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Leader
Lending support for generations
Jackson Purchase
Edition 1
The 21st Century
Legacy of Agriculture
2012 Country Kids Photo Contest
Jackson Purchase ACA
Leader
is published quarterly for stockholders,
directors and friends of Jackson Purchase ACA.
Ballard
President
Stan Brunston
McCracken
Marshall
Carlisle
Graves
Hickman
Calloway
Fulton
BOARD OF DIRECTORS
Curtis Hancock Jr., Chairman
Joe F. Campbell, Vice Chairman
Darren Grogan
Randall Heath
Dr. Buddy Ray, Outside Director
Aaron Wilson
Eddie Workman
EDITOR
Jessica Clark
PUblisher
AgFirst Farm Credit Bank
designers
Athina Eargle
Darren Hill
Amanda Simpson
Travis Taylor
Office Locations
PRINTER
Spectra True Colour
Circulation
Kathi DeFlorio
Bardwell Office
Murray Office
196 US Highway 51 North
Bardwell, KY 42023
270-628-5418
1401 North 12th Street
Murray, KY 42071
270-753-5602
Clinton Office
Marshall County Office
102 North Washington
Clinton, KY 42031
270-653-4307
2730 US Highway 641 N
Benton, KY 42025
270-527-8600
Hickman Office
Mayfield Office
1514 Union City Highway
Hickman, KY 42050
270-236-2531
545 Dick Castleman Bypass
Mayfield, KY 42066
270-247-5665
Kevil Office
Lone Oak Office
12350 Highway 60 West
Kevil, KY 42053
270-462-2155
3565 Lone Oak Road, Suite 2
Paducah, KY 42003
270-534-1219
Administrative Office
328 East Broadway
Mayfield, KY 42066
270-247-5613
Address changes, questions, comments or
requests for copies of our financial reports
should be directed to Jackson Purchase, ACA
by writing P.O. Box 309, Mayfield, KY 42066
or calling 270-247-5613.
Our quarterly financial report can also be
obtained on our Web site:
www.jacksonpurchaseaca.com
In This Issue
president’s message
Change and Challenges
5
Industry News
12
The 21st Century Legacy
of Agriculture
6
Is Your Money Fungible?
8
Community news
Saddle Up for St. Jude
9
Association News
Customer Appreciation Dates
Bardwell Office
Murray Office
June 14 • 5–7:00 pm
July 30 • 11–1:00 pm
Bardwell Baptist Church
Holmes Restaurant
Clinton Office
Lone Oak Office
August 10 • 5–7:00 pm
September 7 • 11–1:00 pm
Young Center
Lone Oak Office
210 S Washington St.
Hickman Office
July 17 • 11–1:00 pm
Hub’s Restaurant
2011 Annual Meeting
10
Association Happenings
2011 Ladies Banquet
11
Mayfield Pumpkin Festival
12
Milk & Cookies with Santa
13
photo contest
2012 Country Kids
Photo Contest
14
employee news
Marshall County Office
June 14 • 11–1:00 pm
Mike Miller Park
Chief Lending Officer
Retires from ACA
15
retiree news
Mayfield Office
Kevil Office
July 18 • 11–1:00 pm
August 9 • 5–7:00 pm
Graves Co. High School Cafeteria
Retiree Luncheon
association news
Hickman Office Update
Sorghum Ridge
16
17
financial Report
First Quarter 2012
Holiday Schedule
The Jackson Purchase ACA offices will be closed:
Memorial Day—Monday, May 28
Independence Day—Wednesday, July 4
Leader Spring 2012
3
18
National Discount Program
coordinated by
FCCServices
To receive the discounts, make sure you
identify yourself as a Farm Credit Member
and provide member ID’s as listed below.
Spring 2012
1-800-Flowers:
Flowers, plants, gift baskets, etc. Go to 1800flowers.com or call 888.755.7474. Use promotion code
FCCS to receive a 15% discount.
Floral Ambiance:
Go to floralambiance.com or call 800.672.4137. Use promotion code fccsflowers to save $10 off
orders valued at $30 or more. Note: The owner of this business is a Farm Credit loan customer!
Dell Computers:
Save up to 30% depending on configuration. Go to dell.com/farmcredit or call 800.695.8133. Use
member ID CS25031329.
