NOTICE TO STOCKHOLDERS
The shareholders’ investment in Farm Credit of Southern Colorado, ACA is materially affected by the financial condition and results of operations of CoBank, ACB (CoBank). The 2024 CoBank Annual Report to Shareholders, and the CoBank quarterly shareholders’ reports are available free of charge by accessing CoBank’s website, www.cobank.com, or may be obtained at no charge by contacting us at:
Farm Credit of Southern Colorado, ACA
5110 Edison Avenue, PO Box 75640 Colorado Springs, Colorado 80970-5640
Phone Number: 800-815-8559
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Unaudited)
The following discussion summarizes the financial position and results of operations of Farm Credit of Southern Colorado, ACA (the Association) for the three months ended March 31, 2026, with comparisons to prior periods. You should read these comments along with the accompanying financial statements and footnotes and the 2025 Annual Report to Shareholders. The accompanying financial statements were prepared under the oversight of our Audit Committee.
While the U.S. economy entered 2026 on relatively stable footing following moderate growth in 2025, economic activity has remainedsomewhat subdued in the first quarter of 2026. Acombination ofstill-elevated interest rates, modest GDP growth, softening consumer spending, and ongoing geopolitical tensions have continued to weigh on overall economic momentum.The labor market has remained generally resilient through the first quarter of 2026; however, uncertainty surrounding trade policy, including the implementation of reciprocal tariffs, along with the lingering effects of reduced government spending, has influenced hiring patterns and tempered the outlook for the remainder of the year. At the April 2026 Federal Open Market Committee (FOMC)meeting,the Federal Reserve indicated that interest rates are likely to remain steady in the near term, as policymakers continue to balance inflation concerns with the goal of sustaining economic growth.
Our producers saw prices for corn, milo, wheat, and millet improve sinceyear end while prices for potatoes and hay remained flat. Market prices for all crops remain a significant challenge for producers in our territory. Cash bids for feeder cattle and live cattle exhibited some volatility in the first quarter but have maintained their historically high levels. Cow/calf producers continue to benefit from decreased supply inthe U.S. and strong world beef demand to support historically profitable calf prices.
Moisture conditions deteriorated in Southeastern Colorado during the first quarter of 2026. The U.S. DroughtMonitor reports abnormally dry to extreme drought conditions across our territory. The most severe conditions exist in the San Luis Valley and southern front range. The eastern plains primarily show drought conditions ranging from Abnormally Dry (D0) to Severe Drought (D2). The National Resources Conservation Service reports that snowpack in the Upper Arkansas Basin is at 13% of the median while the snowpack in the Rio Grande Headwaters Basinis at 14% of the median.The snowpack intheSouth Platte Basin is reporting 36% of the median atquarterend. Snowpack in each of these basins is critical to irrigation and water availability to our customers. These low snowpack levels will likely have a negative impact on yields for customers along these drainage basins.
The wheat crop throughout the eastern counties in our territory is exiting dormancy and appears to be in good condition at quarter end. It was planted into adequate moisture and germinated consistently. The wheat crop will require some additional moisture in the second quarter in order to supportyield expectations. Dry conditions in the first quarter were beneficial forcalving and reduced cow/calf producers’ winter feed costs.
Real estate prices remain strong, however, demand for farmland has softened in response to commodity prices. Demand for pastureland is robust and demand for rural residential property remains strong throughout our territory.
Rural economies in our territory remain strong, but our producers continue to be concerned with inflation, tariffs, interest rates and the impact of federal trade policy on commodity prices and agricultural input costs. Livestock operations continue to be a robustcontributor to ourrural communities while weak prices across the grain, hay, and potato markets will continue tochallenge our producers.
LOAN PORTFOLIO
Loans outstanding at March 31, 2026, totaled $1.74 billion, an increase of $25.3 million, or1.5%, from loans of $1.71 billion at December 31, 2025. The increase was due to an increase in ourcore portfolio, partially offset by a decrease in ourpurchased participations portfolio. The increase in our core portfolio was primarily due to an increase in real estate loans, partially offset by a seasonal decrease in our production and intermediate loans. The decrease in our purchased participations portfolio is due to a decrease in agribusiness loans.
