FCS Financial: One Hundred Years July 2016 | Page 82

Chapter Five
A Lean, Mean Lending Machine

As early as 1999, discussions began on the topic of merging the
Missouri Eastern and Western associations into one entity. Leaders
of both organizations met in Sedalia with a facilitator from Farm
Credit Council to discuss the possibilities. Jim Zerr, who was on the
board of FCS of Eastern Missouri at the time, said of that meeting,
“It just didn’t get off on the right foot. We didn’t get in any fights
but . . .” while his counterpart in FCS of Western Missouri Meredith
Kapp finished the thought saying, “It came to an abrupt halt and we
all went home.” Things changed the following year when, at a Farm
Credit Council meeting in San Diego, the subject was revived. This
time, both boards were willing to look into it. Unlike the mergers of
the 1980s and 90s that were motivated primarily by cost efficiency,
this merger had much more to do with strength and positioning for
the future. “Both associations were very strong,” Meredith recalled.
“Business was good and financially we were both in good shape.”
Jim added, “I think when we merged, FCS of Western Missouri was
around $0.5 billion and Eastern was a little over that. We were around
$1.1 billion when we started out.”
There were a number of contributing factors that pointed to the
common-sense merger. To start with, consolidation would mean an
end to the occasional territorial disputes that arose and give them a
unified presence when working with legislators, commodity groups,
and educational institutions. Combined, they would have a capital
base that totaled nearly $180 million, making them better positioned
to meet the needs of agricultural producers and rural homeowners
throughout the state. The merger also meant cost savings. With each
of the mergers in the 7th Farm Credit District over recent years,

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Selected References