Stockholders approve new CA farm credit association
— New association created to better serve farmers and ranchers in Northern California and Central Valley.
The Board of Directors of Northern California Farm Credit, ACA (NCFC), and the Federal Land Bank Association of Kingsburg, FLCA (KFLBA) announced the merger of the two associations to form Golden State Farm Credit, ACA effective Jan. 1, 2014, subject to final approval by the Farm Credit Administration (FCA). This new partnership brings together two well-capitalized California Farm Credit associations totaling more than $1.1 billion in total loans.
“Northern California Farm Credit and Kingsburg Land Bank are no strangers to each other,” said Scott Anderson, who will serve as the President and CEO of the new association after serving in that capacity at Kingsburg Land Bank since 2004.
“Our associations have worked cooperatively on several levels for some time, and we have found that the philosophies of our board and staff are very closely aligned. This merger will only serve to enhance the services we are able to provide to our members. The added capacity will help us meet new challenges and future market dynamics more effectively, but our goal will always be to maintain local connection and control for our customers.”
To maintain continuity in governance, the new association’s 12-member board will be made up of an equal number of participants from each region. All current office locations (Chico, Red Bluff, Willows, Kingsburg and Hanford) will remain open and all staff members will stay in place with the exception of Bruce Strickler, President and CEO of Northern California Farm Credit. Strickler’s retirement after more than 27 years in his current position will coincide with the merger.
“Both of these associations have been very successful independently,” said Strickler. “NCFC and Kingsburg have both achieved strong operating results, and have provided very competitive interest rates and strong patronage payments to members for the last several years. The lending environment has changed a lot in the last few years, and the combined strength of the two associations will provide increased resources to meet more stringent regulatory requirements. I feel very confident in Scott’s abilities to serve our customers and lead this new association forward.”
“Northern California Farm Credit and Kingsburg Land Bank have worked collaboratively for the last nine years to enhance the services that each association has brought to its members,” said Tom Martin, Chairman of Northern California Farm Credit. “Recognizing the common philosophies the two associations shared, our respective boards independently decided to explore the possibility of a merger in early 2012.”
“The boards of both associations have explored this merger very carefully with the best interests of our members always in mind,” said James Oliver, Chairman of the Federal Land Bank of Kingsburg. “We are excited about the opportunities and benefits this merger will bring to our associations. By creating Golden State Farm Credit, we have increased our capital base and lowered our association’s exposure to risk.” — WLJ