Higher net interest income, stable credit quality and strong capital levels highlight solid performance

RICHFIELD, Minn., Nov. 5, 2026 /PRNewswire/ -- Today, Richfield-based AgriBank announced financial results for the third quarter of 2026, with strong profitability, credit quality, and liquidity and capital.

Highlights:

• Profitability: Net income was $910.9 million for the nine months ended September 30, 2026. AgriBank's year-to-date return on assets (ROA) ratio of 58 basis points was above the target of 50 basis points.
• Credit quality: Total loan portfolio credit quality remained strong, with 98.5 percent of loans classified as acceptable at September 30, 2026.
• Liquidity and capital: End-of-the-quarter liquidity was 153 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

"AgriBank continues to deliver strong financial performance, supported by higher net interest income through balance sheet optimization and disciplined business management," said AgriBank CEO Jeffrey Swanhorst. "That financial strength enables us to continue supporting our Association-owners as they help farmers, ranchers and rural communities succeed amid continued agricultural market volatility."

2026 Results of Operations

Net interest income was $1.0 billion for the nine months ended September 30, 2026, an increase of $170.9 million, or 19.6 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 $106.2 million for the nine months ended September 30, 2026, an increase of $22.8 million, or 27.3 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, mineral income increased due to higher oil prices, and loan fee income increased due to greater wholesale conversion fees during the nine months ended September 30, 2026.

Non-interest expense was $195.8 million for the nine months ended September 30, 2026, an increase of $23.4 million, or 13.5 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. The increase in non-interest expense also reflects higher loan servicing fees associated with the expansion of AgriBank's asset pool programs in the second half of 2026.

Loan Portfolio 

Total loans were $185.0 billion at September 30, 2026, an increase of $7.1 billion, or 4.0 percent, compared to December 31, 2025. This increase was primarily driven by real estate mortgage and production and intermediate-term loan growth from purchases within AgriBank's asset pool programs during the current quarter.

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 98.5 percent and 99.2 percent acceptable loans at September 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 94.2 percent classified as acceptable at September 30, 2026, compared to 94.9 percent acceptable at December 31, 2025.

Agricultural Conditions

The U.S. Department of Agriculture's Economic Research Service (USDA-ERS) updated its 2026 forecast of the U.S. aggregate farm income and financial conditions on September 3, 2026. The release also converted the 2025 forecasts to estimates. The 2025 U.S. net farm income (NFI) estimate of $162.6 billion was $8.1 billion above the previous early 2026 forecast due to higher-than-forecast cash receipts for animals and animal products, which more than offset downward revisions in federal government direct farm program payments, cash farm-related income, and a downward value of inventory adjustment. USDA-ERS estimates that 2025 NFI increased by $34.3 billion, or 26.7 percent, from the 2024 level in nominal terms due to increasing cash receipts for animals and animal products and rising direct government payments, which more than offset declines in crop cash receipts and rising expenses.

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 continues to cause a wide range of results among agricultural producers.

Capital Resources and Liquidity

Total capital remained strong at $11.4 billion as of September 30, 2026, an increase of $933.5 million compared to December 31, 2025. The increase was driven primarily by AgriBank's strong net income and capital stock issuances, 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 $28.0 billion and $25.4 billion at September 30, 2026, and December 31, 2025, respectively. AgriBank's end-of-the-period liquidity position represented 153 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