Disclosure Information Required by Farm Credit Administration Regulations (unaudited) Description of Business The description of the territory served, persons eligible to borrow, types of lending activities engaged in and financial services offered, and related Farm Credit organizations required to be disclosed in this section is incorporated herein by reference from Note 1 to the financial statements included in this Annual Report. The description of significant developments that had or could have a material impact on earnings or interest rates to borrowers, acquisitions or dispositions of material assets, material changes in the manner of conducting the business, seasonal characteristics, and concentrations of assets, if any, required to be disclosed in this section is incorporated herein by reference from “Management’s Discussion and Analysis” included in this Annual Report. Legal Proceedings Information required to be disclosed in this section is incorporated herein by reference from Note 15 and Note 18 to the financial statements included in this Annual Report. Description of Capital Structure Information required to be disclosed in this section is incorporated herein by reference from Note 9 to the financial statements included in this Annual Report. Description of Liabilities The description of debt outstanding required to be disclosed in this section is incorporated herein by reference from Notes 1, 8 and 12 to the financial statements included in this Annual Report. The description of contingent liabilities required to be disclosed in this section is incorporated herein by reference from Note 1 and Note 15 to the financial statements in this Annual Report. Selected Financial Data The selected financial data for the five years ended December 31, 2020 required to be disclosed in this section is incorporated herein by reference from the “Five-Year Summary of Selected Financial Data” in this Annual Report. The table below presents five years of capital ratios prior to the capital regulations implemented in 2017. At December 31, Permanent capital ratio Total surplus ratio Core surplus ratio
2016
2015
2014
2013
2012
17.55% 13.49% 13.49%
17.54% 13.54% 13.50%
19.62% 14.92% 14.90%
18.62% 14.46% 14.35%
16.99% 13.70% 13.56%
Management’s Discussion and Analysis “Management’s Discussion and Analysis” in this Annual Report is required to be disclosed in this section and is incorporated herein by reference.
Board of Directors’ Charter, Code of Ethics, and Independence The Farm Credit West Board of Directors has adopted a Charter to support the Board’s leadership and oversight role in the accomplishment of the Association’s mission. Also, the Board has adopted a Code of Ethics, whereby the Board and each director commit to conduct business in accordance with the highest ethical standards. In accordance with the Farm Credit West Board of Directors’ Charter, annually the Corporate Governance Committee determines the independence of each director (as defined in the subject Charter). Evaluating each situation using established “independence” criteria, the Board has determined each Farm Credit West director to be “independent” in accordance with those criteria. Both the Charter and Code of Ethics documents can be viewed on the Farm Credit West website (farmcreditwest.com). Board Committees Farm Credit West maintains four committees that are composed of directors: a Corporate Governance Committee, an Audit Committee, an Enterprise Risk Management Committee, and a Human Capital Committee. The members of those committees are identified in the following director disclosures. The full Board considers these committees to have the range of expertise and experience to meet their responsibilities. Corporate Governance Committee Farm Credit West’s Corporate Governance Committee is comprised of the chair of the Board of Directors (who also chairs this Corporate Governance Committee), the vice chair of the Board, the prior chair of the Board, the chairs of the Audit Committee, Enterprise Risk Management Committee and Human Capital Committee. The Corporate Governance Committee meets as needed to act on broad issues, typically when the full board is not available to meet. A copy of the Corporate Governance Committee Charter can be viewed on the Farm Credit West website. Human Capital Committee Farm Credit West’s Human Capital Committee meets as needed to address Farm Credit West’s ability to attract and retain staff. These responsibilities include, but are not limited to, annually reviewing/approving Farm Credit West’s compensation programs, establishing performance standards for the President and CEO, and conducting the President and CEO’s performance evaluation. A copy of the Human Capital Committee Charter can be obtained by members upon request. Enterprise Risk Management Committee Farm Credit West’s Enterprise Risk Management Committee meets as needed to provide oversight for the majority of the enterprise risk management practices of the Association. The committee monitors risk within the financial, information 2 02020 2 0 ANNUAL A N N U A LREPORT R E P O R| T73
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