National & Alamo Car Rentals:
National and Alamo require us to “protect” our discount codes. To obtain this information, please
email Pat McFarland at pat.mcfarland@fccservices.com.
Omaha Steaks:
Save 10% every time you shop online. Go to www.osincentives.com/farmcredit to visit our Omaha
Steaks online store.
Sprint Wireless Voice/Data Services & Equipment:
Save 10-12% on your monthly service charges. Go to sprint.com/farmcredit or call 866.853.4931. If
requested, please reference Farm Credit Council by phone or MFCCS_ZZZ if ordering on-line.
United Van Lines:
Moves within Arizona, California, Delaware, Florida, Idaho, Maine, Maryland, Tennessee, Texas, Utah,
Wisconsin, and Wyoming, or between any of the 48 contiguous states. Discounts as much as 65%
are only available via United agent, Barrett Moving & Storage. Call 800.879.1283 or email
don.olson@barrettmoving.com.
Have questions? Contact Pat McFarland at pat.mcfarland@fccservices.com or call 888.275.3227 x3236
Pres i dent’s
F eature
M es s age
Change and Challenges
We all are en-
There are numerous reasons your
These are exciting and busy times for
joying this early
Board is recommending this merger. I will
the Association. None of us like change and
spring weather. I
address two major reasons:
had rather stay as we are. Yet without em-
have never seen
dogwoods
1. The merger reduces our concentra-
bracing changes in our lives we cannot grow
bloom
tion risk in grain. We presently have
individually, spiritually, or professionally.
in March, Crappie
62 percent of our portfolio dedicated
Things always change and we do not have
spawn this early,
to grain crops. As agricultural input
choice about it. What we do have a choice
and corn be more
cost, equipment, and land prices con-
about is how we react to that change. Your
or less all planted by mid-April. Trees leaved
tinue to increase, this percentage will
Board and management want to be in the
out a month early and grass was being mowed
continue to increase as it becomes a
forefront of change and in control of it. We
in March. Winter was more or less non-exis-
larger portion of our portfolio. With
either manage it or it manages us. We now
tent this season. Yet there’s really no need to
a prolonged downturn in commodity
have the opportunity to make a positive
worry about things we cannot change so we
prices and/or a series of droughts in
significant change in the organization that
should just enjoy it while it last.
our production area, the Association
will provide an immediate benefit to our As-
While we are on the subject of change, I
would face numerous financial and
sociation and borrowers. That change will
want to update you on the proposed merger
credit quality problems. The merger
benefit this organization for years to come.
between Jackson Purchase ACA and Chatta-
reduces the concentration risk in grain
The challenges ahead will be significant. Yet
nooga ACA. We have completed the disclo-
to 32 percent on day one of the merg-
we have always risen to challenges placed
sure documents and presented them to our
er. Chattanooga’s primary agricultural
before us and along the way improved the
Bank where the merger was approved. The
commodities are dairy, poultry, and
Association, staff, and our borrowers. We
livestock operations.
continue to look for opportunities where we
Stan Brunston, CEO
documents have been sent to our regulator,
FCA, and they also have conditionally ap-
2.The merger allows the new Associa-
can improve our bottom line and service to
proved the merger. We will send the neces-
tion to hold a larger loan with quality
our customers; as in years past the bottom
sary information and proxy vote to you, our
borrowers. We presently can hold $6
line or increased profits always end up in the
stockholders by May 3. The votes will be
million with any one borrower or entity
pockets of our borrowers.
counted on May 18 by an outside tabulator,
and the remainder must be sold to our
May God continue to smile upon you
Williams-Williams-and Lentz. Your Board
Bank in Columbia, S.C. The merged As-
and our Association and bless us all in the
and management have urged you to vote for
sociation will be able to hold $9 million
year of 2012.
the merger. If approved by the stockhold-
with any one borrower or entity. This
ers, the merger date will be July 1, 2012. The
increase allows the new Association to
merged Association will have a new name
earn more income thus decreasing our
thus we will no longer be known as Jackson
operating rate, improving our return
Purchase ACA. The new name selected by
on assets, and allows us to increase our
your Board of Directors and Chattanooga’s
patronage dividend.
Board was River Valley AgCredit ACA.
Leader Spring 2012
5
i ndus try new s
The 21st Century Legacy of Agriculture
By: Dr. David M. Kohl
Many of you know
ri-entertainment. Thinking outside the box
The intergenerational transfer of farm
that I travel to the
will be a critical skill. It will be important
businesses provides opportunities for young
far reaches of the
to understand that one must think globally
people in farm and non-farm families.
