AgriBank Reports 3rd Quarter 2019 Financial Results.

ST. PAUL, Minn: Today St. Paul-based AgriBank announced financial results for the third quarter of 2019, with stable profitability, strong credit quality, and robust liquidity and capital.

Highlights:

Stable profitability: Net income increased $18.6 million to $452.9 million for the nine months ended September 30, 2019, compared to $434.3 million for the same period of the prior year.

Strong credit quality: Total loan portfolio credit quality remained strong, with 97.9 percent of loans classified as acceptable.

Robust liquidity and capital: End-of-the-quarter liquidity was 149 days, well above the regulatory requirement. Capital also remained well above the regulatory minimum and company targets.

Year-to-date 2019 Results of Operations

Net interest income was $496.4 million for the nine months ended September 30, 2019, an increase of $52.7 million, or 11.9 percent, compared to $443.7 million for the same period of the prior year, primarily due to growth in loan volume and higher interest rates earned on loans and investment securities. This increase was substantially offset by higher interest rates paid on debt and growth in debt volume.

Non-interest income decreased to $67.2 million for the nine months ended September 30, 2019, compared to $86.2 million for the prior year. This decrease was primarily attributable to lower mineral income and mark-to-market losses on certain economic hedges. A decrease in the distribution from the Farm Credit System Insurance Corporation (FCSIC) in March 2019, compared to the distribution received in 2018, also contributed to the decrease in non-interest income compared to the prior year. The FCSIC can distribute funds when insurance funding exceeds the required secured base amount of 2 percent of insured debt.

Third Quarter 2019 Results of Operations

Third quarter 2019 net income was $165.8 million, an increase of $22.5 million, or 15.7 percent compared to the same period of the prior year. This increase was primarily due to higher net interest income resulting from growth in loan volume and higher interest rates earned on loans and investment securities. This increase was substantially offset by higher interest rates paid on debt and growth in debt volume. Provision for loan losses and non-interest expense further offset the overall increase in net interest income.

Loan Portfolio

Total loans were $95.7 billion at September 30, 2019, an increase of $3.0 billion or 3.3 percent compared to December 31, 2018...