ANNUAL REPORT 2020 - Yosemite Farm Credit, ACA
Transcript of ANNUAL REPORT 2020 - Yosemite Farm Credit, ACA
Table of ContentsA Message to our Members | 1
Board of Directors | 2
Financial Highlights | 3
Giving Back | 5
Our Association Values | 6
Borrower Highlight | 7
Five-Year Summary of Selected Consolidated Financial Data | 8
Report of Management | 9
Management’s Report on Internal Control over Financial Reporting | 10
Audit Committee Report | 11
Management’s Discussion and Analysis | 12
Report of Independent Auditors | 36
Consolidated Statements of Condition | 37
Consolidated Statements of Comprehensive Income | 38
Consolidated Statements of Changes in Shareholders’ Equity | 39
Consolidated Statements of Cash Flows | 40
Notes to Consolidated Financial Statements | 42
Disclosure Information | 75
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT
MARK R. JENSENBoard Chair
A Message to our
Members
1
Yosemite Farm Credit places the needs of Members first. In times of uncertainty and volatility, wecontinue to offer stability and commitment. Unprecedented times call for a trusted partner that isresponsive and cares. Yosemite Farm Credit has risen to the occasion.
STABILITYOur Team remains dedicated and focused. We intentionally anticipate your needs and exceed yourexpectations. At the onset of the pandemic, our priority was determining how to continue servingMembers in an unparalleled environment. All services continued to be offered. Our Teams, althoughremote, were available and just a phone call away. We quickly became an approved Small BusinessAdministration lender and provided well over 200 Paycheck Protection Program (PPP) loans. We alsooffered a variety of loan accommodations to help Members offset operating challenges. We achieved arecord amount of new loan commitments, and our Team processed a record number of interest rateconversions to enable our Members to lock in historically low rates.
COMMITMENTThe Yosemite Farm Credit Team works to support your success. We are committed to providing aconsistent level of high-quality service, a knowledgeable and dependable Association team governedby a Board which is focused on member needs and understands local agriculture. Each farmingoperation is different, and each financing solution is customizable and unique. Our team of experts ishere to understand your operations, grow with you and remain committed to the success of your familiesand farms.
OPERATIONAL HIGHLIGHTS2020 was another strong year, reflecting our members’ strength and ability to manage through times ofuncertainty and volatility. Your ability to meet your loan obligations drive the success of your Association.The Association’s credit quality remains strong. While commodity prices softened for several of ourcommodities, land values remain strong.
The amount of loans outstanding at year-end increased 7.1% to approximately $3.4 billion. Net earningswere $59 million, a result of growing loan volume and controlled expenses. 2020 earnings enabled theAssociation to declare a patronage dividend of $25.4 million while continuing to provide competitiverates. Yosemite Farm Credit strives to be a good steward of your capital. The earnings we retain helpensure financial strength, build a foundation for future growth and provide safeguards against economicvolatility.
We look forward to working with Members in 2021. On behalf of the Board of Directors and theYosemite Farm Credit Team we thank you for the opportunity to serve you.
