Lone Star Ag Credit Remains Strong

Fort Worth, Texas – Lone Star, ACA (Lone Star Ag Credit) reported double digit growth and strong financial results the 2008 fiscal year.

In the past year, Lone Star Ag Credit remained a stable and profitable lending institution for rural Texas. Net income totaled $23.9 million for the twelve-month period ended December 31, 2008, a 12 percent increase from 2007. Net interest income for 2008 was $30.6 million, reflecting an 11.5 percent increase from 2007, and non-interest income also increased in 2008 by $1.4 million or 25 percent. Lone Star Ag Credit remains well capitalized with a capital adequacy ratio of 13.18 percent.

The profit and growth in 2008 is the result of extending solid financial solutions to individuals who have good credit and are creating successful growth in rural Texas. The quality of the loan portfolio remained strong with 97 percent of gross loan volume rated acceptable at December 31, 2008.

“Lone Star Ag Credit is pleased to report a successful and profitable year,” said Daron Gates, CEO. “While 2008 marked a year of change for Texas, Lone Star was proud to stand on solid ground during volatile times by experiencing growth, profit and success.”

Lone Star Ag Credit ended the year with total assets of $1.2 billion. Lone Star has 5,505 real estate and production loans outstanding to farmers, ranchers, agribusiness owners and other rural land owners and homeowners throughout Texas.

As a result of the performance the past year, the board of directors approved a $5.43 million patronage distribution to be paid in cash to our borrowers in March. Each borrower will receive a half percent return on their average net balance for the year of 2008.

“Lone Star Ag Credit remains a well capitalized source of financing for 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 25, 2009