,712 ) Change in period (3,343,378 ) (70,741 ) (30,402 ) Tax effect of change in period 1,283,079 28,276 12,157 Balance as of December 31, 2014 (4,011,528 ) (295,418 ) (127,957 ) Change in period (1,832,217 ) (113,238 ) 72,976 Tax effect of change in period 536,780 38,334 (28,859 ) Balance as of December 31, 2015 $ (5,306,965 ) $ (370,322 ) $ (83,840 ) $ The accompanying notes are an integral part of these statements.

Total (4,520,968 ) 3,565,882 (1,358,808 ) (2,313,894 ) (3,444,521 ) 1,323,512 (4,434,903 ) (1,872,479 ) 546,255 (5,761,127 )


Notes to Financial Statements NOTE 1 - Organization and Operations Farm Credit Financial Partners, Inc. (FPI) or (the Company) is engaged principally in providing information technology, financial services support, and other services to associations in the Farm Credit System (the System) on a fee basis. Currently, FPI services associations funded through CoBank, ACB (CoBank), an agricultural credit bank in the Farm Credit System, as well as association customers of AgriBank, FCB, a Farm Credit bank in the Farm Credit System. The Farm Credit Administration (FCA) chartered FPI as a service corporation under Section 4.25 of the Farm Credit Act of 1971, as amended (the Act). The FCA has authority under the Act to charter and regulate Farm Credit System banks, associations and service corporations. The activities of FPI are examined by FCA and certain actions by FPI are subject to the prior approval of FCA and FPI owner-associations.

NOTE 2 - Summary of Significant Accounting Policies The accounting and reporting policies of FPI conform to accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include the valuation of deferred tax assets and liabilities, assets and liabilities associated with employee benefit plans, revenue recognition, and capitalized computer software costs, and are discussed in these footnotes, as applicable. Actual results may differ from those estimates. A. Cash and Cash Equivalents Cash, as included in the financial statements, represents cash on hand and on deposit at banks. Cash equivalents are FPI’s investments in a short-term, highly-liquid money market fund. The fund invests in high-quality U.S. dollar-denominated short-term debt obligations including: securities issued by the U.S. government or its agencies, bankers’ acceptances, certificates of deposit, time deposits from U.S. or foreign banks, repurchase agreements, commercial paper, municipal securities and master notes. B. Accounts Receivable Accounts receivable are stated at amounts management expects to collect on outstanding balances. FPI evaluates the collectability of its receivables based on its prior experience and assessment of potential future losses, and does so through ongoing reviews of its aging analysis. As of December 31, 2015, 2014, and 2013, there was no allowance for uncollectible accounts required, as the Company had collected all accounts receivable outstanding as of the date the financial statements were available to be issued. The Company did not write off as bad debt any accounts receivable in the years-ended December 31, 2015, 2014, and 2013. C. Unbilled Revenue At times, FPI performs services for customers in advance of invoicing for such services. These amounts are recorded as unbilled revenue, are included in prepaid assets, in the accompanying balance sheets, and amount to $150,000, $0, and $0 at December 31, 2015, 2014, and 2013.

26 D. Fixed Assets Fixed assets are carried at cost less accumulated depreciation. Depreciation is computed principally using the straight-line method over the estimated useful lives of five to ten years for furniture and fixtures, and three to five years for computer equipment and software. Gains and losses on dispositions are reflected in current operations. Maintenance and repairs are charged to operating expense and improvements are capitalized. E. Software Developement Costs Product development includes the development of certain software products for internal use. Development costs for internal use software are expensed as incurred until the project reaches the application development stage, in accordance with ASC 350. Capitalized software development costs are included in intangible assets in the accompanying balance sheet and disclosed in more detail in Note 4. F. Employee Benefit Plans The funded status of pension and other postretirement benefit plans is recognized on the balance sheets. Gains and losses, prior service costs and credits and any remaining transition amounts that have not yet been recognized through pension expense will be recognized in accumulated other comprehensive income, net of tax, until they are amortized as a component of net periodic pension/postretirement benefits expense. Pension expense is based on an actuarial computation of future benefits using estimates for expected return on assets, expected compensation increases and applicable discount rates. Management has reviewed the discount rates and rates of return with our consulting actuaries and investment advisor and concluded they were reasonable. Expected compensation increases are estimated based on historical and expected increases in the future. Increases in estimated compensation increases would result in higher pension expense while decreases would lower pension expense. Discount rates are selected based upon rates of return on high quality fixed income investments currently available and expected to be available during the period to maturity of the pension benefit. Detailed rate assumptions are included in Note 12. Effective January 1, 2005, the Company closed the existing defined benefit pension plan to new participants. All employees hired on or after January 1, 2005 are participants in a noncontributory defined contribution plan. Participants in this plan receive a fixed percentage of their eligible wages to an investment account maintained for the employee. Costs for this plan are expensed as funded and recorded as employee benefit expense. Company employees are also eligible to participate in an employee savings plan. The Company matches a certain percentage of employee contributions with costs being expensed as funded. These costs are recorded as employee benefit expense. The Company also provides certain health care and life insurance benefits to employees. Costs for these benefits are recorded as employee benefit expense in the period in which they are incurred. G. Income Taxes The Company is organized as a C corporation for federal income tax purposes and files a form 1120-C. We use the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company also reduces deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology requires estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities. Valuation allowances are recorded against the gross deferred tax assets that management believes, after considering all available positive and negative objective

