#1COMPEER FINANCIAL INVESTOR PRESENTATION December, 2019#22 MULTI-FACETED COOPERATIVE STRUCTURE FEDERAL FARM CREDIT BANKS FUNDING CORPORATION AgriBank COMPEER FINANCIAL™ Agent Borrower Owner Access to AA+/Aaa rated Matched Funding Passes Thru Cost of Funds Due to cooperative structure and the system's GSE status, Compeer has access to a stable, highly-rated, matched funding#33 COMPEER · ● 45 office locations within Illinois, Minnesota, and Wisconsin Managed through 12 Core Marketplaces as well as Industry Specialties. Nearly 70,000 member-owners • Total assets of $21.4 Billion . . 144 counties A third of volume generated outside of local service area • Third largest association in the Farm Credit System Outso FY S-30 1135 " Cherig 2 H D T T CHIMER PUIKE h COMPEER FINANCIAL™#4Thousands TREND RESULTS $450,000 $400,000 $350,000 $300,000 $30 403,845 351,597 $25 302,981 283,251 283,936 282,161 289,907 240,734 $20.8 $20 $19.6 $18.6 $250,000 221,940 $16.9 $15.8 $15 $14.8 $200,000 $13.5 $12.6 $11.7 $150,000 $10 $100,000 $5 $50,000 $0 50 $0 2010 2011 2012 2013 2014 ■ADB -Net income 2015 Gain on Operations 2016 2017 2018 Note: Pro forma trend values for 2010-2017 COMPEER FINANCIAL™ Billions#5PORTFOLIO MAKE-UP Size and scope provides Compeer portfolio with atypical diversification OTHER LIVESTOCK,, 1.8% GRAIN-FMAC GUARANTEE, 1.7% RURAL HOME, 2.9% CATTLE, 3.4% OTHER CROPS, 4.5% OTHER, 4.5% Ability to serve both small and large clients PAPER & TIMBER,. 3.8% • Lending to a number of LO 5 uncorrelated (or at times, negatively correlated) industries *Report shows a higher grain mix due to FCS legacy classification of home mortgages FOOD PRODUCTS, 6.7% LANDLORD, 5.3% SWINE, 6.5% *Data as of 9/30 CASH GRAINS, 33.9% POWER & TELECOM, AGRIBUS, 7.6% 6.7% DAIRY, 10.7% COMPEER FINANCIAL™#66 BUSINESS STRUCTURE Investments 5% Home Mortgage 5% Retail Large Operation 10% Retail VS. Wholesale Wholesale - Farm & Ranch 11% Input Finance (PPF) 2% Large Syndicated Loans 25% Retail Farm & Ranch 41% COMPEER FINANCIAL™#77 Volume Millions BUSINESS UNITS $10,000 $9,000 $8,000 $7,000 $9,262 $6,000 $4,776 $5,000 $4,000 $3,000 $2,000 $1,000 $0 CORE MARKETS CAPITAL MARKETS AGRI-ACCESS 2019 $2,520 $2,299 $1,135 $1,052 $875 $527 INDUSTRY SPECIALISTS BONDS & INVESTMENTS RURAL LIVING SOLUTIONS FOOD FUEL AGRIBUSINESS PROPARTNERS COMPEER FINANCIAL™#88 GRAIN INDUSTRY ENVIRONMENT • . Significant uncertainty throughout 2019 ◉ ☐ Planting conditions led to late developing crop + Significant unplanted acres Harvest conditions were generally unfavorable (cool/wet) Significant acres still waiting to be harvested + USDA will not update estimated crop size until early 2020 ■ Government MFP Payments have been helpful to bring NFI above historical average + 2 of top 3 states receiving MPI payments is IL and MN Prices have generally remained less favorable driven by: Uncertain carry-out inventories ■ Trade disruptions ■ Lessened export demand (even without trade - animal disease) COMPEER FINANCIAL™#96 Millions NET FARM INCOME • The press harps on Net U.S. Net Farm Income 140 130 120 110 100 90 80 70 60 ам 50 1995 1996 1997 1998 1999 2000 Source: USDA -Net Farm Income 2001 2002 2003 2004 2005 2006 2007 2008 2009 Average w/o 2011 & 2013 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F • Farm Income (NFI) as being down significantly. And it is... from it's all- time highs NFI in 2018 and 2019 are at 25-year averages, or better, depending on the metric COMPEER FINANCIAL™#10. DAIRY INDUSTRY ENVIRONMENT . Margin environment more favorable than a year ago After several years of over-production, supply and demand are back in line Number of farms decreasing but cow numbers are mostly flat ■ Most