Farm Credit: Consolidation To
Result In Largest Ag Lender
LANCASTER (Lancaster Co.)
The board chairmen of five
East Coast Farm Credit associa
tions jointly announced their asso
ciations’ consolidation plans to
the stockholders of the financial
services cooperatives. This move
will create the largest ag lender in
the Mid-Atlantic region, with as
sets exceeding Si billion, accord
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ing to the association.
The five associations involved
in these discussions are:
• Central Maryland Farm Credii
of Westminster, Md.. Robert N.
Stabler, board chairman
• Chesapeake Farm Credit ol
Denton, Md., Marion R. Leaver
ton, board chairman
• Delaware Farm Credit of Dov-
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er, Del., Walter C. Hopkins, board
chairman
• Keystone Farm Credit of Lan
caster, Pa., Wilmer L. Hostetler,
board chairman
• Marva Farm Credit of Salis
bury, Md., Wayne Lamberts on,
board chairman.
The primary service area of the
new Farm Credit association will
be from the Lehigh Valley in
PREPARE FOR SURVIVAL
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• 2 coat finish for added
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Call or Write For Additional Information
& the Name of Your Nearest Dealer
Paul B. Zimmerman, Inc.
295 Woodcorner Rd. • Lititz, PA 17543 • 1 mile West of Ephrata
717/738-7365
Hours: Mon. thru Fri.: 7-5; Sat. 7-11
Pennsylvania to the southern tip ot
Virginia on Delmarva Peninsula,
and to the west past Hagerstown,
Md. The new Farm Credit Asso
ciation will serve more than 9,000
customers in four states.
The stockholders of these five
associations were recently sent a
letter informing them of the con
solidation discussions. The con
solidation is expected to provide
many significant financial and
operational benefits to the stock
holders of these already successful
and financially sound Farm Credit
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Grooming Chute
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Lancaster Farming, Saturday, May 15, 1999-A4l
.31 pages.. $4.00
18 pages. .$2.00
X ■
association. Working as coopera
tives, these combining Farm Cre
dit Associations have returned
more than $B2 million to their
stockholder-borrowers through
distribution of association earn
ings in the past nine years.
This combination will result in
a very efficient, well-capitalized
association. The larger business
allows more segmentation of pro
cesses and specialization of staff.
This will allow a match of cus
tomer needs with specific employ
ees or groups of employees which
will be of great benefit
to the stockholder-bor
rowers of the new asso
ciation. This consolida
tion will strengthen
Farm Credit’s leading
position in the competi
tive ag lending markets.
Before the consolida
tion can proceed, the
five Farm Credit asso
ciation boards must
reach agreement on
several organizational,
philosophical, and
strategic issues. The
directors of all the asso
ciations have shown a
commitment to work
together, and the board
chairmen feel confident
that the boards will be
able to reach agreement
on the remaining issues
in order to make a for
mal recommendation
on consolidation to as
sociation stockholders
next spring. The stock
holders of each associa
tion must vote to ap
prove the consolidation
in order for it to occur.
The new Farm Credit
association will offer
loans and other finan
cial services to cus
tomers located in Dela
ware, Maryland, Penn
sylvania, and Virginia.
A LESSON
WELL
LEARNED...
LANCASTER
FARMING’S
CLASSIFIED
ADS
GET RESULTS!
'J, |r»Ulf t l«| **