MESSAGE FROM THE CHAIRPERSON OF THE BOARD AND CHIEF EXECUTIVE OFFICER
On behalf of the Board of Directors, Senior Management Team, and employees, we are pleased to present the Farm Credit Services of Western Arkansas, ACA 2020 financial report. We invite you to view our financial results for the year ending December 31, 2020. 2020 was a record-setting year with the Association’s loan portfolio growing by $177.0 million, net income of $30.7 million, and total assets growing to $1.7 billion. This translated into the Association’s ability to give back strong patronage to members. The Association paid $5.0 million in patronage in June 2020 to support members during the COVID-19 pandemic. Another $6.2 million in patronage was paid in February of 2021. In total, $11.2 million in patronage was paid to members from 2020 profits. Interest rates dropped in early 2020 on the heels of the global COVID-19 pandemic and remained low through the year. Low interest rates created increased demand for financing and refinancing. The Association worked to streamline electronic loan processes to best serve members as lobbies were closed in western Arkansas in response to the pandemic. Simultaneously, the Association was also transitioning some employees to remote work locations. To our employees’ credit, these unprecedented business adjustments did not interrupt member access to lending needs. The Association’s commitment to technology enhancements in 2019 served us well as COVID-19 forced the Association to quickly pivot to new ways of meeting member needs beginning in March of 2020. That foresight meant the Association was prepared with the technology, training and business processes to serve members electronically and remotely, as needed. Customer service was uninterrupted and new and innovative technology was added throughout 2020. 2020 was truly unprecedented. From a global pandemic that required immediate, overnight adjustments to business processes and customer service, to low interest rates that drove strong business activity through the year resulting in record business, employees were tested. Not surprisingly, employees rose to the challenge and worked tirelessly. Knowing our members would feel the hurt from the pandemic, employees aggressively worked with the Small Business Administration to obtain the ability to provide qualified funding and forgiveness through the Paycheck Protection Program. Helping to get some relief for our members during this difficult time, was top of mind for the association in 2020. Please know that board members, management, and employees work hard on your behalf and are committed to serving your lending needs in spite of challenges that come our way. We also thank you, our members, for your patience in 2020. Thank you for working with your lender via phone, exchanging loan documents electronically when needed, and even closing loans outdoors at times. Thank you for understanding as lobbies were closed and access to staff limited for your safety, and theirs. 2020 will be most remembered for the adaptability of our staff and members during a difficult crisis.
Kenny Brixey Chairperson of the Board Farm Credit Services of Western Arkansas, ACA
Brandon Haberer President and Chief Executive Officer Farm Credit Services of Western Arkansas, ACA
March 12, 2021
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