dairy clients will see a profit in 2019, and ability to lock in 2020 Transition toward larger more efficient farms - more technology ■ Robotics and automation Block chain - consumers desire to know where their food comes from 10 Vertical integration - retailers owning processors ■ Walmart & Kroger ■ Hurt independent processors, most notably, Dean Foods COMPEER FINANCIAL™#1111 MILK PRICES WELL ABOVE 2018 LEVELS $19.51 $19.01 U.S. All Milk Price $18.51 $18.01 $17.51 $17.01 $16.51 $16.01 $15.51 $15.01 $14.51 $14.01+ Jan Feb Mar Apr May Jun 2016 Jul Aug Sep Oct Nov Dec 2017 2018 2019 DMap Dairy Markets and Policy Updated 10/31/19 COMPEER FINANCIAL™#1212 SWINE INDUSTRY ENVIRONMENT . . Increased price volatility throughout 2019 Largely driven by trade and foreign animal disease concerns + USMCA close + Chinese production plummets due to African Swine Fever - Demand remains high while supplies shrink Tariffs limit amount of US pork to meet demand Margins varied from significant losses to strong profits and back Concern throughout industry in keeping ASF out of the US Strong producer biosecurity procedures ▪ USDA and states working to prepare in case of an outbreak COMPEER FINANCIAL™#1313 RMB/kg 50 40 30 60 4500 20 10 0 Jan 2011 90 80 70 China Meat & Poultry Prices market prices Beef Year ago chg +20% Jan 2012 +84% Pork +24% Jan 2013 Jan 2014 Jan 2015 Jan 2016 Poultry Jan 2017 Monthly through 1st week of October 2019 Jan 2018 Jan 2019#1414 OTHER INDUSTRIES . ● ● Capital Markets Large syndicated transactions with CoBank and National Banks + Overall strength remains - significant competition to finance + Some uptick in adversity - mostly trade driven Agribusiness Large transactions led by Compeer team as lead lender + Despite tight margins across production agriculture, agribusinesses have remained profitable Rural Home National platform for rural mortgages + Low interest rates spur strength in home prices and strong demand + Purchase activity in the sector was uncommonly strong this fall COMPEER FINANCIAL™#1515 • PORTFOLIO BY PROBABILITY OF DEFAULT RATING (AND S&P EQUIVALENT) Average loan is a BB+ The majority of new volume is originated PD5-8 3.9% of the portfolio is guaranteed by the U.S. Gov't or its Agency Only 8.8% of the portfolio is the equivalent of B+ or lower. 25.00% 20.00% 22% 17% BB+ 16% 16% BBB- 15.00% 10.00% 7% BBB+ BBB BB 5.00% 2% AAA/ 0% AA+ 0% 0.00% 1 2 3 5 6 7 8 00 10% BB- 4% 3% B+ 1% 9 10 11 12 COMPEER FINANCIAL™#16• • • • 16 FINANCIAL PERFORMANCE (Q3 2018 VS Q3 2019) Asset growth drives interest income ■ Full year of Asset Pool Non-interest income expanded Revenue growing faster than expenses, resulting in positive gain on operations Below the line items mixed Provision lower (noise from PP) ■ Insurance fund higher Patronage higher (still all cash) ■ Other includes a lot ■ Tax estimates a work in progress Income Statement: Year to Date Interest Income Asset Pool Net Earnings Total Net Interest Income Non-Interrest Income Actual 2019 Actual Prior Year Prior Year 2018 $ Variance % Variance 373,319 357,265 16,054 4.5% 22,148 25,740 (3,592) -14.0% 395,467 383,005 12,462 3.3% 59,929 55,793 4,136 7.4% Total Operating Revenue 455,396 438,798 16,599 3.8% Total Operating Expenses 192,508 183,245 9,263 5.1% Gain (Loss) on Operations 262,888 255,553 7,336 2.9% Provision 13,812 16,200 (2,388) -14.7% Insurance Fund 11,261 10,548 713 6.8% Patronage (65,203) (45,200) (20,003) 44.3% Other Losses (FCSIC/PR/PP/Merg) (1,346) (10,663) 9,316 -87.4% Pre Tax Income Taxes 304,365 284,667 11,386 3,221 292,979 281,446 11,533 4.1% Net Income#1717 SCORECARD RESULTS • Green metrics across the board Metric Target Actual Client Satisfaction 1.60 1.26 Net