AgriBank Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

AgriBank (AGRIP) has reported strong Q2 2025 financial results, with net income of $470.0 million for the first six months of 2025. The bank demonstrated robust performance across key metrics, including a return on assets (ROA) of 49 basis points, just below the 50 basis point target.

The bank's loan portfolio showed exceptional quality with 99.3% of loans classified as acceptable. Net interest income increased by 19.0% to $548.9 million, driven by higher spread income and increased wholesale loan volume. Total loans grew to $169.3 billion, up $4.6 billion from December 2024. The bank maintained strong liquidity with 160 days of coverage, well above the regulatory requirement, and total capital of $9.9 billion.

Positive

• None.

Negative

• Return on assets at 49 basis points, slightly below 50 basis point target
• Non-interest income decreased 4.1% to $55.0 million due to lower mineral income
• Non-interest expense increased 8.5% to $112.8 million
• Slight decline in retail loan portfolio quality to 95.1% from 95.7% in December 2024

Continued strong financial performance reflects AgriBank business model, Association success

ST. PAUL, Minn., Aug. 8, 2025 /PRNewswire/ -- Today, St. Paul-based AgriBank announced financial results for the second quarter of 2025, with strong profitability, credit quality, and liquidity and capital.

Highlights:

• Profitability: Net income remained strong at $470.0 million for the six months ended June 30, 2025. AgriBank's year-to-date return on assets (ROA) ratio of 49 basis points was just below the target of 50 basis points.
• Credit quality: Total loan portfolio credit quality remained strong, with 99.3 percent of loans classified as acceptable at June 30, 2025.
• Liquidity and capital: End-of-the-quarter liquidity was 160 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

"Amid ongoing economic uncertainty and market volatility, AgriBank and our Farm Credit Association-owners remain trusted allies for farmers, ranchers and other Farm Credit borrowers," said AgriBank CEO Jeffrey Swanhorst. "Our strong financial results in the second quarter reflect the strength and resilience of the agricultural producers who depend on us for the reliable, consistent financial solutions they need to grow and prosper."

2025 Results of Operations

Net interest income was $548.9 million for the six months ended June 30, 2025, an increase of $87.6 million, or 19.0 percent, compared to the same period of the prior year. The increase was primarily driven by higher spread income and increased volume in AgriBank's wholesale loan portfolio. Higher loan volume in asset pool portfolios further contributed to the increase in net interest income. These factors were somewhat offset by decreased spread income on investment securities due to the mix of investment securities. Additionally, the benefit of equity financing contributed slightly to the increase in net interest income.

Non-interest income was $55.0 million for the six months ended June 30, 2025, a decrease of $2.3 million, or 4.1 percent, compared to the same period of the prior year, primarily due to the reduction in mineral income related to lower oil prices and production during the first half of 2025. This decrease was partially offset by increases in loan servicing fees due to marginally higher conversion and commitment fees generating additional income during the six months ended June 30, 2025, compared to the same period of the prior year.

Non-interest expense was $112.8 million for the six months ended June 30, 2025, an increase of $8.8 million, or 8.5 percent, compared to the same period of the prior year. The increase was mainly due to dealer incentive expenses related to AgriBank's crop input financing portfolio. Contractor fees also added to increased operating expense related to additional resources for technology projects during the first half of 2025.

Loan Portfolio 

Total loans were $169.3 billion at June 30, 2025, an increase of $4.6 billion, compared to December 31, 2024. This increase was primarily attributable to wholesale loan growth and increases in retail loans, driven by real estate mortgage loans related to an asset pool program purchase during the second quarter of 2025.

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 99.3 percent acceptable loans at June 30, 2025, compared to 99.4 percent at December 31, 2024. Loans classified as acceptable represent the highest-quality assets. The credit quality of AgriBank's retail loan portfolio decreased slightly to 95.1 percent classified as acceptable at June 30, 2025, compared to 95.7 percent acceptable at December 31, 2024.

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 the 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 $9.9 billion as of June 30, 2025, an increase of $468.3 million compared to December 31, 2024. The increase was driven primarily by AgriBank's net income and the issuance of capital stock, which were partially offset by cash patronage declared, consistent with AgriBank's capital plan. AgriBank exceeded all regulatory capital minimum requirements, including additional regulatory buffers.

Cash, cash equivalents, and investments totaled $26.7 billion and $25.1 billion at June 30, 2025, and December 31, 2024, respectively. AgriBank's end-of-the-period liquidity position represented 160 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)
	June 30,	December 31,
	2025	2024
	(unaudited)
Loans	$169,301,700	$164,659,006
Allowance for credit losses on loans	56,297	39,641
Net loans	169,245,403	164,619,365
Investment securities and other earning assets	26,667,546	25,071,437
Accrued interest receivable	1,847,223	1,815,644
Other assets	500,860	424,514
Total assets	$198,261,032	$191,930,960
Bonds and notes	$186,731,389	$180,795,727
Accrued interest payable	1,217,182	1,201,851
Other liabilities	381,082	470,261
Total liabilities	$188,329,653	$182,467,839
Shareholders' equity	$9,931,379	$9,463,121
Total liabilities and shareholders' equity	$198,261,032	$191,930,960

 

AGRIBANK, FCB
STATEMENTS OF INCOME INFORMATION
(in thousands)
	For the		For the
	three months ended		six months ended
	June 30,		June 30,
	2025	2024	2025	2024
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Interest income	$1,982,085	$1,867,240	$3,896,119	$3,669,068
Interest expense	1,702,836	1,641,539	3,347,244	3,207,774
Net interest income	279,249	225,701	548,875	461,294
Provision for credit losses	20,000	7,000	21,000	8,000
Net interest income after provision for credit losses	259,249	218,701	527,875	453,294
Non-interest income	25,910	28,648	54,954	57,278
Non-interest expense	57,711	52,481	112,798	103,985
Net income	$227,448	$194,868	$470,031	$406,587

 

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SOURCE AgriBank

FAQ

What was AgriBank's (AGRIP) net income for the first half of 2025?

AgriBank reported net income of $470.0 million for the six months ended June 30, 2025, maintaining strong profitability.

How much did AgriBank's net interest income grow in H1 2025?

AgriBank's net interest income increased by 19.0% to $548.9 million compared to the same period last year, primarily driven by higher spread income and increased wholesale loan volume.

What is the current credit quality of AgriBank's loan portfolio?

As of June 30, 2025, 99.3% of AgriBank's total loan portfolio was classified as acceptable, indicating strong credit quality, though slightly down from 99.4% at the end of 2024.

What was AgriBank's total loan portfolio size in Q2 2025?

AgriBank's total loans reached $169.3 billion at June 30, 2025, representing an increase of $4.6 billion compared to December 31, 2024.

How strong is AgriBank's capital position as of Q2 2025?

AgriBank maintained a strong capital position with total capital of $9.9 billion as of June 30, 2025, an increase of $468.3 million from December 2024, exceeding all regulatory capital minimum requirements.