q2-2026-fcsc-shareholder-report by AgLending

YOUR PARTNER IN AGRICULTURE.

2026

QUARTER 2 REPORT

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 202 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 six months ended June 30, 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. Following moderate growth in 2025, U.S. economic activity continued to expand at a modest pace through the second quarter of 2026. Economic growth has been supported by resilient business investment and productivity gains, although household spending has remained relatively subdued. Elevated interest rates, persistent inflationary pressures, and ongoing geopolitical uncertainty have continued to influence overall economic conditions. Trade policy developments, including tariffs and global supply chain disruptions, have also contributed to increased uncertainty for businesses and consumers. The labor market remained generally stable through the second quarter of 2026. While hiring activity has softened from the robust levels experienced in prior years, labor demand and supply have remained broadly balanced, supporting continued wage growth without significant signs of labor market deterioration. At its June 2026 meeting, the Federal Open Market Committee (FOMC) maintained the federal funds target range, reaffirming its data-dependent approach to monetary policy. The Committee noted that economic activity continues to expand despite elevated uncertainty, while inflation remains above its long-run objective. The Federal Reserve indicated that future policy decisions will continue to be guided by incoming economic data and its assessment of the balance of risks to both inflation and employment. Moisture conditions continued to deteriorate across southeastern Colorado during the second quarter of 2026. The U.S. Drought Monitor reports drought conditions across much of our territory as ranging from abnormally dry to exceptional drought. The most severe conditions are in the San Luis Valley, the southern Front Range, and southeastern Colorado counties. Elbert, Lincoln, and Kit Carson counties report comparatively better conditions, with drought classifications ranging from abnormally dry to moderate drought. Elevated wildfire risk is a concern across the territory due to the continued lack of significant precipitation events. The ongoing dry growing conditions across our territory have negatively impacted our crop and livestock producers. Wheat producers are anticipating reduced yields due to drought conditions. While lower production expectations have supported stronger local cash bids, the increase in market prices is not expected to fully offset yield losses. As a result, a significant portion of the wheat crop will likely result in claims under producers’ Multi-Peril Crop Insurance policies. Spring crops have been planted; however, without meaningful improvement in moisture conditions, yield potential remains limited and producers are not expecting strong production outcomes. Beef producers, including both stocker and cow-calf operations, have also experienced adverse effects from the drought. Reduced forage is expected to result in lighter cattle weights and lower feed efficiency. The United States Department of Agriculture’s approval of emergency haying and grazing on Conservation Reserve Program acres throughout our territory should help alleviate immediate pressure to liquidate breeding herds. Despite drought-related challenges, cow-calf operators continue to benefit from historically profitable calf prices, supported by reduced U.S. cattle inventories and strong global demand for beef. Limited snowpack in the headwaters of the Arkansas and Rio Grande River basins this winter has significantly reduced irrigation water supplies in both of these drainage regions. The limited water availability is expected to negatively affect yields for alfalfa and grain producers in the Arkansas Valley, as well as potato producers in the San Luis Valley. These expected yield reductions have already begun to positively impact the cash markets for hay and corn in the Arkansas Valley. Real estate values remain generally strong; however, demand for farmland has moderated in response to lower commodity price expectations. Demand for recreational properties and rural residential acreage has also softened as higher interest rates and broader economic uncertainty weigh on purchasing decisions. Additionally, wildfire activity along the I-25 corridor and southern Front Range has reduced interest in some mountain and recreational properties. In contrast, demand for pastureland remains robust, supported by strong cattle markets and a limited supply of available rangeland. Rural economies throughout our territory remain relatively healthy; however, agricultural producers continue to face pressure from elevated fuel and fertilizer costs. The combination of reduced crop yields and higher costs are expected to negatively impact net farm income for many producers during 2026.

