Menu Search

Company Announcements

Federal Agricultural Mortgage Corp

Farmer Mac Reports First Quarter 2025 Results

- Outstanding Business Volume of $29.8 Billion -

WASHINGTON , May 9, 2025 /PRNewswire/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended March 31, 2025.

"I'm pleased to report that we delivered another outstanding quarter, surpassing previous records in revenue, net effective spread, and core earnings," said Brad Nordholm, President and Chief Executive Officer. "Our first quarter results reflect the strength of our long-term growth strategy and provide a solid foundation to navigate market volatility and evolving credit conditions. Our resilient business model—anchored by diversified revenue streams, a strong capital position, reliable access to markets, and disciplined asset-liability management—not only sets us apart but also enables us to stay focused on our mission while enhancing long-term shareholder returns."

First Quarter 2025

  • Provided $1.8 billion in liquidity and lending capacity to lenders serving rural America
  • Net interest income grew 5% year-over-year to $90.9 million
  • Net effective spread1 increased 8% from the prior-year period to a record $90.0 million
  • Net income attributable to common stockholders was $44.0 million
  • Record core earnings1 of $46.0 million, or $4.19 per diluted common share, reflecting 6% growth year-over-year
  • Maintained strong capital position with total core capital of $1.5 billion, exceeding the statutory requirement by 65% and a Tier 1 Capital Ratio of 13.9% as of March 31, 2025
  • As of March 31, 2025, Farmer Mac had 289 days of liquidity

$ in thousands, except per
share amounts

Quarter Ended

March 31,
2025

December 31,
2024

March 31,
2024

Sequential %
Change

YoY %
Change

Net Change in

Business Volume

$232,313

$1,054,727

$376,206

N/A

N/A

Net Interest Income (GAAP)

$90,939

$93,368

$86,368

(3) %

5 %

Net Effective Spread

(Non-GAAP)

$89,990

$87,528

$83,044

3 %

8 %

Diluted EPS (GAAP)

$4.01

$4.63

$4.28

(13) %

(6) %

Core EPS (Non-GAAP)

$4.19

$3.97

$3.96

6 %

6 %


1 Non-GAAP Measure

Earnings Conference Call Information

The conference call to discuss Farmer Mac's first quarter 2025 financial results will be held beginning at 8:30 a.m. eastern time on Friday, May 9, 2025, and can be accessed by telephone or live webcast as follows:

Telephone (Domestic): (800) 836-8184
Telephone (International): (646) 357-8785
Webcast: https://www.farmermac.com/investors/events-presentations/  

When dialing in to the call, please ask for the "Farmer Mac Earnings Conference Call." The call can be heard live and will also be available for replay on Farmer Mac's website for one week following the conclusion of the call.

More complete information about Farmer Mac's performance for first quarter 2025 is in Farmer Mac's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed today with the SEC.

Use of Non-GAAP Measures

In the accompanying analysis of its financial information, Farmer Mac uses "non-GAAP measures," which are measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per share," and "net effective spread." Farmer Mac uses these non-GAAP measures to measure corporate economic performance and develop financial plans because, in management's view, they are useful alternative measures in understanding Farmer Mac's economic performance, transaction economics, and business trends. The non-GAAP financial measures that Farmer Mac uses may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of these non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.

Core Earnings and Core Earnings Per Share

The main difference between core earnings and core earnings per share (non-GAAP measures) and net income attributable to common stockholders and earnings per common share (GAAP measures) is that those non-GAAP measures exclude the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Another difference is that these two non-GAAP measures exclude specified infrequent or unusual transactions that we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. For example, in third quarter 2024, we excluded the loss on the retirement of the Series C Preferred Stock from core earnings and core earnings per share, which is consistent with Farmer Mac's historical treatment of any losses on the retirement of preferred stock.

Net Effective Spread

Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs of those assets. As further explained below, net effective spread differs from net interest income and net interest yield by excluding certain items from net interest income and net interest yield and including certain other items that net interest income and net interest yield do not contain.

Farmer Mac excludes from net effective spread the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts to reflect management's view that the net interest income Farmer Mac earns on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees in determining Farmer Mac's core earnings. Farmer Mac also excludes from net effective spread the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on Farmer Mac's financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.

Net effective spread also differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). Farmer Mac uses interest rate swaps to manage its interest rate risk exposure by synthetically modifying the interest rate reset or maturity characteristics of certain assets and liabilities. The accrual of the contractual amounts due on interest rate swaps designated in hedge accounting relationships is included as an adjustment to the yield or cost of the hedged item and is included in net interest income. For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "(Losses)/gains on financial derivatives" on the consolidated statements of operations. However, the accrual of the contractual amounts due for undesignated financial derivatives are included in Farmer Mac's calculation of net effective spread.

