Strong financial performance reflects model, Association success

ST. PAUL, Minn., March 1, 2025 /PRNewswire/ — St. Paul-based AgriBank announced its financial results for the fourth quarter and full year of 2024, showcasing strong profitability, credit quality, liquidity, and capital.

Key Highlights:

• Profitability: Net income reached $927.5 million for the year ending on December 31, 2024. The return on assets (ROA) ratio was 51 basis points, exceeding the target of 50 basis points.
  
  
• Credit quality: As of December 31, 2024, 99.4 percent of AgriBank’s total loan portfolio was classified as acceptable.
  
  
• Liquidity and capital: Liquidity at the end of the quarter stood at 152 days, significantly exceeding regulatory requirements. Capital levels remained well above both regulatory minimums and company targets.

“Our stable financial position and increasing net income reflect our Funding Bank Model structure and the strong operational performance of our Farm Credit Association-owners,” stated AgriBank CEO Jeffrey Swanhorst. “AgriBank is well-positioned to meet the funding needs of Associations as they continue to support farmers, ranchers, and other borrowers, all while fulfilling our mission to aid rural communities and agriculture.”

2024 Operational Results

AgriBank reported net interest income of $1.1 billion for the year ending December 31, 2024, marking an increase of $77.3 million, or 7.8 percent, from the previous year. This growth was largely driven by higher spread income from retail loans due to a substantial purchase of loan participations in the latter half of 2023. Increased earnings from equity financing linked to higher interest rates also contributed to the rise in net interest income, despite market conditions that limited AgriBank’s income generation through funding actions and investment securities spread income.

The bank’s non-interest income stood at $108.9 million for the year ended December 31, 2024, an uptick of $3.4 million, or 3.2 percent, from the previous year. This increase was primarily due to a distribution received from the Allocated Insurance Reserve Accounts (AIRAs) from the Farm Credit System Insurance Corporation (FCSIC) in the second quarter of 2024, offset by other losses.

The bank recorded non-interest expenses of $216.9 million for the year ended December 31, 2024, which is an increase of $18.5 million, or 9.3 percent, from the previous year. This rise was mainly due to increased loan servicing fees linked to AgriBank’s asset pool program expansion throughout 2024 and the latter half of 2023.

Loan Portfolio Overview

Total loans amounted to $164.7 billion as of December 31, 2024, reflecting an increase of $15.9 billion, or 10.7 percent, compared to December 31, 2023. This growth was primarily due to increases in wholesale loans alongside retail loans from expanded participation in asset pool programs.

AgriBank’s credit quality mirrors the financial health of District Associations and their retail loan portfolios. As of December 31, 2024, 99.4 percent of AgriBank’s portfolio contained acceptable loans, consistent with the previous year’s performance. However, the quality of AgriBank’s retail loan portfolio slipped slightly, with 95.7 percent classified as acceptable as of December 31, 2024, down from 96.2 percent a year earlier.

Agricultural Economic Conditions

On February 6, 2025, the U.S. Department of Agriculture’s Economic Research Service (USDA-ERS) released its forecast for U.S. aggregate farm income and financial conditions for 2025, revising the 2024 prediction. The updated forecast for 2024 net farm income is projected at $139.1 billion, indicating a decrease of $8.2 billion, or 5.6 percent, from 2023. This decline follows a substantial estimated decrease of $34.7 billion that occurred in 2023 compared to the record-high net farm income of 2022. Although net farm income is expected to decline for the second consecutive year, it remains a critical indicator of agricultural economic health.

Net Farm Income Projections Show Significant Growth through 2025

This year, after accounting for inflation, the forecast for net farm income in 2024 is $16.8 billion, representing a 13.3 percent increase over the 10-year average (2014-2023) when measured in 2025 dollars. The projected net farm income for 2025 stands at $180.1 billion, which marks a substantial rise of $41.0 billion or 29.5 percent from the revised forecast for 2024. If achieved, this would represent the second highest adjusted level in the last half-century.

