Lone Star Ag Credit's Third Quarter Looking Good
Fort Worth, Texas — Lone Star Ag Credit, an agricultural and rural lending cooperative, reported exemplary financial results for the third 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. Effective Jan. 1, 2014, Lone Star merged with Texas Land Bank to form a lending association that serves 48 counties in North Central Texas.
Lone Star reported strong net income of $7.9 million and $21.1 million for the three months and nine months ending Sept. 30, 2014, respectively, total assets of $1.41 billion as of Sept. 30, 2014, and gross loan volume of $1.39 billion as of Sept. 30, 2014.
The overall quality of the loan portfolio was excellent as of the end of the third quarter of 2014, with 98.1 percent of total loans classified as acceptable or special mention.
Earlier this year, Lone Star distributed a total of $11.95 million in cash patronage to its eligible borrower-owners. This distribution of a portion of Lone Star's 2013 earnings effectively reduced the eligible borrowers' borrowing costs by an average of 1 percentage point. Patronage dividends are a benefit of Lone Star's cooperative business structure, setting it apart from other kinds of lenders.
“With a positive third quarter behind us, we expect to grow and continue providing a stable credit source in the next quarter and in 2015," said Troy Bussmeir, Chief Executive Officer.
The cooperative specializes in agricultural and rural financing. Loan programs are available to serve the needs of ag operators, as well as current and new rural land and rural home owners. Lone Star also provides financing tailored to young, beginning and small farmers or ranchers.
Lone Star is part of the Farm Credit System, a nationwide network of agricultural and rural lending cooperatives. Headquartered in Fort Worth, Lone Star has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Hillsboro, Lampasas, Mount Pleasant, New Boston, Paris, Round Rock, Sherman, Stephenville, Sweetwater, Temple, Waco and Weatherford.
Published November 20, 2014