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For Immediate Release
August 11, 2004

AUSTIN, Texas - The Tenth Farm Credit District, the largest rural lending network in Alabama, Louisiana, Mississippi, New Mexico and Texas, today reported record loan volume and strong net income at mid-year.

The Tenth District is composed of the cooperatively owned Farm Credit Bank of Texas (FCBT), 12 Agricultural Credit Associations and nine Federal Land Credit Associations.

The district's gross loan volume totaled $7.688 billion at June 30, 2004, a 5.7 percent increase from Dec. 31, 2003, and a 10 percent increase from June 30, 2003.

The credit quality of the loan portfolio was exceptionally high, with 98 percent of gross loan volume rated acceptable at mid-year-a slight increase from the 97.4 percent reported six months and one year earlier.

"In spite of the rising interest-rate environment, we have continued to grow our loan volume, a fact we attribute to our new emphasis on competitive market-based loan products and increased lending to the agribusiness sector," said Larry Doyle, FCBT chief executive officer.

The record loan volume also is attributed to strong demand for rural real estate in most parts of the district, improved marketing and customer service efforts by lending associations, and continued government support to farmers.

District net income for the three- and six-month periods ended June 30, 2004, totaled $41.8 million and $79.8 million, respectively. This compares with $37.3 million and $66.9 million for the same periods in 2003.

The Farm Credit Bank of Texas and its 21 affiliated financing cooperatives had $9.255 billion in assets at June 30, 2004. They are part of the 88-year-old Farm Credit System, which provides financing to farmers, ranchers, agribusinesses, country homeowners and other rural landowners throughout America.

Nationally, the Farm Credit System reported combined net income of $478 million and $928 million for the three and six months ended June 30, 2004, respectively. This compares with net income of $443 million and $878 million for the same periods last year.