Lone Star Ag Credit Reports Steady Earnings in Second Quarter
Fort Worth, TX – Lone Star Ag Credit, an agricultural and rural lending cooperative, reported solid financial results through the second quarter of 2014.
The member-owned co-op provides financing for agricultural and recreational real estate, rural homes, agribusinesses, livestock, and agricultural equipment and operating expenses. Earlier in 2014, Lone Star merged with Texas Land Bank to form a lending association serving 48 counties in north, central, east and west Texas.
Lone Star reported net income of $6.6 million and $13.2 million for the three months and six months ended June 30, 2014, respectively.
Total assets were $1.39 billion at June 30, 2014, compared with $1.38 billion in combined assets at the two former associations at Dec. 31, 2013. The overall quality of the loan portfolio remains high at mid-year 2014, with 97.8 percent of total loans classified as acceptable or special mention.
Early in the second quarter, Lone Star distributed an $11.95 million cash patronage payment to its borrower-owners. This distribution of its 2013 earnings effectively reduced borrowers' costs by an average of 1 full percent. Patronage dividends are a benefit of Lone Star's cooperative business structure, setting it apart from other kinds of lenders.
“Lone Star is equipped to provide existing and potential customers with the stable credit and expertise that farmers, ranchers, and rural land owners and homeowners find invaluable," said Troy Bussmeir, chief executive officer. “To better serve our larger territory following our recent merger, we have opened two new branch offices."
The cooperative specializes in agricultural and rural financing, offering loan programs that cater to the needs of established ag operators and landowners, new rural landowners, and young, beginning and small farmers and ranchers.
Lone Star is part of the Farm Credit System, a nationwide network of agricultural and rural lending cooperatives. Headquartered in Fort Worth, it has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Hillsboro, Lampasas, New Boston, Paris, Round Rock, Sherman, Stephenville, Sweetwater, Temple, Waco and Weatherford.
For more information, please visit www.LoneStarAgCredit.com.
Published August 5, 2014