18 August 2008 – Farm Credit Bank of Texas, part of the Farm Credit System, the single largest source of loans in the USA for agriculture, agribusiness, rural real estate and country homes, has made a significant investment in powerful commercial lending software from Misys, the global application software and services company. The move will help the bank to record and service increasingly complex capital market transactions in its rapidly growing farm credit business.

The lender will initially implement Misys Loan IQ, a comprehensive software solution that covers the entire life cycle of commercial loans, at its Austin, TX head office. The platform will enable more streamlined processing of complex loan deals, participations and syndicated loan transactions across back and middle office operations, and improve accounting and risk management. Affiliated lenders located in Alabama, Texas, Louisiana, Mississippi, and New Mexico are also expected to adopt Misys Loan IQ in the future.

 

Surging commodity prices and growth in the U.S. agricultural sector have contributed to an increase in demand for complex transactions in the farming loan industry. According to The Farm Credit Administration (FCA) the independent government agency responsible for regulating and supervising the banks, associations, and related entities in the Farm Credit System (FCS or System), gross loan volumes have grown 54% since 2003.

 

In turn, Farm Credit Banks’ capital markets group, which provides capital and liquidity for food and agribusiness firms, rural utilities and rural communications companies, has experienced 156 per cent growth in loan volumes over the past three years. This has created a pressing need to scale up its systems.

 

Allen Buckner, VP of Lending Systems at Farm Credit Bank of Texas comments: “We operate in a market that involves a broad range of stakeholders, from various lending institutions to farmers, ranchers, agribusiness firms and country homeowners - as well as capital markets customers so our systems need to be extremely robust and scalable.  This globally proven Misys solution enables us to process complex deals, participations, and syndicated loan transactions much faster with more emphasis on risk management

 

Misys was chosen as a strategic partner after a review of competitive software solutions, including Fidelity’s ACBS Loan Systems. The new system is projected to ‘go-live’ at the bank in July 2009.

 

Ken Katz, Global Solutions Manager for Misys Loan IQ in Misys’ Solutions for Treasury & Capital Markets business comments: “We all know about the current squeeze in US credit markets, but this deal shows how banks can use technology to innovate and offer new services to their customers in sectors that are still growing. Also, throughout the commercial lending world, the trend is still towards multiple lenders, multi-tiered deals and frequently changing market drivers, so it is increasingly important for financial institutions to leverage front-to-back platforms when managing their portfolios.” 

 

Misys Loan IQ, part of Misys’ Solutions for Treasury & Capital Markets portfolio, currently handles one third of the world’s syndicated loans and half of the world’s secondary loan trades. Misys Treasury & Capital Markets has 18 years of loan market experience and unrivalled software development expertise. It creates integrated, comprehensive solutions for financial institutions to manage their capital market activities across multiple asset classes.

 

Stephen White

Misys Solutions for Treasury & Capital Markets

+44 (0) 203 3320 5593

Farm Credit Bank of Texas is a cooperatively owned wholesale bank that provides liquidity and financial solutions to rural America. Together with their affiliated lending cooperatives, they are the single largest rural lending network serving Alabama, Louisiana, Mississippi, New Mexico and Texas. Part of the nationwide Farm Credit System, Farm Credit Bank provides loan funds and services to retail-lending co-ops and financing institutions and is active in the capital markets arena, participating in large-loan opportunities with the food, agribusiness, rural utility and rural communications sectors.

Misys plc (FTSE: MSY.L), provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries. We maximise value for our customers by combining our deep knowledge of their business with our commitment to their success. 

 

In banking and treasury & capital markets, Misys is a market leader, with over 1,200 customers, including all of the world’s top 50 banks. In healthcare, Misys is a market leader, serving more than 110,000 physicians in 18,000 practice locations and 600 home care providers. Misys employs around 4,500 people who serve customers in more than 120 countries.

 

We aspire to be the world’s best application software and services company, delivering results for the most important industries in the world.

 

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Contact us today, visit: www.misys.com