OTHER PROPERTY OWNED
Other property owned is real or personalproperty that has been acquired through foreclosure, deed in lieu of foreclosure, or other means. We had other property owned of $1.3 million at March 31,2026, compared with $1.4 million at December 31, 2025. The decrease in other property owned is due to the sale of a portion of oneof the properties in March 2026.
RESULTS OF OPERATIONS
Net income forthe three months ended March 31, 2026,was $1.3 million, a decrease of $4.2 million,or 76.5%, from the same period ended one year ago. The decrease is primarily due to increases in noninterest expense, partially offset by increases in net interest income and noninterest income.
For thethree months ended March 31, 2026, net interest income was $12.4 million, an increase of $993 thousand, or 8.7%, compared with thethree months ended March 31,2025. Net interestincome increased primarily as a result of an increase in average accrual loan volume
The provision forcredit losses for the three months ended March 31, 2026, was $308 thousand, a decrease of $74 thousand, or 31.6%, from the provision for credit losses forthe same period ended one year ago. The provision for credit losses for the first quarter of 2026 was primarily driven by a partial charge-off of a production and intermediate purchased participation loan and an increase in specific reserves, partially offset by the impact of a change in accounting estimate. The provision for credit losses for the first quarter of 2025 was primarily driven by higher loss rates from our grouploss data.
Noninterest income increased $746 thousand during the first three months of 2026 compared with the first three months of 2025 primarily due to increases in patronage distribution from Farm Credit institutions, Farm Credit Insurance Fund distribution, and mineral income. Patronagedistribution from Farm Credit institutions increased in the first three months ended March 31, 2026, compared with thefirst three months in 2025 primarily due to increased patronage from CoBank resulting from an increase in our average net note payable.
We received a refund of $862 thousand during the first quarter of 2026 from the Farm Credit System Insurance Corporation (FCSIC), compared with a refund of $297 thousand received in the same period ended one yearago. These refunds represent our portion of excess funds above the secure base amount in the FCSIC Allocated Insurance Reserve Accounts.
We received mineralincome of $226 thousand during the first three months of2026, which is distributed to us quarterly by CoBank. We received $176 thousand during thefirst three months of2025. The increase for the three months ended March31, 2026, compared with thefirst three months of 2025 is due to higher oiland gas commodity prices paid on production.
During the first three months of 2026, noninterest expense increased $5.8 million to $14.0 million, primarily due to increases in salaries and employee benefits, purchased services from AgVantis, Inc., and other noninterest expense. Salaries and employee benefits increased $787 thousand primarily due to an increase in staffing levels. The transition to our new IT platforms from the AgVantis provided platform was completed in early March 2026. Purchased services from AgVantis increased $4.1 million from the same time period last year primarily due to the separation costs incurred at the time of the transition. Other noninterest expense increased $813 thousand to $2.6 million primarily due to an increase in purchased services and othermiscellaneous expenses.
CAPITAL RESOURCES
Our shareholders’ equity at March 31, 2026,was $338.7 million, an increase from $335.9million at December31, 2025. This increase is primarily due to net income of $1.3 million and a $1.6 million increase in preferred stock.
The undersigned certify they have reviewed this report, this report has been prepared in accordance with all applicable statutory or regulatory requirements,and the information contained herein is true, accurate, and complete to the best of his or her knowledge and belief.
//signature on file// _____________________________
Whitney Hansen Board Chair May 7, 2026
//signature on file// _____________________________
Shawna R. Neppl Chief Financial Officer May 7, 2026
//signature on file// _____________________________
Jeremy M. Anderson President and Chief Executive Officer May 7, 2026
Consolidated Statement of Condition
Commitments and Contingencies
The accompanying notes are an integral part of these consolidated
Consolidated Statement of Comprehensive Income
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Shareholders' Equity
(Dollars in Thousands)
The accompanying notes are an integral part of these consolidated financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
A description of the organization and operations of Farm Credit of Southern Colorado, ACA(the Association), the significantaccounting policies followed, and the financial condition and results of operations as of and forthe year ended December 31, 2025, are contained in the 2025 Annual Reportto Shareholders. These unaudited first quarter 2026 financial statements should be read in conjunction with the 2025 Annual Report toShareholders.
