In addition to these regulatory requirements, we establish an optimum permanent capital target. This target allows us to maintain a capital base adequate for
future growth and investment in new products and services. The target is subject to revision as circumstances change. As of December 31, 2015, our
optimum permanent capital target was to remain above 12%.
The changes in our capital ratios reflect changes in capital and assets. Refer to the Loan Portfolio section for further discussion of the changes in assets.
Additional members’ equity information is included in Note 6 to the accompanying Consolidated Financial Statements.
RELATIONSHIP WITH AGRIBANK
Borrowing
We borrow from AgriBank to fund our lending operations in accordance with the Farm Credit Act. Approval from AgriBank is required for us to borrow
elsewhere. A General Financing Agreement (GFA), as discusse [