Patronage Refund

Lone Star Ag Credit, the premier Ag-lender in Texas is pleased to announce its cash patronage payout of $7,000,000. Due to the excellent financial position of the Association, the Board of Directors voted in January to return this cash payment to our stockholders from 2005 earnings. This payment will occur in April of 2006 and lowers the effective interest rate paid by a majority of our borrowers by approximately 1.2% (dependent on loan size, interest rate and interest paid) and assures Lone Star remains the lowest cost lender to do business with in our market. With this payout the total amount of capital returned to our stockholders in cash totals $28,641,076 since 1998.

"The return of borrower capital is the single greatest advantage of doing business with a cooperatively owned bank. As a customer-owned financing cooperative, Lone Star, places a high priority on sharing our success with our customers," said CEO, Daron Gates. "Our customers have become accustomed to receiving competitive rates and excellent customer service and when you add our cash patronage distribution to the mix we don't believe you can find another lender that can compete," said Gates.

Lone Star Ag Credit is a $700 million customer-owned cooperative headquartered in Weatherford that provides financing for land, rural homes, livestock and operating loans to farmers, ranchers, agribusinesses and those that want to enjoy the rural lifestyle. We invite you to give us a call at 1-800-530-1252 to visit about our loan programs or stop by one of our offices or contact points located in New Boston, Paris, Sherman, Denton, Cleburne, Stephenville, Abilene, Sweetwater, Weatherford, Linden, Gainesville, Decatur, Mt. Pleasant, Bonham and Van Alstyne, Texas.