Farm Credit Bank of Texas Reports First Quarter 2025 Financial Results

AUSTIN, Texas – May 2, 2025 – Farm Credit Bank of Texas (FCBT) reported solid earnings, loan growth, and maintained strong credit quality in the first quarter of 2025.

Net income was $51.6 million for the three months ended March 31, 2025; a 5.3% increase compared with the same period of 2024. The increase was driven primarily by increases in net interest income and non-interest income, partially offset by an increase in provision for credit losses.

The bank recorded a provision for credit losses of $14.7 million for the first quarter, compared with $4.0 million for the same period of 2024. The provision for the first three months of 2025 reflects specific reserves associated with credit deterioration for a limited number of borrowers in the agribusiness and production and intermediate-term sectors that are impacted by adverse economic conditions.

Net interest income for the quarter was $95.5 million; a 11.6% increase compared with the same period of the prior year. The growth in net interest income was mainly driven by a $2.5 billion increase in average interest-earning assets, along with a three-basis-point increase in the net interest rate spread.

"As market volatility persisted in the first quarter, the bank’s financial results were in line with our projections," said Amie Pala, FCBT chief executive officer. "As lenders and borrowers are navigating inflationary pressures and interest rate fluctuations, our liquidity, capital, and credit risk management positions provide a sound financial foundation in this challenging macroeconomic landscape."

Total loan volume increased 2.2% from year-end 2024 to $32.5 billion on March 31, 2025, primarily reflecting growth in the capital markets loan portfolio and direct notes to the bank’s affiliated lending institutions. Total assets increased 2.1% to $40.3 billion. Nonperforming assets, which consisted of nonaccrual loans, accruing loans 90 days or more past due and other property owned, remained low at 0.20% of total loans and other property owned, compared with 0.15% at year-end 2024. Overall credit quality remained strong, with 99.5% of loans classified as acceptable or special mention.

"The bank and our affiliated lending cooperatives saw strong loan growth in the first quarter, highlighting our dedication to supporting rural communities and agriculture," said Jimmy Dodson, FCBT board chair. "Our financial strength and commitment to our mission ensure that borrowers continue to have reliable access to credit."

At the end of the first quarter, the bank had $2.0 billion in shareholders’ equity and a total capital ratio of 12.9%. Cash and investments totaled $7.3 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 $1.96 billion for the three months ended March 31, 2025, compared with $2.00 billion for the same period last year.

These financial results are preliminary and unaudited. The bank will post its first 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 rural financing.