8-K
FEDERAL AGRICULTURAL MORTGAGE CORP (AGM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 3, 2025
FEDERAL AGRICULTURAL MORTGAGE CORPORATION
(Exact name of registrant as specified in its charter)
| Federally chartered instrumentality<br><br>of the United States | 001-14951 | 52-1578738 | |
|---|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission<br><br>File Number) | (IRS Employer Identification No.) | |
| 2100 Pennsylvania Avenue, N.W., Suite 450N, | 20037 | ||
| Washington, | DC | ||
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (202) 872-7700
No change
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Exchange on which registered |
|---|---|---|
| Class A voting common stock | AGM.A | New York Stock Exchange |
| Class C non-voting common stock | AGM | New York Stock Exchange |
| 5.700% Non-Cumulative Preferred Stock, Series D | AGM.PRD | New York Stock Exchange |
| 5.750% Non-Cumulative Preferred Stock, Series E | AGM.PRE | New York Stock Exchange |
| 5.250% Non-Cumulative Preferred Stock, Series F | AGM.PRF | New York Stock Exchange |
| 4.875% Non-Cumulative Preferred Stock, Series G | AGM.PRG | New York Stock Exchange |
| 6.500% Non-Cumulative Preferred Stock, Series H | AGM.PRH | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2025, the Federal Agricultural Mortgage Corporation (“Farmer Mac”) issued a press release to announce (1) its financial results for the quarterly period ended September 30, 2025 and (2) a conference call to discuss those results and Farmer Mac’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.1 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.
The information furnished in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (“Securities Act”), except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
On November 3, 2025, Farmer Mac posted an investor slide presentation for equity investors to its website at www.farmermac.com under the tab “Investors — Events and Presentations.” Farmer Mac expects to use the slide presentation in connection with future investor presentations to analysts and investors. The slide presentation is attached as Exhibit 99.2 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.2 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.
The information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated November 3, 2025
99.2 Equity investor slide presentation
104 Cover Page Inline Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document included as Exhibit 101
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION
By: /s/ Geraldine I. Hayhurst
Name: Geraldine I. Hayhurst
Title: Executive Vice President – Chief Legal Officer
Dated: November 3, 2025
Document
Farmer Mac Reports Third Quarter 2025 Results
- Outstanding Business Volume of $31.1 Billion -
WASHINGTON, D.C., November 3, 2025 — 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 September 30, 2025.
"I'm pleased to announce we've once again achieved record net effective spread and core earnings in the third quarter," said Chief Executive Officer, Brad Nordholm. "We delivered strong business volume growth, surpassing $31 billion for the quarter, building on the momentum established in our record first half of the year. Our total portfolio remains well-diversified by both commodity and geography, and we remain confident in the overall health of our portfolio. Our strengthened capital position further supports our balanced approach to invest in growth, maintain financial resilience, and deliver returns, all while remaining agile in a dynamic market environment."
Third Quarter 2025
•Provided $2.5 billion in liquidity and lending capacity to lenders serving rural America
•Net interest income grew 13% year-over-year to $98.5 million
•Net effective spread1 increased 14% from the prior-year period to a record $97.8 million
•Net income attributable to common stockholders of $48.7 million
•Record core earnings1 of $49.6 million, or $4.52 per diluted common share, reflecting 10% growth year-over-year
•Maintained strong capital position with total core capital of $1.7 billion, exceeding the statutory requirement by 75% and a Tier 1 Capital Ratio of 13.9% as of September 30, 2025
•As of September 30, 2025, Farmer Mac had 317 days of liquidity
•Issued $100.0 million of Tier 1 capital through the public offering of 6.500% Series H non-cumulative preferred stock
| in thousands, except per share amounts | Quarter Ended | |||||
|---|---|---|---|---|---|---|
| YoY % <br>Change | ||||||
| Net Change in Business Volume | 531,903 | 831,916 | (290,036) | N/A | N/A | |
| Net Interest Income (GAAP) | 98,477 | 96,797 | 86,791 | 2% | 13% | |
| Net Effective Spread (Non-GAAP) | 97,769 | 93,893 | 85,396 | 4% | 14% | |
| Diluted EPS (GAAP) | 4.44 | 4.48 | 3.86 | (1)% | 15% | |
| Diluted Core EPS (Non-GAAP) | 4.52 | 4.32 | 4.10 | 5% | 10% |
All values are in US Dollars.
