AgriBank Q2 net income increased 3.3 percentChristian Fernsby ▼ | August 10, 2019
St. Paul-based AgriBank announced financial results for the second quarter of 2019.
AgriBank Net interest income was $322.6 million for the six months
This increase was primarily due to both increased loan volume and increased interest rates earned on loans and investments.
This increase was substantially offset by increased interest expense due to both higher interest expense paid on Systemwide debt and increased volume of Systemwide debt.
Non-interest income was $37.0 million for the six months ended June 30, 2019, a decrease of $18.9 million, or 33.7 percent, compared to the same period of the prior year.
This decrease was primarily attributable to reversal of previously recorded mark-to-market gains on certain economic hedges as well as decreased mineral income.
A decrease in the distribution from the Farm Credit System Insurance Corporation (FCSIC) in March 2019, compared to the distribution received in 2018, also contributed to the decrease in non-interest income compared to the prior year.
The FCSIC can distribute funds when insurance funding exceeds the required secured base amount of 2 percent of insured debt.
Second quarter 2019 net income was $149.8 million, an increase of $4.8 million, or 3.3 percent, compared to the same period of the prior year.
This increase was primarily driven by increased net interest income compared to the prior year, primarily attributable to increased loan volume. ■