AUSTIN, Texas – October 31, 2025 – Farm Credit Bank of Texas (FCBT) today reported financial results for its third quarter and first nine months of 2025.
Net income was $39.7 million and $139.7 million for the three months and nine months ended September 30, 2025; decreasing 24.7% and 7.7%, respectively, compared with the same periods of 2024. The decrease in net income for both periods was driven by higher provision for credit losses and noninterest expense, partially offset by growth in net interest income and noninterest income.
Net interest income was $100.4 million for the quarter and $296.0 million year-to-date; up 8.1% and 11.2%, respectively, compared with the same periods of the prior year. The increases in both periods were driven by growth in the bank’s average interest-earning assets and, for the year-to-date period, an improvement in the net interest rate margin.
“Although market conditions continue to be challenging, our third quarter results demonstrate the resilience of our organization,” said Amie Pala, FCBT chief executive officer. “By maintaining strong liquidity and a careful approach to managing credit risk, we are well positioned to navigate ongoing uncertainties while continuing to fulfill our mission of supporting agricultural and rural communities.”
The bank recorded a provision for credit losses of $24.7 million for the third quarter of 2025, primarily driven by an increase in specific reserves for certain loans in the real estate mortgage and agribusiness loan sectors. The provision for credit losses for the year-to-date period was $54.1 million, reflecting an increase in specific reserves for certain loans in the agribusiness, production and intermediate-term and real estate mortgage loan sectors, and higher general reserves due to credit deterioration for select borrowers in the agribusiness loan sector.
In September, the bank redeemed $350 million of Class B Series 4 perpetual noncumulative subordinated preferred stock at par value. Preferred stock totaled $750 million at September 30, 2025.
Total loan volume increased 5.7% from year-end 2024 to $33.6 billion at September 30, 2025, primarily reflecting growth in direct notes to the bank’s affiliated lending institutions. Total assets increased 5.5% to $41.7 billion. Nonperforming assets, which consisted of nonaccrual loans, accruing loans 90 days or more past due and other property owned, increased to 0.33% of total loans and other property owned, compared with 0.15% at year-end 2024. Overall credit quality remains stable, with 99.5% of loans classified as acceptable or special mention.
“The third quarter reflected steady demand for loans within our agricultural communities,” said Jimmy Dodson, FCBT board chair. “Our financial performance and ongoing commitment enable us to provide dependable financing solutions that support the continued growth and vitality of the areas we serve.”
At the end of the third quarter, the bank had $2.1 billion in shareholders’ equity and a total capital ratio of 14.99%. Cash and investments totaled $7.6 billion, maintaining strong liquidity above regulatory requirements.
The bank is part of the Farm Credit System, a nationwide network of customer-owned financial institutions established in 1916. The System reported combined net income of $2.1 billion and $6.0 billion for the three months and nine months ended September 30, 2025, compared with $2.0 billion and $5.9 billion for the same periods of the prior year.
These financial results are preliminary and unaudited. The bank will post its third quarter 2025 report at www.farmcreditbank.com/financials/bank-financial-reports.
About Farm Credit Bank of Texas
Farm Credit Bank of Texas is a cooperatively owned wholesale bank that finances agriculture and rural America within the Texas Farm Credit District. It funds 12 affiliated associations and two other financing institutions, enabling them to make loans to farmers, ranchers, agribusinesses, and rural property owners. It also partners with other lenders to finance agricultural production and processing, essential rural infrastructure and more. The bank is part of the Farm Credit System, the nation’s oldest and largest source of agricultural and rural financing.