LOAN PORTFOLIO Loans outstanding at June 30, 2026, totaled $1.73 billion, an increase of $16.5 million, or 0.96%, from loans of $1.71 billion at December 31, 2025. The increase was due to an increase in our core portfolio, partially offset by a decrease in our purchased 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 primarily due to decreases in agribusiness and production and intermediate loans. OTHER PROPERTY OWNED Other property owned is real or personal property that has been acquired through foreclosure, deed in lieu of foreclosure, or other means. We had other property owned of $1.0 million at June 30, 2026, compared with $1.4 million at December 31, 2025. The decrease in other property owned is due to the sale/liquidation of one property in June 2026 and the sale of a portion of one of the properties in March 2026. RESULTS OF OPERATIONS Net income for the six months ended June 30, 2026, was $6.1 million, a decrease of $5.1 million, or 45.7%, from the same period ended one year ago. The decrease is primarily due to an increase in noninterest expense, partially offset by increases in net interest income and noninterest income. For the six months ended June 30, 2026, net interest income was $25.0 million, an increase of $2.0 million, or 8.5%, compared with the six months ended June 30, 2025. Net interest income increased primarily as a result of an increase in average accrual loan volume. The provision for credit losses for the six months ended June 30, 2026, was $512 thousand, a decrease of $142 thousand, or 21.7%, from the provision for credit losses for the same period ended one year ago. The provision for credit losses for the first six months of 2026 was primarily driven by a partial charge-off of a production and intermediate purchased participation loan and increases in the general, management, and specific reserves, partially offset by the impact of a change in accounting estimate in the first quarter of 2026 and a decrease in the reserve for unfunded commitments. The provision for credit losses for the first six months of 2025 was primarily driven by higher loss rates and loan growth volume. Noninterest income increased $745 thousand during the first six months of 2026 compared with the first six months of 2025 primarily due to increases in patronage distribution from Farm Credit institutions, Farm Credit Insurance Fund distribution, and mineral income. Patronage distribution from Farm Credit institutions increased in the first six months ended June 30, 2026, compared with the first six months in 2025 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 six months of 2026 from the Farm Credit System Insurance Corporation (FCSIC), compared with a refund of $297 thousand received in the same period ended one year ago. These refunds represent our portion of excess funds above the secure base amount in the FCSIC Allocated Insurance Reserve Accounts. We received mineral income of $442 thousand during the first six months of 2026, which is distributed to us quarterly by CoBank. We received $414 thousand during the first six months of 2025. The increase for the six months ended June 30, 2026, compared with the first six months of 2025 is due to higher oil and gas commodity prices paid on production. During the first six months of 2026, noninterest expense increased $8.0 million to $23.9 million, primarily due to increases in salaries and employee benefits, purchased services from AgVantis, Inc., and other noninterest expense. Salaries and employee benefits increased $2.4 million 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 $3.1 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 $2.4 million to $6.1 million primarily due to a $1.1 million increase in purchased services related to our IT transformation and an increase in other losses due to the $982 thousand loss on our investment in AgVantis that was recognized when we exited the relationship. CAPITAL RESOURCES Our shareholders’ equity at June 30, 2026, was $343.6 million, an increase from $335.9 million at December 31, 2025. This increase is primarily due to net income of $6.1 million and a $1.7 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 August 7, 2026

//signature on file// ____________________________________ Jeremy M. Anderson President and Chief Executive Officer August 7, 2026

//signature on file// ____________________________________ Shawna R. Neppl Chief Financial Officer August 7, 2026

Farm Credit Southern Colorado, ACA

Consolidated Statement of Condition (Dollars in Thousands)

ASSETS Loans Less allowance for loan losses Net loans Cash Accrued interest receivable Investment in CoBank, ACB Investment in AgDirect Premises and equipment, net Other property owned Prepaid benefit expense Other assets Total assets LIABILITIES Note payable to CoBank, ACB Advance conditional payments Accrued interest payable Patronage distributions payable Accrued benefits liability Reserve for unfunded commitments Other liabilities Total liabilities

June 30 2026

December 31 2025

UNAUDITED

AUDITED

1,729,910 3,567 1,726,343 6,212 29,630 41,861 2,250 11,665 1,023 6,408 10,598

1,713,432 3,212 1,710,220 12,065 34,213 41,773 2,332 11,949 1,386 6,469 18,948

1,835,990

1,839,355

1,446,475 28,586 4,165 132 440 12,613

1,458,318 24,541 4,194 8,000 133 738 7,551

1,492,411

1,503,475

Commitments and Contingencies SHAREHOLDERS' EQUITY Preferred stock Capital stock Unallocated retained earnings

7,971 1,958 333,650

Total shareholders' equity

6,290 1,933 327,657

343,579

Total liabilities and shareholders' equity

1,835,990

335,880 $

1,839,355

The accompanying notes are an integral part of these consolidated financial statements.

