Continued strong financial performance reflects AgriBank business model, Association success

ST. PAUL, Minn., Feb. 27, 2026 /PRNewswire/ -- Today, St. Paul-based AgriBank announced financial results for the fourth quarter and full year of 2025, with strong profitability, credit quality, and liquidity and capital.

Highlights:

• Profitability: Net income remained strong at $1.0 billion for the year ended December 31, 2025. AgriBank's year-to-date return on assets (ROA) ratio of 52 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 December 31, 2025.
• Liquidity and capital: End-of-the-quarter liquidity was 147 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

"AgriBank delivered another year of strong financial results in 2025, reflecting disciplined growth, prudent balance‑sheet management, and the underlying strength of our District," said AgriBank CEO Jeffrey Swanhorst. "Higher net interest income was driven by favorable retail loan spreads and increased wholesale loan volume, while credit quality, capital, and liquidity remained strong. Together, these factors position AgriBank to continue providing reliable funding and financial solutions to our Farm Credit Association‑owners as they support farmers, ranchers, and rural communities through challenging economic and market conditions."

2025 Results of Operations

Net interest income was $1.2 billion for the year ended December 31, 2025, an increase of $143.8 million, or 13.5 percent, compared to the same period of the prior year. The increase was primarily due to higher spread income on retail loans in AgriBank's asset pool portfolio and on AgriBank's wholesale loan portfolio due to an increase in volume. These factors were somewhat offset by decreased spread income on investment securities due to the mix of investment securities. The benefit of equity financing in net interest income increased compared to the prior year, due to higher levels of equity partially offset by a decline in interest rates. Equity financing represents the benefit of non-interest bearing funding. With interest rates moving lower during the second half of 2025, opportunities were taken to call and refinance debt at lower levels. While some loans have followed this pattern, the repricing or conversion of loans has been slower, resulting in wider retail interest rate spreads.

Non-interest income was $113.9 million for the year ended December 31, 2025, an increase of $5.0 million, or 4.6 percent, compared to the same period of the prior year, primarily related to an increase in loan fees due to marginally higher conversion and commitment fees generating additional income during the year. The increase in non-interest income was partially offset by the reduction in mineral income related to lower oil prices.

Non-interest expense was $235.9 million for the year ended December 31, 2025, an increase of $19.1 million, or 8.8 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. Loan servicing expense increased due to asset pool activity during 2025 and the second half of 2024. Additionally, contractor fees added to increased purchased services expense related to additional resources for technology projects during the year.

Loan Portfolio 

Total loans were $177.9 billion at December 31, 2025, an increase of $13.2 billion, or 8.0 percent, compared to December 31, 2024. This increase was primarily attributable to wholesale loan growth and increases in retail loans from expanded participation in asset pool programs.

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 December 31, 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 December 31, 2025, compared to 95.7 percent acceptable at December 31, 2024.

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 will continue to cause a wide range of results among the respective agricultural producers.

Capital Resources and Liquidity

Total capital remained strong at $10.5 billion as of December 31, 2025, an increase of $1.0 billion compared to December 31, 2024. The increase was driven by AgriBank's strong 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 $25.4 billion and $25.1 billion at December 31, 2025, and December 31, 2024, respectively. AgriBank's end-of-the-period liquidity position represented 147 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.

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SOURCE AgriBank