The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interimfinancial information.Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required forinterim financial statements underU.S. GAAP and the rules of the Farm Credit Administration (FCA). This report should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2025, as contained in the 2025 Annual Report toShareholders.
In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair statement of results for the interim periods, have been made. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differfrom those estimates. The results of operations for interimperiods are notnecessarily indicative of the results to be expected for the full year ending December 31, 2026. Descriptions of the significant accounting policies areincluded in the 2025 Annual Report to Shareholders. In the opinion of management, these policies and the presentation of the interim financial condition and results of operations conform with GAAP and prevailing practices within the banking industry.
Recently Adopted or Issued Accounting Pronouncements
Financial Instruments—Credit Losses (Topic 326): Purchased Loans
In November 2025, the FASB issued ASU 2025-08 Financial Instruments - Credit Losses (Topic 326) - Purchased Loans. The amendment simplifies accounting for purchased loans by expanding the "gross-up" method to "purchased seasonedloans"(PSLs).ThiseliminatestheDay1creditlossexpenseformostacquiredloans,improvescomparability, and reduces earnings volatility by creating a more consistent accounting approach similar to that used for previously purchased credit-deteriorated (PCD) loans. The standard is effective for annual periods beginning after December 15, 2026, including interim periods within those years. Early adoption is permitted. The Institution is currently evaluating the potential impact of adoption on the Institution's financial condition,results of operations, and cash flows.
Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-UseSoftware
In September 2025, the FASBissued ASU 2025-06. The amendment introduces several key changes: (1) eliminates the stage-based rules for capitalization, (2)replaces these rules with a principles-based framework where capitalization occurs whenmanagementhas authorized and committed to funding, and it is probable that the project will be completed and the software used as intended, (3) clarifies website development costs and (4) modifies the disclosure requirements forcapitalized softwarecosts. The standard is effectivefor annual periods starting after December 15, 2027, with early adoption permitted as of the beginning of any annual reporting period. The Association is currently evaluating the potential impact of this amendment on the Association’s financial condition, results of operations, and cash flows.
Financial Instruments – Credit Losses (Topic 326):Measurement ofCredit Losses for Accounts Receivable and ContractAssets
In July 2025, the FASB issued ASU 2025-05. The amendments in this update provide (1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. The practical expedient would allow all entities when developing reasonable and supportable forecasts as part of estimating expected credit losses to assume that currentconditions as of the balance sheet date do not change for the remaining life of the asset. The accounting policy election allows an entity to considercollection activity after the balance sheet date when estimating expected credit losses. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods undera prospective approach. The Association adoptedASU 2025-05 for the quarter ending March
31, 2026 and elected both thepractical expedient and the accounting policy election. The adoption of ASU 2025-05 did not have a material impacton the Association’s financial condition,results of operations, or cash flows.
Critical Accounting Policies and Estimates
In the “Management’s Discussion and Analysis—Critical Accounting Policies and Estimates” section of the Association’s 2025 Shareholder Report, we identified the Allowance for Credit Losses/Reserve for Unfunded Commitments as a critical accounting policy and estimate, because it involves significant estimation uncertainty that has or is reasonably likely to have a material impact on our financial condition or results of operations.
The Association evaluates critical accounting estimates and judgments on an ongoing basis and updates them as necessary based on changingconditions. As of March 31, 2026, the Association transitioned to a new risk management platform to increase the transparency, accuracy and relevance ofinformation used to estimate its allowance for credit losses and reserve for unfunded commitments. The transition involved a methodology shift to the use of contractual variables to analyze loans more precisely at the transaction level, with top-of-modelqualitative adjustments for current economic conditions. In accordance with ASC 250, the methodology change resulted in a change in accounting estimate to be accounted for prospectively, and as of March 31, 2026, the Association recorded a $103 thousand increase in the allowance for loan losses and a $275 thousand decreasein the reserve for unfunded commitments. No other material changes were made to the Association’s critical accounting policies and estimates as described in the 2025 Shareholder Report. Refer to Note 2 to the consolidated financial statements in this quarterly report for additional discussion.
