Lone Star Ag Credit has a billion dollar year

Fort Worth, Texas – Lone Star, ACA (Lone Star Ag Credit) reported double digit growth and strong financial results the 2007 fiscal year.

In the past year, Lone Star Ag Credit exceeded $1 billion in gross loan volume. Net income totaled $21.3 million for the twelve-month period ended December 31, 2007, a 20 percent increase from 2007. Net interest income for 2007 was $27.4 million, reflecting a 24 percent increase from 2006. Non-interest income also increased in 2007 by $1.3 million or 29 percent.

The significant increases can be attributed to the continued demand for real estate along with significant growth in the association’s livestock, dairy and agribusiness portfolios. The quality of the loan portfolio remained strong with 98 percent of gross loan volume rated acceptable at December 31, 2007.

“Lone Star Ag Credit is pleased to report another successful and profitable year,” said Daron Gates, CEO. “We had many opportunities to expand our portfolio in 2007 and those opportunities created milestones of success.”

Lone Star Ag Credit ended the year with total assets of $1.08 billion. Lone Star has 5,515 real estate and production loans outstanding to farmers, ranchers, agribusiness owners and other rural land owners and homeowners throughout Texas.

In addition to reaching over a $1 billion in loan volume outstanding in 2007, Lone Star Ag Credit also moved the administrative office to Fort Worth and opened credit offices in Weatherford and Bonham.

As a result of the performance the past year, the board of directors approved a $5 million patronage distribution to be paid in cash to our borrowers in March.

“Lone Star Ag Credit is growing to meet the needs of rural Texas. We strive to maintain competitive interest rates and provide superior customer service,” said Gates.

For more than 90 years, Lone Star Ag Credit has been a reliable source of financing for Rural America.  Lone Star Ag Credit provides a unique view in today's banking environment by being a strong, customer-owned bank committed to providing courteous, accurate service through a well-trained, highly motivated staff. Lone Star Ag Credit offers a wide variety of loan programs at competitive rates including agricultural and recreational real estate, rural homes, operating, equipment, livestock and agribusiness loans.   Lone Star Ag Credit has offices located in Fort Worth, Sweetwater, Abilene, Stephenville, Weatherford, Cleburne, Denton, Sherman, Paris and New Boston.

February 19, 2008