PERFORMANCE
HIGHLIGHTS

Reporting strong net income, sound credit quality,
and robust liquidity and capital.

Strong net interest income generates earnings, patronage

  • AgriBank returned nearly $332.1 million in earnings to owners in the form of patronage refunds
  • AgriBank net income increased 11.7 percent from the previous year to $536.1 million
  • Earnings generated by continued strong net interest income

District Association loan growth boosts AgriBank loan portfolio

  • AgriBank loan portfolio increased 3.9 percent from the previous year to $86.1 billion, reflecting growth in wholesale loans to District Associations
  • AgriBank shareholders' equity remained robust, increasing 6.0 percent from the previous year to $5.5 billion, contributing to a continued strong permanent capital ratio of 20.6 percent, as the loan portfolio continued to grow

Disciplined investments help control expenses

  • AgriBank net operating rate of 7.5 basis points increased slightly from 7.3 basis points in 2015
  • Reflects disciplined expense management and offset by increased Farm Credit System insurance fund expense
  • Influenced by prudent strategic investments expected to improve operating efficiency in core operations

Continued District financial strength reflected in strong earnings

  • Strong net income for the District at $1.8 billion
  • Attributable to strong and steady net interest income and disciplined lending practices, offset by increased provision for loan losses and increased Farm Credit System insurance fund expense
  • Strategic investments across the AgriBank District in technology and human capital are expected to position the District to remain at the forefront of agricultural finance

Customer-owners benefit from prudent leveraging of District capital

  • District loan portfolio increased 4.4 percent from the previous year to $99.1 billion, driven by Associations fulfilling the Farm Credit mission to support farmers, ranchers and other customers with reliable, consistent credit
  • Association average permanent capital ratio improved and remained strong at 16.5 percent, as the District loan portfolio continued to grow
  • District Associations are well-positioned to navigate through all agricultural cycles

District credit quality has moderated but remains strong

  • District portfolio had 96.5 percent nonadverse loans, which represent the highest quality assets (acceptable and OAEM), down slightly from 97.9 percent in 2015 and slightly below the 15-year average of 97.4 percent
  • Strong loan portfolio quality has begun and will continue to revert to levels more in line with historical norms due to reduced net farm income and current economic conditions
  • Favorable credit quality of District loan portfolio reflects disciplined underwriting combined with the adequate liquidity and strong equity positions of many borrowers
*Other Assets Especially Mentioned