AUSTIN, Texas – February 24, 2026 – Farm Credit Bank of Texas (FCBT) today reported financial results for its fiscal year 2025.
Net income was $212.3 million for the year ended December 31, 2025, a decrease of $9.6 million or 4.3% year over year driven by higher provision for credit losses and higher noninterest expense, partially offset by growth in net interest income and higher noninterest income. Net interest income was $401.5 million, an increase of $37.2 million or 10.2% year over year, driven by growth in the bank’s average interest-earning assets and an improvement in net interest margin.
“Despite continued economic headwinds in 2025, our results reflect a clear focus on long-term stability,” said Brandon Blaut, FCBT chief executive officer. “This year was defined by strategic preparation, thoughtful stewardship, strong liquidity, and prudent credit management. As we move forward, we are well positioned to support agricultural producers and rural communities in 2026 and beyond.”
The bank recognized a $73.4 million provision for credit losses on loans for 2025, an increase of $49.8 million or 210.9% year over year. The provision for 2025 reflects increases in specific reserves for certain loans in the agribusiness, real estate mortgage and production and intermediate-term loan sectors and higher general reserves due to credit deterioration for select borrowers in the agribusiness loan sector and more challenging economic factors.
Total loan volume increased 7.5% in 2025 to $34.2 billion, reflecting growth in direct notes to the bank’s affiliated lending institutions and in the bank’s capital markets loan portfolio. Total assets increased 6.7% to $42.2 billion. Nonperforming assets, which consisted of nonaccrual loans, accruing loans 90 days or more past due and other property owned, increased to 0.27% of total loans and other property owned, compared with 0.15% at year-end 2024. Overall credit quality remains stable, with 99.6% of loans classified as acceptable or special mention.
As a cooperative, the bank distributes earnings to its member-owners and lending partners via patronage programs. Based on 2025 results, it declared $123.5 million in patronage.
“The board’s focus is to ensure the long-term resiliency of the Texas District and the consistent application of sound cooperative principles,” said Jimmy Dodson, FCBT board chair. “As part of that commitment, the board annually approves patronage programs designed to strengthen our affiliated lending partners, reduce funding costs, and enable them to pass those savings on to their members in support of agriculture and rural communities.”
As of December 31, 2025, the bank had $2.1 billion in shareholders’ equity and a total capital ratio of 13.6%. Cash and investments totaled $7.4 billion, maintaining a strong liquidity position 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 $8.0 billion for the year ended December 31, 2025, compared with $7.8 billion the prior year.
These financial results are preliminary and unaudited. The bank will post its 2025 annual 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.
