Carolina Farm Credit and AgSouth Farm Credit Intent to Merge
Agriculture and Rural America are ever-evolving and advancing. It is Farm Credit’s mission to support agriculture and rural America. Carolina Farm Credit and AgSouth Farm Credit intend to merge to better position themselves to continue to support, promote and provide resources and reliable credit for farmers and rural residents across their 147 counties in North Carolina, South Carolina and Georgia. Local, personalized service will continue to be a top priority through the proposed merger process and beyond.
We anticipate that further due diligence will confirm that a merger should generate meaningful benefits for the stockholders, agriculture producers and future producers, communities served and employees from both Associations.
More than 475 Employees
An expanded team will have the ability to provide an array of expertise based on the needs of our diverse customer base and market place
Combined resources from two strong educational and financial programs and networks that support young, beginning and small farmers
1. Intent to Merge
The Board of Directors from both Associations unanimously agreed to the intent to merge.
2. Due Diligence
Thoroughly review the impact a combined Association would have on resiliency, cost synergy, operational capacity, growth and profitability, and patronage.
3. Board & FCA Approval
Findings from the due diligence period will be shared with both Boards to guide each of their decisions on whether to approve the transaction and seek to obtain regulatory approval from the Farm Credit Administration.
4. Merger Disclosure
If regulatory approval is obtained, stockholders will receive a merger disclosure package in early 2023 with a complete description of the merger terms and the Board’s reasons for recommending stockholder approval.
5. Eligible Stockholder Vote
A stockholder vote would occur after the merger disclosures were distributed to eligible stockholders.
6. Merger Effective
If approved, the merger would become effective on April 1, 2023.
Frequently Asked Questions
- How will this affect my loan and the loan process?
The ability to access your loan or future loans should not be impacted as a result of the merger transition. We anticipate the loan process and approval time would remain relatively consistent. After the transition process there is opportunity for improvements in efficiency and technology through combined efforts, expertise and strong capital.
- Will there be changes in who I work with at my branch?
No. There will be no changes to branch lending staff as a result of the merger. The Board is dedicated to ensuring members continue to receive relationship lending with personalized service from local, friendly experts with local loan decisions and delivery of financial services.
- Will I be able to vote on the merger?
All eligible stockholders of both Associations will be able to vote by mail ballot or through a website portal. Information with specifics on the process will be mailed out to stockholders prior to the vote.
- How will this affect patronage?
As a cooperative, the combined Association will continue to return profits to our stockholders as determined by the combined Board of Directors each year. While it cannot be guaranteed, having a more diverse portfolio and increased capital as a result of the merger provides more stability for an unpredictable economy which could in turn allow for a consistent and even potential increase in patronage distributions.
A press release announcing the decision can be found here.