27 evidence, historical and prospective, with greater weight given to historical evidence, that it is more likely than not that these assets will not be realized. In addition, the Company is required to recognize in the consolidated financial statements, those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions as of the reporting date. If a tax position is not considered more likely than not to be sustained based solely on its technical merits, no benefits of the position are recognized. The Company recognizes interest and penalties as a component of the provision for income taxes in the accompanying statements of income. The Company does not believe it has any material uncertain tax positions. Interest and penalties were $23,172 for the year ending December 31, 2015. There were no interest and penalties for the years ending December 31, 2014 and 2013. The Company is no longer subject to federal, state, and local income tax examinations by tax authorities for years prior to 2012. H. Revenue Recognition The Company derives revenue from core services, custom services, and research-and-development services from its customers, all of which are lending associations in the Farm Credit System. Core and extended core services include credit delivery and management systems; core infrastructure and security; financial accounting and loan accounting services; management reporting; electronic commerce; legal support; and custom solutions, which include a retained technology services team dedicated to any specific projects required by the customer over a period of time which is typically one year. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collection is probable. FPI has determined that its core and extended services are performed ratably and represent one integrated performance obligation over the contracted delivery period, which is one year, and, as such, recognizes revenue over this one-year term. When FPI sells custom services, such services are generally negotiated separately from the core services and have standalone value and, as such, are recognized ratably over the period of performance. Custom services were purchased with a contract term commensurate with that of the core services (one year), and, as such, revenue is recognized ratably over the contract term. Annually, each FPI association contributes one basis point on its association loan volume toward FPI’s research-and-development services for spending related to specific forward-looking projects to enhance the technology and service offerings. Total association payments were $2,697,453 in 2015; $2,486,160 in 2014; and $2,285,741 in 2013. FPI recognizes these fees as revenue in the period in which the services are performed. The Company does not have any obligation or intent to repay previously expended research and development contributions. Deferred revenue recorded for services not yet performed was $306,767 as of December 31, 2015; $6,021,123 as of December 31, 2014; and $8,457,774 as of December 31, 2013. I.

Concentrations of Credit Risk Financial instruments which potentially subject the Company to credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalents with high credit quality financial institutions, and monitors credit risk with individual financial institutions and issuers. At December 31, 2015, 2014, and 2013, the Company had cash balances at certain financial institutions in excess of federally insured limits; however, it has not experienced any losses in such accounts.

J. Accumulated Other Comprehensive Income In accordance with required standards for reporting comprehensive income, the Company reports in its financial statements, in addition to its net income (loss) all changes in equity during a period from non-owner sources. The accumulated other comprehensive income represents adjustments to the minimum pension liability, net of tax.

28 K. Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications include: presentation of classified balance sheets; expanded disclosure of activity within accumulated other comprehensive loss; and expanded disclosure of pension and other post-retirement benefit plans and other balance sheet accounts. These reclassifications had no effect on the reported results of operations. L. Captive Insurance Company FPI accounts for its investment in the captive insurance company (Note 5) under the equity method of accounting. The carrying value of the investment is recorded based on FPI’s initial investment and adjusted for FPI’s share of the earnings. M. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. As of December 31, 2015, 2014, and 2013, there were no impairment losses recognized for long-lived assets. N. Recently Issued or Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance entitled, “Revenue from Contracts with Customers.” The guidance governs revenue recognition from contracts with customers and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Financial instruments and other contractual rights within the scope of other guidance issued by the FASB are excluded from the scope of this new revenue recognition guidance. In this regard, a majority of our contracts would be excluded from the scope of this new guidance. In August 2015, the FASB issued an update that defers this guidance by one year, which results in the new revenue standard becoming effective for interim and annual reporting periods beginning after December 15, 2018 for private companies. FPI is in the process of reviewing contracts to determine the effect, if any, on our financial condition or results of operations. In May 2015, the FASB issued ASU No. 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value (NAV) per Share (or Its Equivalent),” which excludes investments measured at netasset value, as a practical expedient for fair-value, from the fair-value hierarchy. Removing those investments from the fair-value hierarchy not only eliminates the diversity in practice in how investments measured at NAV (or its equivalent) with the future redemption dates are classified, but also ensures that all investments categorized in the fair-value hierarchy are classified using a consistent approach. Investments that calculate net-asset value per share (or its equivalent), but for which the practical expedient is not applied, will continue to be included in the fair-value hierarchy to permit reconciliation to the line items present in the statement of financial condition. The ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV per share practical expedient. Rather, upon adoption, the disclosures required by ASC paragraph 820-10-50-6A will be limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update are effective for non-public business entities for fiscal years beginning after December 15, 2016. Early adoption is permitted. Upon adoption, the amendments shall be applied retrospectively to all periods presented. The Company adopted this update for the year-ended December 31, 2015, and it was retrospectively applied to the years-ended December 31, 2014 and 2013. Prior year disclosures have been revised to reflect the retrospective application of this update. The impact of adopting this update is reflected in Note 12.

