inspired by you. 2012 Annual Report

Agriculture

Integrity

Honesty

Rural Living

Expertise

Respect

Trust

Stewards

Experience

integrity

FCS Financial went through a brand makeover in 2012. After a year-long process of gathering information from board members, employees and customers, the new identity is one that we feel is inspired by you - our member-customers.

A new vision, mission, value statement and brand essence were developed to reflect what FCS Financial is and what our future means.

VisionTo be the leading financial resource in Rural Missouri.

MissionAssist our member-customers in making sound financial decisions in reaching their full financial potential.

Value StatementOur member-customers expect our actions to be consistent with our words and our words to be consistent with our intentions.

These statements reflect the passion that we have for agriculture and our desire to serve those in the industry. We hope you agree that our new look represents you and FCS Financial. Inside this years annual report, you will hear from other member-customers and why they choose FCS Financial. These stories not only inspire but share what it means to be a member of the FCS Financial cooperative.

experience

passion for agricultureLearning, teaching and sharing their love of agriculture, Jered and Ashley Brown are beginning a life to-gether on a farm near Brighton. Both are vocational agriculture teachers Jered at Marshfield and Ashley at Hermitage but their own classroom is the dairy operation they run in partnership with Jereds dad, Fred, and brother, Matt. Theres always something new to learn, Jered observes. Were just getting started but we want to build the herd, update the facilities, get more ground into alfalfa and find ways to become more efficient. FCS Financial has been there to help the young couple create a beginning in agriculture with credit for cows, equipment and a home. FCS Financials experience in agriculture has been important, Jered says. They know how to arrange a payment schedule that fits our cash flow and Im sure that comes from experience with a lot of different types of farming operations. Understanding what were trying to accomplish and the structure of our busi-ness is important to using credit as a tool to get where we want to be. Although Jered and Ashley plan to grow the dairy, their ag educator careers will remain a big part of their lives. Were passionate about agriculture, Ashley explains. We love the students and we feel were doing something to help agriculture stay strong. Ag teachers made a difference in my life and I want to do the same for my students. Active in the Missouri Farm Bureau, Jered and Ashley chair Polk Countys Young Farmers and Ranch-ers and won the state YF&R Excellence in Agriculture Award. In addition to a trip to Hawaii where they competed with other state winners, the Browns were awarded a John Deere Gator through FCS Financials support of the YF&R program. With competitive rates and the focused, customized service they receive, Jered and Ashley plan to in-clude FCS Financial in their future plans. When it comes time to buy land and expand the operation, thats where well go, Jered says.

expertise

HigH StakeS ManageMentIn a good year, the deep, rich soil along the Missouri River near Franklin will produce 200-bushel per acre corn and 65-bushel per acre soybeans. And in a bad year? For Ron Hackman, thats when crop insurance becomes the most important management decision of the season. Everything I farm is in a floodplain, the veteran farmer explains, and most years we get along pretty well. We have a good levee and pumps we do everything we can to keep from collecting on crop insurance. But when Mother Nature decides the river is going over, thats all there is to it. With the cost of seed, fertilizer, fuel, chemicals we just cant afford not to have crop insurance. Of course too little rain can be just as damaging as too much and theres always a chance for a hailstorm to come rumbling down the valley. With all thats at stake, crop insurance from FCS Financial is the cornerstone of Hackmans risk management strategy. Your agent is what its all about, says Hackman whose crop insurance specialist is Dan Rhoades from the Columbia office. He knows all the rules and regulations and helps me get the coverage thats best for my operation. Since FCS Financial is Hackmans lender, there is also a convenience factor, he says, but primarily the decision to source his crop insurance needs through FCS Financial comes down to expertise. Its their knowledge of the coverage options available as well as their knowledge of my farming operation, he explains. And, its more than just the agent. The whole office staff is knowledgeable and very helpful. Ive been with FCS Financial forever, it seems like, and I wouldnt even think about switching to something else.

trust

relying on Solid expertiSeBack in 2007, Ben Bradley ordered materials for a new shop building and when the company expected pay-ment much sooner than hed been led to believe, he found himself between a rock and a hard place. I contacted FCS Financial and they told me the hard place would still be there but they could help lift the rock, he says. It made me really appreciate them and Ive never worked with any other lender since. Theyve helped me buy a farm and now Im building a house. I depend on them. Bradley has even received an assist from FCS Financial in a manner that didnt involve dollars and cents. As a vocational agriculture teacher at Knox County High School, he tries to give his students a broad agri-cultural experience so he tapped into FCS Financial expertise to shine a light on the business side of farming. Debbie Ragsdale from the Macon office came and talked to my class about farm finance, he explains. She did a great job and I think the kids got a lot out of it. In his farming operation, Ben and his wife, Jenny, who teaches ag at North Shelby, grow corn, soybeans and wheat near Novelty. Ben also helps his father, Dennis, on the family farm in exchange for using his equipment. Farming is something that always has been, and always will be, part of his life, he says. I grew up doing chores and driving the tractor with Dad. I had calves growing up and when I was in college I started farming on shares with some of the neighbors. I love teaching but I love farming, too, so Im lucky to be able to do both. At school, Bens main focus is on shop and ag mechanics expertise that comes in handy on the farm where he and his dad do most of the maintenance and repairs. For financial expertise, though, he turns to his friends at FCS Financial. They take good care of me, he concludes.

Front row (Seated)Mark DeShon, ClarksdaleJames Nivens, LaRussell, ChairmanMaurice Glosemeyer, MarthasvilleMark S. Pierce, DeKalb, Vice ChairmanGene H. Rademacher, Bland

Back row (Standing) Dan Devlin, EdinaRick Rehmeier, AugustaJames Davis, West PlainsDavid Meneely, Chillicothe, AppointedBruce Bjornson, Oro Valley, Ariz., AppointedSherry Jones, DawnMichael L. Cook, Columbia, AppointedDaniel Hulse, HannibalKenneth Bergmann, Walnut Grove Michael L. Bruce, Nevada

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FCS FINANCIAL ACA1934 E MILLER STJEFFERSON CITY MO 65101

Growing Relationships. Creating Opportunities. is a trademark of FCS Financial, ACA. Farm Cash Management is a registered trademark of AgriBank, FCB. FCS Financial is an equal opportunity provider. 2013 FCS Financial, ACA.