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For Immediate Release
May 2, 2006

AUSTIN, Texas - The Tenth Farm Credit District, a network of cooperatively owned rural financing institutions, today reported strong first-quarter financial results, highlighted by increases in net income and gross loan volume.

The Austin-based Farm Credit Bank of Texas (FCBT) and 21 financing cooperatives make up the Tenth District, which is the largest rural lending network serving Alabama, Louisiana, Mississippi, New Mexico and Texas.

District net income of $56.6 million for the quarter ended March 31, 2006, showed a 12.7 percent increase from the $50.2 million reported for the same period of 2005.

Gross loan volume at March 31, 2006, totaled $10.4 billion, a 1.5 percent increase from the $10.2 billion at Dec. 31, 2005, and an increase of 20.1 percent from the $8.63 billion loan volume reported at March 31, 2005. The quality of the loan portfolio remained exceptionally strong, with 98.7 percent of gross loan volume rated acceptable at March 31, 2006, up slightly from 98.4 percent acceptable at year-end 2005.

“The territory in our district is one of the most abundant agricultural sectors in the country, and our associations continue to grow because they are stepping up their efforts to serve the market well,” said Larry Doyle, FCBT chief executive officer. “Our strong financial results reflect the hard work of our district’s employees and directors who have focused on new growth opportunities, increased marketing efforts and providing our members with a high level of service.”

The district ended the first quarter of 2006 with assets of $13.4 billion. Members' equity in the cooperatively owned lending organizations totaled $2.0 billion.

The Tenth District lenders provide loans and financial services to agricultural producers, agribusiness firms, and rural landowners and homeowners. They are part of the nationwide Farm Credit System, established by Congress in 1916.

Nationally, the Farm Credit System reported combined net income of $554 million for the quarter ended March 31, 2006, as compared with combined net income of $498 million for the same period last year.