CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced that it has successfully completed its merger with Wichita-based U.S. AgBank.

Formally closed on Jan. 1, 2012, the merger creates an $85 billion financial services institution that serves as a leading source of credit to the U.S. rural economy. The bank offers wholesale financing to 29 Farm Credit associations that provide loans and financial services to more than 70,000 farmers, ranchers and other rural borrowers in the west, northwest, southwest, central and northeastern parts of the country.

"We're delighted to have finalized this merger on behalf of our customer-owners across rural America," said Everett Dobrinski, chairman of the CoBank board of directors. "The merger builds CoBank's financial strength, greatly increases the diversity of our loan portfolio and expands our overall lending capacity. Most importantly, it enhances our ability to serve our borrowers and fulfill our mission for future generations. We're thankful for the strong support our stockholders have provided us throughout the merger approval process, and we're committed to delivering on our promises to them in the months and years ahead."

The CoBank name will continue to be used and remains headquartered outside Denver, Colo. Robert B. Engel will continue in the role of president and chief executive officer. For the first year following the merger, the bank will be governed by a 32-member board of directors consisting of the entire former CoBank and U.S. AgBank boards. On Jan. 1, 2013, the size of the board will be reduced to 24 directors elected by customer-owners in six geographic voting regions, plus between two and five appointed directors.