AgStar Financial Services Announces Third Quarter Earnings
Net earnings reported at $34.5 million
MANKATO, Minn. (November 9, 2009) – AgStar Financial Services, a value-added financial services company owned by its client-stockholders, today reported year-to-date earnings as of September 30, 2009. The company reported net earnings of $34.5 million which is below last year’s record third quarter earnings of $53.2 million. The earnings decline was primarily caused by continued loan losses and reserves for the swine, dairy and renewable energy industries.
Despite the volatility, net interest income is 4% ahead of last year’s pace through the third quarter. Double-digit revenue gains from fee income, hail insurance and accounting services added to the company’s solid performance. “All things considered, we feel fortunate to have great clients and a dedicated team to deliver these third quarter results,” stated Paul DeBriyn, president and CEO at AgStar Financial Services. “Our core business remains strong and we continue to have a solid capital position, with key ratios well above regulatory requirements.”
During the third quarter, the AgStar lending group sold two of the three remaining VeraSun (VSE) ethanol plants acquired through VSE’s bankruptcy in April. The final plant sale, in Hankinson N.D., closed on October 1, 2009. These sales occurred as expected resulting in minimal losses. “I’m very proud of the efforts our team put into getting these former VeraSun facilities in the hands of companies with farmer-owner interests. These sales represent a positive outcome for AgStar clients and stockholders,” stated DeBriyn.
AgStar is well positioned to continue to provide credit to farmers, agribusinesses, rural residents and rural communities. “We will continue to provide our clients with the industry expertise and unparalleled service they expect from AgStar,” noted DeBriyn.
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
Heather.Leiferman@AgStar.com
507-529-2087
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