1 Non-GAAP Measure
Earnings Conference Call Information
The conference call to discuss Farmer Mac's third quarter 2025 financial results will be held beginning at 4:30 p.m. eastern time on Monday, November 3, 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 third quarter 2025 is in Farmer Mac's
Quarterly Report on Form 10-Q for the quarter ended September 30, 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 common 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 common share ("Core EPS"), which are non-GAAP measures, and net income attributable to common stockholders and earnings per common share ("EPS"), which are 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 EPS, 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 by excluding certain items from net interest income and including certain other items that net interest income does not contain.
Net effective spread excludes the interest income and interest expense associated with consolidated trusts with beneficial interests owned by third parties (single-class) and the average balance of the loans underlying these trusts to reflect management's view that the net interest income earned 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. Net effective spread also excludes the fair value changes of financial derivatives and the corresponding average balances of 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.
Farmer Mac uses net effective spread to show the complete net spread between its interest-earning assets and all related net funding costs, including any associated derivatives, whether or not they are designated in a hedge accounting relationship. Accordingly, the net effective spread 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"). For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "Losses on financial derivatives" on the consolidated statements of operations.
Net effective spread also differs from net interest income because it includes the net effects of terminations or net settlements on undesignated 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.
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 current or future 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 is available on our website at www.farmermac.com.
CONTACT: Jalpa Nazareth, Investor Relations
Lisa Meyer, Media Inquiries
(202) 872-7700
* * * *
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
| December 31, 2024 | |||
| Assets: | |||
| Cash and cash equivalents (includes restricted cash of 16,579 and 16,190, respectively) | 901,023 | $ | 1,024,007 |
| Investment securities: | |||
| Available-for-sale, at fair value (amortized cost of 6,714,777 and 6,105,116, respectively) | 5,953,014 | ||
| Held-to-maturity, at amortized cost | 9,270 | ||
| Other investments | 11,017 | ||
| Total Investment Securities | 5,973,301 | ||
| Farmer Mac Guaranteed Securities: | |||
| Available-for-sale, at fair value (amortized cost of 6,042,789 and 5,835,658, respectively) | 5,514,546 | ||
| Held-to-maturity, at amortized cost | 2,717,688 | ||
| Total Farmer Mac Guaranteed Securities | 8,232,234 | ||
| A Securities: | |||
| Trading, at fair value | 818 | ||
| Held-to-maturity, at amortized cost | 2,370,534 | ||
| Total A Securities | 2,371,352 | ||
| Loans: | |||
| Loans held for sale, at lower of cost or fair value | 6,170 | ||
| Loans held for investment, at amortized cost | 11,183,408 | ||
| Loans held for investment in consolidated trusts, at amortized cost | 2,038,283 | ||
| Allowance for losses | (23,223) | ||
| Total loans, net of allowance | 13,204,638 | ||
| Financial derivatives, at fair value | 27,789 | ||
| Accrued interest receivable (includes 22,373 and 28,563, respectively, related to consolidated trusts) | 310,592 | ||
| Guarantee and commitment fees receivable | 50,499 | ||
| Deferred tax asset, net | 1,544 | ||
| Prepaid expenses and other assets | 128,786 | ||
| Total Assets | 33,379,560 | $ | 31,324,742 |
