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Fort Worth, Texas (December 16, 2022) — Lone Star Ag Credit and Ag New Mexico Farm Credit recently signed a letter of intent (LOI) to merge the two associations. Under the terms of the LOI, each Board unanimously voted to move forward with thorough due diligence efforts to evaluate the merger’s benefits to the memberships of each association.
With approximately $2.6 billion in assets, Lone Star serves rural communities through its 16 locations across Texas. Ag New Mexico, with roughly $400 million in assets, delivers similar financing solutions across the entire state of New Mexico through its four locations.
The merged association’s headquarters would be in Fort Worth, with current Lone Star Chief Executive Officer Joe Hayman serving as the CEO. They are not anticipating any branch closures or branch staffing changes.
“Both Associations are focused squarely on exceeding the expectations of our customer-owners,” said Hayman. “We look forward to exploring the possibility of combining our resources to become stronger and better.”
“At this early stage, we believe joining together allows the merged association to serve agriculture and rural communities better,” said Brent Neuhaus, Chairman of the Board for Lone Star Ag Credit. “For a financial institution, a dynamic and diversified market provides for improved operating efficiency and a stable source of competitive credit, which greatly benefits the farmers and ranchers we serve.”
“Farm Credit’s mission is to provide reliable and consistent credit for agriculture and rural communities,” said Linda Brown, Chairman of the Board for Ag New Mexico Farm Credit. “This merger could strengthen both associations with greater lending capacity to serve better the agricultural producers who provide food, fuel, and fiber for the nation.”
Should the due diligence confirm the expected benefits of a merger, the next step would be to seek regulatory approval from the Farm Credit Administration (FCA). Upon FCA approval, they will consider the merger before each association’s stockholders. The anticipated effective date of the merger is mid 2023.
About Lone Star Ag Credit
As a nationwide Farm Credit System member, Lone Star Ag Credit provides financing for farms, ranches, country homes, agribusinesses, livestock, agricultural equipment, and operating expenses. The rural lender is headquartered in Fort Worth and has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Georgetown, Hillsboro, Lampasas, Mount Pleasant, New Boston, Paris, Sherman, Stephenville, Sweetwater, Waco, and Weatherford.
For more information, contact a local Lone Star branch office or visit LoneStarAgCredit.com.
About Ag New Mexico Farm Credit
Ag New Mexico offers flexible loan programs with competitive interest rates to meet your agricultural financing needs, including farm and livestock loans, real estate loans, agribusiness loans, and agricultural production loans. Headquartered in Clovis, New Mexico, Ag New Mexico has branches in Albuquerque, Las Cruces, and Roswell.
For more information, contact a local Ag New Mexico branch office or visit agnewmexico.com.