AgriLand Farm Credit, Texas AgFinance announce merger
The boards of directors of AgriLand Farm Credit and Texas AgFinance are pleased to announce that they have signed a Letter of Intent to Merge. AgriLand, headquartered in Tyler, Texas, and Texas AgFinance, with headquarters in Robstown, Texas, are targeting a Jan. 1, 2014, merger date.
Mark Miller, chief executive officer of Texas AgFinance, anticipates the merger will bring additional value to stockholders of both financing cooperatives. “This merger will allow our associations the opportunity to expand our product offering throughout our combined territory. We share many similarities operationally and culturally with AgriLand, in addition to strong capital positions and credit portfolios,” Miller said. “Our board believes this is a very positive move strategically for our stockholders.”
Combined, the new association will serve 100 of the 254 counties throughout Texas. “Our strategic vision of fulfilling the mission of the Farm Credit System throughout those 100 counties is aligned very closely with that of Texas AgFinance,” said John Holland, AgriLand chief executive officer. “Texas AgFinance has a strong history, and we like how they do business and bring value to their customers. This isn’t about just getting bigger, but really will enable us to deliver greater value to our members.”
As of Dec. 31, 2012, AgriLand had total assets of $291 million, and Texas AgFinance had assets of $478 million. The new combined association will manage total assets of $769 million.
The two lending cooperatives finance agricultural production, agribusiness, country homes and rural real estate. Established in 1933 and 1934 respectively, AgriLand and Texas AgFinance are part of the nationwide Farm Credit System, the nation’s oldest and largest source of rural financing.