| Liabilities and Equity: | |||
| Liabilities: | |||
| Notes payable | 29,196,780 | $ | 27,371,174 |
| Debt securities of consolidated trusts held by third parties | 1,929,628 | ||
| Financial derivatives, at fair value | 77,326 | ||
| Accrued interest payable (includes 11,945 and 12,387, respectively, related to consolidated trusts) | 195,113 | ||
| Guarantee and commitment obligation | 48,326 | ||
| Accounts payable and accrued expenses | 212,527 | ||
| Reserve for losses | 1,622 | ||
| Total Liabilities | 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 | ||
| Series E, par value 25 per share, 3,180,000 shares authorized, issued and outstanding | 77,003 | ||
| Series F, par value 25 per share, 4,800,000 shares authorized, issued and outstanding | 116,160 | ||
| Series G, par value 25 per share, 5,000,000 shares authorized, issued and outstanding | 121,327 | ||
| Series H, par value 25 per share, 4,000,000 shares authorized, issued and outstanding | — | ||
| Common stock: | |||
| Class A Voting, 1 par value, no maximum authorization, 1,030,780 shares outstanding | 1,031 | ||
| Class B Voting, 1 par value, no maximum authorization, 500,301 shares outstanding | 500 | ||
| Class C Non-Voting, 1 par value, no maximum authorization, 9,403,453 shares and 9,360,083 shares outstanding, respectively | 9,360 | ||
| Additional paid-in capital | 135,894 | ||
| Accumulated other comprehensive loss, net of tax | (12,147) | ||
| Retained earnings | 943,239 | ||
| Total Equity | 1,489,026 | ||
| Total Liabilities and Equity | 33,379,560 | $ | 31,324,742 |
All values are in US Dollars.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||||
| (in thousands, except per share amounts) | ||||||||
| Interest income: | ||||||||
| Investments and cash equivalents | $ | 93,398 | $ | 88,879 | $ | 265,691 | $ | 258,341 |
| Farmer Mac Guaranteed Securities and USDA Securities | 123,484 | 156,602 | 374,824 | 489,478 | ||||
| Loans | 198,459 | 162,247 | 555,262 | 459,932 | ||||
| Total interest income | 415,341 | 407,728 | 1,195,777 | 1,207,751 | ||||
| Total interest expense | 316,864 | 320,937 | 909,564 | 947,252 | ||||
| Net interest income | 98,477 | 86,791 | 286,213 | 260,499 | ||||
| Provision for losses | (7,477) | (3,428) | (16,874) | (7,806) | ||||
| Net interest income after provision for losses | 91,000 | 83,363 | 269,339 | 252,693 | ||||
| Non-interest income/(expense): | ||||||||
| Guarantee and commitment fees | 5,021 | 4,015 | 14,316 | 11,729 | ||||
| Losses on financial derivatives | (1,062) | (1,934) | (3,618) | (1,654) | ||||
| Losses on sale of mortgage loans | — | — | — | (1,147) | ||||
| Gains on sale of available-for-sale investment securities | — | — | — | 1,052 | ||||
| Release of reserve for losses | 44 | 170 | 46 | 188 | ||||
| Other income | 1,482 | 1,222 | 3,958 | 3,145 | ||||
| Non-interest income | 5,485 | 3,473 | 14,702 | 13,313 | ||||
| Operating expenses: | ||||||||
| Compensation and employee benefits | 17,743 | 15,237 | 53,126 | 48,334 | ||||
| General and administrative | 11,052 | 8,625 | 32,669 | 25,784 | ||||
| Regulatory fees | 1,000 | 725 | 3,000 | 2,175 | ||||
| Operating expenses | 29,795 | 24,587 | 88,795 | 76,293 | ||||
| Income before income taxes | 66,690 | 62,249 | 195,246 | 189,713 | ||||
| Income tax expense | 11,687 | 12,421 | 35,755 | 39,034 | ||||
| Net income | 55,003 | 49,828 | 159,491 | 150,679 | ||||
| Preferred stock dividends | (6,303) | (5,897) | (17,636) | (19,480) | ||||
| Loss on retirement of preferred stock | — | (1,619) | — | (1,619) | ||||
| Net income attributable to common stockholders | $ | 48,700 | $ | 42,312 | $ | 141,855 | $ | 129,580 |
| Earnings per common share: | ||||||||
| Basic earnings per common share | $ | 4.45 | $ | 3.89 | $ | 12.99 | $ | 11.93 |
| Diluted earnings per common share | $ | 4.44 | $ | 3.86 | $ | 12.93 | $ | 11.82 |
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 | ||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||
