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For Immediate Release
November 1, 2005

AUSTIN, Texas – The Tenth Farm Credit District, a network of cooperatively owned rural financial institutions, today reported outstanding third-quarter financial results, including record net 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.

Gross loan volume of $9.71 billion at Sept. 30, 2005, increased 15 percent from the $8.44 billion reported at Dec. 31, 2004, and 19.6 percent from the $8.12 billion reported at Sept. 30, 2004. Total high-risk asset volume of $48.0 million at Sept. 30, 2005, reflected a 3.8 percent decrease from Dec. 31, 2004.

Credit quality remained strong, with 98.6 percent of gross loan volume rated acceptable at Sept. 30, 2005, a slight improvement over the previous four quarters.

“The district has made impressive strides in growing our loan portfolio and increasing net income during the past year,” said Larry Doyle, FCBT chief executive officer. “By offering competitive loan pricing and aggressively serving their local markets, our lending cooperatives have built a momentum that produces outstanding financial results like we achieved in the third quarter.”

District net income for the three- and nine-month periods ended Sept. 30, 2005, totaled $57.3 million and $163.3 million, respectively. These figures reflect increases of 9.5 percent and 22.5 percent, respectively, over net income reported for the same periods in 2004.

Net interest income for the third quarter of 2005 totaled $85.18 million, a 10 percent increase from the third quarter of 2004. Net interest income for the nine months ended Sept. 30, 2005, was $248.86 million, an 11.7 percent increase over the same period in 2004. These increases are primarily the result of the growth in the loan portfolio.

During the third quarter, Hurricanes Katrina and Rita both made landfall in Tenth District territory. “The economic impact of the hurricanes to district lenders is expected to be minimal, in that the cooperatives affected are well-capitalized, with excellent credit liquidity and asset quality,” Doyle said. “However, district associations are working closely on a case-by-case basis with customers who sustained minor to extensive damage. As a cooperative, owned by our customers, we are very concerned about every borrower and will do all we can to be responsive to their needs."

The district’s combined assets totaled $12.16 billion, and members’ equity totaled $1.97 billion at Sept. 30, 2005.

The Tenth Farm Credit District is part of the nationwide Farm Credit System, which provides loans and financial services to agricultural producers, agribusiness firms, rural landowners and rural homeowners. Nationally, the System reported net income of $530 million and $1.547 billion for the three and nine months ended Sept. 30, 2005, respectively, as compared with net income of $487 million and $1.415 billion for the same periods last year.

To view the Farm Credit Bank of Texas and Tenth District financial reports, visit http://www.farmcreditbank.com/financial.htm.