NOTE 2 - LOANS AND ALLOWANCE FOR CREDIT LOSSES
A summary of loans by type follows:
in thousands)
The Association purchases and sells participation interests with other parties in order to diversify risk, manage loan volume, andcomply with Farm Credit Administration regulations. The following table presents information regarding the balances of participationspurchased and sold at March 31, 2026:
(dollars in thousands)
Credit Quality
Credit risk arises from the potential inability of an obligor to meet its paymentobligation andexists in our outstanding loans, letters of credit, and unfunded loan commitments. The Association manages credit risk associated with the retail lending activities through an analysis of the credit risk profile of an individual borrowerusing its ownset of underwriting standards and lending policies, approved by its board of directors, which provides direction to its loan officers.The retail credit risk management process begins with an analysis of the borrower’s credit history, repayment capacity, financial position, and collateral, which includes an analysis of credit scores for smaller loans. Repayment capacity focuses on the borrower’s ability to repay the loan based on cash flows from operations or other sources of income, including off-farm income. Real estate mortgage loans must be secured by first liens on the realestate (collateral). As required by Farm Credit Administration regulations, each institution that makes loans on a secured basis must have collateral evaluation policies and procedures. Real estate mortgage loans may be made only in
amounts up to 85% of the original appraised value of the property taken as security or up to 97% of the appraised value if guaranteed by a state, federal, orother governmental agency. The actual loan to appraised value when loans are made is generally lower than the statutory maximum percentage. Loans other than realestate mortgage may be madeon a secured orunsecured basis.
The Association uses a two-dimensional risk rating model based on an internally generated combined System risk rating guidance that incorporates a 14-point probability of default rating scale to identify and track the probability of borrower default and a separate scale addressing loss given default. Probability of defaultis the probability thata borrower will experience a default during the life of the loan.The loss given default is management’s estimate as to the anticipated principal loss on a specific loan assuming defaultoccurs during the remaining life of the loan. A default is considered to have occurred if the lender believes the borrower will not beable topay its obligation in full or the borrower or the loan is classified nonaccrual. This creditrisk rating process incorporates objective and subjective criteria to identify inherent strengths, weaknesses, and risks in a particularrelationship. The institution reviews, at least on an annual basis, or when a credit action is taken, the probability ofdefault category.
Each of the probability of default categories carries a distinct percentage ofdefault probability. The probability of default rate between one and nine of the acceptable categories is very narrowand would reflect almost nodefault to a minimal default percentage. The probability of default rate grows more rapidly as a loan moves from acceptable to other assets especially mentioned and grows significantly asa loan moves toa substandard (viable) level. A substandard (non-viable) rating indicates that the probability of default is almost certain. These categories are defined as follows:
Acceptable – assets are expected to be fully collectible and represent the highest quality.
Other assets especially mentioned (OAEM)– assets are currently collectible but exhibit some potential weakness.
Substandard – assets exhibit some serious weakness in repayment capacity, equity, and/or collateral pledged on the loan.
Doubtful – assets exhibit similar weaknesses to substandard assets; however, doubtful assets have additional weaknesses in existing factors, conditions, and values that make collection in fullhighly questionable.
Loss – assets are considereduncollectible.
The following table shows loans under the Farm Credit Administration Uniform Loan Classification System as a percentage of total loans by loan type as of:
Accrued interest receivable on loans of $31.0 million at March 31, 2026 and$34.2 million at December 31, 2025 has been excluded from the amortized cost of loans and reported separately in the Consolidated Statement of Condition. The Association wrote off accrued interest receivable of $75 thousand during the first threemonths of 2026 and $53 thousand during the first threemonths of 2025.
