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For Immediate Release
February 27, 2008

AUSTIN, Texas – Twenty Farm Credit lending cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas declared $133.7 million, or more than half of their 2007 earnings, in patronage to their customers – farmers, ranchers, agribusiness firms, rural homeowners and other rural landowners.

The same borrower-owned lending institutions declared $124.8 million in patronage distributions for 2006 and $56.4 million for 2005.

The record patronage distribution highlighted the strong 2007 year-end financial results for the Tenth Farm Credit District, which is composed of the 20 rural lenders and the Austin-based Farm Credit Bank of Texas (FCBT).

Tenth District net income totaled $242.5 million in 2007, compared with $240.1 million in 2006. Net interest income increased to $432.4 million in 2007 from $386.2 million the previous year, due largely to an increase in average interest-earning assets and, to a lesser extent, the higher interest-rate environment in 2007.

Gross loans totaled $15.11 billion at Dec. 31, 2007, a 17 percent increase from the $12.91 billion loan volume reported at year-end 2006. At the same time, the credit quality of the district’s portfolio remained strong, with 98.8 percent of the loan volume considered acceptable at year end.

"While we enjoyed tremendous growth and solid earnings last year, we are particularly proud that our lending associations once again provided excellent value to their stockholders in the form of patronage," said Larry Doyle, FCBT chief executive officer.

"Patronage reduces our customers’ cost of borrowing. It is the cornerstone of the cooperative business model, and it’s what distinguishes Farm Credit from other lenders."

The Farm Credit Bank of Texas, which is the funding bank for the 20 local financing cooperatives, also reported strong year-end results. FCBT net income of $74 million for 2007 was up 13.9 percent from the $65 million reported for 2006. The bank’s loan portfolio at Dec. 31, 2007, totaled $10.87 billion, reflecting an 8.1 percent increase from the $10.06 billion balance a year earlier.

"As a cooperatively owned bank, we are committed to sharing our earnings with our owners and providing them with the tools and products they need to be successful. When our owners succeed, we succeed," said Ralph W. Cortese, FCBT board chairman.

At year-end 2007, Tenth District assets totaled $18 billion, while Farm Credit Bank of Texas assets totaled $13.52 billion.

The district is part of the nationwide Farm Credit System, the nation's oldest and largest source of loans for agriculture, agribusiness, rural real estate and country homes. The System reported combined net income of $2.7 billion at Dec. 31, 2007, an increase of approximately 12.5 percent from the $2.4 billion in net income the previous year.