Net effective spread also differs from net interest income and net interest yield because it includes the net effects of terminations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S.Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps. The inclusion of these items in net effective spread is intended to reflect our view of the complete net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.

More information about Farmer Mac's use of non-GAAP measures is available in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations" in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2024, filed February 21, 2025 with the SEC. For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, and net interest income and net interest yield to net effective spread, see "Reconciliations" below.

Forward-Looking Statements

Management's expectations for Farmer Mac's future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause Farmer Mac's actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release, including uncertainties about:

  • the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;
  • legislative, regulatory, or political developments that could affect Farmer Mac, its sources of business, or agricultural or infrastructure industries;
  • fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;
  • the level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;
  • the general rate of growth in agricultural mortgage and infrastructure indebtedness;
  • the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or infrastructure lending, borrower repayment capacity, or collateral values, including inflation, fluctuations in interest rates, changes in U.S. trade policies (including tariffs and trade restrictions), fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices;
  • the degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indexes;
  • developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;
  • the effects of the Federal Reserve's efforts to achieve monetary policy normalization to respond to inflation and employment levels; and
  • other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, or fluctuations in agricultural real estate values.

Other risk factors are discussed in "Risk Factors" in Part I, Item 1A in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 21, 2025. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. The forward-looking statements contained in this release represent management's expectations as of the date of this release. Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements included in this release to reflect new information or any future events or circumstances, except as otherwise required by applicable law. The information in this release is not necessarily indicative of future results.

About Farmer Mac

Farmer Mac is driven by its mission to increase the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure. Our secondary market provides liquidity to our nation's agricultural and infrastructure businesses, supporting a vibrant and strong rural America. We offer a wide range of solutions to help meet financial institutions' growth, liquidity, risk management, and capital relief needs across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy. We are uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and prosperity in America's rural and agricultural communities. Additional information about Farmer Mac (including the Annual Report on Form 10-K referenced above) is available on our website at www.farmermac.com.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)




As of


March 31, 2025


December 31, 2024


(in thousands)

Assets:




Cash and cash equivalents (includes restricted cash of $16,346 and $16,190, respectively)

$                 1,048,135


$                 1,024,007

Investment securities:




Available-for-sale, at fair value (amortized cost of $6,329,188 and $6,105,116, respectively)

6,230,080


5,953,014

Held-to-maturity, at amortized cost

9,125


9,270

Other investments

13,281


11,017

Total Investment Securities

6,252,486


5,973,301

Farmer Mac Guaranteed Securities:




Available-for-sale, at fair value (amortized cost of $5,859,630 and $5,835,658, respectively)

5,623,384


5,514,546

Held-to-maturity, at amortized cost

2,451,407


2,717,688

Total Farmer Mac Guaranteed Securities

8,074,791


8,232,234

USDA Securities:




Trading, at fair value

651


818

Held-to-maturity, at amortized cost

2,376,690


2,370,534

Total USDA Securities

2,377,341


2,371,352

Loans:




Loans held for sale, at lower of cost or fair value

6,045


6,170

Loans held for investment, at amortized cost

11,636,815


11,183,408

Loans held for investment in consolidated trusts, at amortized cost

2,005,680


2,038,283

Allowance for losses

(25,056)


(23,223)

Total loans, net of allowance

13,623,484


13,204,638

Financial derivatives, at fair value

27,867


27,789

Accrued interest receivable (includes $16,524 and $28,563, respectively, related to consolidated trusts)

262,809


310,592

Guarantee and commitment fees receivable

49,888


50,499

Deferred tax asset, net

—


1,544

Prepaid expenses and other assets

87,138


128,786

Total Assets

$               31,803,939


$               31,324,742





Liabilities and Equity:




Liabilities:




Notes payable

$               27,975,196


$               27,371,174

Debt securities of consolidated trusts held by third parties

1,894,920


1,929,628

Financial derivatives, at fair value

63,389


77,326

Accrued interest payable (includes $9,281 and $12,387, respectively, related to consolidated trusts)

221,954


195,113

Guarantee and commitment obligation

47,679


48,326

Accounts payable and accrued expenses

71,232


212,527

Deferred tax liability, net

2,402


—

Reserve for losses

1,521


1,622

Total Liabilities

30,278,293


29,835,716

Commitments and Contingencies




Equity:




Preferred stock:




Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding

96,659


96,659

Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding

77,003


77,003

Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding

116,160


116,160

Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding

121,327


121,327

Common stock:




Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding

1,031


1,031

Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding

500


500

Class C Non-Voting, $1 par value, no maximum authorization, 9,401,649 shares and 9,360,083 shares
outstanding, respectively

9,402


9,360

Additional paid-in capital

134,500


135,894

Accumulated other comprehensive loss, net of tax

(1,808)


(12,147)

Retained earnings

970,872


943,239

Total Equity

1,525,646


1,489,026

Total Liabilities and Equity

$               31,803,939


$               31,324,742

 

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)




For the Three Months Ended


March 31, 2025


March 31, 2024


(in thousands, except per share amounts)

Interest income:




Investments and cash equivalents

$                       83,308


$                       84,924

Farmer Mac Guaranteed Securities and USDA Securities

126,342


166,813

Loans

171,764


144,580

Total interest income

381,414


396,317

Total interest expense

290,475


309,949

Net interest income

90,939


86,368

(Provision for)/release of losses

(1,684)


1,801

Net interest income after (provision for)/release of losses

89,255


88,169

Non-interest income/(expense):




Guarantee and commitment fees

4,479


3,917

(Losses)/gains on financial derivatives

(2,636)


2,079

Release of reserve for losses

101


69

Other income

1,436


1,249

Non-interest income

3,380


7,314

Operating expenses:




Compensation and employee benefits

17,752


18,257

General and administrative

10,758


8,255

Regulatory fees

1,000


725

Operating expenses

29,510


27,237

Income before income taxes

63,125


68,246

Income tax expense

13,474


14,500

Net income

49,651


53,746

Preferred stock dividends

(5,666)


(6,791)

Net income attributable to common stockholders

$                       43,985


$                       46,955





Earnings per common share:




Basic earnings per common share

$                           4.04


$                           4.33

Diluted earnings per common share

$                           4.01


$                           4.28

 

Reconciliations

Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings for the periods indicated: 

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings


For the Three Months Ended


March 31, 2025


December 31, 2024


March 31, 2024


(in thousands, except per share amounts)

Net income attributable to common stockholders

$                    43,985


$                    50,848


$                   46,955

Less reconciling items:






(Losses)/gains on undesignated financial derivatives due to fair value
changes

(2,573)


3,084


1,683

Gains on hedging activities due to fair value changes

1,099


5,737


3,002

Unrealized gains/(losses) on trading assets

9


(83)


(14)

Net effects of amortization of premiums/discounts and deferred gains
on assets consolidated at fair value

28


(39)


31

Net effects of terminations or net settlements on financial derivatives

(1,070)


534


(192)

Income tax effect related to reconciling items

526


(1,939)


(947)

Sub-total

(1,981)


7,294


3,563

Core earnings

$                    45,966


$                    43,554


$                   43,392







Composition of Core Earnings:






Revenues:






Net effective spread(1)

$                    89,990


$                    87,528


$                   83,044

Guarantee and commitment fees(2)

5,488


5,086


4,982

Other(3)

1,315


(491)


1,077

Total revenues

96,793


92,123


89,103







Credit related expense/(income) (GAAP):






Provision for/(release of) losses

1,583


3,872


(1,870)

Loss on sale of REO

68


—


—

Total credit related expense/(income)

1,651


3,872


(1,870)







Operating expenses (GAAP):






Compensation and employee benefits

17,752


15,641


18,257

General and administrative

10,758


12,452


8,255

Regulatory fees

1,000


1,000


725

Total operating expenses

29,510


29,093


27,237







Net earnings

65,632


59,158


63,736

Income tax expense(4)

14,000


9,938


13,553

Preferred stock dividends (GAAP)

5,666


5,666


6,791

Core earnings

$                    45,966


$                    43,554


$                   43,392







Core earnings per share:






  Basic

$                        4.22


$                        4.00


$                       4.00

  Diluted

$                        4.19


$                        3.97


$                       3.96



(1)

Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread.  See below for a reconciliation of net interest income to net effective spread.