| (in thousands, except per share amounts) | ||||||
| Net income attributable to common stockholders | $ | 48,700 | $ | 49,170 | $ | 42,312 |
| Less reconciling items: | ||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 882 | (639) | (1,064) | |||
| (Losses)/gains on hedging activities due to fair value changes | (137) | 2,709 | 205 | |||
| Unrealized (losses)/gains on trading assets | (4) | (65) | 99 | |||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 26 | 25 | 27 | |||
| Net effects of terminations or net settlements on financial derivatives | (1,934) | 255 | (503) | |||
| Issuance costs on the retirement of preferred stock | — | — | (1,619) | |||
| Income tax effect related to reconciling items | 245 | (480) | 260 | |||
| Sub-total | (922) | 1,805 | (2,595) | |||
| Core earnings | $ | 49,622 | $ | 47,365 | $ | 44,907 |
| Composition of Core Earnings: | ||||||
| Revenues: | ||||||
| Net effective spread(1) | $ | 97,769 | $ | 93,893 | $ | 85,396 |
| Guarantee and commitment fees(2) | 6,132 | 5,874 | 4,997 | |||
| Other(3) | 1,185 | 742 | 1,133 | |||
| Total revenues | 105,086 | 100,509 | 91,526 | |||
| Credit related expense/(income) (GAAP): | ||||||
| Provision for losses | 7,433 | 7,812 | 3,258 | |||
| REO operating expenses | — | 148 | 196 | |||
| Gain on sale of REO | — | (87) | — | |||
| Total credit related expense/(income) | 7,433 | 7,873 | 3,454 | |||
| Operating expenses (GAAP): | ||||||
| Compensation and employee benefits | 17,743 | 17,631 | 15,237 | |||
| General and administrative | 11,052 | 10,859 | 8,625 | |||
| Regulatory fees | 1,000 | 1,000 | 725 | |||
| Total operating expenses | 29,795 | 29,490 | 24,587 | |||
| Net earnings | 67,858 | 63,146 | 63,485 | |||
| Income tax expense(4) | 11,933 | 10,114 | 12,681 | |||
| Preferred stock dividends (GAAP) | 6,303 | 5,667 | 5,897 | |||
| Core earnings | $ | 49,622 | $ | 47,365 | $ | 44,907 |
| Core earnings per share: | ||||||
| Basic | $ | 4.54 | $ | 4.33 | $ | 4.13 |
| Diluted | $ | 4.52 | $ | 4.32 | $ | 4.10 |
(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 net interest income of $1.1 million for both the three months ended September 30, 2025 and 2024, 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 Net Income Attributable to Common Stockholders to Core Earnings | ||||
|---|---|---|---|---|
| For the Nine Months Ended | ||||
| September 30, 2025 | September 30, 2024 | |||
| (in thousands, except per share amounts) | ||||
| Net income attributable to common stockholders | $ | 141,855 | $ | 129,580 |
| Less reconciling items: | ||||
| (Losses)/gains on undesignated financial derivatives due to fair value changes | (2,330) | 260 | ||
| Gains on hedging activities due to fair value changes | 3,671 | 5,811 | ||
| Unrealized losses on trading assets | (60) | (2) | ||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 79 | 84 | ||
| Net effects of terminations or net settlements on financial derivatives | (2,749) | (2,200) | ||
| Issuance costs on the retirement of preferred stock | — | (1,619) | ||
| Income tax effect related to reconciling items | 291 | (830) | ||
| Sub-total | (1,098) | 1,504 | ||
| Core earnings | $ | 142,953 | $ | 128,076 |
| Composition of Core Earnings: | ||||
| Revenues: | ||||
| Net effective spread(1) | $ | 281,652 | $ | 252,036 |
| Guarantee and commitment fees(2) | 17,494 | 15,235 | ||
| Gain on sale of investment securities (GAAP) | — | 1,052 | ||
| Loss on sale of mortgage loan (GAAP) | — | (1,147) | ||
| Other(3) | 3,242 | 2,691 | ||
| Total revenues | 302,388 | 269,867 | ||
| Credit related expense/(income) (GAAP): | ||||
| Provision for losses | 16,828 | 7,618 | ||
| REO operating expenses | 148 | 196 | ||
| Gain on sale of REO | (19) | — | ||
| Total credit related expense/(income) | 16,957 | 7,814 | ||
| Operating expenses (GAAP): | ||||
| Compensation and employee benefits | 53,126 | 48,334 | ||
