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1ST HALF: FARM CREDIT SYSTEM'S NET INCOME DOWN 1%: $3.0 BILLION
Aug. 4, 2025
Source: Farm Credit System news release
NEW YORK - The Farm Credit System today reported that combined net income was stable at $1.94 billion for the second quarter and $3.90 billion for the six months ended June 30, 2025, as compared with net income of $1.93 billion and $3.92 billion for the same periods of the prior year.
"The System delivered solid earnings for the quarter and first six months of 2025," remarked Tracey McCabe, President and CEO of the Federal Farm Credit Banks Funding Corporation. "The System's strong balance sheet and robust capital levels position it to serve our member borrowers should challenges around trade and geopolitical conditions intensify in the months to come."
Second Quarter and Six-Month 2025 Results Compared to Second Quarter and Six-Month 2024 Results
Net interest income increased $196 million or 6.6% to $3.1 billion for the second quarter of 2025 and $357 million or 6.1% to $6.3 billion for the six months ended June 30, 2025, as compared with the same periods of the prior year. The increases in net interest income primarily resulted from higher levels of average earning assets, driven by increased loan volume and, to a lesser extent, growth in investments held for liquidity. Average earning assets increased $42.7 billion or 8.7% to $534.8 billion for the three months ended June 30, 2025 and $42.8 billion or 8.7% to $531.9 billion for the six months ended June 30, 2025, as compared with the same periods of the prior year.
The net interest margin was 2.35% for both the three and six months ended June 30, 2025, as compared with 2.40% and 2.41% for the same periods of the prior year. The decline in the net interest margin during these periods primarily resulted from a five and four basis point decrease in income earned on earning assets funded by noninterest-bearing sources (principally capital).
Net interest spread was unchanged at 1.83% for the three months ended June 30, 2025, as compared with June 30, 2024 and decreased two basis points to 1.83% for the six months ended June 30, 2025, as compared with 1.85% for the same period of the prior year. The decrease in net interest spread was primarily driven by loan spread compression due to competitive market pressures.
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