Key Takeaways
- AgriBank’s Net income reached $470.0 million for the first half of 2025, with ROA at 49 basis points.
- Loan portfolio quality remained high, with 99.3% of loans classified as acceptable.
- Liquidity stood at 160 days, exceeding the regulatory minimum of 90 days.
- Total loans grew to $169.3 billion, driven by wholesale and retail loan growth.
- Capital rose to $9.9 billion, remaining well above regulatory requirements.
AgriBank Maintains Strong Profitability in Q2 2025
AgriBank reported strong financial performance for the second quarter of 2025, highlighting stability across profitability, credit quality, and liquidity. Net income for the six months ended June 30, 2025, was $470.0 million, with a return on assets (ROA) of 49 basis points, just below the target of 50 basis points.
CEO Jeffrey Swanhorst credited the results to both the bank’s operational discipline and the resilience of its Farm Credit borrowers. “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,” he said.
Loan Growth and Credit Quality Remain Strong For AgriBank
As of June 30, 2025, total loans stood at $169.3 billion, up $4.6 billion from year-end 2024. Growth was primarily driven by wholesale loan expansion and increased retail real estate mortgage lending, including an asset pool program purchase during the quarter.
Credit quality remained solid, with 99.3% of loans classified as acceptable. While the retail loan portfolio’s acceptable classification decreased slightly from 95.7% to 95.1%, the overall portfolio reflected high-quality assets.
Interest Income Rises, Non-Interest Income Declines
Net interest income grew 19.0% year-over-year to $548.9 million, supported by higher spread income and loan volume. Non-interest income fell 4.1% to $55.0 million, largely due to reduced mineral income from lower oil prices, partially offset by higher loan servicing fees.
Operating expenses rose 8.5% to $112.8 million, mainly due to dealer incentive expenses tied to crop input financing and additional contractor fees for technology projects.
Liquidity and Capital Well Above Requirements
Liquidity at quarter-end covered 160 days of maturing debt obligations, significantly above the 90-day regulatory minimum. Total capital increased to $9.9 billion, supported by net income and new capital stock issuance.
AgriBank’s cash, cash equivalents, and investments totaled $26.7 billion, compared to $25.1 billion at year-end 2024, ensuring strong operational support.
Outlook Supported by Positive 2025 Farm Income Forecast
USDA’s initial 2025 forecast projects U.S. net farm income at $180.1 billion, up 29.5% from 2024 and potentially the second-highest inflation-adjusted level in 50 years. While market volatility remains a factor, AgriBank expects its strong capital base, liquidity, and risk management strategies to support continued performance through the remainder of 2025.
Read the complete financial results here.