Nonperforming assets consist of nonaccrual loans, accruing loans 90 days or more past due, and other property owned. The following table shows these nonperforming assets and related credit quality statistics as follows:
(dollars in thousands)
loans
March 31, 2026
December 31, 2025
The Association had no accruing loans 90 days ormore past due for the periods presented.
The following tables provide the amortized cost for nonaccrual loans with and without a related allowance for loan losses, as wellas interest income recognized on nonaccrual loans during the period:
March 31, 2026
(dollars in thousands)
December 31, 2025
(dollars in thousands)
(dollars
The following tables provide an age analysis of past dueloans at amortized cost.
March 31, 2026
December 31, 2025
A loan is considered collateral dependent when the borroweris experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The collateral-dependent loans are primarily real estate mortgage and production and intermediate loans. Certain collateral-dependent loans are secured by collateral whose fair value is insufficient to satisfy the outstanding principal of these loans. Such shortfalls are reflected in our allowance.
Loan Modifications to Borrowers Experiencing Financial Difficulty
The following tables show the amortized cost basis at the end of the respective reporting period for loan modifications granted to borrowers experiencing financialdifficulty, disaggregated by loan type and type of modification granted.
Term Extension
For theThree Months Ended March 31
(dollars in thousands)
Accrued interest receivable related to loan modifications granted to borrowers experiencing financial difficulty was $39 thousand as of the three months ended March31, 2026 and $47 thousand as of the three months ended March 31, 2025.
The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the periods presented:
Weighted-Average Term Extension (in Months) For theThree Months Ended March 31 2026 2025
The following table sets forth the amortized cost of loans to borrowers experiencing financial difficulty that defaulted during theperiods presented and received a modification in the twelve months before default:
Modified Loans that Subsequently Defaulted For the Three Months Ended March 31, 2026
(dollars in thousands)
466
There were noloans to borrowers experiencing financial difficulty thatdefaulted during the three months ended March 31, 2025 which were modified during the twelve months prior to those periods.
The following table sets forth an aging analysis of loans to borrowers experiencing financial difficulty that were modified during the twelve months priorto March 31, 2026:
Payment Status of Modified Loans During the Past Twelve Months Ended March 31, 2026
(dollars in thousands)
The following table sets forth an aging analysis of loans to borrowers experiencing financial difficulty that were modified during the twelve months priorto March 31, 2025:
Payment Status of Modified Loans
(dollars in thousands)
Additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified during the three months ended March 31, 2026 were $1.2 million and during the yearended December 31, 2025 were $2.4 million.
Allowance for Credit Losses
The allowance for credit losses (ACL) represents the estimated current expected credit losses over the remaining contractual life of the loans measured at amortized cost and certain off-balance sheet credit exposures. The ACL takes into consideration relevant information about past events, current conditions, and reasonable and supportable macroeconomic forecasts of future conditions. The contractual term excludes expected extensions, renewals, and modifications. The Association uses a single economic scenario over a reasonable and supportable forecast period of 12 months. The economic forecasts are updated on a quarterly basis and incorporate macroeconomic variables such as agricultural commodity prices, unemployment rates, Gross Domestic Product (GDP) annual growth rates, government spending to GDP, real consumerspending, United States exports,inflation, and Fed Funds rates.
The credit risk rating methodology is a key component of theAssociation’s allowance forcredit losses evaluation and is generally incorporated into the Association’s loan underwriting standards and internal lending limits. In addition, borrower and commodity concentration lending and leasing limits have been established by the Association to manage credit exposure. The regulatory limit to asingle borrower or lessee is 15% of the Association’s lending and leasing limit base but the Association’s board of directors has generally establishedmore restrictive lending limits. This limit applies to Associations with long-term and short-and intermediate-term lending authorities.
As of March 31, 2026, the Association made certain changes to its methodology used to estimate the allowance for loan loss and reserve for unfunded commitment methodologies. Refer to “Critical Accounting Policies and Estimates” in Note1 to the consolidated financial statements in this quarterly report foradditional discussion.