United States, and
and then bring that relevance to your op-
Twenty-one percent of farm families have
in some instances
eration and apply it with the resources and
no next generation of farm management,
other countries, to
talent available.
providing the opportunity for young aspir-
deliver education-
ing agriculturalists to align with an older
al experiences for
generation producer outside the family.
young producers and others aspiring to be
Both models can be successful for producers
involved in the great industry of agriculture.
who are willing to give up control in order to
Despite recent misconceptions on social me-
continue the legacy of the farm and nurture
dia about future opportunities in the agricul-
the next generation.
Dr. David Kohl
ture industry, there are many reasons to be
The future of agriculture is very excit-
optimistic, as an industry that is the founda-
ing because there is not “one size that fits
tion of the American economy and lifestyle.
all.” There will be a growing market in cerThird, there will be more opportuni-
tain areas for the business model that pro-
ty in the next ten years than the last forty
vides local, natural, and organic products.
First, growing emerging markets in the
years. That being said, there will be more
Many of these businesses will be entrepre-
world are demanding more food, fiber and
opportunity to fail as well because the
neurial, with a need for flexibility, efficien-
fuel. Jeff Simmons, one of my former stu-
stakes are higher, with more volatility at the
cy, and systems management with strong
dents at Cornell University and president
extremes. This volatility will actually create
business planning skills and execution. The
of Elanco Animal Health, provides evidence
opportunity. The key is to have a business
traditional midsized farm that focuses on
for this hypothesis in his research. Simply
positioned to proactively capitalize on op-
efficiency in agriculture with a modest liv-
put, it is called the 50-100-70 Rule. By the
portunities. Timing is important in any
ing withdrawal supplemented by non-farm
year 2050, the word population will need
business’ success.
income will be prevalent as well. Of course,
Here are my top ten reasons to be excited
about agriculture, in no particular order.
100 percent more food, fiber and fuel, and
70 percent will be produced by technologyenhanced efficiencies. As emerging nations’
standards of living rise, agricultural industries aligned with these nations have a
splendid opportunity to capitalize on these
trends. Producers also have an opportunity
to be part of something bigger by fulfilling
these demands to feed and clothe the nation
and world.
Second, agriculture is five dimensional, providing food, fiber, fuel, products for
the life sciences, and life experiences or ag-
Jackson Purchase
6
the large complex agribusiness with multiple
decision making, and public relations at the
owners and parties will require high busi-
local, state and national level. These oppor-
ness management acumen.
tunities are only limited to one’s time, imagi-
Agriculture can be very profitable. An
These ten
perspectives on
the agricultural
industry truly
create an attractive
environment to
carry on the legacy
of agriculture and
the lifestyle it can
provide.
nation, and energy.
examination of the top 20 percent of agri-
Speaking of technology, the conver-
business and life. Many producers in face-
cultural producers on farm record data-
gence of biotechnology, engineering, and
to-face learning programs will tell me that
bases finds that the average return on assets
information technology will provide op-
the best crop they raise is their children or
every year since 1995 is above 10 percent.
portunities for the younger generation who
others they mentor.
This group includes a wide range of com-
have a good advantage in the adoption of
modities operating in all types of economic
new methods. The key will be to adopt prac-
David Kohl received his M.S. and Ph.D.
and weather cycles. However, on the down-
tices and technology consistent with your
degrees in Agricultural Economics from
side, the low 20 percent showed a negative
resources and business philosophy.
Cornell University. For 25 years, Kohl
was Professor of Agricultural Finance and
return, suggesting a widening gap of profit-
Finally, being a young producer who
ability between the “status quo” producers
is successful in the new era will require bal-
Small Business Management and Entre-
and those who strategize and implement
ance. That is, business success will be mea-
preneurship in the Department of Agricul-
best management practices.
sured by return on assets, while lifestyle
tural and Applied Economics at Virginia
Young producers have access to strong
success is measured by “return on life” with
Tech, Blacksburg, Virginia.
networks of support and education. The
proper allocation of “return on energy” in
young producer educational programs offered by Farm Credit associations on business and financial topics are classic examples. Others in the industry are supportive
on either a group or one-on-one basis by
forming strategic alliances to provide educational experiences to improve the industry.
