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 …