Farm Credit Southern Colorado, ACA

Consolidated Statement of Comprehensive Income (Dollars in Thousands)

UNAUDITED

For the three months ended June 30 2026 2025

For the six months ended June 30 2026 2025

INTEREST INCOME Loans

$ 25,932

$ 24,436

$ 51,493

$ 48,295

Total interest income

25,932

24,436

51,493

48,295

INTEREST EXPENSE Note payable to CoBank, ACB Other

13,193 158

12,628 190

26,165 301

24,837 387

Total interest expense Net interest income Provision for credit losses

13,351 12,581 204

12,818 11,618 420

26,466 25,027 512

25,224 23,071 654

Net interest income after provision for credit losses

12,377

11,198

24,515

22,417

NONINTEREST INCOME Financially related services income Loan fees Patronage distribution from Farm Credit institutions Farm Credit Insurance Fund distribution Mineral income Other noninterest income

17 236 1,700 216 117

39 290 1,599 238 130

52 401 3,409 862 442 301

63 483 3,180 297 414 285

2,286

2,296

5,467

4,722

5,629 245 26 351 104 3,474

4,025 237 1,101 315 108 1,896

10,896 580 5,311 704 252 6,114

8,505 536 2,241 631 248 3,714

9,829 4,834 2

7,682 5,812 4

23,857 6,125 16

15,875 11,264 11

$ 4,832

$ 5,808

$ 6,109

$ 11,253

Total noninterest income NONINTEREST EXPENSE Salaries and employee benefits Occupancy and equipment Purchased services from AgVantis, Inc. Farm Credit Insurance Fund premium Supervisory and examination costs Other noninterest expense Total noninterest expense Income before income taxes Provision for income taxes Net income/Comprehensive income

The accompanying notes are an integral part of these consolidated financial statements.

Farm Credit Southern Colorado, ACA

Consolidated Statement of Changes in Shareholders' Equity (Dollars in Thousands)

UNAUDITED Balance at December 31, 2024 Comprehensive income Stock issued Stock retired Preferred stock dividends Balance at June 30, 2025

Balance at December 31, 2025 Comprehensive income Stock issued Stock retired Preferred stock dividends Balance at June 30, 2026

Preferred Stock

Capital Stock

$ 6,407

$ 1,896

900 (1,295) 125 $ 6,137

73 (65) $ 1,904

$ 6,290

$ 1,933

1,568

84 (59)

112 $ 7,970

$ 1,958

Unallocated Total Retained Shareholders' Earnings Equity $ 316,804 11,253

(107) $ 327,950

$ 327,657 6,109

(116) $ 333,650

$ 325,107 11,253 973 (1,360) 18 $ 335,991

$ 335,880 6,109 1,652 (59) (4) $ 343,578

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 significant accounting policies followed, and the financial condition and results of operations as of and for the year ended December 31, 2025, are contained in the 2025 Annual Report to Shareholders. These unaudited second quarter 2026 financial statements should be read in conjunction with the 2025 Annual Report to Shareholders. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under U.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 to Shareholders. 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 differ from those estimates. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year ending December 31, 2026. Descriptions of the significant accounting policies are included 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 seasoned loans" (PSLs). This eliminates the Day 1 credit loss expense for most acquired loans, improves comparability, 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-Use Software In September 2025, the FASB issued 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 when management has 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 for capitalized software costs. The standard is effective for 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 of Credit Losses for Accounts Receivable and Contract Assets 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 current conditions as of the balance sheet date do not change for the remaining life of the asset. The accounting policy election allows an entity to consider collection 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 under a prospective approach. The Association adopted ASU 2025-05 for the quarter ending March

31, 2026 and elected both the practical expedient and the accounting policy election. The adoption of ASU 2025-05 did not have a material impact on 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 changing conditions. As of March 31, 2026, the Association transitioned to a new risk management platform to increase the transparency, accuracy and relevance of information 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-model qualitative 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 decrease in 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: (dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Rural infrastructure Agricultural export finance Rural residential real estate Mission-related Total loans

