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For Immediate Release
August 3, 2006

AUSTIN, Texas –The Farm Credit Bank of Texas and its affiliated lending institutions today reported a $1 billion increase in gross loan volume for the first six months of 2006.

The Austin-based bank and 21 financing cooperatives, collectively known as the Tenth Farm Credit District, make up the largest rural lending network serving Alabama, Louisiana, Mississippi, New Mexico and Texas.

The district’s net income for the quarter ended June 30, 2006, was $58.5 million, a 4.9 percent increase from the second quarter last year. Net income for the six months ended June 30, 2006, was $115.1 million, or 8.6 percent, above the first six months of 2005. Both net interest and noninterest income increased for the quarter.

Gross loan volume at mid-year was $11.2 billion, a 9.8 percent increase from the $10.2 billion reported at year-end 2005 and a 23.0 percent increase from the $9.1 billion at June 30, 2005. District credit quality remained strong, with 98.9 percent of gross loan volume rated acceptable at June 30, 2006, compared to 98.4 percent acceptable at year-end 2005.

“These strong financial results are good news, not just for the Farm Credit lending institutions throughout the Tenth District but also for our customers,” said Larry Doyle, FCBT chief executive officer. “One of the highlights of the cooperative structure is that we can share financial success with our borrower-stockholders through annual patronage programs. Our goal is to continue our strong financial success for the benefit of our borrowers.”

Combined assets of the district totaled $14.6 billion at mid-year. Members’ equity in the cooperatively owned lending organizations totaled $2.0 billion.

The Tenth District is part of the nationwide Farm Credit System, established by Congress in 1916 to provide loans and financial services to agricultural producers, agribusinesses, and rural landowners and homeowners. Nationally, the Farm Credit System reported combined net income of $607 million and $1.161 billion for the three and six months ended June 30, 2006, as compared with combined net income of $519 million and $1.017 billion for the same periods last year.