Various factors such as weather conditions, trade policies, government and monetary regulations, global farming production levels, and disease outbreaks in livestock and poultry are expected to maintain volatility in the agricultural markets. Additionally, the adoption of cost-cutting technologies, innovative marketing techniques, and risk management strategies will lead to differing financial outcomes among agricultural producers.

Capital Resources and Liquidity

As of December 31, 2024, total capital remained robust at $9.5 billion, reflecting an increase of $879.9 million compared to December 31, 2023. This growth was primarily attributed to AgriBank’s net income and capital stock issuances, though it was somewhat offset by patronage distributions in line with AgriBank’s capital plan and the redemption of $250 million worth of perpetual preferred stock. Importantly, AgriBank met all regulatory capital requirements, including additional buffers.

Effective use of existing capital helped AgriBank successfully achieve its business objectives, resulting in the redemption of all outstanding shares of preferred stock on January 1, 2024.

As of December 31, 2024, cash, cash equivalents, and other investments reached $25.1 billion, compared to $25.5 billion on December 31, 2023. AgriBank’s liquidity position provided 152 days of coverage for maturing debt, significantly exceeding the regulatory minimum of 90 days, thereby supporting operational needs.

About AgriBank

AgriBank is a member of the customer-owned Farm Credit System, which spans across the U.S. Under this cooperative model, the bank is mainly owned by local Farm Credit Associations that offer financial services and products tailored to rural communities and agricultural sectors. AgriBank secures funds and provides tailored financial solutions to these Associations. Together, they form the AgriBank District, covering a 15-state area from Wyoming to Ohio and from Minnesota to Arkansas. For further information, please visit www.AgriBank.com.

Forward-Looking Statements

Any statements regarding future expectations mentioned in this press release are based on current insights and may be affected by uncertainties and changes in circumstances. Actual outcomes could materially differ from these expectations due to various risks and uncertainties. More details on these risks and uncertainties are available in AgriBank’s annual report, released approximately 75 days after the fiscal year-end. AgriBank does not commit to updating or revising any forward-looking statements due to new information, future events, or other factors.

AGRIBANK, FCB
STATEMENTS OF CONDITION INFORMATION
(in thousands)
	December 31,	December 31,
	2024	2023

Loan and Asset Data Reveal Key Financial Snapshot

Loans held to maturity	$164,659,006	$148,370,212
Allowance for credit losses on loans	39,641	31,992
Net loans held to maturity	164,619,365	148,338,220
Loans held for sale	—	355,219
Net loans	164,619,365	148,693,439
Investment securities and other earning assets	25,071,437	25,454,925
Accrued interest receivable	1,815,644	1,590,342
Other assets	424,514	684,297
Total assets	$191,930,960	$176,423,003

This analysis provides a detailed breakdown of key financial metrics, offering insightful perspectives on asset management and loan performance. For stakeholders, such information is vital in assessing the company’s financial health and strategic direction.

AGRIBANK, FCB Releases Latest Financial Statements

Company Reports Financial Results for December Quarter and Year

The financial summary for the period ending on December 31 shows substantial growth in interest income and net interest income compared to the previous year. Below is a detailed breakdown of the results.

Financial Performance Overview

Results for the Three Months Ended December 31, 2024 vs. 2023

Key Metrics	2024	2023
Interest Income	$1,977,492	$1,768,910
Interest Expense	$1,683,510	$1,505,622
Net Interest Income	$293,982	$263,288

Results for the Twelve Months Ended December 31, 2024 vs. 2023

Key Metrics	2024	2023
Interest Income	$7,681,922	$6,135,821
Interest Expense	$6,619,466	$5,150,665
Net Interest Income	$1,062,456	$985,156

All figures presented are unaudited. This financial report indicates a solid performance, showcasing improvement in both interest income and net interest income for the quarter and the year. These developments reflect the company’s effective management and strategic initiatives aimed at enhancing financial outcomes.

AgriBank Reports Fourth Quarter and Year-End Financial Results

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SOURCE AgriBank

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