Being able to network via technology
using social media, and receive training via
video conferencing or webcast, along with
traditional face-to-face methods facilitates
leadership. It also equips leaders not only
for the business, but for community policy,
Leader Spring 2012
7
Indus try New s
Is Your Money Fungible?
By: Phillip Kersey
One of the most
commonly
over-
looked features of
money is its fungibility. It’s an odd
word, and a seem-
Phillip Kersey
ingly strange concept, but one that
is actually very straightforward and has the
ability to save you money if you understand it.
Merriam-Webster defines “fungible”
as “being of such a nature that one part or
quantity may be replaced by another equal
part or quantity.” To expand on this, some-
gage interest is deductible when computing
There is a mounting body of academic re-
thing is fungible if it is interchangeable or
taxable income, a 6% home mortgage has
search in the field of behavioral economics
capable of mutual substitution.
an after-tax cost of approximately 4.5%
that suggests recognizing fungibility is not a
Now, think about fungibility in terms of
(depending on the applicable tax bracket),
natural psychological response when evalu-
money. At the most simplistic level, it’s easy
while a well-diversified investment portfo-
ating financial decisions. There are even
to see why cash is fungible; one $20.00 bill
lio can usually earn around 7% on average,
strong arguments that many of the alterna-
is interchangeable with another. Many as-
even before accounting for the tax advan-
tive decision processes that people tend to
sets and liabilities are also fungible; howev-
tages offered by several types of accounts.
use may aid their well-being in the long run,
er, that fact is commonly ignored and often
The difference between the effective, after-
even if they ignore fungibility.
results in unnecessary expense.
tax cost of the mortgage and the potential
Nonetheless, fungibility is an im-
For example, take the simultaneous use
earnings from an investment account, such
portant concept to understand given the
of a credit card and a savings account. Many
as a 401(k), is the cost of ignoring the fungi-
implicit costs associated with it. Use it to
people prudently try to save a portion of
bility of money.
help you keep a broad perspective on your
their monthly income with the sensible goal
The examples aren’t limited to those of
of building up savings, but they also carry
personal finances. Many business managers
credit card balances at the same time. Over-
maintain a higher balance in their checking
looking the fungible nature of these accounts
account, which earns no interest, than re-
Phillip Kersey is a 2004 graduate of Virginia
can result in borrowing money at an interest
quired by their financial institution, while
Tech with degrees in agricultural and ap-
rate of 12% or more, while attempting to ac-
also carrying payables or credit line balances
plied economics, and finance. He also holds
cumulate funds in savings account that pays
that accrue interest, or just don’t invest the
a master’s degree in finance from Virginia
2% or less in today’s environment.
excess funds, which can be done with some-
Commonwealth University. Kersey was a
thing as simple as a sweep account.
recipient of Colonial Farm Credit’s Agricul-
Similarly, many people make a note-
finances and employ all of the tools that you
have available.
worthy effort to pay additional principal
If you’ve already thought of instances
tural Education Foundation Scholarship and
toward their mortgage, but at the same
where you have made financial decisions
presently serves as a loan officer in the Tap-
time don’t contribute the maximum to their
that weren’t consistent with the fungible
pahannock office of Colonial Farm Credit.
401(k) and IRA accounts. Since home mort-
characteristics of money, you aren’t alone.
Jackson Purchase
8
commu ni ty new s
Saddle Up for St. Jude
®
Second annual event will
raise funds for kids at St. Jude
Children’s Research Hospital
ACA is hosting our second annual Saddle
Up for St. Jude event on Saturday, June 2 at
Wrangler’s Campground at LBL. The event
gives equestrians the opportunity to mount
̈́ͻǡͲͲͲǤͲͲ
up and raise funds to help support the lifesaving mission of St. Jude Children’s Research Hospital®, one of the world’s premier
pediatric cancer research centers.
The event will include the trail ride, a
silent auction, a raffle for a Tucker saddle,
and lunch for all participants.
This is the second year that Jackson
Purchase ACA has held the Saddle Up for St.
