Key Takeaways
- AgriBank Net income reached $927.5 million for 2024, with a return on assets (ROA) of 51 basis points, surpassing the 50-basis-point target.
- Total loan portfolio grew to $164.7 billion, a 10.7% increase from 2023, driven by wholesale and retail loan expansion.
- Credit quality remained strong, with 99.4% of loans classified as acceptable at year-end.
- Liquidity and capital exceeded regulatory requirements, with end-of-the-quarter liquidity at 152 days and total capital at $9.5 billion.
- The USDA forecasts a rebound in 2025 net farm income, with an expected 29.5% increase compared to 2024.
Strong Financial Performance and Growth From AgriBank
AgriBank, a St. Paul-based funding bank, reported its fourth-quarter and full-year 2024 financial results, demonstrating strong profitability, credit quality, and liquidity.
Net income for 2024 was $927.5 million, reflecting stable financial performance. The return on assets (ROA) ratio stood at 51 basis points, surpassing the bank’s 50-basis-point target.
“Our continued stable and strong financial position and increasing net income results reflect our Funding Bank Model structure and the financial strength and operating performance of our Farm Credit Association-owners,” said Jeffrey Swanhorst, CEO of AgriBank. “AgriBank is well-positioned to continue meeting the Associations’ funding needs as they support farmers, ranchers, and rural communities.”
2024 Operating Results by AgriBank
Net Interest and Non-Interest Income
- Net interest income totaled $1.1 billion, marking a 7.8% increase ($77.3 million) from the previous year.
- The increase was driven by higher spread income on retail loans, following significant loan participations in late 2023.
- Non-interest income grew to $108.9 million, a 3.2% increase, attributed to an Allocated Insurance Reserve Accounts (AIRAs) distribution from the Farm Credit System Insurance Corporation (FCSIC).
- Non-interest expense rose to $216.9 million, a 9.3% increase, primarily due to higher loan servicing fees.
Loan Portfolio Expansion and Credit Quality
AgriBank’s total loan portfolio reached $164.7 billion by December 31, 2024, marking a $15.9 billion (10.7%) increase from the previous year.
- Growth was primarily driven by wholesale loan expansion and increased participation in asset pool programs.
- Credit quality remained robust, with 99.4% of loans classified as acceptable, the highest quality category.
- The retail loan portfolio’s acceptable classification slightly declined from 96.2% in 2023 to 95.7% in 2024.
Agricultural Economic Outlook
The USDA Economic Research Service (USDA-ERS) released its 2025 farm income forecast, indicating a projected rebound in U.S. agricultural earnings:
- 2024 net farm income was revised to $139.1 billion, reflecting a 5.6% decline from 2023.
- This follows a $34.7 billion decline in 2023, after record-high 2022 earnings.
- 2025 net farm income is projected to reach $180.1 billion, a 29.5% increase from 2024.
- If realized, this would be the second-highest inflation-adjusted farm income level in 50 years.
Despite the expected rebound, market volatility remains high, influenced by factors such as:
- Weather conditions and trade policies
- Government and monetary policy
- Global agricultural production trends
- Livestock and poultry disease outbreaks
Capital and Liquidity Position
AgriBank maintained a strong capital position, with total capital reaching $9.5 billion, an $879.9 million increase from 2023.
- Growth was driven by net income and capital stock issuances, partially offset by patronage distributions and a $250 million preferred stock redemption.
- AgriBank exceeded all regulatory capital requirements, ensuring financial stability.
- Cash, cash equivalents, and investments stood at $25.1 billion, supporting a 152-day liquidity coverage—well above the 90-day regulatory minimum.
Read the complete financial results from AgriBank here.