June 30, 2026 $ 1,053,835 361,130 201,478 96,804 16,130 – 533 $ 1,729,910

December 31, 2025 $ 1,015,432 368,410 215,787 97,095 16,129 5 574 $ 1,713,432

The Association purchases and sells participation interests with other parties in order to diversify risk, manage loan volume, and comply with Farm Credit Administration regulations. The following table presents information regarding the balances of participations purchased and sold at June 30, 2026: Other Farm Credit Non-Farm Credit Institutions Institutions Total (dollars in thousands) Purchased Sold Purchased Sold Purchased Sold Real estate mortgage $ 68,973 $ 47,917 $ – $ 5,711 $ 68,973 $ 53,628 Production and intermediate-term 25,711 7,250 – – 25,711 7,250 Agribusiness 178,267 – 14,379 – 192,646 – Rural infrastructure 96,804 – – – 96,804 – Agricultural export finance 16,130 – – – 16,130 – Total $ 385,885 $ 55,167 $ 14,379 $ 5,711 $ 400,264 $ 60,878 Credit Quality Credit risk arises from the potential inability of an obligor to meet its payment obligation and exists 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 borrower using its own set 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 real estate (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, or other governmental agency. The actual loan to appraised value when loans are made is generally lower than the statutory maximum percentage. Loans other than real estate mortgage may be made on a secured or unsecured 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 default is the probability that a 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 default occurs during the remaining life of the loan. A default is considered to have occurred if the lender believes the borrower will not be able to pay its obligation in full or the borrower or the loan is classified nonaccrual. This credit risk rating process incorporates objective and subjective criteria to identify inherent strengths, weaknesses, and risks in a particular relationship. The institution reviews, at least on an annual basis, or when a credit action is taken, the probability of default category. Each of the probability of default categories carries a distinct percentage of default probability. The probability of default rate between one and nine of the acceptable categories is very narrow and would reflect almost no default 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 as a loan moves to a substandard (viable) level. A substandard (non-viable) rating indicates that the probability of default is almost certain. These categories are defined as follows: x x x x x

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 full highly questionable. Loss – assets are considered uncollectible.

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:

Real estate mortgage Acceptable OAEM Substandard Total Production and intermediate-term Acceptable OAEM Substandard Total Agribusiness Acceptable OAEM Substandard Total Rural infrastructure Acceptable OAEM Substandard Total Agricultural export finance Acceptable Total Rural residential real estate Acceptable Total Mission-related OAEM Total Total Loans Acceptable OAEM Substandard Total

June 30, 2026

December 31, 2025

93.05% 2.57% 4.38% 100.00%

95.13% 1.86% 3.01% 100.00%

89.17% 7.53% 3.30% 100.00%

94.84% 2.00% 3.16% 100.00%

83.35% 6.00% 10.65% 100.00%

85.43% 9.78% 4.79% 100.00%

94.82% 2.78% 2.40% 100.00%

99.32% 0.68% – 100.00%

100.00% 100.00%

– –

100.00% 100.00%

91.25% 4.02% 4.73% 100.00%

94.09% 2.84% 3.07% 100.00%

Accrued interest receivable on loans of $29.6 million at June 30, 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 six months of 2026 and $104 thousand during the first six months 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: June 30, 2026

(dollars in thousands) Nonaccrual loans Real estate mortgage Production and intermediate-term Agribusiness Total nonaccrual loans Accruing loans 90 days past due Real estate mortgage Production and intermediate-term Total accruing loans 90 days past due Total nonperforming loans Other property owned Total nonperforming assets

$ $ $ $ $ $

Nonaccrual loans to total loans Nonperforming assets to total loans and other property owned Nonperforming assets to total shareholders’ equity

December 31, 2025

10,417 2,343 1,337 14,097

5,528 975 6,503 20,600 1,023 21,623

0.81% 1.25% 6.29%

5,357 4,050 – 9,407

$ $ $ $

– – – 9,407 1,386 10,793 0.55% 0.63% 3.21%

The following tables provide the amortized cost for nonaccrual loans with and without a related allowance for loan losses, as well as interest income recognized on nonaccrual loans during the period:

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Total

Amortized Cost with Allowance $ – 194 1,337 $ 1,531

June 30, 2026 Amortized Cost without Allowance $ 10,417 2,149 – $ 12,566

(dollars in thousands) Real estate mortgage Production and intermediate-term Total

Amortized Cost with Allowance $ – 1,507 $ 1,507

December 31, 2025 Amortized Cost without Allowance $ 5,357 2,543 $ 7,900

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Total

Interest Income Recognized For the Three Months Ended For the Six Months Ended June 30 June 30 2026 2025 2026 2025 $ – $ – $ 93 $ 36 – – 116 9 24 – 24 – $ 24 $ – $ 233 $ 45

Total $ 10,417 2,343 1,337 $ 14,097

Total 5,357 4,050 $ 9,407

The following tables provide an age analysis of past due loans at amortized cost. June 30, 2026

(dollars in thousands)

30-89 Days Past Due

Real estate mortgage $ Production and intermediate-term Agribusiness Rural infrastructure Agricultural export finance Rural residential real estate Mission-related Total

