Rabobank Announces Plan to Strengthen U.S. Rural Banking Business

Move positions bank for substantial growth in U.S. food and
agriculture lending

ST. LOUIS–(BUSINESS WIRE)–Today, Rabobank announced that it will transfer the food and agriculture
loan portfolio from its California retail banking operation, Rabobank,
N.A., to Rabo AgriFinance, further positioning the U.S. operation to
become the leading nationwide production ag lender in the U.S. As a
result, the food and ag finance company will be positioned to grow
considerably in the U.S. food and agriculture sector, the most important
growth region for the bank globally.

The move comes as part of an agreement to sell the retail, business
banking, commercial real estate, mortgage, wealth management and other
non-Food and Agribusiness assets of Rabobank, N.A. to Walnut Creek,
CA-based Mechanics Bank, a full-service community bank with 44 branches
and $6B in assets in California.

“Rabobank is committed to supporting leading food and ag producers
around the world. In North America, we have seen rapid growth in our
rural banking business and by combining our California F&A portfolio
into Rabo AgriFinance, we will be positioned to continue our substantial
investments in North America,” says Paul Beiboer, CEO of Rabobank North
America.

Rabo AgriFinance focuses on financing leading U.S. farmers, ranchers and
agribusinesses and traces its roots back more than 115 years to its
parent company, Netherlands-based Rabobank Group. When this transition
is complete, Rabo AgriFinance will be the only U.S. lender to offer a
broad, nationwide view of agriculture coupled with local expertise and
global resources. The financing capacity, access to networks and
sector-specific knowledge offered by Rabo AgriFinance are unmatched in
the U.S. ag lending industry.

“Our clients appreciate the access to global financing, knowledge and
networks we are able to offer as an international finance company,” said
Curt Hudnutt, Head of Rural Banking, Rabobank North America. “When we
couple that global perspective with the knowledge and relationships
offered by our local teams, our clients have a significant advantage in
the food and ag space.”

Based in St. Louis, Missouri, Rabo AgriFinance currently has more than
40 offices across the U.S. and will open ten offices in California to
continue supporting our staff and clients.

“Approximately 170 employees who are currently supporting food,
agriculture and renewable energy at Rabobank, N.A. will become employees
of Rabo AgriFinance, ensuring the continuation of the high quality of
service to which our California clients are accustomed,” notes Beiboer.

The transaction is subject to customary regulatory approvals, the
approval of Rabobank Group and the completion of various closing
conditions, and is anticipated to close in the third quarter of 2019.

About Rabo AgriFinance

As a leading financial services provider for agricultural producers and
agribusinesses in the United States, Rabo AgriFinance adds value using
industry expertise, client-focused solutions, and by creating long-term
business relationships. Rabo AgriFinance offers a comprehensive
portfolio of services that gives producers the right products to prepare
for, and take advantage of, market opportunities. Rabo AgriFinance
representatives offer a wide array of financial services and knowledge
to help customers realize their ambitions. This comprehensive suite of
services includes loans, insurance, input finance and effective risk
management products. Rabo AgriFinance is a subsidiary of Rabobank, a
premier bank to the global agriculture industry and one of the world’s
largest and strongest banks. Rabobank is an equal opportunity provider
and employer.

Contacts

Rabo AgriFinance
Sarah Kolell
Office: (816) 350-4811
Sarah.Kolell@raboag.com