Lone Star Ag Credit reports strong growth and earnings for the third quarter

Fort Worth, Texas –Lone Star Ag Credit reported double digit growth and strong financial results for the third quarter of 2006. Net income totaled $12.6 million for the nine-month period ended September 30, 2006, a 27.2 percent increase from the $9.9 million reported for the same period of 2005. Net interest income for the first six months of 2006 was $16 million, reflecting a 15.9 percent increase from the same period in 2005. Non-interest income also increased for the first nine months of this year $979,420 or 59.6 percent.

Gross Loan Volume at September 30, 2006, totaled $808 million, an increase of $150 million since December 31, 2005. This increase is attributed to a 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 97.99 percent of gross loan volume rated acceptable at September 30, 2006 up from 97.36 percent acceptable for the same period last year.

"Lone Star is pleased to be able to report another outstanding quarter," said Daron Gates, CEO. "These results show the dedication our staff has to the Association's stockholders, as well as, our continued focus to offer the best interest rates and products to those looking to be a part of rural America," he said.

"We are very pleased that Lone Star continues to decrease its average spreads to our customers and is able to continue our strong financial performance. In spite of the increasing interest rate environment, people are still purchasing rural property, and looking to expand their operations. Lone Star continues to offer competitive loan pricing, personal service and a cash patronage program to its member-borrowers."

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.

November 10, 2006