TRACY V. SPARKSPresident & Chief Executive Officer
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT2
Board of Directors
MARK JENSENBoard Chair
Elected to the Board 2014
ANDREW BLOOMBoard Member
Elected to the Board 2019
DAVE BROWNBoard Member
Elected to the Board 2019
BRUCE BURROUGHSBoard Member
Elected to the Board 2014
BRIAN GENZOLIBoard Member
Elected to the Board 2006
RICK SCHEUBERAudit Committee
Elected to the Board 1994
ALICIA MADSENAudit Committee Vice-ChairAppointed to the Board 2015
THOMAS MARINGBoard Member
Elected to the Board 2019
DINO MIGLIAZZOAudit Committee
Elected to the Board 1994
NANCY SILLBoard Vice-Chair
Appointed to the Board 2007
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT3
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
$2,661$2,889
$3,186$3,384
2016 2017 2018 2019 2020
1.76%1.79%
1.99%
2.20%
1.98%
$3,615
AS
SE
TS
(i
n M
illi
on
s)
EA
RN
ING
S(i
n M
illi
on
s)
CA
PIT
AL
(in
Mil
lio
ns)
40%
30%
20%
10%
0%
$59.3
$43.4
$53.0
$65.1 $63.9
20202016 2017 2018 2019
37.0%36.5%34.7%
30.0%
32.8%
15%
10%
5%
0%
$590.5
$473.7$524.0
$556.6
20202016 2017 2018 2019
$433.3
14.18% 14.26% 14.10% 13.88% 13.70%
TOTAL ASSETS
RETURN ONAVERAGE ASSETS
NET INCOME
OPERATINGEFFICIENCY RATIO
TOTAL CAPITAL
CORE SURPLUSCAPITAL RATIO
CET1 CAPITALRATIO
Financial Highlights
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT4
Stronger TogetherP
AT
RO
NA
GE
LO
AN
VO
LU
ME
B
Y C
OM
MO
DIT
YLO
AN
VO
LU
ME
BY
TY
PE REAL ESTATE MORTGAGE 73.3%
20202016 2017 2018 2019
$25.4
75BPS
$11.5
50BPS
$12.7
50BPS
$21.9
75BPS
$24.2
75BPS
Patronage Distribution (in millions) and Basis Points (BPS)
FRUIT & TREE NUTS 7.7%
FIELD CROPS 5.8%
DAIRY 31.8%
ALMONDS 28.7%
OTHER 26.0%
SHARING SUCCESSWITH OUR OWNERS
As a member-owned cooperative,
we refund a portion of annual
earnings to our stockholders,
effectively reducing the costs of
doing business with us. We’ve
returned over $162 million to our
members since 2006. For 2020,
we once again paid out 0.75% of
average loan balances to our
members, representing a record
cash patronage dividend.
PRODUCTION & INTERMEDIATE-TERM 17.0%
AGRIBUSINESS 9.4%
OTHER 0.3%
2020
2020
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT5
Giving Back$353,000 in 2020
GROWING THE FUTURE OF AGRICULTURE: SCHOLARSHIPS, EDUCATION, FFA, 4-H, YOUNG, BEGINNING & SMALL FARMERS’ PROGRAM
41% OF THE TOTAL AMOUNT GIVEN
LOCAL FAIRS / EVENTS:PARTICIPATION / SPONSORSHIPS
29% OF THE TOTAL AMOUNT GIVEN
COMMUNITY SUPPORT:DONATIONS, DISASTER RELIEF, VOLUNTEERISM
18% OF THE TOTAL AMOUNT GIVEN
AG INDUSTRY:SUPPORTING & RAISING AWARENESS
12% OF THE TOTAL AMOUNT GIVEN
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT6
OurAssociation Values
We utilize Association teamwork.
We treat everyone with dignity and respect.
We are open and honest with each other.
We keep our promises and commitments.
We encourage employee empowerment through participatory involvement.
We evaluate employee growth opportunities equitably.
We provide the highest possible quality services.
We deliver service above self.
We support a well-educated professional staff.
We support the use of discretionary effort.
We respect the dignity of work.
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT7
ALBERTO DAIRYHickman, CA
BAYS RANCHPatterson, CA
BURROUGHS FAMILY FARMSDenair, CA
GENZOLI FAMILY FARMTurlock, CA
MARCHINI FARMSLe Grand, CA
MIGLIAZZO & SONS DAIRYAtwater, CA
MINTURN NUT CO. INC.Le Grand, CA
SCHEUBER FARMSPatterson, CA
MULLER BERRY FARMSDenair, CA
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT31
Retained Earnings
Patronage Program
Stock
Accumulated Other Comprehensive Income and Losses
YOSEMITE FARM CREDIT 2020 ANNUAL REPORT32
Capital Plan and Regulatory Requirements
Building Projects