AgStar Financial Services Announces Mid-Year Results
Net earnings reported at $32.2 million
MANKATO, Minn. (August 4, 2010) – AgStar Financial Services, a value-added financial services company owned by its client-stockholders, today reported earnings for mid-year ending June 30, 2010. The company reported net after-tax earnings of $32.2 million for the first half of 2010, an increase over last year’s first half performance of $21.8 million.
“We are pleased to post these results for the first half of 2010. The agriculture industries are beginning to stabilize and improved conditions in the renewable energy and swine industries have contributed to our strong results this year,” stated Paul DeBriyn, president and CEO of AgStar Financial Services.
AgStar’s core business had a solid performance and was 3% over the projected level. Crop insurance revenue also contributed to AgStar’s favorable earnings. In addition, the company’s capital position remains strong with key ratios exceeding regulatory requirements. In August, AgStar will distribute allocation notices to stockholders for $27.5 million in patronage dividends based on 2009 earnings. Since 1998, AgStar has allocated over $259 million in patronage dividends to qualified stockholders.
“We continue to focus our efforts on unparalleled service and helping clients through the current market volatility,” stated DeBriyn. “As the economics continue to stabilize, we’re anxious and well-positioned to help producers capture opportunities for their businesses.”
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, and 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.