2011 Annual Report - Carolina Farm Credit

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Carolina Farm Credit 2011 Annual Report letter to the stockholders 2011 was a very challenging year for many of our customers as they continued to be adversely affected by the slow recovery of our general economy. The local economy in our territory, while showing some signs of improvement, continues to bear the weight of the slow and prolonged recovery that we have experienced for the past several years. While the majority of our customers continue to weather the effects of the slow economy, the resulting high unemployment Michael R. Morton, CEO desperate need of a stable, reliable source of credit. On July 17, 1916, President Woodrow Wilson signed the Federal Farm Loan Act establishing twelve Federal Land Banks throughout the United States and effectively establishing the Farm Credit System. CFC is proud to be associated with the Farm Credit System which has served our nation’s farmers and rural communities for the last 95 years. Today, the Farm Credit System serves nearly 500,000 borrowers, and soft real estate market have caused many customers to struggle in their business and in servicing their existing debt. with more than $173 billion in loans outstanding. The System is the largest agriculture lender in the United States. As a result, we have continued to work with many customers to help them through the difficult times they are experiencing. Because of your efforts to meet your obligations, and our staff’s continued efforts to provide exceptional customer service, I am pleased to report that Carolina Farm Credit (CFC) has been blessed with another successful year with 2011 final net earnings of over $20 million. We held another round of successful director elections in 2011. This past year, Directors R. Dwayne Myers and Charles L. “Butch” Deal made the decision to retire from the Board after many years of service to CFC and its membership. Mr. Deal, from Macon County, served on the Board for over 19 years. Mr. Myers, from Wilkes County, served on the Board for over 35 years. These On behalf of the Board of Directors and staff of CFC, I would like to thank you, our dedicated members, for remaining loyal, continuing to use our products and services, and recommending us to others who have a need for the financial services we provide. Our goal at CFC is to generate sufficient profits to remain financially strong and return a significant amount of those profits to you. As a result of this commitment, your Board has again approved the payment of a patronage refund on 2011 earnings. The amount of the patronage is currently estimated to be $15.4 million, and will be paid in the form of cash and surplus allocated. This amount of patronage will allow us to meet our goal of returning 20 cents of every dollar of interest that accrued on your loan in 2011, and will be the 24th consecutive year your Board has approved the payment of a patronage refund. gentlemen served your association very faithfully during a period in which our association’s philosophy and strength were established. Their service has had a positive impact on the development and growth of our association, and their knowledge and experience will be greatly missed in our boardroom. Additionally, the Carolina Farm Credit family lost a true friend and strong supporter in October when Director Bobby Joe Gambill passed away after a long, courageous battle with cancer. Mr. Gambill loved people, and was always willing to help others. He served our membership well as a director for over 15 years, and his leadership and presence is truly being missed in our boardroom. You have a great Board of Directors who continues to represent your best interests, and provide direction to ensure our future success. In July of this past year, the Farm Credit System celebrated its 95th birthday. Back in 1916, farm loans were hard to get. Banks charged high interest rates if a farmer could get a loan at all. American agriculture and rural America were in 2012 will be an important year for agriculture, Farm Credit, and our country, as decisions will be made during the Presidential election cycle and the new Farm Bill is considered. Farm Credit continues to be active in the 2
political process to ensure agriculture’s voice is heard and our membership has an advocate for their interests. Our greatest asset continues to be a dedicated and experienced staff and the relationships they have developed with you through many years of working shoulder to shoulder to help ensure your success. The majority of our staff comes from the local communities where they now work to serve you. In fact, the overall theme of this annual report is community service. CFC is committed to the communities we serve. Whether it is through education, contributions, or committing our time and efforts, our employees work to ensure the success of local FFA, 4-H, scholarships, and charities. Our partnership and involvement with you on a professional and personal level have helped develop our service culture and the family atmosphere that we share, which in turn defines our Farm Credit family. This annual report contains many numbers and an indepth explanation of our 2011 financial results and how they were achieved. We salute all of the local rural communities we serve, along with the local charities and organizations highlighted in this annual report. We pledge our continued support as we work together to ensure each other’s future success. Michael R. Morton Chief Executive Officer March 2012 2011 Annual Report Carolina Farm Credit patronage History Nonqualified and Qualified Allocated Surplus $70,148,799 Nonqualified and Qualified Surplus Revolved $183,987,606 Initial Cash Payment $106,424,544 Since 1988, Carolina Farm Credit has declared $360,560,949 in total patronage. 3
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2011 Annual Report - Carolina Farm Credit

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