29 In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes,” which eliminates the requirement for reporting entities to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, reporting entities will be required to classify all deferred tax assets and liabilities as noncurrent. This ASU is effective for annual periods beginning on or after December 15, 2017 and early adoption is permitted. FPI has early-adopted this guidance and applied the changes retrospectively, and accordingly deferred tax assets and liabilities are presented as noncurrent on the accompanying statements of financial condition. In February 2016, the FASB issued ASU No. 2016-02, “Leases.” This standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. FPI is in the process of reviewing contracts to determine the effect, if any, on our financial condition or results of operations.

NOTE 3 - Fixed Assets Fixed assets consisted of the following: 2015

December 31, 2014


Computer equipment $ 13,447,123 $ 12,236,758 $ Computer software 25,076,322 24,049,422 Furniture and fixtures 1,904,266 1,836,302 40,427,711 38,122,482 Less: Accumulated depreciation and amortization 34,949,747 32,273,456 Total $ 5,477,964 $ 5,849,026 $

10,803,160 22,795,143 1,754,781 35,353,084 29,195,460 6,157,624

Depreciation expense related to the Company’s property and equipment was $2,934,852, $3,241,193, and $3,216,377 in 2015, 2014, and 2013, respectively.

NOTE 4 - Intangible Assets Intangible assets at December 31, 2015, 2014, and 2013, consisted of capitalized computer software costs, as follows: December 31, 2015 December 31, 2014 December 31, 2013

Gross Accumulated Net Carrying Amount Amortization Book Value $

10,519,752 9,621,287 6,498,118


3,837,586 1,874,971 463,977


6,682,166 7,746,316 6,034,141

Capitalized computer software costs are amortized over a five-year useful life. For the years-ended December 31, 2015, 2014 and 2013, the Company capitalized $906,144; $4,997,569; and $4,616,039 in internal-use software, respectively. Amortization expense associated with these assets totaled $1,962,616; $1,410,993; and $463,977 for the years-ended December 31, 2015, 2014 and 2013, respectively.

30 Based on the current amount of intangible assets subject to amortization, amortization expense is expected to be as follows for each of the years ending December 31: 2016 $ 2,123,577 2017 2,066,763 2018 1,607,951 2019 717,749 2020 166,126 Total $ 6,682,166

NOTE 5 - Captive Insurance Company In conjunction with other System entities, the Company jointly owns the Farm Credit System Association Captive Insurance Company (the Captive). The Captive is an insurer that provides insurance services such as directors’ and officers’ liability, fiduciary liability, bankers bond and other property and liability insurance for the member associations, which includes three Farm Credit banks, one agricultural credit bank, four Farm Credit service corporations and 76 associations. The carrying value of the investment totaled $491,109, $468,672, and $466,689 at December 31, 2015, 2014, and 2013, respectively. Premiums paid in those respective years to the captive totaled $165,585, $158,633, and $153,353, respectively. If FPI should terminate its interest in the captive, any contributed surplus will be returned within six months of the termination, subject to approval by the Board of Governors of the Captive.

NOTE 6 - Notes Payable to CoBank, ACB Notes payable to CoBank, ACB represent borrowings by FPI to fund normal operations and capital expenditures. Under terms of the financing agreement with CoBank, which provides FPI with a $3,750,000 revolving line of credit, substantially all FPI’s assets are assigned to CoBank as primary collateral for funds advanced. There were no borrowings from CoBank outstanding as of December 31, 2015, 2014 or 2013. Interest paid to CoBank for the year-ended December 31, 2014 was $10,235. During 2015 and 2013 there were no borrowings from CoBank, and accordingly no interest was paid on the line of credit during those years. At each draw, FPI may choose between the interest rate that is 1.85% above the onemonth LIBOR index rate in effect at the time of the draw, or a fixed rate quoted by CoBank at its sole discretion. The variable rate in effect at December 31, 2015 was 2.28%. The line of credit matures on July 31, 2016.

