ST. PAUL, Minn., May 7, 2026 /PRNewswire/ -- Today, St. Paul-based AgriBank announced financial results for the first quarter of 2026, with strong profitability, credit quality, and liquidity and capital.
Highlights:
Profitability: Net income remained strong at $294.0 million for the three months ended March 31, 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 99.2 percent of loans classified as acceptable at March 31, 2026.
Liquidity and capital: End-of-the-quarter liquidity was 149 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.
"Our solid performance in the first quarter reflects AgriBank's focus on serving our Farm Credit Association‑owners," said AgriBank CEO Jeffrey Swanhorst. "We again delivered strong profitability, credit quality and liquidity—strengths that support the dependable funding and financial solutions the Associations use as they serve farmers, ranchers and other rural customers."
2026 Results of Operations
Net interest income was $320.2 million for the three months ended March 31, 2026, an increase of $50.6 million, or 18.8 percent, compared to the same period of the prior year. The increase was primarily driven by the positive impact of wholesale and asset pool portfolio loan growth. Market conditions also enabled AgriBank to generate additional income through funding actions.
Non-interest income was $45.1 million for the three months ended March 31, 2026, an increase of $16.1 million, or 55.3 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, higher wholesale conversion fees increased loan fee income during the three months ended March 31, 2026.
Non-interest expense was $62.3 million for the three months ended March 31, 2026, an increase of $7.2 million, or 13.1 percent, compared to the same period of the prior year primarily due to an increase in salaries and incentive compensation expense. This was the result of increased headcount, merit increases, and incentive plan outperformance. Contractor fees also added to increased operating expense related to additional resources for technology projects.
Loan Portfolio
Total loans were $177.7 billion at March 31, 2026, a slight decrease of $183.8 million, or 0.1 percent, compared to December 31, 2025. This decrease was primarily attributable to retail loan repayments, largely offset by wholesale loan growth.
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 March 31, 2026 and December 31, 2025. Loans classified as acceptable represent the highest-quality assets. The credit quality of AgriBank's retail loan portfolio decreased slightly to 94.5 percent classified as acceptable at March 31, 2026, compared to 94.9 percent acceptable at December 31, 2025.
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 ...
