Lone Star Ag Credit Remains Strong in the 3rd Quarter

Fort Worth, Texas – Lone Star, ACA (Lone Star Ag Credit) reported double digit growth and strong financial results for the third quarter of 2007.

Net income totaled $15.2 million for the nine-month period ended September 30, 2007, a 20 percent increase from the $12.6 million reported for the same period of 2006.  Net interest income for the first nine months of 2007 was $20 million, reflecting a 25 percent increase from the same period in 2006.  Non-interest income also increased for the first nine months of this year $636,695 or 40 percent.

Gross loan volume at September 30, 2007, totaled $1.015 billion, an increase of $140 million since December 31, 2006.  This increase is attributed to a continued demand for real estate along with significant growth in the Association’s livestock, dairy and agribusiness portfolios.  The quality of the loan portfolio remained strong with 99 percent of gross loan volume rated acceptable at September 30, 2007, up from 97.99 percent acceptable for the same period last year.

“Lone Star Ag Credit is pleased to be able to report another outstanding quarter,” said Daron Gates, CEO.  “These results show the dedication our staff has to the Association’s stockholders, as well as, our continued focus to offer the best interest rates and products to those looking to be a part of rural America,” he said.

Lone Star Ag Credit ended the third quarter with total assets of $1.053 billion.  Lone Star has 5,465 real estate and production loans outstanding to farmers, ranchers, agribusiness owners and other rural land owners and homeowners throughout Texas.

“Lone Star Ag Credit strives to maintain competitive rates to our customers while continuing our strong financial performance.  In spite of the ever-changing economy, people are still purchasing rural property, and looking to expand their operations.  Lone Star Ag Credit continues to offer competitive loan pricing, personal service and a cash patronage program to its member-borrowers,” 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.

November 5, 2007