NOTE 7 - Prepaid Assets Prepaid assets consist of the following: 2015 Prepaid vendor invoices Federal and state taxes Unbilled revenue FCA audit fees Postage

December 31, 2014


$ 2,258,627 $ 1,850,439 $ 1,079,819 791,429 252,110 8,437 150,000 – – 42,000 – – 478 3,931 1,629 $ 3,242,534 $ 2,106,480 $ 1,089,885

31 NOTE 8 - Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following: 2015

December 31, 2014


Accrued expenses $ 2,415,053 $ 2,149,466 $ 2,145,640 Trade payables 1,721,129 – 321,465 Taxes payable 24,493 19,802 312,216 CoBank line of credit – 2,317 – Total $ 4,160,675 $ 2,171,585 $ 2,779,321

NOTE 9 - Accrued Employee Benefits Accrued employee benefits consist of the following:


December 31, 2014


Annual leave $ 914,246 $ 927,818 $ 876,505 Pension 10,104,101 7,530,407 3,965,962 Postretirement benefits 357,918 397,762 337,771 Health reserve 454,025 689,736 673,034 SERP 471,849 444,593 327,820 Other 4,285 4,319 (291) Total $ 12,306,424 $ 9,994,636 $ 6,180,801

NOTE 10 - Income Taxes The provision for income taxes consisted of the following: December 31, 2015 2014 2013 Current: Federal $ 18,334 $ (493,326) $ 462,294 State 204,072 7,017 75,782 Total 222,406 (486,309) 538,076 Deferred: Federal 461,809 598,182 (439,948) State (226,211) 12,598 (70,199) Total 235,598 610,780 (510,147) Total provision for income taxes $ 458,004 $ 124,471 $ 27,929 FPI made tax payments of $189,902 in 2015; $102,300 in 2014; and $60,800 in 2013 related to state income taxes. FPI paid $917,323 in 2015; $423,000 in 2014; and $201,000 in 2013 related to federal income taxes.

32 The provision for income tax differs from the amount of income tax determined by applying the U.S. statutory federal tax rate to pretax income as follows: December 31, 2015 2014 Federal tax at statutory rate $ 246,773 $ 87,647 $ State tax, net 204,072 12,750 Permanent differences-meals 13,623 18,281 Other (6,464) 5,793 Provision for income taxes $ 458,004 $ 124,471 $

2013 43,742 11,113 15,489 (42,415) 27,929

Deferred tax assets and (liabilities) resulted from the following: December 31, 2015 2014 Annual leave $ 340,626 $ 353,182 $ Pension 3,940,344 3,035,755 Operating loss carryforward 502,977 292,468 Postretirement 133,351 151,412 Health reserve 169,159 262,554 Deferred revenue 134,453 190,458 Charitable contributions 19 30 Gross deferred tax assets 5,220,929 4,285,859

2013 330,743 1,620,227 707 127,455 253,964 269,251 28 2,602,375

Depreciation (2,087,452) (1,612,070) (641,319) Gross deferred tax liabilities (2,087,452) (1,612,070) (641,319) Net deferred tax asset $ 3,133,477 $ 2,673,789 $ 1,961,056

Under the provisions of the Internal Revenue code, certain substantial changes in the Company’s ownership may limit in the future a significant portion of the amount of net operating loss carryforwards which could be utilized annually to offset future taxable income and income tax liabilities. The amount of any annual limitation is determined based on the Company’s value and certain other factors on the date of ownership change. Management has determined that it is more likely than not that the Company will recognize the benefits of federal and state deferred tax assets within the allowable time period, despite the ownership changes and, as a result, has determined that no valuation allowance related to deferred tax assets is necessary as of December 31, 2015, 2014, and 2013. FPI has federal operating loss carryovers of $923,305 that begin to expire in 2035 and state net operating loss carry forwards of $3,516,306 that begin to expire in 2020. FPI expects that the operating loss carryovers will be fully utilized before they expire. The Internal Revenue Service (IRS) commenced an audit during 2013 of the U.S. federal income tax return for the taxable years ending December 31, 2010 through 2013. During 2014, the IRS issued Notices of Proposed Adjustment to FPI in the amount of $3,445,464. FPI disagreed with the IRS finding and filed an appeal in January 2015. This appeal was resolved in July 2015 with a time value of money settlement in the amount of $322,699, which was paid in 2015. No additional taxes were due and the exam has been closed.

