FRED WEST Board Chairman JOHN WHEELER Chief Financial Officer

FRED WESTBoard Chairman

JOHN WHEELERChief Financial Officer

2013 FINANCIAL OVERVIEW

2009 2010 2011 2012 20138,600

8,800

9,000

9,200

9,400

9,600

9,800

10,000

9,162

9,416

9,682 9,6969,791

Chart Title

Number of Active Members

Loan Volume Outstanding (in billions)

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

2009 2010 2011 2012 2013

$2.29 $2.28 $2.17 $2.14 $2.20

Credit Quality

2009 2010 2011 2012 20130.0%

20.0%

40.0%

60.0%

80.0%

100.0%

93.0% 93.3% 94.4% 94.7% 97.1%

2013 Portfolio Concentrations

Other – 5% or less

Poultry 19%

Cash Grain/ Crops 25%Landlords/

Lessors10%

Dairy 9%

Equine 8%

Nurseries/ Greenhouses

5%

Livestock/ Animal 6%

Fruits & Vegetables 6%

Other12%

Net Income (in millions)

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2009 2010 2011 2012 2013

$32.3

$50.3$45.2

$51.7

$68.0

Operating Efficiency

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2009 2010 2011 2012 2013

45.0%

33.6%35.5% 35.4%

32.9%

47.3%

40.4%42.5% 42.3%

39.5%

MAFC District

2013 Patronage

Cash $ 13.4 million 36.7 %

Qualified Allocated Surplus

-- 0 %

Nonqualified Allocated Surplus

$ 23.1 million 63.3 %

TOTAL $ 36.5 million 100.0 %

Total Patronage Paid

2013 Declared Cash (Mar.) $ 13.4 million

3 years of Qualified Allocated Surplus (Feb.)

$ 7.8 million

2005 Nonqualified Allocated Surplus (Dec.)

$ 8.2 million

TOTAL $ 29.4 million

$435million declared

Patronage since 1990

$300million returned

in cash

BOB FRAZEEChief Executive Officer

Changing World Population

U.S. Race & Ethnicity Trend

White Hispanic Black Asian

85

3.511

0.6

63

1712

5

47

29

139

1960 2011 2050

Population by Race and EthnicityActual and Projected

% of Total

U.S. Race & Ethnicity Trend

Overregulated America

Election Regions