Promotor Score 60% 82.70% ADB Growth1 - 2019 vs 2018 6.0% 7.09% Operating Revenue Growth 5.0% 6.74% Operating Rate 0.85% 0.83% ROA¹ 1.75% 1.79% ROE² 2 12% 13.37% Adverse Assets Ratio - 3 Mo Avg 30% 20.86% 1. Owned & Managed 2. Pretax earnings divided by Tier 1 capital COMPEER FINANCIAL™#18RISK SCORECARD Portfolio quality remains strong - well positioned for potential stress Clients outside territory are similar in strength to those within territory 9/30/2019 Credit Scorecard Non-adverse % Credit Quality Red < 93% Yellow 93-95.9% Green Red ≥ 96% Yellow Green 96.1% Non-adverse % - Outside LSA < 93% 93-95.9% > 96% 97.1% Adverse Assets as % of Regulatory Capital** *** > 50% 30-50% < 30% 20.9% Top 20 Clients' Net TLO as % of Regulatory Capital > 85% 65-85% < 65% 50.6% Top 100 Clients WAPD Compeer WAPD** ***** > 7.25 > 7.25 Delinquency%* 6.75-7.25 6.75-7.25 < 6.75 >2.00% 1.25-2.00% <1.25% < 6.75 5.90 6.83 0.55% Delinquency% 12 mo rolling average' **** >2.00% 1.25-2.00% <1.25% 0.80% Non-accrual Volume % Net Charge-offs YTD** > 2% >.16% .125-.16% <.125% 1.5-2.0% < 1.5% 0.80% 0.008% stress within industry 18 Delinquencies, non-accruals, and charge-offs are well positioned given COMPEER FINANCIAL™#1919 PORTFOLIO PERFORMANCE Overall solid performance across business units Adversity within the large dairy segment stems from a few large, but manageable accounts September 30, 2019 WAPD 2019 2018 Adverse Adverse Core Markets 6.9 4.4% 3.3% Swine 7.1 1.2% 1.8% Dairy 8.6 11.4% 10.2% . •⚫ Grain environment has seen increase in WAPD for Core Markets Other Specialized 7.6 3.5% 2.6% Food & Agribusiness 7.1 2.1% 2.4% . Migration to Adverse classification is limited ■ Growth is slow Higher credit quality outside the territory, as well as higher growth opportunities Capital Markets 6.6 2.2% 1.5% Rural Living 6.6 2.8% 2.6% Agri-Access 6.3 2.0% 2.3% Compeer 6.8 3.9% 3.3% COMPEER FINANCIAL™#2020 ADVERSE ASSETS 800,000,000 25.0% • Adverse % is solidly 780,000,000 21.3% 20.9% within long term plans (20.9% at QE) 21.1% 20.4% 20.0% 760,000,000 18.7% 740,000,000 15.0% • RAU settlements of $189 720,000,000 million outstanding (YTD) 700,000,000 10.0% 680,000,000 Forecast still has many questions 660,000,000 3.5% 3.6% 3.7% 3.9% 5.0% 3.8% 640,000,000 ■ Similar to last 5 years 620,000,000 0.0% January February Adjusted Adverse Assets March June April May July August September Adverse Assets to Total Regulatory Capital Ratio % Adverse#21CREDIT QUALITY RELATIVE TO PEERS 2.50% 2.00% 1.50% 1.00% 0.55% 0.50% 0.00% 1.71% Deliquent Loan % ■Compeer Source: Compeer, Federal Reserve All Commercial Banks as of Q3 '19 21 2.23% 0.17% 0.01% 0.06% Charge-off % Ag Production Loans Banks ■Farmland Loans Banks#2222 LOSS EXPERIENCE: CREDIT TRENDS 4.50% Compeer DQ Loans/Loans U.S. Commercial Banks DQ Loans/Loans Compeer NCOs/Loans U.S. Commercial Banks NCOs/Loans 4.00% 3.50% 3.00% 2.80% 2.61% 2.50% 2.00% 1.50% 1.38% 1.20% 1.00% 0.50% 0.00% (0.50%) 2.38% 13% 1.13% 1.10% 1.69% 2.11% 1.61% 1.46% 1.47% 1.33% 1.60% 1.48% 1.66% 1.58% 1.51% 0.90% 1.33% 1.19% 1.12% 0.85% 1.76% 3.70% 3.59% 3.35% 3.14% 2.76% 2.97% 2.64% 2.57% 1.42% 1.30% 1.09% 1.03% 0.91% 1.18% 1.42% 0.80% 0.76% 0.54% 0.89% 0.63% 0.68% 0.94% 0.59% 0.55% 0.49% 0.83% 0.52% 0.45% 0.70% 0.40% 0.52% 0.56% 0.58% 0.57% 0.52% 0.45% 0.48% 0.57% 0.12% 0.02% 0.00% (0.02%) 0.13% 0.14% 0.16% 0.12% 0.07% 0.06% 0.07% 0.43% 0.07% 0.01% 0.00% 0.38% 0.02% 0.08% 0.05% 0.11% 0.37% 2.23% 2.19% 1.59% 1.55% 1.37% 1.29% 1.08% 0.76% 0.37% 1.75% 1.41% 1.28% 1.22% 1.05% 0.80% 0.66% 0.68% 0.56% 0.48% 0.43% 0.49% 0.48% 0.43% 0.46% 0.47% 0.13% (0.02%) 0.03% 0.04% 0.01% 0.01% 0.02% '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Source: U.S. commercial bank data