33 NOTE 11 - Self-Insured Health Care Plan FPI provides health care benefits to its employees through a multiple-employer insurance plan with CoBank, ACB (the plan administrator), Farm Credit East, ACA, the Federal Farm Credit Banks Funding Corporation and Yankee Farm Credit, ACA. The plan is responsible for the first $200,000 in claims per person per year, with stop loss and group reinsurance to protect against catastrophic claims. For the years-ended December 31, 2015, 2014, and 2013, the Company has recorded expense, net of employee withholdings or contributions, of approximately $1,386,136, $1,243,500, and $1,304,390. Included in accrued expenses in the balance sheets as of December 31, 2015, 2014, and 2013 are self-insurance reserves totaling $454,025, $689,736, and $673,034. The Company reviews its self-insurance accruals on a quarterly basis and determines, based upon a review of its recent claims history and other factors, which portions of its self-insurance accruals should be considered short-term and longterm.

NOTE 12 - Employee Benefit Plan Employee Savings Plan FPI participates in the CoBank Employee Savings Plan (Employee Savings Plan), a deferred compensation plan in which FPI matches a certain percentage of employee contributions. The Employee Savings Plan requires FPI to match 100 percent of employee contributions up to a maximum employee contribution of six percent of base salary. Employer contributions charged to expense were $917,439 in 2015; $788,032 in 2014; and $763,438 in 2013. Defined Contribution Retirement Plan FPI participates in the CoBank defined contribution qualified retirement plan, a noncontributory, multipleemployer plan (defined contribution plan). Under this plan for employees hired January 1, 2005 and later, the employer contributes a percentage of each employee’s salary, based on years of service, to an account maintained for the employee. Employer contributions charged to expenses were $295,594 in 2015; $319,440 in 2014; and $267,824 in 2013. Defined Benefit Retirement Plan FPI participates in the CoBank defined benefit qualified retirement plan (defined benefit plan). This plan covers FPI employees hired before January 1, 2005. Benefits are based on years of service and compensation levels during the years of employment. It is the policy of the participating employers to fund at least the minimum required by the Employee Retirement Income Security Act (ERISA). FPI’s contributions during 2015, 2014. and 2013 were consistent with this policy. Plan assets are stated at fair value and are primarily invested in publicly traded stocks and bonds, real estate and contracts with insurance companies. Supplemental Executive Retirement Plan Beginning in 2010, FPI entered into a noncontributory, nonqualified supplemental executive retirement plan (SERP). The plan currently covers one employee. The Company holds assets in a trust fund related to the SERP; however, such funds remain Company assets and are not included as plan assets in accompanying disclosures. Post Retirement Health Care Benefit Plan FPI provides certain health care and life insurance benefits to employees if they reach normal retirement age while working for FPI (the postretirement health care plan). The authoritative accounting guidance requires the accrual of the expected cost of providing postretirement benefits other than pensions (primarily healthcare benefits) to an employee and an employee’s beneficiaries and covered dependents during the years that the employee renders service necessary to become eligible for these benefits. These accrued (benefits)/expenses of ($153,082), ($10,750), and ($11,772) were classified as salaries and employee benefits on FPI’s financial statements during 2015, 2014, and 2013, respectively.

34 The funding status and the amounts recognized in the statement of condition of FPI’s defined benefit plan and SERP, combined as “Retirement Plans” as well as other postretirement benefits are as follows ($ in thousands): Retirement Plans Other Postretirement Benefits December 31, December 31, 2015 2014 2013 2015 2014 2013 Change in projected benefit obligation Benefit obligation at beginning of year $ 27,650 $ 22,101 $ 22,364 $ 398 $ Service cost 892 755 815 22 Interest cost 1,112 1,052 891 16 Plan amendments 935 – – – Actuarial loss (gain), net – 3,875 (1,838 ) 141 Plan participant contributions – – – 17 Transfers – – – – Benefits paid (221 ) (133 ) (131 ) (236 ) Benefit obligation at end of year $ 30,368 $ 27,650 $ 22,101 $ 358 $ Change in plan assets Fair value of plan assets at beginning of year $ 19,675 $ 17,807 $ 15,015 $ – $ Actual return on plan assets (265 ) 1,470 2,114 – Employer contributions 603 531 809 219 Plan participant contributions – – – 17 Transfers – – – – Benefits paid – – – (236 ) Other (221 ) (133 ) (131 ) – Fair value of plan assets at end of year $ 19,792 $ 19,675 $ 17,807 $ – $ Funded status of the plan Net amount recognized in the balance sheet in accrued employee benefits $ (10,576 ) $ (7,975 ) $ (4,294 ) $ (358 ) $

