AgStar Financial Services Posts Third Quarter Performance
Net earnings reported $57 million, a 26% increase over last year’s third quarter earnings
Mankato, Minn., (Nov. 7, 2011) - Today, AgStar Financial Services, a financial services company owned by its client-stockholders, reported after-tax earnings of $57 million through the third quarter of 2011, a 26% increase over one year ago.
“We are pleased with our strong performance through the third quarter of 2011,” stated Paul DeBriyn, president and CEO of AgStar Financial Services. “These earnings are a result of growth in loan volume in AgStar’s core markets, which contributed to increases in net interest income.” Company profits have been enhanced by increases in income from consulting services and title, life and hail insurance revenue as well as a reduction in provision for loan losses.
Two of the company’s key performance measures, client satisfaction and client loyalty, are at world class levels. Client satisfaction rankings are some of the best in company history and overall client loyalty is at 70%, which is regarded as excellent in the industry.
“At AgStar, providing a high level of service and expertise is a big part of what we do,” said DeBriyn. “Client loyalty and satisfaction are the building blocks. We believe once that foundation is set, everything else, like profits and growth, falls into place. For example, currently, higher feed, land and input costs are contributing factors to a dynamic marketplace. Each day, we work diligently with our clients to find solutions for this environment.”
AgStar’s focus is always on client relationships and working to enhance stockholder value. As a way to share profits with their client-stockholders, AgStar implemented a Patronage Program in 1998. In September, AgStar distributed allocation notices to stockholders for $36.8 million in patronage dividends based on 2010 earnings. Since the program’s inception, AgStar has allocated more than $296 million in patronage dividends to qualified stockholders.
“Our clients, stockholders and team members are the people who make AgStar the outstanding organization that it is,” continued DeBriyn. “I would like to thank each of our clients for their business, our stockholders for their commitment and our team for their focus on client service.”
About AgStar:
AgStar Financial Services, ACA, headquartered in Mankato, Minn., employs more than 600 full-time team members. The company is part of the national Farm Credit System and has a public mission to serve 69 counties in Minnesota and northwest Wisconsin. AgStar’s industry specialization, client segments and market delivery systems result in diversification nationwide. The company has expertise in the corn, soybean, swine, dairy and bio-energy industries. AgStar has developed successful programs in loans, leases, crop insurance, tax services, accounting, consulting and rural home mortgages. As a value-added financial services cooperative, AgStar allocates patronage dividends to its 14,000 stockholders. The company is also committed to giving back to rural residents, organizations and communities through AgStar’s Fund for Rural America. Visit www.AgStar.com for more information.
Contact: Heather Leiferman
Heather.Leiferman@AgStar.com
507-529-2087
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