(2)

Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

(3)

Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(4)

Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

 

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share


For the Three Months Ended


March 31, 2025


December 31, 2024


March 31, 2024


(in thousands, except per share amounts)

GAAP - Basic EPS

$                       4.04


$                       4.67


$                       4.33

Less reconciling items:






(Losses)/gains on undesignated financial derivatives due to fair value
changes

(0.23)


0.28


0.16

Gains on hedging activities due to fair value changes

0.10


0.53


0.28

Unrealized (losses)/gains on trading securities

—


(0.01)


—

Net effects of amortization of premiums/discounts and deferred gains on
assets consolidated at fair value

—


—


—

Net effects of terminations or net settlements on financial derivatives

(0.10)


0.05


(0.02)

Income tax effect related to reconciling items

0.05


(0.18)


(0.09)

Sub-total

(0.18)


0.67


0.33

Core Earnings - Basic EPS

$                       4.22


$                       4.00


$                       4.00







Shares used in per share calculation (GAAP and Core Earnings)

10,896


10,889


10,847

 

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share


For the Three Months Ended


March 31, 2025


December 31, 2024


March 31, 2024


(in thousands, except per share amounts)

GAAP - Diluted EPS

$                       4.01


$                       4.63


$                       4.28

Less reconciling items:






(Losses)/gains on undesignated financial derivatives due to fair value
changes

(0.23)


0.28


0.15

Gains on hedging activities due to fair value changes

0.10


0.52


0.28

Unrealized (losses)/gains on trading securities

—


(0.01)


—

Net effects of amortization of premiums/discounts and deferred gains on
assets consolidated at fair value

—


—


—

Net effects of terminations or net settlements on financial derivatives

(0.10)


0.05


(0.02)

Income tax effect related to reconciling items

0.05


(0.18)


(0.09)

Sub-total

(0.18)


0.66


0.32

Core Earnings - Diluted EPS

$                       4.19


$                       3.97


$                       3.96







Shares used in per share calculation (GAAP and Core Earnings)

10,983


10,982


10,969

 

The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:

Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread


For the Three Months Ended


March 31, 2025


December 31, 2024


March 31, 2024


Dollars


Yield


Dollars


Yield


Dollars


Yield


(dollars in thousands)

Net interest income/yield

$    90,939


1.15 %


$    93,368


1.21 %


$    86,368


1.15 %

Net effects of consolidated trusts

(1,010)


0.02 %


(989)


0.02 %


(1,052)


0.02 %

Expense related to undesignated financial derivatives

318


— %


2


— %


(34)


— %

Amortization of premiums/discounts on assets consolidated at
fair value

(25)


— %


42


— %


(27)


— %

Amortization of losses due to terminations or net settlements on
financial derivatives

867


0.01 %


842


0.01 %


791


0.01 %

Fair value changes on fair value hedge relationships

(1,099)


(0.01) %


(5,737)


(0.08) %


(3,002)


(0.04) %

Net effective spread

$    89,990


1.17 %


$    87,528


1.16 %


$    83,044


1.14 %

 

The following table presents core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended March 31, 2025:

Core Earnings by Business Segment

For the Three Months Ended March 31, 2025


Agricultural Finance


Infrastructure Finance


Treasury




Farm &
Ranch


Corporate
AgFinance


Power &

Utilities


Broadband
Infrastructure


Renewable
Energy


Funding


Investments


Total


(in thousands)

Interest income

$   149,681


$    25,122


$    64,995


$         10,833


$       20,315


$      32,978


$      77,490


$     381,414

Interest expense(1)

(114,789)


(16,482)


(59,638)


(7,267)


(15,203)


(1,460)


(75,636)


(290,475)

Less: reconciling adjustments(2)(3)

(1,007)


—


(28)


—


—


86


—


(949)

Net effective spread

33,885


8,640


5,329


3,566


5,112


31,604


1,854


89,990

Guarantee and commitment fees(3)

4,551


197


221


336


183


—


—


5,488

Other income/(expense)

1,222


—


—


—


—


—


22


1,244

Release of/(provision for) losses

193


(828)


(77)


229


(1,100)


—


—


(1,583)

Operating expenses(1)

(6,595)


(2,133)


(1,123)


(1,052)


(1,708)


(2,800)


(823)


(16,234)

Income tax (expense)/benefit

(6,982)


(1,235)


(913)


(647)


(522)


(6,049)


(221)


(16,569)

Segment core earnings

$     26,274


$      4,641


$      3,437


$          2,432


$         1,965


$      22,755


$          832


$       62,336

















Reconciliation to net income:
















Net effects of derivatives and
trading securities















$       (2,535)

Unallocated (expenses)/income















(13,245)

Income tax effect related to
reconciling items















3,095

 Net income















$       49,651

















Total Assets:
















Total on- and off-balance sheet
segment assets at principal balance

$  18,094,515


$  1,889,363


$  7,187,966


$       974,835


$  1,608,664


$            —


$            —


$ 29,755,343

Off-balance sheet assets under
management















(5,071,733)

Unallocated assets















7,120,329

Total assets on the consolidated
balance sheets















$ 31,803,939



(1)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker ("CODM") .

