FCL Reports Increased Lease Volume

May 31, 2000

The Minneapolis-based Farm Credit Leasing (FCL) reports first quarter new lease volume of $119.2 million, up from $118.9 million or a .3% increase from the same quarter in 1999. Portfolio and fee income for the first quarter was $19.9 million, up from $18.4 million or an 8% increase from the same period a year ago. After tax net income was $2.7 million, up from $2.1 million or a 26% increase from last year.

"LeaseManager, our new portfolio management product, has allowed us to keep our new business performance consistent this year even with a sluggish ag economy," says Philip J. Martini, FCL president and CEO. "It has kept new lease volume and revenue steady while other segments of our business have remained soft." First quarter results are for the period ending March 31.

FCL provides equipment leasing and related services for all types of vehicles, equipment and machinery to agricultural producers, their cooperatives, communications and energy companies and Farm Credit System entities. The company is also actively involved in the syndication of multimillion dollar lease projects and lease portfolio servicing. It is one of the nation's largest agricultural leasing companies. In addition to its corporate headquarters, FCL maintains 10 sales offices throughout the country.

It is part of the 84 year old, $88 billion Farm Credit System, one of the largest and oldest cooperatives in the nation. The network of approximately 175 borrower-owned banks, associations and service corporations provides production agriculture with approximately one-quarter of its credit and financial needs.

CoBank, the System's $24 billion Denver-based cooperative bank specializing in agribusiness, ag export and communications and energy financing, is FCL's majority owner. AgFirst Farm Credit Bank of Columbia, SC, owns the balance of FCL's common stock. The other five Farm Credit Banks own preferred stock in the company.