AgriBank Reports Fourth Quarter 2024 and Year-End Financial Results

Rhea-AI Summary

AgriBank (AGRIP) reported strong financial results for Q4 and full-year 2024, with net income of $927.5 million and a return on assets of 51 basis points. The bank's loan portfolio maintained robust credit quality with 99.4% classified as acceptable.

Net interest income increased by 7.8% to $1.1 billion, driven by higher spread income on retail loans. Total loans grew by 10.7% to $164.7 billion. The bank maintained strong liquidity of 152 days coverage and total capital of $9.5 billion, up $879.9 million from 2023.

The USDA forecasts 2024 net farm income at $139.1 billion, a 5.6% decline from 2023, but projects a significant rebound to $180.1 billion for 2025, potentially the second-highest inflation-adjusted level in 50 years.

Positive

• Net income strong at $927.5 million
• ROA of 51 basis points exceeded 50 basis point target
• Net interest income up 7.8% to $1.1 billion
• Loan portfolio grew 10.7% to $164.7 billion
• Excellent credit quality with 99.4% acceptable loans
• Capital increased by $879.9 million to $9.5 billion
• Liquidity at 152 days, well above regulatory requirement

Negative

• Retail loan portfolio quality slightly decreased to 95.7% from 96.2%
• Non-interest expenses increased 9.3% to $216.9 million
• Market conditions investment securities income

Strong financial performance reflects model, Association success

ST. PAUL, Minn., March 1, 2025 /PRNewswire/ -- Today, St. Paul-based AgriBank announced financial results for the fourth quarter and full year of 2024, with strong profitability, credit quality, and liquidity and capital.

Highlights:

• Profitability: Net income remained strong at $927.5 million for the year ended December 31, 2024. AgriBank's year-to-date return on assets (ROA) ratio of 51 basis points was above the target of 50 basis points.
  
  
• Credit quality: Total loan portfolio credit quality remained strong, with 99.4 percent of loans classified as acceptable at December 31, 2024.
  
  
• Liquidity and capital: End-of-the-quarter liquidity was 152 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

"Our continued stable and strong financial position and increasing net income results reflect our Funding Bank Model structure and the financial strength and operating performance of our Farm Credit Association-owners," said AgriBank CEO Jeffrey Swanhorst. "AgriBank is well-positioned to continue meeting the Associations' funding needs as they meet the growing needs of farmers, ranchers and other borrowers, all in fulfillment of our mission to support rural communities and agriculture."

2024 Results of Operations

Net interest income was $1.1 billion for the year ended December 31, 2024, an increase of $77.3 million, or 7.8 percent, compared to the same period of the prior year. The increase was primarily driven by higher spread income on retail loans in AgriBank's asset pool portfolio, when compared to the prior year, due to the purchase of a significant number of loan participations during the second half of 2023. Additionally, the benefit of equity financing from higher interest rates compared to the same period of the prior year has also contributed to the increase in net interest income. These factors were offset by market conditions that limited AgriBank's ability to generate income through funding actions and spread income on investment securities.

Non-interest income was $108.9 million for the year ended December 31, 2024, an increase of $3.4 million, or 3.2 percent, compared to the same period of the prior year, primarily related to an Allocated Insurance Reserve Accounts (AIRAs) distribution received from the Farm Credit System Insurance Corporation (FCSIC) during the second quarter of 2024. The increase in non-interest income from AIRAs was offset by other losses.

Non-interest expense was $216.9 million for the year ended December 31, 2024, an increase of $18.5 million, or 9.3 percent, compared to the same period of the prior year. The increase was primarily due to increases in loan servicing fees related to expansion in AgriBank's asset pool programs in the second half of 2023 and throughout 2024.

Loan Portfolio 

Total loans were $164.7 billion at December 31, 2024, an increase of $15.9 billion, or 10.7 percent, compared to December 31, 2023. This increase was primarily attributable to wholesale loan growth and increases in retail loans, from expanded participation in asset pool programs.

AgriBank's credit quality reflects the overall financial strength of District Associations and their underlying portfolios of retail loans. AgriBank's portfolio was composed of 99.4 percent acceptable loans at December 31, 2024, and December 31, 2023. Loans classified as acceptable represent the highest-quality assets. The credit quality of AgriBank's retail loan portfolio decreased slightly to 95.7 percent classified as acceptable at December 31, 2024, compared to 96.2 percent acceptable at December 31, 2023.

Agricultural Conditions

On February 6, 2025, the U.S. Department of Agriculture's Economic Research Service (USDA-ERS) released its initial forecast of the U.S. aggregate farm income and financial conditions for 2025 and updated its 2024 forecast. The revised 2024 net farm income forecast of $139.1 billion represented an $8.2 billion decline from the 2023 level, down 5.6 percent, and follows the $34.7 billion estimated decline that occurred in 2023 compared to the record-high 2022 estimated net farm income. Although net farm income is forecasted to decline for the second consecutive year, when adjusting for inflation, the 2024 net farm income forecast is $16.8 billion, or 13.3 percent, above the 10-year average (2014-2023) net farm income in 2025 dollars. The initial 2025 net farm income projection of $180.1 billion represents an increase of $41.0 billion, or 29.5 percent, from the revised 2024 net farm income forecast, and if realized, it would be the second highest inflation-adjusted level in the past 50 years.