338 $ 24 16 – 91

476 42 19 – (101 )

16 – (87 )

– – (98 )

398 $


– $

– 71

– 98

16 – (87 ) –

– – (98 ) –

– $

(398 ) $

(338 )

The accumulated benefit obligation for FPI’s defined benefit plan and SERP, combined as “Retirement Plans” as well as other postretirement benefits are presented in the following table ($ in thousands): Retirement Plans Other Postretirement Benefits December 31, December 31, 2015 2014 2013 2015 2014 2013 Accumulated benefit obligation $ 24,838 $ 21,936 $ 17,375 $ 358 $ 398 $ 338 The accumulated benefit obligation is the actuarial present value of the benefits accrued for service rendered to that date based on current salary levels. The projected benefit obligation is the actuarial present value of the

35 benefits accrued for service rendered to that date based on estimated future salary levels. Components of net periodic benefit cost and other amounts recognized in other comprehensive income are as follows ($ in thousands): Retirement Plans December 31, 2015 2014 2013 Periodic benefit cost Service cost $ 891 $ 755 $ 815 Interest cost 1,112 1,052 891 Expected return on plan assets (1,338 ) (1,200 ) (1,037 ) Amortization of unrecognized: Prior service cost 118 60 40 Net actuarial loss 512 171 485 $ 1,295 $ 838 $ 1,194 Changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss (gain) $ 1,203 $ 3,605 $ (2,915 ) Prior service cost/(credit) 935 – – Amortization of: Prior service cost/(credit) (118 ) (60 ) (40 ) Net actuarial (gain)/loss (512 ) (171 ) (485 ) $ 1,508 $ 3,374 $ (3,440 )

Approximately $1,495,644 will be amortized from accumulated other comprehensive (income) loss into net period benefit cost in 2016; included in this amount is $1,422,551 related to the retirement plans and $73,093 related to the postretirement health care plan. The weighted average rate assumptions used to determine benefit obligations for the defined benefit plan and SERP are as follows: December 31, 2015 2014 2013 Discount rate Expected return on plan assets Rate of compensation increase

4.55% 6.63% 4.75%

4.10% 7.25% 4.75%

4.85% 7.25% 4.75%

The weighted average rate assumptions used to determine net periodic benefit cost for the defined benefit plan and SERP are as follows: December 31, 2015 2014 2013 Discount rate Expected return on plan assets Rate of compensation increase

4.10% 7.25% 4.75%

4.85% 7.25% 4.75%

4.05% 7.25% 4.75%

The discount rates are calculated using a spot yield curve method developed by an independent actuary. The approach maps a high-quality bond yield curve to the duration of the plans’ liabilities, thus approximating each cash flow of the liability stream to be discounted at an interest rate specifically applicable to its respective period in time.

36 Plan Assets The asset allocation target ranges for the defined benefit plan and SERP follow the investment policy adopted by our retirement trust committee. This policy provides for a certain level of trustee flexibility in selecting target allocation percentages. The actual asset allocations at December 31, 2015, 2014, and 2013 are shown in the following table, along with the adopted range for target allocation percentages by asset class. The actual allocation percentages reflect the quoted market values at year end and may vary during the course of the year. Plan assets are generally rebalanced to a level within the target range each year at the direction of the trustees. We establish the expected rate of return on plan assets based on a review of past and anticipated future returns on plan assets. The expected rate of return on plan assets assumption also matches the pension plan’s long-term interest rate assumption used for funding purposes. Total Percentage of Plan Allocation Assets at December 31, Range 2015 2014 Asset Category Domestic Equity 40-50 % 45 % 48 % Domestic Fixed Income 35-50 36 33 International Equity 0-10 9 10 Emerging Markets Equity and Fixed Income 0-10 5 4 Real Assets: Gold Fund 0-5 5 5 Total 100 % 100 % 100 %