A summary of changes in the allowancefor loan losses is as follows:
(dollars in thousands)
at December 31, 2025Charge-offs Recoveries
1See Note 1, “Critical Accounting Policies andEstimates”for furtherdiscussion onthechange inaccounting estimate. The change in Accountingestimate is includedinthe provisionfor credit losses inthe Statement of ComprehensiveIncomefor the quarter ended March 31, 2026.
(dollars in thousands) Balance at December 31, 2024Charge-offs
for Loan Losses/ (Loan Loss Reversals) Balance at March 31, 2025
The Association maintains a separate reserve for unfunded commitments, which is included in Liabilities on the Association’s Consolidated Statement of Condition. The related provision/(reversal) for the reserve for unfunded commitments is included as part of the provision for credit losses on the Consolidated Statement of Comprehensive Income, along with the provision for loan losses. Asummary of changes in the reserve for unfunded commitments follows:
(dollars in thousands)
For the Three Months Ended March 31, 2026
1See Note 1, “Critical Accounting Policies andEstimates”for furtherdiscussion onthechange inaccounting estimate. Thechangein accounting estimate is includedin the provision for credit losses intheStatement of ComprehensiveIncome forthe quarter ended March31, 2026.
(dollars in thousands)
For theThree Months Ended March 31, 2025
Balance at December 31, 2024 $ 463 Provision for reserve for unfunded commitments
Total $ 596
NOTE 3 – CAPITAL
A summary of select capital ratios based on a three-month average and minimums set by the Farm Credit Administration follows.
As of March 31, 2026
December 31,
If capital ratios fall below the regulatory minimum plus bufferamounts, capital distributions (equity redemptions, cash dividend payments, and cashpatronage payments)and discretionary senior executive bonuses are restricted or prohibited without prior FCA approval.
NOTE 4 - FAIR VALUE MEASUREMENTS
Accounting guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability. See Note 2 of the 2025 AnnualReport to Shareholders for a more complete description.
Assets measured at fair value on a recurring basis are summarized below:
in thousands)
held in nonqualified benefits trusts
The Association had no liabilities measured at fair value on a recurring basis at March 31, 2026 or December31, 2025.
Assets measured at fair value on a non-recurring basis for each of the fair value hierarchy values are summarized below:
(dollars in thousands)
With regard to impaired loans and other property owned,it is not practicable to provide specific information on inputs as each collateral property is unique. System institutions utilize appraisals to value these loans and other property owned and takes into accountunobservable inputs such as income and expense, comparable sales, replacement cost, and comparability adjustments.
The Association had no liabilities measured at fair value on a non-recurring basis at March 31, 2026 or December 31, 2025.
Valuation Techniques
As more fully discussed in Note 2 of the 2025 Annual Report to Shareholders, accounting guidance establishes a fair value hierarchy, which requires an Association to maximize the use of observable inputs and minimize the use of unobservable inputs whenmeasuring fair value. The following presents a brief summary of the valuation techniques used by the Association forassets and liabilities, subject to fair value measurement.
Assets Held in Non-Qualified Benefits Trusts
Assets held in trust funds related to deferred compensation and supplemental retirement plans are classified within Level 1. The trust funds include investments that are actively traded and have quoted net asset values that are observable in the marketplace.
Loans Evaluated for Impairment
For impaired loans measuredon a non-recurring basis, the fair value is based upon theunderlying collateral sincethe loans are collateral dependent loans. The fair value measurement process uses independent appraisals and other market-based information, but in many cases, it also requires significant inputbased on management’s knowledge of and judgment about current market conditions, specific issues relating to the collateral, and other matters. As a result, these fairvalue measurements fall within Level 3 of the hierarchy. When the value of the collateral, less estimated costs to sell,is less than the principalbalance of the loan, a specific reserve is established.
Other Property Owned
Other property owned measured on a non-recurring basis is generally classified as Level 3 of the fair value hierarchy. The process for measuring the fair value of other property owned involves the use of appraisals orother marketbased information. Costs to sell represent transaction costs and are notincluded as a component of the asset’s fair value.
NOTE 5 - SUBSEQUENT EVENTS
The Association has evaluatedsubsequent events through May 7, 2026, which is the date the financial statements were issued, and no material subsequent events were identified.