Many factors, including weather, trade, government, and monetary policy, global agricultural production levels, and pathogenic outbreaks in livestock and poultry, may keep agriculture market volatility elevated. Implementation of cost-saving technologies, marketing methods, and risk management strategies will continue to cause a wide range of results among the respective agricultural producers.

Capital Resources and Liquidity

Total capital remained strong at $9.5 billion as of December 31, 2024, an increase of $879.9 million compared to December 31, 2023. The increase was driven primarily by AgriBank's net income and capital stock issuances. This increase was partially offset by patronage distributions declared, consistent with AgriBank's capital plan and the redemption of $250 million of perpetual preferred stock. AgriBank exceeded all regulatory capital minimum requirements, including additional regulatory buffers.

Through effectively leveraging existing District capital and in supporting the achievement of AgriBank and Associations' business goals through the increased use of pool programs, AgriBank redeemed all its outstanding shares of preferred stock on January 1, 2024.

Cash, cash equivalents, and investments totaled $25.1 billion and $25.5 billion at December 31, 2024, and December 31, 2023, respectively. AgriBank's end-of-the-period liquidity position represented 152 days coverage of maturing debt obligations, which supports operational demands, and was well above the 90-day minimum established by AgriBank's regulator.

About AgriBank

AgriBank is part of the customer-owned, nationwide Farm Credit System. Under Farm Credit's cooperative structure, AgriBank is primarily owned by local Farm Credit Associations, which provide financial products and services to rural communities and agriculture. AgriBank obtains funds and provides funding and financial solutions to those Associations. AgriBank and those Associations compose the AgriBank District. The District covers a 15-state area stretching from Wyoming to Ohio and Minnesota to Arkansas. For more information, visit www.AgriBank.com.

Forward-Looking Statements

Any forward-looking statements in this press release are based on current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from expectations due to a number of risks and uncertainties. More information about these risks and uncertainties is contained in AgriBank's annual report, which is available approximately 75 days following the end of the year. AgriBank undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

AGRIBANK, FCB
STATEMENTS OF CONDITION INFORMATION
(in thousands)
	December 31,	December 31,
	2024	2023
Loans held to maturity	$164,659,006	$148,370,212
Allowance for credit losses on loans	39,641	31,992
Net loans held to maturity	164,619,365	148,338,220
Loans held for sale	—	355,219
Net loans	164,619,365	148,693,439
Investment securities and other earning assets	25,071,437	25,454,925
Accrued interest receivable	1,815,644	1,590,342
Other assets	424,514	684,297
Total assets	$191,930,960	$176,423,003
Bonds and notes	$180,795,727	$166,310,329
Accrued interest payable	1,201,851	1,027,470
Other liabilities	470,261	502,026
Total liabilities	$182,467,839	$167,839,825
Shareholders' equity	$9,463,121	$8,583,178
Total liabilities and shareholders' equity	$191,930,960	$176,423,003

 

AGRIBANK, FCB
STATEMENTS OF INCOME INFORMATION
(in thousands)
	For the		For the
	three months ended		twelve months ended
	December 31,		December 31,
	2024	2023	2024	2023
	(unaudited)	(unaudited)
Interest income	$1,977,492	$1,768,910	$7,681,922	$6,135,821
Interest expense	1,683,510	1,505,622	6,619,466	5,150,665
Net interest income	293,982	263,288	1,062,456	985,156
Provision for credit losses	16,000	11,000	27,000	19,000
Net interest income after provision for credit losses	277,982	252,288	1,035,456	966,156
Non-interest income	22,978	32,268	108,866	105,460
Non-interest expense	58,500	57,709	216,864	198,322
Net income	$242,460	$226,847	$927,458	$873,294

 

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SOURCE AgriBank

FAQ

What was AgriBank's (AGRIP) net income for full-year 2024?

AgriBank reported net income of $927.5 million for the year ended December 31, 2024.

How much did AgriBank's (AGRIP) loan portfolio grow in 2024?

Total loans increased by $15.9 billion or 10.7% to $164.7 billion compared to December 31, 2023.

What is AgriBank's (AGRIP) credit quality status as of December 2024?

99.4% of loans were classified as acceptable at December 31, 2024, representing the highest-quality assets.

How did AgriBank's (AGRIP) net interest income perform in 2024?

Net interest income rose 7.8% to $1.1 billion, primarily due to higher spread income on retail loans.

What is the USDA's farm income forecast for 2025 following AgriBank's (AGRIP) report?

USDA projects 2025 net farm income at $180.1 billion, up 29.5% from 2024, potentially reaching the second-highest inflation-adjusted level in 50 years.