2013 50 % 31 11 5 3 100 %

The assets of the defined benefit plan and SERP consist primarily of investments in various domestic equity, international equity and bond funds. These funds do not contain any significant investments in a single entity, industry, country or commodity, thereby mitigating concentration risk. No CoBank stock or debt, or that of any other System institution, is included in these investments. The following table presents major categories of defined benefit plan and SERP assets that are measured at fair value at December 31, 2015, December 31, 2014 and December 31, 2013 ($ in thousands): As of December 31 2015 2014 2013 Asset Category Cash $ 29 $ 22 $ 78 Domestic Equity: Large-cap growth fund (1) 4,350 4,477 3,902 Large-cap equity fund (1) 3,599 4,105 3,384 Small-cap growth fund (1) 916 890 1,185 International Equity: International fund (2) 1,878 1,908 1,864 Fixed Income: Bond fund (3) (4) 7,127 6,538 5,233 Emerging Markets: Equity and fixed income fund (5) 935 830 807 Real Assets: Hedge fund (6) 958 905 1,354 Total $ 19,792 $ 19,675 $ 17,807 (1) Fund invests primarily in diversified portfolios of common stocks of U.S. companies in various industries, including consumer goods and services, information technology, healthcare, industrial materials, financial services and energy. (2) Fund invests primarily in a diversified portfolio of equities of non-U.S. companies in various industries, including information technology, financial services, healthcare, consumer goods and services, energy and telecommunications. (3) Fund invests primarily in a diversified portfolio of investment grade debt securities and cash instruments. (4) Fund invests primarily in U.S. Treasury debt securities and corporate bonds of U.S. companies primarily in the financial services industry. (5) Fund invests in equities and corporate debt securities of companies located in emerging international markets. Industries include energy, consumer goods and services, industrial materials, financial services and information technology. Fund also invests in the sovereign debt of various countries. (6) Fund invests in diversified portfolios of stocks, bonds and various other financial instruments in a variety of industries including financial services, telecommunications, information technology, consumer goods and services, and healthcare.

37 Investment strategy and objectives are described in the pension plans’ formal investment policy documents. The basic strategy and objectives as adopted in the investment policy are:

• Manage portfolio assets with a long-term time horizon appropriate for the participant demographics and cash flow requirements • Optimize long-term funding requirements by generating rates of return sufficient to fund liabilities and exceed the long-term rate of inflation • Provide competitive investment returns and reasonable risk levels when measured against appropriate benchmarks.

Expected Contributions We expect to contribute approximately $1.0 million to our funded, qualified defined benefit pension plan in 2016. Our actual 2016 contributions could differ from the estimates noted above. Estimated Future Benefits Payments We expect to make the following benefit payments, which reflect expected future service, as appropriate ($ in thousands):

Expected Benefit Payments

Pension SERP Year 2016 $ 1,086 $ – 2017 1,234 – 2018 1,316 – 2019 1,511 243 2020 1,639 – 2021 to 2025 8,571 1,458

The following table sets forth the funding status and weighted average assumptions used to determine postretirement health care benefit obligations ($ in thousands): 2015 Accumulated benefit obligation $ Net liability recognized in the balance sheet $ Net periodic (income) expense $ Discount rate

December 31, 2014 232 $ 79 $ 358 $ 398 $ (153) $ (11) $ 4.55 % 4.10 %

2013 68 338 (12) 4.85 %

For measurement purposes, a 7 percent annual rate of increase in the per capita cost of covered health care benefits was assumed for 2015. The rate was assumed to decrease gradually to 4.5 percent for 2022, and remain at that level thereafter.

NOTE 13 - Equity Effective June 30, 2006, FPI has been authorized to issue 2,000,000 shares each of Class A preferred stock – voting; Class B preferred stock – non-voting; and Class C common stock – non-voting at a par value of $5 per share. At December 31, 2015, FPI had 2,000,000 shares of Class A preferred stock outstanding at a par value of $5 per share and no outstanding shares of Class B preferred stock or Class C common stock.

38 Each owner of Class A preferred stock is entitled to a single vote regardless of the number of shares owned, while Class B preferred stock and Class C common stock provide no voting rights to their owners. During the year-ended December 31, 2014, three owners: CoBank ACB, Yankee Farm Credit, ACA and Farm Credit Services Southwest, ACA exited the ownership group. FPI continues to provide similar services to them as it has in the past. FPI’s remaining owners increased their stock investments in FPI as part of this plan. The net impact in stock investment in FPI was an increase of $1.2M. A description of equities is as follows:

• Class A preferred stock (voting stock) is the second of the three stock classes to be impaired and the second of the three classes to be restored after impairment. This class of stock may be issued only to the bank serving the Northeast Region, the affiliated associations and nonaffiliated customers using core services.

• Class B preferred stock (nonvoting stock) is the last class to be impaired and the first class to be restored after impairment. This class of stock may be issued to System banks and associations under a program approved by the board.

• Class C common stock (nonvoting stock) is the first class to be impaired and the third class to be restored after impairment. This class of stock may be issued to the bank serving the Northeast Region, the affiliated associations and nonaffiliated customers under a program approved by the board.

• Other classes and issues of stock shall be approved by the stockholders.

