AgriBank Reports 2nd Quarter 2022 Financial Results.

ST. PAUL, Minn: Today, St. Paul-based AgriBank announced financial results for the second quarter of 2022, with strong profitability, credit quality, and liquidity and capital.

Highlights:

Profitability: Net income remained strong at $365.7 million for the six months ended June 30, 2022. AgriBank's year-to-date return on assets (ROA) ratio of 51 basis points was above the target of 50 basis points.

Credit quality: Total loan portfolio credit quality was strong, with 99.5 percent of loans classified as acceptable at June 30, 2022, compared to 98.3 percent at December 31, 2021.

Liquidity and capital: End-of-the-quarter liquidity was 152 days, well above the regulatory requirement. Capital also remained well above the regulatory minimums and company targets.

"AgriBank's key financial measures remained strong through the second quarter of 2022," said Jeffrey Swanhorst, AgriBank chief executive officer. "Increases in loan volume and credit quality continued to drive strong profitability. Our steady business and financial performance reflects the enduring strength of the Farm Credit lenders we fund as well as that of Farm Credit borrowers, even in the face of economic uncertainty."

Year-to-date 2022 Results of Operations

Net interest income was $398.8 million for the six months ended June 30, 2022, an increase of $32.6 million, or 8.9 percent, compared to the same period of the prior year. Net interest income increased mainly due to continued increases in both wholesale and retail loan volume, specifically in asset pool programs.

Non-interest income was $52.5 million for the six months ended June 30, 2022, a decrease of $22.0 million, or 29.5 percent, compared to the same period of the prior year. The decline was primarily driven by lower loan prepayment and conversion fees, partially offset by increased mineral income.

Non-interest expense increased $13.1 million, or 16.9 percent, for the six months ended June 30, 2022 compared to the same period of the prior year. The increase was primarily driven by an increase in loan servicing fees related to pool programs.

Loan Portfolio

Total loans were $125.0 billion at June 30, 2022, an increase of $3.0 billion, or 2.5 percent, compared to December 31, 2021. This increase, mainly in AgriBank's wholesale portfolio, was primarily driven by a rise in agribusiness and real estate mortgage volume throughout the AgriBank District, partially offset by declines in production and intermediate-term volume...