(2)

Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.

(3)

Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. 

 

Supplemental Information

The following table sets forth information about outstanding volume in each of Farmer Mac's lines of business as of the dates indicated:

Outstanding Business Volume



On or Off
Balance Sheet


As of March 31, 2025


As of December 31, 2024





(in thousands)

Agricultural Finance:







Farm & Ranch:







Loans


On-balance sheet


$                         5,501,067


$                       5,414,732

Loans held in consolidated trusts:







Beneficial interests owned by third-party investors
(single-class)(1)


On-balance sheet


884,234


885,295

Beneficial interests owned by third-party investors
(structured)(1)


On-balance sheet


1,121,446


1,152,988

IO-FMGS(2)


On-balance sheet


8,537


8,710

USDA Securities


On-balance sheet


2,408,857


2,402,423

AgVantage Securities (1)


On-balance sheet


4,215,000


4,720,000

LTSPCs and unfunded loan commitments


Off-balance sheet


3,030,360


3,070,554

Other Farmer Mac Guaranteed Securities(3)


Off-balance sheet


414,291


426,310

Loans serviced for others


Off-balance sheet


510,723


525,956

Total Farm & Ranch




$                       18,094,515


$                     18,606,968

Corporate AgFinance:







Loans


On-balance sheet


$                         1,371,202


$                       1,381,674

AgVantage Securities (1)


On-balance sheet


267,728


280,297

Unfunded loan commitments


Off-balance sheet


250,433


225,734

Total Corporate AgFinance




$                         1,889,363


$                       1,887,705

Total Agricultural Finance




$                       19,983,878


$                     20,494,673

Infrastructure Finance:







Power & Utilities:







Loans


On-balance sheet


$                         3,020,475


$                       2,886,576

AgVantage Securities (1)


On-balance sheet


3,796,549


3,521,143

LTSPCs and unfunded loan commitments


Off-balance sheet


370,942


401,647

Total Power & Utilities




$                         7,187,966


$                       6,809,366

Broadband Infrastructure:







Loans


On-balance sheet


$                            657,836


$                          622,207

Unfunded loan commitments


Off-balance sheet


316,999


180,259

Total Broadband Infrastructure




$                            974,835


$                          802,466

Renewable Energy:







Loans


On-balance sheet


$                         1,430,679


$                       1,265,700

Unfunded loan commitments


Off-balance sheet


177,985


150,825

Total Renewable Energy




$                         1,608,664


$                       1,416,525

Total Infrastructure Finance




$                         9,771,465


$                       9,028,357

Total




$                       29,755,343


$                     29,523,030



(1)

A type of Farmer Mac Guaranteed Security.

(2)

An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization.

(3)

Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties

 

The following table presents the quarterly net effective spread (a non-GAAP measure) by segment:

Net Effective Spread


Agricultural Finance


 Infrastructure Finance


Treasury




Farm &

Ranch


Corporate
AgFinance


Power &
Utilities


Broadband
Infrastructure


Renewable
Energy


Funding


Investments


Net Effective
Spread


Dollars

Yield


Dollars

Yield


Dollars

Yield


Dollars

Yield


Dollars

Yield


Dollars

Yield


Dollars

Yield


Dollars

Yield


(dollars in thousands)

For the quarter ended:
