Jude event. Last year, they raised more than
$8,000. “We look forward to this event to
help raise awareness and funds for the kids
ƒ–—”†ƒ›ǡ—‡ʹ†
”ƒ‹Ž‹†‡
‡‰‹•–”ƒ–‹‘ǣͻǣͲͲǦ11:00am • Lunch: 11:00ǦͳʹǣͲͲ’
‹†‡ǣͳʹǣ͵ͲǦͶǣͲͲ’• Award Ceremony: 4:00’
Wrangler’s Campground @ LBL
Œ…Žƒ”̷ƒ‰ˆ‹”•–Ǥ…‘
ƒ††Ž‡—’ƒ†Š‡Ž’—•Šƒ”‡••‹
•ome funds for St. Jude Children’s Research ‘•’‹–ƒŽǨ—…Š™‹ŽŽ„‡’”‘˜‹†‡†ˆ‘”ƒŽŽ
’ƒ”–‹…‹’ƒ–•Ǩ
of St. Jude,” said Jessica Clark, event coordinator. “The Saddle Up for St. Jude event
brings together horse enthusiasts in the Purchase Area for a good cause - to support the
mission of St. Jude of finding cures to treat
deadly childhood diseases.”
Since opening in 1962, St. Jude has
treated children from all 50 states and
around the world. No child is ever denied
treatment because of a family’s inability
to pay. With a daily operating cost of $1.7
million, St. Jude depends mostly on public
For information about this event, contact your local Jackson Purchase ACA Service Center.
contributions and fundraising events, like
Saddle Up for St. Jude.
About St. Jude: St. Jude Children’s Research Hospital is internationally recognized for its
Jackson Purchase ACA is encouraging
pioneering research and treatment of children with cancer and other life-threatening diseas-
everyone to come out to support the trail
es. The hospital’s research has helped push overall survival rates for childhood cancer from
ride or sponsor a rider in the event. You may
less than 20 percent when the institution opened to almost 80 percent today. It is the first and
make a donation for the event or purchase
only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to
tickets for the Tucker saddle raffle at any of
children, and no family ever pays St. Jude for care. For more information, go to www.stjude.
our Service Centers.
org and follow St. Jude on www.facebook.com/stjude and www.twitter.com/stjude.
Leader Spring 2012
9
A s s oci ati on New s
2011 Annual Meeting
J
ackson
Annual
port by CEO Stan Brunston, and election
Brad Reddick, Caleb Deweese, Lynn Major,
Stockholders’ Meeting was held in
Purchase
ACA’s
of the directors for Carlisle and Calloway
Jeff Sullivan, and Greg Workman.
November, at Graves County High
Counties and nominating committee mem-
The evening concluded with $2,700 in
School. There were approximately 700
bers. Darren Grogan was re-elected for the
door prizes awarded to various stockhold-
Stockholders and guests in attendance. Ev-
Carlisle County director position and Eddie
ers. Grundy Falwell was the winner of up to
eryone enjoyed a steak dinner catered by
Workman was re-elected for the Calloway
$2,000 in interest. The grand prize winner
Neil’s Catering, of Paducah.
County director position.
of up to $5,000 in interest was Ellen Moore.
The business session included a pre-
The 2012 Nominating Committee elect-
sentation of the association’s financial re-
ed the Annual Meeting was Keith Lowry,
$5000 Winner
Congratulations of all of our winners and
thank you to all who attended.
$2000 Winner
Jackson Purchase
10
A ss oci ati on happ eni ngs
2011 Ladies Banquet
M
ore than $1,500 in door prizes
enjoyed browsing around after the meal to
were given in the Annual La-
view the many booths which included, bas-
dies Banquet in October. Ap-
kets, makeup, purses, jewelry, children’s
proximately 350 ladies attended all dressed
item’s, scents and candles, candy and food
for the night’s theme, “Western.” The eve-
baskets, as well as salon and spa products.
ning began with a delicious meal, catered
Here are a few snapshots of some of the fun
by Simply Unique Catering. Many women
that was had that night!
Leader Spring 2012
11
A ss oci ati on Happeni ngs
Mayfield Pumpkin Festival
J
ackson Purchase celebrated their
with horse rides and fun fall games. The
fifth annual Pumpkin Festival this
Graves County FFA Chapter helped us out
past fall, drawing in a great crowd!
with concessions. We would like to thank ev-
The Mayfield Branch sponsored this even
eryone who was able to come to this event to
in the mid-October where they offered ev-
help make it such a success! This event takes
eryone in the community the opportunity to
much time and hard work to put together,
come enjoy various events from a corn maze,
and thanks to everyone, it paid off!
inflatables, free pumpkins to paint, along
Jackson Purchase
12
A ss oci ati on happ eni ngs
Milk & Cookies
with Santa
S
everal children in the community stop by our Lone Oak office
this November to come see Mr. Clause. Santa was greeted and
showed much excitement from hearing all the children’s wish
lists. We are very glad that Santa was able to stop by! Here are a few
pictures of some of the kids that got to tell Santa what they wanted
for Christmas.
