Farm Credit Bank of Texas reports first-quarter 2024 financial results


AUSTIN, Texas – Farm Credit Bank of Texas (FCBT) reported solid earnings and loan growth and continued strong credit quality in the first quarter of 2024.

Net income was $48.9 million for the three months ended March 31, 2024, a 42.4% increase compared with the same period of 2023. The increase was driven primarily by a decrease in provision for credit losses, partially offset by a decrease in noninterest income.

The bank recorded a provision for credit losses of $4.0 million for the first quarter, compared with $22.4 million for the same period of 2023. The favorable comparison was attributable to the absence of specific reserves and related charge-offs associated with a small number of borrowers that were taken during the first quarter of the prior year.

Net interest income for the quarter was $85.6 million, a 1.0% decrease compared with the same period of the prior year. The change reflects a decrease of 7 basis points in net interest rate spread due to interest rate volatility, partially offset by a $543.1 million increase in the bank’s average earning assets.

“The bank demonstrated its resilience in a challenging environment that has continued into 2024,” said Amie Pala, FCBT chief executive officer. “Lenders and borrowers are still facing headwinds from inflation and a volatile interest rate environment. The bank’s liquidity, capital and credit administration provide a strong financial foundation that allows us to manage through this business cycle.”

Total loan volume increased 1.1% from year-end 2023 to $30.1 billion at March 31, 2024, primarily reflecting growth in direct notes to the bank’s affiliated lending institutions, as well as growth in the bank’s loan participations. Total assets increased 0.6% to $37.5 billion. Nonperforming assets, which consisted of nonaccrual loans, remained low at 0.15% of total loans, compared with 0.14% at year-end 2023. Overall credit quality remained strong, with 99.5% of loans classified as acceptable or special mention.

Much of the growth was attributable to the bank’s affiliated lenders experiencing higher demand for retail mortgage loans. Demand for capital markets and operating loans decreased as high commodity prices and input costs moderated while short-term and variable interest rates remained elevated.

Agricultural conditions were generally favorable across the bank’s five-state district. Precipitation brought adequate moisture to most of the territory, reducing drought to the lowest level in several years.

“Loan growth at the bank and our affiliated lending cooperatives in the first quarter demonstrates our ongoing commitment to meeting the financial needs of rural communities and agriculture,” said Jimmy Dodson, FCBT board chair. “Our financial strength and dedication to our mission ensure borrowers have access to reliable, consistent credit.”

At the end of the first quarter the bank had $1.7 billion in shareholders’ equity and a total capital ratio of 13.21%. Cash and investments totaled $6.9 billion, providing ample liquidity and exceeding regulatory requirements.

The bank is part of the Farm Credit System  , a nationwide network of cooperatives established in 1916. The System reported combined net income of $2.0 billion for the three months ended March 31, 2024, compared with $1.7 billion for the same period last year.

These financial results are preliminary and unaudited. The bank will post its 2024 first-quarter report at

About Farm Credit Bank of Texas

Farm Credit Bank of Texas is a cooperatively owned wholesale bank that finances agriculture and rural America. Headquartered in Austin, it funds 13 local lending cooperatives and two other financing institutions in Alabama, Louisiana, New Mexico, Mississippi and Texas. These lenders make loans to farmers, ranchers, agribusinesses and rural property owners. The bank also partners with other lenders to finance agricultural production and processing, essential rural infrastructure and more.

Q1 2024 financials table


Michael Bares
Communications Director
Corporate Communications

(512) 483-9203

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