March 31, 2025

$     33,885


$       8,640


$       5,329


$       3,566


$       5,112


$     31,604


$       1,854


$     89,990


1.01 %


2.09 %


0.32 %


2.27 %


1.55 %


0.41 %


0.10 %


1.17 %

December 31, 2024

32,556


7,891


5,059


3,414


4,859


31,242


2,507


87,528


0.96 %


1.95 %


0.32 %


2.34 %


1.76 %


0.42 %


0.15 %


1.16 %

September 30, 2024

35,755


6,397


4,785


2,794


3,810


30,912


943


85,396


1.05 %


1.56 %


0.30 %


2.21 %


1.78 %


0.42 %


0.05 %


1.16 %

June 30, 2024

34,156


7,866


5,253


2,393


2,999


30,268


661


83,596


0.98 %


1.91 %


0.32 %


2.16 %


1.86 %


0.41 %


0.04 %


1.14 %

March 31, 2024

32,843


7,971


4,890


2,342


2,049


32,474


475


83,044


0.95 %


2.05 %


0.30 %


2.08 %


1.75 %


0.45 %


0.03 %


1.14 %

December 31, 2023

33,329


8,382


4,916


2,426


1,540


33,361


597


84,551


0.98 %


2.06 %


0.31 %


2.06 %


1.69 %


0.47 %


0.04 %


1.19 %

September 30, 2023

32,718


8,250


3,979


2,383


1,150


34,412


532


83,424


0.97 %


2.05 %


0.26 %


2.15 %


1.46 %


0.49 %


0.04 %


1.20 %

June 30, 2023

34,388


7,444


3,681


2,127


1,100


32,498


594


81,832


1.03 %


1.92 %


0.25 %


2.25 %


1.47 %


0.48 %


0.04 %


1.20 %

March 31, 2023

32,465


7,148


3,599


1,908


858


31,738


(543)


77,173


0.97 %


1.94 %


0.24 %


2.53 %


1.53 %


0.47 %


(0.04) %


1.15 %

 

The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:

Core Earnings by Quarter Ended


March
2025


December
2024


September
2024


June
2024


March
2024


December
2023


September
2023


June
2023


March
2023




(in thousands)

Revenues:


















Net effective spread

$   89,990


$   87,528


$   85,396


$  83,596


$  83,044


$   84,551


$   83,424


$  81,832


$  77,173

Guarantee and commitment fees

5,488


5,086


4,997


5,256


4,982


4,865


4,828


4,581


4,654

Gain on sale of investment securities

—


—


—


1,052


—


—


—


—


—

Loss on sale of mortgage loan

—


—


—


(1,147)


—


—


—


—


—

Other

1,315


(491)


1,133


481


1,077


767


1,056


409


1,067

Total revenues

96,793


92,123


91,526


89,238


89,103


90,183


89,308


86,822


82,894



















Credit related expense/(income):


















Provision for/(release of) losses

1,583


3,872


3,258


6,230


(1,870)


(575)


(181)


1,142


750

REO operating expenses

—


—


196


—


—


—


—


—


—

Losses on sale of REO

68


—


—


—


—


—


—


—


—

Total credit related expense/(income)

1,651


3,872


3,454


6,230


(1,870)


(575)


(181)


1,142


750



















Operating expenses:


















Compensation and employee benefits

17,752


15,641


15,237


14,840


18,257


15,523


14,103


13,937


15,351

General and administrative

10,758


12,452


8,625


8,904


8,255


8,916


9,100


9,420


7,527

Regulatory fees

1,000


1,000


725


725


725


725


831


831


835

Total operating expenses

29,510


29,093


24,587


24,469


27,237


25,164


24,034


24,188


23,713



















Net earnings

65,632


59,158


63,485


58,539


63,736


65,594


65,455


61,492


58,431

Income tax expense

14,000


9,938


12,681


11,970


13,553


13,881


13,475


12,539


12,756

Preferred stock dividends

5,666


5,666


5,897


6,792


6,791


6,791


6,792


6,791


6,791

Core earnings

$   45,966


$   43,554


$   44,907


$  39,777


$  43,392


$   44,922


$   45,188


$  42,162


$  38,884



















Reconciling items:


















(Losses)/gains on undesignated
financial derivatives due to fair value
changes

$   (2,573)


$     3,084


$   (1,064)


$     (359)


$    1,683


$      (836)


$     2,921


$    2,141


$      916

Gains/(losses) on hedging activities
due to fair value changes

1,099


5,737


205


2,604


3,002


(3,598)


3,210


(4,901)


(105)

Unrealized gains/(losses) on trading
assets

9


(83)


99


(87)


(14)


(37)


1,714


(57)


359

Net effects of amortization of
premiums/discounts and deferred gains
on assets consolidated at fair value

28


(39)


27


26


31


88


29


29


29

Net effects of terminations or net
settlements on financial derivatives

(1,070)


534


(503)


(1,505)


(192)


(800)


(79)


583


523

Issuance costs on the retirement of
preferred stock

—


—


(1,619)


—


—


—


—


—


—

Income tax effect related to reconciling
items

526


(1,939)


260


(143)


(947)


1,089


(1,638)


464


(362)

Net income attributable to common
stockholders

$   43,985


$   50,848


$   42,312


$  40,313


$  46,955


$   40,828


$   51,345


$  40,421


$  40,244

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/farmer-mac-reports-first-quarter-2025-results-302450693.html

SOURCE Farmer Mac