90 Days or More Past Due

Total Past Due

Not Past Due or less than 30 Days Past Due

Total Loans

90 Days or More Past Due and Accruing

4,493 $ 801 3,729 – – – –

10,121 $ 2,830 – – – – –

14,614 $ 1,039,221 $ 1,053,835 $ 3,631 357,499 361,130 3,729 197,749 201,478 – 96,804 96,804 – 16,130 16,130 – – – – 533 533

5,528 975 – – – – –

9,023 $

12,951 $

21,974 $ 1,707,936 $ 1,729,910 $

6,503

December 31, 2025

(dollars in thousands)

30-89 Days Past Due

Real estate mortgage $ Production and intermediate-term Agribusiness Rural infrastructure Agricultural export finance Rural residential real estate Mission-related Total

90 Days or More Past Due

Total Past Due

Not Past Due or less than 30 Days Past Due

Total Loans

90 Days or More Past Due and Accruing

4,408 $ 4,911 – – – – –

3,664 $ 870 – – – – –

8,072 $ 1,007,360 $ 1,015,432 $ 5,781 362,629 368,410 – 215,787 215,787 – 97,095 97,095 – 16,129 16,129 – 5 5 – 574 574

– – – – – – –

9,319 $

4,534 $

13,853 $ 1,699,579 $ 1,713,432 $

–

A loan is considered collateral dependent when the borrower is 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 financial difficulty, disaggregated by loan type and type of modification granted. Term Extension For the Three Months Ended For the Six Months Ended (dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Total

June 30, 2026 $ – 2,469 990 $

% of Loan Type – 0.68% 0.49%

3,459

June 30, 2026 $ 179 5,965 990 $

% of Loan Type 0.02% 1.65% 0.49%

7,134

Accrued interest receivable related to loan modifications granted to borrowers experiencing financial difficulty was $88 thousand as of the three months ended June 30, 2026 and $194 thousand as of the six months ended June 30, 2026.

Term Extension For the Three Months Ended For the Six Months Ended (dollars in thousands) Production and intermediate-term Total

June 30, 2025 $ 85 $

% of Loan Type 0.03%

June 30, 2025 $ 1,506 $

% of Loan Type 0.47%

1,506

Accrued interest receivable related to loan modifications granted to borrowers experiencing financial difficulty was $2 thousand as of the three months ended June 30, 2025 and $76 thousand as of the six months ended June 30, 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 the Three Months Ended June 30 For the Six Months Ended June 30 Real estate mortgage Production and intermediate-term Agribusiness

2026 – 8.0 12.0

2025 – 14.0 –

2026 63.1 12.4 12.0

2025 – 9.0 –

The following tables set forth the amortized cost of loans to borrowers experiencing financial difficulty that defaulted during the periods presented and received a modification in the twelve months before default: Modified Loans that Subsequently Defaulted For the Six Months Ended June 30, 2026 Term Extension $ 257

(dollars in thousands) Production and intermediate-term

There were no loans to borrowers experiencing financial difficulty that defaulted during the three months ended June 30, 2026 that were modified during the prior twelve month period. There were no loans to borrowers experiencing financial difficulty that defaulted during the three months or six months ended June 30, 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 prior to June 30, 2026:

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Total loans

Payment Status of Modified Loans During the Past Twelve Months Ended June 30, 2026 30-89 Days 90 Days or More Current Past Due Past Due $ 179 $ – $ – 6,294 – 257 990 – – $ 7,463 $ – $ 257

The following table sets forth an aging analysis of loans to borrowers experiencing financial difficulty that were modified during the twelve months prior to June 30, 2025: Payment Status of Modified Loans During the Past Twelve Months Ended June 30, 2025 30-89 Days 90 Days or More Current Past Due Past Due $ – $ – $ 2,044 1,506 – 705 1,066 – – $ 2,572 $ – $ 2,749

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Total loans

Additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified during the six months ended June 30, 2026 were $2.5 million and during the year ended 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 consumer spending, United States exports, inflation, and Fed Funds rates. The credit risk rating methodology is a key component of the Association’s allowance for credit 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 a single borrower or lessee is 15% of the Association’s lending and leasing limit base but the Association’s board of directors has generally established more 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 Note 1 to the consolidated financial statements in this quarterly report for additional discussion. A summary of changes in the allowance for loan losses is as follows:

