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For Immediate Release
August 2, 2005

AUSTIN, Texas - The Farm Credit Bank of Texas and its affiliated lending institutions today reported increases in net income and gross loan volume for the first six months of 2005 that exceed the record-breaking levels set during the same period last year.

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, 2005, was $55 million, a 31.6 percent increase from the second quarter last year. Net income for the six months ended June 30, 2005, was $105 million, or 30.9 percent, above the first six months of 2004. Both interest and non-interest income increased for the quarter, and non-interest expense decreased 7.0 percent over the second quarter of 2004.

Gross loan volume at mid-year was $9.1 billion, an 8.1 percent increase from the $8.4 billion reported at year-end 2004 and an 18.7 percent increase from the $7.7 billion at June 30, 2004. District credit quality remained strong, with 98.5 percent of gross loan volume rated acceptable at June 30, 2005.

"We continue to set the bar higher and build our momentum as we serve the agricultural and rural market in our five-state territory," said Larry Doyle, FCBT chief executive officer. "These positive results come from our competitive pricing, increased activity in loan participations and an increased focus on market share and marketing opportunities. We're very proud of what our associations are doing to serve their local markets."

Combined assets of the district totaled $11.3 billion at mid-year. Members' equity in the cooperatively owned lending organizations totaled $1.8 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 $519 million for the quarter ended June 30, 2005, as compared with combined net income of $478 million for the same quarter last year.