This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Robust capital position. Highly concentrated geographic footprint. Stable access to low-cost matched funding through Farm Credit Bank of Texas. Concentrated exposure to agricultural sector. History of stable profitability. Limited scale compared with peers. The association has a record of low credit losses, stable earnings, strong capital ratios, and access to low-cost funding from the FCBT. The association?s district is limited to certain regions in Texas, and its loan exposure is substantially in the livestock and dairy sectors. We view these factors negatively because they create additional risk that could negatively impact loan performance
