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Stockholders Vote to Approve Merger

Lone Star Ag Credit and Ag New Mexico, Farm Credit Services

Lone Star Ag Credit and Ag New Mexico, Farm Credit Services Announce Stockholder Vote Passes

October 25, 2023— Lone Star Ag Credit and Ag New Mexico, Farm Credit Services are pleased to announce that the stockholder groups voted to approve the terms and conditions of a merger of the two Associations.

“Both associations couldn’t be more excited,” shares Lone Star Ag Credit CEO, Joe Hayman. “As we move forward, the newly merged association will help us fulfill our mission of serving farmers, ranchers and our rural communities”.

The proposed merger is subject to a 35-day regulatory reconsideration period. Assuming the Associations receive final FCA approval, the newly combined association will announce the completed merger and operate as AgTrust Farm Credit effective December 1.

The agricultural lending cooperatives provide financing tailored to the needs of full and part-time farmers and ranchers as well as agricultural-related businesses. Customer-owners can expect the same personalized service they count on today from their current branch locations and experienced branch staff.

Based on the two Associations’ current financial statements, the combined entity would be well capitalized with approximately $3 billion in total assets, serving nearly 8,000 stockholders with approximately 145 employees. The headquarters will be in Fort Worth, Texas, with current Lone Star Ag Credit’s Chief Executive Officer, Joe Hayman, serving as the CEO of the Merged Association, AgTrust Farm Credit and Brett Valentine to serve as New Mexico Division President.

Next Steps

  • Each board unanimously voted to pursue a merger – COMPLETED – November 2022
  • Leadership teams from each organization to complete in-depth due diligence to make sure we understand the opportunities and challenges of a merger. – COMPLETED – April 2023
  • Subject to each association’s Board of Directors review and approval of the due diligence results, we would then seek approval from the Farm Credit Administration (FCA).  – COMPLETED – May/June 2023
  • FCA Preliminary Approval – COMPLETED – September 2023
  • Eligible stockholders will be provided with merger disclosure information, including merger terms, as well as the Boards’ reasons for recommending stockholder approval. – COMPLETED – October 2023
  • Stockholder vote following appropriate review of disclosure information. – COMPLETED – October 25, 2023
  • Completed merger with combined organization operating under a new name and branding.  Expected December 1, 2023.

Lone Star Ag Credit and Ag New Mexico Farm Credit Announce Unanimous Passed Resolution to Merge

May 16, 2023— Lone Star Ag Credit and Ag New Mexico are pleased to announce both Boards unanimously passed a Resolution on May 11, 2023, approving the terms and conditions of a proposed merger of the two Associations.

“This is a strategic merger for both associations,” shares Lone Star Ag Credit Board of Directors Chair, Brent Neuhaus. “Our boards have worked together diligently to ensure the long-term success of our customer-owners, the cooperative, and the communities we serve”.

The proposed merger is subject to the approval of the Farm Credit Administration (FCA). Assuming the Associations receive regulatory approval, each Association will call a special meeting of stockholders to hold a vote on the merger, likely in summer of this year, with the hope of closing the merger as early as October 1, 2023.

The agricultural lending cooperatives provide financing tailored to the needs of full and part-time farmers and ranchers as well as agricultural-related businesses. Customer-owners can expect the same personalized service they count on today from their current branch locations and experienced branch staff.

Based on the two Associations’ current financial statements, the combined entity would be well capitalized with more than $3 billion in total assets, serving nearly 8,000 stockholders with approximately 155 employees. The headquarters would be located in Fort Worth, Texas, with current Lone Star Ag Credit’s Chief Executive Officer, Joe Hayman, serving as the CEO of the merged entity. No branch closures or branch staffing changes are anticipated.

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Frequently Asked Questions about Mergers

We don’t expect any impact to your existing loans or the process for future requests.  Please continue to reach out to your loan officer or branch with any specific needs.

No branch closures or branch staffing changes are anticipated. Our goal is a seamless transition, allowing us to continue our focus of enhancing the experiences of our customer-owners.

All eligible customer-owners will be provided with merger disclosure information, including merger terms, as well as the Boards’ reasons for recommending approval.  A stockholder vote will be scheduled following appropriate review of disclosure information in mid-2023.

The combined association would continue to be a customer-owned lending cooperative. That means our customers are also owners who have the opportunity to share in our earnings through a patronage dividend. We intend to continue giving back to the valued customer-owners who make our success possible. We believe the stronger combined association will further safeguard your patronage dividend.