Today, St. Paul-based AgriBank announced financial results for the second quarter of 2026, with strong profitability, credit quality, and liquidity and capital.
Highlights:
- Profitability: Net income remained strong at $604.6 million for the six months ended June 30, 2026. AgriBank’s year-to-date return on assets (ROA) ratio of 59 basis points was above the target of 50 basis points.
- Credit quality: Total loan portfolio credit quality remained strong, with 98.7 percent of loans classified as acceptable at June 30, 2026.
- Liquidity and capital: End-of-the-quarter liquidity was 149 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.
“AgriBank’s strong first-half 2026 results reflect continued portfolio growth in support of our Farm Credit Association-owners, along with optimized funding and balance sheet management,” said AgriBank CEO Jeffrey Swanhorst. “Strong earnings, credit quality, liquidity and capital position us to continue providing dependable funding and financial solutions to Associations as they serve agriculture and rural America.”
2026 Results of Operations
Net interest income was $670.2 million for the six months ended June 30, 2026, an increase of $121.3 million, or 22.1 percent, compared to the same period of the prior year. The increase was primarily driven by additional income generated through funding actions. Increased volume in AgriBank’s asset pool portfolios further contributed to the increase in net interest income.
Non-interest income was $76.0 million for the six months ended June 30, 2026, an increase of $21.1 million, or 38.3 percent, compared to the same period of the prior year. The increase was primarily related to a larger Allocated Insurance Reserve Accounts (AIRAs) distribution received from the Farm Credit System Insurance Corporation (FCSIC) during the first quarter of 2026. The AIRAs were established by the FCSIC when premiums collected increased the level of the insurance fund beyond the required secured base amount of 2 percent of insured debt. Additionally, loan fee income increased due to greater wholesale conversion fees and mineral income increased due to higher oil prices during the six months ended June 30, 2026.
Non-interest expense was $125.6 million for the six months ended June 30, 2026, an increase of $12.8 million, or 11.3 percent, compared to the same period of the prior year primarily due to an increase in salaries and incentive compensation expense. This increase reflects AgriBank’s continued investment in human capital. Contractor fees also increased due to additional resources engaged to advance technology projects.
Loan Portfolio
Total loans were $181.1 billion at June 30, 2026, an increase of $3.2 billion, or 1.8 percent, compared to December 31, 2025. This increase was primarily attributable to wholesale loan growth.
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 98.7 percent and 99.2 percent acceptable loans at June 30, 2026 and December 31, 2025, respectively. Loans classified as acceptable represent the highest-quality assets. The credit quality of AgriBank’s retail loan portfolio decreased slightly to 94.4 percent classified as acceptable at June 30, 2026, compared to 94.9 percent acceptable at December 31, 2025.
Agricultural Conditions
On February 5, 2026, 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 2026 and updated its 2025 forecast. The revised 2025 net farm income forecast of $154.5 billion represents a $27.0 billion increase from the 2024 level, up 21.2 percent, driven by increasing direct government payments and animal and animal product cash receipts, which more than offset rising expenses. When adjusting for inflation, the 2025 net farm income forecast is $28.4 billion, or 22.0 percent, above the 10-year average (2015-2024) net farm income in 2026 dollars. The initial 2026 net farm income projection of $153.4 billion represents a decrease of $1.2 billion, or 0.7 percent, from the revised 2025 net farm income forecast, and if realized, would be $24.3 billion, or 18.8 percent, above the 10-year average net farm income in 2026 dollars.
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 continue to cause a wide range of results among agricultural producers.
Capital Resources and Liquidity
Total capital remained strong at $10.8 billion as of June 30, 2026, an increase of $353.2 million compared to December 31, 2025. The increase was driven primarily by AgriBank’s strong net income, which was 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 $27.8 billion and $25.4 billion at June 30, 2026, and December 31, 2025, respectively. AgriBank’s end-of-the-period liquidity position represented 149 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, | |
2026 | 2025 | |
(unaudited) | ||
Loans | $181,065,086 | $177,887,238 |
Allowance for credit losses on loans | 88,318 | 73,456 |
Net loans | 180,976,768 | 177,813,782 |
Investment securities and other earning assets | 27,760,714 | 25,406,324 |
Accrued interest receivable | 1,883,516 | 1,945,092 |
Other assets | 514,954 | 543,129 |
Total assets | $211,135,952 | $205,708,327 |
Bonds and notes | $198,704,224 | $193,426,229 |
Accrued interest payable | 1,213,035 | 1,189,507 |
Other liabilities | 379,732 | 606,868 |
Total liabilities | $200,296,991 | $195,222,604 |
Shareholders’ equity | $10,838,961 | $10,485,723 |
Total liabilities and shareholders’ equity | $211,135,952 | $205,708,327 |
AGRIBANK, FCB | ||||
STATEMENTS OF INCOME INFORMATION | ||||
(in thousands) | ||||
For the | For the | |||
three months ended | six months ended | |||
June 30, | June 30, | |||
2026 | 2025 | 2026 | 2025 | |
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |
Interest income | $2,064,897 | $1,982,085 | $4,066,122 | $3,896,119 |
Interest expense | 1,714,911 | 1,702,836 | 3,395,935 | 3,347,244 |
Net interest income | 349,986 | 279,249 | 670,187 | 548,875 |
Provision for credit losses | 7,000 | 20,000 | 16,000 | 21,000 |
Net interest income after provision for credit losses | 342,986 | 259,249 | 654,187 | 527,875 |
Non-interest income | 30,918 | 25,910 | 76,016 | 54,954 |
Non-interest expense | 63,303 | 57,711 | 125,597 | 112,798 |
Net income | $310,601 | $227,448 | $604,606 | $470,031 |
SOURCE: prnewswire.com