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For Immediate Release
May 11, 2005

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

The Tenth District is composed of the Austin-based Farm Credit Bank of Texas (FCBT) and 21 rural lending cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas.

District net income of $50.2 million for the quarter ended March 31, 2005, showed a 30.2 percent increase from the $38.6 million reported for the same period of 2004. Both interest and non-interest income for the quarter increased, while total non-interest expenses for the quarter decreased from the same period a year earlier.

Gross loan volume at March 31, 2005, totaled $8.63 billion, a 2.2 percent increase from the $8.444 billion loan volume reported at Dec. 31, 2004. The quality of the loan portfolio remained exceptionally strong, with 98.5 percent of gross loan volume rated acceptable at March 31, 2005, up slightly from 98.3 percent acceptable at year-end 2004. The district's total high-risk asset loan volume decreased by $2.9 million, or 5.8 percent, during the same three-month period.

"Last year, the district's financial performance was one of the best in our 88-year history. During the first quarter of 2005, we continued to build on that momentum with competitive pricing, innovative loan products and increased lending to the agribusiness sector," said Larry Doyle, FCBT chief executive officer.

"Credit goes to employees and directors throughout the district for doing a great job of penetrating their local markets and providing top-notch customer service," he said.

The district ended the first quarter of 2005 with assets of $10.70 billion. Members' equity in the cooperatively owned lending organizations totaled $1.77 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 $498 million for the quarter ended March 31, 2005, as compared with combined net income of $450 million for the same period last year.