AgStar Financial Services Announces Third Quarter Results
Net earnings reported at $45.6 million
MANKATO, Minn. (November 9, 2010) – AgStar Financial Services, a value-added financial services company owned by its client-stockholders, today reported year-to-date earnings as of September 30, 2010. The company recorded a strong performance, with net earnings of $45.6 million, a 25% increase over last year’s third quarter earnings.
“Continued improvements in the renewable energy and swine industries throughout the third quarter contributed to our strong results,” stated Paul DeBriyn, AgStar President and CEO. “As these industries stabilized, provision expenses for potential loan losses were reduced accordingly. This, combined with a one-time insurance premium refund, has notably boosted our 2010 profits.” The company had a nearly 40% decline in provision expenses from last year.
AgStar also posted double-digit growth over last year in crop and hail insurance income, as well as consulting services revenue. “With volatility here to stay, crop insurance and consulting services have become increasingly vital to producers,” stated DeBriyn. “By providing these margin and risk management services, as well as industry expertise, we can help clients lock-in profits when opportunities arise.”
AgStar’s capital levels continue to exceed regularly requirements and credit quality remains solid. “Our organization continues to be well-positioned to serve our valued clients and stockholders as their operations grow and evolve,” said DeBriyn. “As always, we are committed to providing clients with the industry expertise and world-class service they’ve come to expect from AgStar.”
About AgStar:
AgStar Financial Services, ACA, headquartered in Mankato, Minn., employs more than 610 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 13,000 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
507-529-2087
Heather.Leiferman@AgStar.com
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