AgriBank Reports Third Quarter 2025 Financial Results

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.

SOURCE AgriBank