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Aug. 3, 2026 Source: Farm Credit System news release NEW YORK - The Farm Credit System today reported combined net income of $2.2 billion for the second quarter and $4.3 billion for the six months ended June 30, 2026, as compared with net income of $1.9 billion and $3.9 billion for the same periods of the prior year. "The Farm Credit System's second-quarter performance reflects the resilience of our customerowned cooperative network and the continued demand for Farm Credit financing across rural America," remarked Tracey McCabe, President and CEO of the Federal Farm Credit Banks Funding Corporation. "Solid earnings, growth in earning assets, and a strong capital position underscore our capacity to support eligible borrowers. As our member-borrowers navigate a dynamic agricultural environment, we remain focused on fulfilling our mission while maintaining prudent risk management and financial strength." Results of Operations Second Quarter and Six-Month 2026 Results Compared to Second Quarter and Six-Month 2025 Results Net interest income increased $239 million or 7.6% to $3.4 billion for the second quarter of 2026 and $462 million or 7.4% to $6.7 billion for the six months ended June 30, 2026, 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 $31.7 billion or 5.9% to $566.4 billion for the three months ended June 30, 2026 and $33.2 billion or 6.3% to $565.1 billion for the six months ended June 30, 2026, as compared with the same periods of the prior year. The net interest margin was 2.39% and 2.38% for the three and six months ended June 30, 2026, as compared with 2.35% for the same periods of the prior year. The increase in the net interest margin during these periods primarily resulted from increases in the net interest spread of seven and six basis points to 1.90% and 1.89%, as compared with 1.83% for both the prior year periods. The increase in the net interest spread was primarily due to lower debt funding costs. The increase in net interest margin during both of these periods was partially offset by a three-basis point decrease in income earned on earning assets funded by noninterest-bearing sources (principally capital). The System recognized provisions for credit losses of $223 million and $456 million for the three and six months ended June 30, 2026, as compared with $300 million and $550 million for the three and six months ended June 30, 2025. The provisions for credit losses for the three and six months ended June 30, 2026 primarily reflected specific reserves associated with a limited number of customers and, to a lesser extent, a modest deterioration in credit quality. The provisions for credit losses for the three and six months ended June 30, 2025 primarily reflected specific reserves, deterioration in credit quality, weakening macroeconomic forecasts impacting modeled credit losses and, to a lesser extent, higher loan volume. Tweet |
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