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Rural infrastructure Total

Balance at March 31, 2026 $ 473 1,389 1,070 415 $ 3,347

Charge-offs $ – – – – $ –

Recoveries $ – – – – $ –

Provision for Loan Losses/ (Loan Loss Reversals) $ – 36 185 (1) $ 220

Balance at June 30, 2026 $ 473 1,425 1,255 414 $ 3,567

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Rural infrastructure Total

Balance at December 31, 2025 $ 295 1,809 464 644 $ 3,212

Charge-offs $ – 455 – – $ 455

Recoveries $ – – – – $ –

Effect of Change in Accounting Estimate1 $ 153 (465) 170 245 $ 103

Provision for Loan Losses/ (Loan Loss Reversals) $ 25 536 621 (475) $ 707

Balance at June 30, 2026 $ 473 1,425 1,255 414 $ 3,567

See Note 1, “Critical Accounting Policies and Estimates” for further discussion on the change in accounting estimate. The change in Accounting estimate is included in the provision for credit losses in the Statement of Comprehensive Income for the six months ended June 30, 2026.

(dollars in thousands) Real estate mortgage Production and intermediate-term Agribusiness Rural infrastructure Total

Balance at March 31, 2025

Charge-offs

Recoveries

Provision for Loan Losses

Balance at June 30, 2025

484 1,165 344 310

– – – –

16 411 57 –

500 1,576 401 310

2,303

–

484

2,787

Balance at December 31, 2024

Provision for Loan Losses/ (Loan Loss Reversals)

Balance at June 30, 2025

Charge-offs

Recoveries

841 906 143 312

– – – –

(341) 670 258 (2)

500 1,576 401 310

2,202

–

585

2,787

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. A summary of changes in the reserve for unfunded commitments follows: For the Three Months For the Six Months Ended June 30, 2026 Ended June 30, 2026

(dollars in thousands) Balance at beginning of period Effect of change in accounting estimate1 Reversal of reserve for unfunded commitments Total

456 – (16) 440

738 (275) (23) 440

(dollars in thousands) Balance at beginning of period (Reversal of)/Provision for reserve for unfunded commitments Total

For the Three Months Ended June 30, 2025 $ 596 (64) $ 532

For the Six Months Ended June 30, 2025 $ 463 69 $ 532

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 June 30, 2026

As of December 31, 2025

15.56% 15.56% 15.77% 16.02%

Risk Adjusted: Common equity tier 1 ratio Tier 1 capital ratio Total capital ratio Permanent capital ratio Non-Risk Adjusted: Tier 1 leverage ratio Unallocated retained earnings and equivalents leverage ratio

Regulatory Minimums

Capital Conservation Buffer

Total

15.89% 15.89% 16.14% 16.27%

4.5% 6.0% 8.0% 7.0%

2.5% 2.5% 2.5% –

7.0% 8.5% 10.5% 7.0%

16.12%

16.60%

4.0%

1.0%

5.0%

16.01%

16.49%

1.5%

–

1.5%

If capital ratios fall below the regulatory minimum plus buffer amounts, capital distributions (equity redemptions, cash dividend payments, and cash patronage 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 Annual Report to Shareholders for a more complete description. Assets measured at fair value on a recurring basis are summarized below:

(dollars in thousands) Assets held in nonqualified benefits trusts June 30, 2026 December 31, 2025

Fair Value Measurement Using Level 1 Level 2 Level 3 $ $

335 320

$ $

– –

$ $

Total Fair Value – –

$ $

335 320

The Association had no liabilities measured at fair value on a recurring basis at June 30, 2026 or December 31, 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) June 30, 2026 Loans Other property owned December 31, 2025 Loans Other property owned

Fair Value Measurement Using Level 1 Level 2 Level 3

Total Fair Value

$ $

─ ─

$ $

─ ─

$ $

1,835 1,088

$ $

1,835 1,088

$ $

─ ─

$ $

─ ─

$ $

1,703 1,478

$ $

1,703 1,478

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 account unobservable 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 June 30, 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 when measuring fair value. The following presents a brief summary of the valuation techniques used by the Association for assets 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 measured on a non-recurring basis, the fair value is based upon the underlying collateral since the 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 input based on management’s knowledge of and judgment about current market conditions, specific issues relating to the collateral, and other matters. As a result, these fair value measurements fall within Level 3 of the hierarchy. When the value of the collateral, less estimated costs to sell, is less than the principal balance 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 or other marketbased information. Costs to sell represent transaction costs and are not included as a component of the asset’s fair value. NOTE 5 - SUBSEQUENT EVENTS The Association has evaluated subsequent events through August 7, 2026, which is the date the financial statements were issued, and no material subsequent events were identified.