Leader Spring 2012
13
Photo C ontes t
2012 Country Kids Photo Contest
Calling all Country Kids!!
Jackson Purchase ACA is once again sponsoring their Country Kids Photo Contest.
All entries must be received by July 16,
2012. Prizes include 1st place: $100.00; 2nd
Place: $75.00; 3rd Place: $50.00; and three
$50.00 cash prizes to be given away from a
random drawing of entries. All entries will
receive an ACA T-shirt. Please send your favorite “Country Kid” photo.
Rules of the contest:
1. Contest is for amateur photographers only.
2.Entrant must be the child or grandchild
of an ACA borrower.
3.Enter color prints that are not mounted
and no larger than 4" x 6" in size.
2011 Contest 1st Prize Winner
4.Entries must have been taken within the
last 12 months.
5.A copy of the completed form must be
taped to the back of each photo. Do not
use paperclips or write on the back of the
prints. All entries must be received by
July 16, 2012.
2012 Country Kids Photo
Contest Entry Form:
6.We will exercise reasonable care with all
Name of child(ren): _____________________________________________
entries but cannot be held liable for loss
__________________________________________________________
or damage of any entry. The photos will
Name of Parents/Grandparents: ____________________________________
be run in an issue or issues of the Leader,
so we would like to keep the photos on
file. At the discretion of Jackson Purchase
ACA, all entries may be published in the
Leader and other promotional materials
without any compensation to the entrant.
7. An independent panel of judges will be
selected to choose the winning entries. All
__________________________________________________________
Address: ____________________________________________________
City, State, Zip: ________________________________________________
Telephone Number: ____________________________________________
T-Shirt Size (Please select one):
q Youth XS q Youth S
q Adult S
q Adult M
q Youth M
q Adult L
q Youth L
q Adult XL
q Youth XL
Service Center: ________________________________________________
winners will be notified by August 1, 2012.
8.Only ONE entry per child.
Jackson Purchase
14
employee new s
Chief Lending Officer
Retires from ACA
Stan Grief, Chief Lending Officer, retired in
In January 2006, Stan was promoted to Se-
January, after 28 years of employment with
nior Credit Administrator/Vice President
Jackson Purchase ACA.
of Credit at the Administrative Office. Stan
Stan Grief was born and raised in Mc-
is a licensed and certified real estate prop-
Cracken County, graduating from Heath High
erty appraiser for the state of Kentucky. In
School. He received his bachelor’s degree in
March 2008, Stan was promoted to Chief
history in 1978 and taught high school history
Lending Officer.
for three years. Stan began his employment as
To help celebrate his retirement,
Loan Officer Trainee for the ACA in 1981. In
the association held an open house at the
1984, Stan changed careers and was employed
Murray Branch and a retirement dinner at
by the Tamms Bank in Tamms, Illinois, for
Whaler’s Catch.
three years, at which time he graduated from
Illinois Bankers Ag Lending School.
After retirement, Stan plans to continue
his hobby of riding and training horses, and
In 1987, Stan returned to ACA as Loan
spending time with his family. He and his
Officer and was soon promoted to Branch
wife, Brenda, reside in Ballard County. They
Manager and served as Assistant Vice Presi-
have one daughter and two grandchildren.
dent/Branch Manager of the Murray office
We wish Stan and his family the best in
until 2006. He briefly worked a short time
this new chapter of his life! Thank you for
in the Special Accounts Department in 1991.
your hard work and dedication to ACA!
Leader Spring 2012
15
reti ree new s
Retiree Luncheon
A
Retiree Luncheon was held in
Mayfield at the Happy House
Restaurant to honor Jackson Pur-
chase ACA retirees. The luncheon is a great
time for the past employees to catch up with
each other and also be updated on any Association news.
