AUSTIN, Texas – July 31, 2026 – Farm Credit Bank of Texas (FCBT) today reported financial results for its second quarter and first half of 2026.
Net income was $63.7 million and $137.5 million for the three months and six months ended June 30, 2026; increasing 31.4% and 37.5%, respectively, compared with the same periods of 2025. The increases in net income were driven primarily by growth in net interest income and noninterest income, and a lower provision for credit losses on loans, partially offset by higher noninterest expense.
Net interest income was $108.0 million for the quarter and $212.7 million year-to-date; up 8.0% and 8.7%, 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 increase in the net interest rate spread of five basis points and three basis points in the quarter and year-to-date periods, respectively.
“We continue to focus on supporting our affiliated associations and the agricultural producers and rural communities they serve,” said Brandon Blaut, FCBT chief executive officer. “Our approach to risk management has enabled the bank to remain resilient as we continue supporting our associations and their customers through changing market conditions.”
The bank recorded a provision for credit losses on loans of $6.8 million for the quarter and $18.3 million year-to-date compared to $14.7 million and $29.4 million in the year-ago periods. The provision for both periods of 2026 was primarily driven by higher general reserves related to isolated credit deterioration in the agribusiness loan sector and, to a lesser extent, a more pessimistic economic outlook impacting modeled credit losses.
Total loan volume decreased 0.8% from year-end 2025 to $33.9 billion at June 30, 2026, primarily reflecting a decrease in both the direct notes to the bank’s affiliated lending institutions and the participation loan portfolio. Total assets decreased 1.0% to $41.7 billion. Nonperforming assets, which consisted of nonaccrual loans, accruing loans 90 days or more past due and other property owned, were 0.16% of total loans and other property owned, an improvement from 0.27% at year-end 2025. Overall credit quality remains stable, with 99.4% of loans classified as acceptable or special mention.
“Our second quarter financial performance reflects the strength of FCBT’s cooperative model and continued commitment to serving agriculture and rural America” said Jimmy Dodson, FCBT board chair. “As market conditions evolve, we remain focused on providing reliable funding and supporting the long-term success of our associations and their customers.”
At the end of the second quarter, the bank had $2.2 billion in shareholders’ equity and a total capital ratio of 13.89%. Cash and investments totaled $7.3 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 $2.2 billion and $4.3 billion for the three months and six months ended June 30, 2026, compared with $1.9 billion and $3.9 billion for the same periods of the prior year.
These financial results are preliminary and unaudited. The bank will post its second quarter 2026 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.
