AUSTIN, Texas – May 1, 2026 – Farm Credit Bank of Texas (FCBT) today reported its financial results for the first quarter of 2026.
Net income was $73.9 million for the three months ended March 31, 2026; increasing 43.3% compared with the same period of 2025. The increase in net income was driven primarily by growth in net interest income and noninterest income, along with a lower provision for credit losses on loans, partially offset by higher noninterest expense.
Net interest income was $104.6 million for the quarter; up 9.5% compared with the same period of the prior year. The increase was driven by growth in the bank’s average interest-earning assets and a two-basis-point increase in the net interest rate spread.
“Through prudent risk and debt management strategies, we continue to support agricultural producers and rural communities as they adapt to evolving conditions and pursue growth,” said Brandon Blaut, FCBT chief executive officer. “We remain committed to partnering with our associations and the customers they serve as we chart the course ahead together.”
The bank recorded a provision for credit losses on loans of $11.5 million for the first quarter of 2026, compared with $14.7 million in the same period of 2025. The provision for the first quarter of 2026 was primarily driven by higher general reserves due to credit deterioration for select borrowers in the agribusiness loan sector and a more pessimistic economic outlook.
Total loan volume decreased 0.1% from year-end 2025 to $34.2 billion at March 31, 2026, primarily reflecting a decrease in direct notes to the bank’s affiliated lending institutions, partially offset by growth in the participation loan portfolio. Total assets decreased 0.4% to $42.0 billion. Nonperforming assets, which consisted of nonaccrual loans, accruing loans 90 days or more past due and other property owned, were 0.27% of total loans and other property owned which was consistent with 0.27% at year-end 2025. Overall credit quality remains stable, with 99.5% of loans classified as acceptable or special mention.
“The first quarter reflected continued demand for credit across our agricultural communities,” said Jimmy Dodson, FCBT board chair. “Our financial stability and continued focus on our mission enable us to meet the ongoing credit needs of farmers and rural businesses, helping ensure consistent access to financing that supports the communities we serve.”
At the end of the first quarter, the bank had $2.1 billion in shareholders’ equity and a total capital ratio of 13.37%. 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 $2.1 billion for the three months ended March 31, 2026, compared with $2.0 billion for the same period of the prior year.
These financial results are preliminary and unaudited. The bank will post its first 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 rural financing.