Front Row (from the left): Emarea Hixon, Barbara Thomas, Geraldine Rudd, and Larry Seward
Back Row (from the left): Tommy Murphey, Jim Crum, Charles Magness, Stan Grief, and Bob Crosslin
Jackson Purchase
16
A s s oci ati on New s
Hickman Office Update
T
he Hickman Office hosted an open
house in December to present
their newly renovated service cen-
ter. The employees and members in Fulton
County are enjoying the much needed face
lift of the office. If you haven’t had a chance,
stop in to see the new improvements!
Leader Spring 2012
17
F i nanci al report
Consolidated Balance Sheets
Jackson Purchase Agricultural Credit Association
Consolidated Balance Sheets
(dollars in thousands)
Assets
Cash
Investment securities:
Held to maturity (fair value of $2,158
and $2,606 respectively)
$
Net loans
Loans held for sale
Other investments
Accrued interest receivable
Investments in other Farm Credit institutions
Premises and equipment, net
Other property owned
Due from AgFirst Farm Credit Bank
Other assets
Liabilities
Notes payable to AgFirst Farm Credit Bank
Accrued interest payable
Patronage refunds payable
Advanced conditional payments
Other liabilities
December 31,
2011
(unaudited)
(audited)
664
Loans
Less: allowance for loan losses
Total assets
March 31,
2012
$
4,941
2,165
2,606
244,550
2,709
277,546
2,731
241,841
274,815
434
1,166
2,754
5,421
2,552
168
597
959
215
1,774
3,599
5,607
2,228
168
3,024
1,121
$
258,721
$
300,098
$
200,063
457
48
6,038
4,523
$
245,734
549
1,743
2,409
2,885
Total liabilities
211,129
253,320
2,041
2,045
21,592
23,959
21,949
22,784
47,592
46,778
Commitments and contingencies
Members' Equity
Capital stock and participation certificates
Retained earnings
Allocated
Unallocated
Total members' equity
Total liabilities and members' equity
$
258,721
$
300,098
The accompanying notes are an integral part of these financial statements.
Jackson Purchase Agricultural Credit Association • 5
Jackson Purchase
18
Jackson Purchase
Agricultural Credit Association
Consolidated
Statements
of Income
(UNAUDITED)
Consolidated
Statements of
Comprehensive Income
(unaudited)
For the three months
ended March 31,
2012
(dollars in thousands)
Interest Income
Investment securities
Loans
Other investments
$
Total interest income
2011
11
3,143
16
$
22
3,115
22
3,170
3,159
1,413
13
1,454
9
1,426
1,463
Net interest income
Provision for (reversal of allowance for) loan losses
1,744
(5)
1,696
224
Net interest income after provision for
(reversal of allowance for) loan losses
1,749
1,472
Interest Expense
Notes payable to AgFirst Farm Credit Bank
Other
Total interest expense
Noninterest Income
Loan fees
Fees for financially related services
Patronage refunds from other Farm Credit institutions
Gains (losses) on other property owned, net
Gains (losses) on sales of rural home loans, net
Other noninterest income
20
56
597
(1)
24
23
47
51
626
27
34
20
Total noninterest income
719
805
Noninterest Expense
Salaries and employee benefits
Occupancy and equipment
Insurance Fund premiums
Other operating expenses
1,143
96
23
368
1,074
93
26
323
1,630
1,516
Total noninterest expense
Income before income taxes
Provision (benefit) for income taxes
838
(1)
761
—
Net income
839
761
—
—
Other comprehensive income
Comprehensive income
$
839
$
761
The accompanying notes are an integral part of these financial statements.
Jackson Purchase Agricultural Credit Association • 6
Leader Spring 2012
19
Jackson Purchase ACA
P.O. Box 309
Mayfield, KY 42066
PRSRT STD
U.S. POSTAGE
P A ID
COLUMBIA SC
PERMIT 1160
Saddle up and help us rope in some funds for
St. Jude's Children's Research Hospital!
Join us for the 2nd Annual
Jackson Purchase ACA
Saddle Up® for St. Jude
event on June 2, 2012
at Wrangler's Campground!
Registration: 9:00–11:00 am
Lunch: 11:00–12:00 pm
Ride: 12:30–4:00 pm
Contact Jessica Clark
for info or to register
jclark@agfirst.com
Purchase your raffle ticket for a Tucker Saddle today at any Jackson Purchase ACA location.
Tickets are $20 each and all proceeds go to St. Jude!