AgriBank Reports Third Quarter 2025 Financial Results

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AgriBank (NASDAQ:AGRIP) reported third-quarter 2025 results on Nov 6, 2025 showing continued strength in profitability, credit quality, liquidity, and capital.

Key metrics: Net income of $749.6 million for the nine months ended Sept 30, 2025; ROA of 51 bps vs. a 50 bps target; Net interest income $870.6 million, up 13.3% YTD; Total loans $171.9 billion (+$7.3 billion vs Dec 31, 2024); Total capital $10.3 billion (+$800.2 million YTD); Liquidity 168 days (well above 90-day minimum).

Credit quality remained high with 99.2% of loans classified as acceptable, while retail acceptable loans modestly declined to 94.9%.

Positive

• Net income $749.6M for nine months ended Sept 30, 2025
• Net interest income $870.6M, up 13.3% year-over-year
• Total capital $10.3B, up $800.2M since Dec 31, 2024
• Liquidity coverage of 168 days, well above 90-day minimum

Negative

• Non-interest expense $172.5M, up 8.9% year-over-year
• Non-interest income $83.4M, down 2.9% year-over-year
• Retail portfolio acceptable loans declined to 94.9% from 95.7% at Dec 31, 2024

Continued strong financial performance reflects AgriBank business model, Association success

ST. PAUL, Minn., Nov. 6, 2025 /PRNewswire/ -- Today, St. Paul-based AgriBank announced financial results for the third quarter of 2025, with strong profitability, credit quality, and liquidity and capital.

Highlights:

• Profitability: Net income remained strong at $749.6 million for the nine months ended September 30, 2025. AgriBank's year-to-date return on assets (ROA) ratio of 51 basis points was slightly above the target of 50 basis points.
• Credit quality: Total loan portfolio credit quality remained strong, with 99.2 percent of loans classified as acceptable at September 30, 2025.
• Liquidity and capital: End-of-the-quarter liquidity was 168 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

"In a year marked by economic change and challenge, AgriBank's strong third-quarter results underscore the effectiveness of our business model in serving our Farm Credit Association-owners," said AgriBank CEO Jeffrey Swanhorst. "We will continue to be a reliable source of support as the Associations continue meeting the evolving needs of rural communities and agriculture."

2025  Results of Operations

Net interest income was $870.6 million for the nine months ended September 30, 2025, an increase of $102.2 million, or 13.3 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 to the increase in net interest income, partially offset by a decline in interest rates.

Non-interest income was $83.4 million for the nine months ended September 30, 2025, a decrease of $2.5 million, or 2.9 percent, compared to the same period of the prior year, primarily due to the reduction in mineral income related to lower oil prices. This decrease was offset by an increase in loan fees due to marginally higher conversion and commitment fees generating additional income during the nine months ended September 30, 2025, compared to the same period of the prior year.

Non-interest expense was $172.5 million for the nine months ended September 30, 2025, an increase of $14.1 million, or 8.9 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 nine months ended September 30, 2025.

Loan Portfolio 

Total loans were $171.9 billion at September 30, 2025, an increase of $7.3 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 asset pool program purchases during the second and third quarters 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 99.2 percent acceptable loans at September 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 94.9 percent classified as acceptable at September 30, 2025, compared to 95.7 percent acceptable at December 31, 2024.

Agricultural Conditions

The U.S. Department of Agriculture's Economic Research Service revised its 2024 estimates and updated its 2025 forecast of the U.S. aggregate farm income and financial conditions on September 3, 2025. The revised 2024 U.S. net farm income (NFI) estimate of $127.8 billion decreased by $19.5 billion, or 13.2 percent, from the 2023 level in nominal terms due to declining cash receipts for crops, falling farm-related income, and downward adjustments to the value of inventories, which more than offset gains in cash receipts from animals and animal products. NFI was estimated to have declined significantly for the second consecutive year, following the record-high estimated income of 2022. While NFI has decreased substantially from the 2022 level, the 2024 estimate was $5.3 billion, or 4.2 percent, above the prior 10-year inflation-adjusted average.

Tariffs and trade discussions continue to create market uncertainty for commodity markets, but de-escalations, particularly with Mexico, and ongoing trade negotiations have limited the impact on exports of many U.S. agricultural products. However, U.S. soybean prices have been significantly impacted by the lack of Chinese purchases this fall due to the ongoing tariff dispute between the U.S. and China, as the U.S. soybean market is highly dependent on exports to China. 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 $10.3 billion as of September 30, 2025, an increase of $800.2 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 $26.3 billion and $25.1 billion at September 30, 2025, and December 31, 2024, respectively. AgriBank's end-of-the-period liquidity position represented 168 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)
	September 30,	December 31,
	2025	2024
	(unaudited)
Loans	$171,932,998	$164,659,006
Allowance for credit losses on loans	70,106	39,641
Net loans	171,862,892	164,619,365
Investment securities and other earning assets	26,333,068	25,071,437
Accrued interest receivable	2,007,513	1,815,644
Other assets	522,177	424,514
Total assets	$200,725,650	$191,930,960
Bonds and notes	$188,737,598	$180,795,727
Accrued interest payable	1,234,092	1,201,851
Other liabilities	490,617	470,261
Total liabilities	$190,462,307	$182,467,839
Shareholders' equity	$10,263,343	$9,463,121
Total liabilities and shareholders' equity	$200,725,650	$191,930,960

 

AGRIBANK, FCB
STATEMENTS OF INCOME INFORMATION
(in thousands)
	For the		For the
	three months ended		nine months ended
	September 30,		September 30,
	2025	2024	2025	2024
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Interest income	$2,089,468	$2,035,362	$5,985,587	$5,704,430
Interest expense	1,767,717	1,728,182	5,114,961	4,935,956
Net interest income	321,751	307,180	870,626	768,474
Provision for credit losses	11,000	3,000	32,000	11,000
Net interest income after provision for credit losses	310,751	304,180	838,626	757,474
Non-interest income	28,462	28,611	83,415	85,889
Non-interest expense	59,672	54,380	172,470	158,363
Net income	$279,541	$278,411	$749,571	$685,000

 

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SOURCE AgriBank

FAQ

What did AgriBank (AGRIP) report for net income through Sept 30, 2025?

AgriBank reported $749.6 million of net income for the nine months ended Sept 30, 2025.

How did AgriBank's net interest income change in 2025 for AGRIP?

Net interest income was $870.6 million, an increase of 13.3% versus the prior year period.

What is AgriBank's capital and liquidity position as of Sept 30, 2025 for AGRIP?

Total capital was $10.3 billion (up $800.2M YTD) and liquidity covered 168 days of maturing debt.

What loan growth did AgriBank (AGRIP) report through Sept 30, 2025?

Total loans were $171.9 billion, up $7.3 billion compared with Dec 31, 2024.

Did AgriBank (AGRIP) report any changes in credit quality in Q3 2025?

Overall acceptable loans were 99.2%, while retail acceptable loans decreased to 94.9% from 95.7% at year-end 2024.