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For Immediate Release
September 27, 2005

AUSTIN, Texas - The Farm Credit Bank of Texas (FCBT), a $9.5 billion cooperative bank that provides financing to rural America, completed the private placement of $100 million in cumulative private preferred stock on Sept. 26, 2005.

Lehman Brothers represented the bank as the placement agent for the transaction.

This is the second time in three years that the Austin-based bank has sold preferred stock. In 2003, stockholders authorized the bank to issue its first $100 million of preferred stock, an offering that was completed in November of that year. Both the first and second issuance required stockholder approval.

“The issuance of another $100 million of preferred stock is part of our strategic objective to maintain a strong capital position without asking existing common stockholders to make additional investments in the bank,” said Larry Doyle, FCBT chief executive officer.

“In the last three years, the bank has experienced tremendous balance sheet growth. By completing this latest preferred stock offering, we will be able to continue to meet our customers’ wholesale funding needs and pursue business opportunities that will benefit our customer-owners,” Doyle said.

At June 30, 2005, the Farm Credit Bank of Texas had $7.4 billion in total loans outstanding. Net income for the first six months of the year totaled $27.6 million, a 42 percent increase over the same period of 2004.

The bank is the source of funds for its owners—21 rural lending cooperatives in Alabama, Louisiana, Mississippi, New Mexico and Texas, and four Other Financing Institutions. The bank also participates with other lenders in loans to national and international agribusiness, energy and rural telecommunications firms.

The Farm Credit Bank of Texas is part of the $130-billion Farm Credit System, a nationwide network of lending cooperatives that finance agricultural production, agribusiness, rural real estate and country homes.