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Lone Star Ag Credit Reports Solid Year-End Financial Results

FORT WORTH, Texas – Lone Star Ag Credit, a rural lending cooperative headquartered in Fort Worth, reported a solid financial performance in 2014, highlighted by strong growth in loans and assets.

Last year, 2014, was the first full year of financial results posted by the borrower-owned co-op since it merged with Texas Land Bank on Jan. 1, 2014, to form a larger lending institution serving 48 counties from west-central to northeast Texas.

Assets, which consist primarily of gross loan volume, grew to $1.43 billion at Dec. 31, 2014, up from $857.5 million a year earlier, prior to the merger.

The overall quality of Lone Star's loan portfolio was excellent at the end of the fourth quarter of 2014, with 98.27 percent of total loans classified as acceptable or special mention.

"We are pleased that an increased number of Texans turned to Lone Star last year to finance their rural properties and agricultural operations," said Troy Bussmeir, chief executive officer of Lone Star Ag Credit. "Our goal is to always be a trusted credit source and continue to deliver outstanding customer service to our borrower-members now and in the future."

Lone Star had net income of $27.1 million for the 12 months ended Dec. 31, 2014. That compares with $20.5 million net income for Lone Star during the same period of 2013.

Lone Star Ag Credit finances agricultural and recreational real estate, rural homes, agribusinesses, livestock, equipment and operating expenses. The lender also offers financing that is tailored to young, beginning and small ag producers.

The high quality portfolio and strong earnings allowed the association's Board of Directors to approve a $12.1 million cash patronage dividend, which will be distributed to eligible stockholders in April 2015. The distribution of patronage dividends to its members is just one of the benefits of Lone Star's cooperative business structure, setting it apart from other kinds of lenders.

Lone Star Ag Credit is part of the nationwide network of Farm Credit rural lending cooperatives. It 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, in addition to its Fort Worth headquarters.

Published March 25, 2015