from FDIC Quarterly Banking Profile; Note: U.S. 2018 financials as of Q3'18 COMPEER FINANCIAL™#2323 LARGEST CLIENTS . • • Concentration of client exposure remains minimal Agribusiness industry is comprised of many subsectors with varying types of operations Diverse industries among the Top 100 All Top 100 clients are performing Largest Industries within Top 100 Commitment Food Products 25.3% ($000) Commitment Agribusiness 24.0% Swine 14.5% Paper Packaging & Timber 10.6% Principal Unfunded as % of Capital WAPD Energy Power & Telecom 9.8% Top 10 $650,586 $287,936 29% 5.6 Other Crops 5.8% Dairy 2.3% Top 20 $1,133,328 $510,369 51% 5.7 Cattle 1.6% Cash Grain Other 0.7% Top 100 $3,539,898 $1,850,177 166% 6.0 5.4% COMPEER FINANCIAL™#2424 REGULATORY CAPITAL RATIOS 2019 2019 Board "Well-Capitalized" Actual Budget Target Level Common Equity Tier 1 14.9% 14.8% 11% 7.5% Tier 1 15.4% 15.3% 12% 9.0% Total Regulatory Capital Ratio 15.9% 15.8% 14% 11.0% T1 Leverage Ratio 15.3% 15.4% 12% 5.4% COMPEER FINANCIAL™#25CAPITAL BENCHMARKS Capital Ratio 20.0% 18.0% 16.0% Compeer Capital Benchmarks Compeer Severe Stress Min, 13.12% Peer Average, 17.40% 14.0% Banking (Well Capitalized), 10.50% 12.0% Moody's/S&P Analysis, 10.00% COMPEER FINANCIAL 10.0% Economic Capital AAA, 12.00% 8.0% FMAC 9/30/2019, 12.20% 6.0% AIRB Capital (17 Oliver Wyman), 9.80% Economic Capital AA, 10.10% FCA FIRS 2, 11% 4.0% 2.0% 0.0% FCA FIRS 1, 15.50% 25 Note: Oliver Wyman analysis of Compeer portfolio using AIRB practices. FMAC based on only Farm & Loan portfolio (excludes guarantees) and all capital. COMPEER FINANCIAL™#2626 DISTRIBUTIONS . ● Compeer remains in a capital surplus position relative to portfolio risk and long-term targets Long-term model expected capital distributions are as follows: ■ Cash: 25% of adjusted earnings in cash patronage (paid August 2019) ■ Allocated: Retirement of allocated equities at 1/10 (~$52 million each year) . Patronage is always at the discretion of the Board COMPEER FINANCIAL™#2727 Farmer Mac Securities USDA Loans INVESTMENT PORTFOLIO . USDA and SBA loans are 100% U.S. Government guaranteed ■ $1.12 billion at September 30 ■ Provides earnings and source of liquidity ■ When we refer to our "Investment Portfolio," it is these loans ■ New regulations allow greater flexibility, but still only U.S. Government instruments • Farmer Mac securities are ag loans wrapped with a Farmer Mac guarantee Partnership provides benefits for farmers, Farmer Mac and Compeer ■ Listed as Investments in GAAP documents SBA Pools SBA Loans COMPEER FINANCIAL™#2828 LIQUIDITY . . . . Compeer's line of credit with AgriBank totals $22 Billion ■ At third quarter-end 2019, $17.4 Billion had been advanced ■ The line matures September 30, 2021 as part of a 3-year renewal cycle Line collateralized with Compeer Assets Compeer remains in full compliance with the terms of the credit agreement ■ A 100-year relationship as cooperative owner in AgriBank and/or ☐ predecessors AgriBank's sole mission is to provide financing the district associations Compeer maintains a $1bn portfolio of liquid government guaranteed investments $100 million in preferred stock COMPEER FINANCIAL™#2929 PREFERRED STOCK ● Only FCS Association with a preferred stock offering . S&P has a Long-term Credit Rating on Compeer of BBB+ . . . ■ Preferred stock is BB+ Compeer has a solid base of retained earnings comprising the vast majority of its capital Over 98% of funding comes from AgriBank (AA-) Albeit small portion of the capital structure, preferred stock is demonstrable access to capital markets Fixed to Float - 6.75% Dividend Original NC-10 - callable August 15, 2023 ■ Resets to 3 month Libor + 458 COMPEER FINANCIAL™