The preferred and common shares are not convertible. All shares are non-assessable and no further capital contributions are required. Dividends or patronage distributions may be declared by the board at its discretion provided no class of stock shall be impaired. There were no dividends or patronage distributions declared during the years-ended December 31, 2015, 2014, and 2013. In the event of liquidation or dissolution of the Company, any assets remaining after payment or retirement of all liabilities shall be distributed first to the holders of the Class B preferred stock, second to the holders of Class A preferred stock and third to the holders of the Class C Common Stock.

NOTE 14 - Commitments and Contingencies FPI has an agreement with Pine Creek Management, Agawam, Mass., to lease the general office space, warehouse storage, loft space and garage space at 67 Hunt Street, Agawam, Mass. FPI also has an agreement with Northwest Farm Credit Services to lease space at 1700 South Assembly Street, Spokane, Wash. Rent expense for these leases was approximately $585,721; $624,210; and $695,484 for the years-ended December 31, 2015, 2014, and 2013, respectively. Northwest Farm Credit Services is an FPI owner-customer. At December 31, 2015, future minimum lease payments were: December 31, Year Amount 2016 $ 555,080 2017 552,566 2018 545,027 2019 533,742 2020 533,742 thereafter 133,436 Total



39 Note 15 - Related Party Transactions At December 31, 2015, FPI is owned by four Farm Credit Agricultural Credit Associations (ACA): AgCountry Farm Credit Services, ACA; Farm Credit East, ACA; Farm Credit West, ACA; and Northwest Farm Credit Services, ACA. For the years-ended December 31, 2015, 2014, and 2013, the Company recognized revenue of $37,230,062, $35,089,219, and $32,045,613, representing 93.8%, 99.0%, and 98.3%, respectively, from transactions with its ACA owners. At December 31, 2015, 2014, and 2013, accounts receivable from such customers totaled, respectively, $702,715, $206,341, and $256,168, representing 88.4%, 73.3%, and 98.2% of total accounts receivable outstanding at such dates. The Company’s business and industry preclude it from applying the FASB guidance for farm cooperatives, however the Company’s revenue contracts with its major customers reflect a structure similar to that of a cooperative, whereby excess earnings are expected to be distributed to the customers, and excess losses are expected to be funded by the customers. No such distributions were made or additional funding received for the years-ended December 31, 2015, 2014, or 2013.

Note 16 - Subsequent Events The Company has evaluated subsequent events through April 18, 2016, which is the date the financial statements were issued or were available to be issued. There are no such events to disclose.


Tom Moran: A True Visionary As FPI charts its course as a version 2.0 organization, it’s fitting that we recognize Tom Moran, the visionary leader who laid the foundation upon which we build. Tom stepped aside recently as FPI’s president & CEO, allowing for a transition in FPI leadership and Tom’s new role heading up special projects for FPI. After holding a succession of credit and management positions in both associations and the Farm Credit Bank of Springfield, Tom was named president and CEO of FPI in 1994. Always “dreaming in color,” Tom led the newly formed, first-of-its-kind organization to provide technology, financial services support and other services to Farm Credit System associations for more than 21 years. In that time, FPI grew from a vision to the partner of choice for System business and technology solutions. Tom’s mark on FPI and the Farm Credit System, which he served for more than 35 years, will long remain. FPI is proud to have had Tom Moran at the helm for so many years. We know that in his new role, Tom will continue to dream in color for us!


FPI Directory BOARD OF DIRECTORS Mark Littlefield, chairman, president and CEO, Farm Credit West, Roseville, Calif. Phil DiPofi, vice chairman, president and CEO, Northwest Farm Credit Services, Spokane, Wash. Bill Lipinski, CEO, Farm Credit East, Enfield, Conn. Bob Bahl, president and CEO, AgCountry Farm Credit Services, Fargo, N.D.



(direct dial 413.271.extension)


President and CEO

Ext. 8868

Dan Carey

Executive vice president, chief administrative officer and chief risk officer


Dan Caron

Senior vice president, chief information officer


Bob Hoffman

Senior vice president, software development


Scott Rousseau

Senior vice president, chief financial officer


Karen Walker

Senior vice president, project management


why fpi? For more than 21 years, FPI has partnered with associations like yours to develop IT solutions built on a shared strategic vision. We believe that the work we do together helps differentiate your association and embrace new business opportunities in the marketplace. Supporting farming communities requires more than “plug-and-play” technology solutions. Today, more than ever, Farm Credit associations need innovative IT systems and smart software products to serve customers well and enhance the value of Farm Credit services. Every day, we strive to provide: • Innovative, customer-driven solutions • A comprehensive portfolio of products • Technological expertise • A trusted and responsive business partnership We strive for excellence so that you can do the same.

67 Hunt Street, Suite 2 Agawam, MA 01001 413.271.8600

Profile for Farm Credit Financial Partners, Inc.

2015 Annual Report  

2015 Annual Report