| General and administrative | 32,669 | 25,784 | ||
| Regulatory fees | 3,000 | 2,175 | ||
| Total operating expenses | 88,795 | 76,293 | ||
| Net earnings | 196,636 | 185,760 | ||
| Income tax expense(4) | 36,047 | 38,204 | ||
| Preferred stock dividends (GAAP) | 17,636 | 19,480 | ||
| Core earnings | $ | 142,953 | $ | 128,076 |
| Core earnings per share: | ||||
| Basic | $ | 13.09 | $ | 11.79 |
| Diluted | $ | 13.03 | $ | 11.69 |
(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 net interest income of $3.1 million and $3.5 million for the nine months ended September 30, 2025 and 2024, respectively, 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 | For the Nine Months Ended | |||||||||
| September 30, 2025 | June 30,<br>2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||
| (in thousands, except per share amounts) | ||||||||||
| GAAP - Basic EPS | $ | 4.45 | $ | 4.50 | $ | 3.89 | $ | 12.99 | $ | 11.93 |
| Less reconciling items: | ||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.08 | (0.06) | (0.09) | (0.21) | 0.02 | |||||
| (Losses)/gains on hedging activities due to fair value changes | (0.01) | 0.25 | 0.02 | 0.33 | 0.54 | |||||
| Unrealized (losses)/gains on trading securities | — | (0.01) | 0.01 | (0.01) | — | |||||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | — | — | 0.01 | 0.01 | |||||
| Net effects of terminations or net settlements on financial derivatives | (0.18) | 0.03 | (0.05) | (0.25) | (0.20) | |||||
| Issuance costs on the retirement of preferred stock | — | — | (0.15) | — | (0.15) | |||||
| Income tax effect related to reconciling items | 0.02 | (0.04) | 0.02 | 0.03 | (0.08) | |||||
| Sub-total | (0.09) | 0.17 | (0.24) | (0.10) | 0.14 | |||||
| Core Earnings - Basic EPS | $ | 4.54 | $ | 4.33 | $ | 4.13 | $ | 13.09 | $ | 11.79 |
| Shares used in per share calculation (GAAP and Core Earnings) | 10,934 | 10,933 | 10,883 | 10,921 | 10,869 | |||||
| Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| For the Three Months Ended | For the Nine Months Ended | |||||||||
| September 30, 2025 | June 30,<br>2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||
| (in thousands, except per share amounts) | ||||||||||
| GAAP - Diluted EPS | $ | 4.44 | $ | 4.48 | $ | 3.86 | $ | 12.93 | $ | 11.82 |
| Less reconciling items: | ||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.08 | (0.06) | (0.09) | (0.21) | 0.02 | |||||
| (Losses)/gains on hedging activities due to fair value changes | (0.01) | 0.25 | 0.02 | 0.33 | 0.53 | |||||
| Unrealized (losses)/gains on trading securities | — | (0.01) | 0.01 | (0.01) | — | |||||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | — | — | 0.01 | 0.01 | |||||
| Net effects of terminations or net settlements on financial derivatives | (0.17) | 0.02 | (0.05) | (0.25) | (0.20) | |||||
| Issuance costs on the retirement of preferred stock | — | — | (0.15) | — | (0.15) | |||||
| Income tax effect related to reconciling items | 0.02 | (0.04) | 0.02 | 0.03 | (0.08) | |||||
| Sub-total | (0.08) | 0.16 | (0.24) | (0.10) | 0.13 | |||||
| Core Earnings - Diluted EPS | $ | 4.52 | $ | 4.32 | $ | 4.10 | $ | 13.03 | $ | 11.69 |
| Shares used in per share calculation (GAAP and Core Earnings) | 10,972 | 10,963 | 10,966 | 10,973 | 10,968 |
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 | For the Nine Months Ended | |||||||||||||||||||
| September 30, 2025 | June 30,<br>2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | ||||||||||||||||
| Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | |||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Net interest income | $ | 98,477 | 1.18 | % | $ | 96,797 | 1.20 | % | $ | 86,791 | 1.15 | % | $ | 286,213 | 1.17 | % | $ | 260,499 | 1.15 | % |
| Net effects of consolidated trusts | (1,102) | 0.02 | % | (987) | 0.02 | % | (1,065) | 0.02 | % | (3,100) | 0.02 | % | (3,488) | 0.02 | % | |||||
| Expense related to undesignated financial derivatives | (707) | (0.01) | % | (208) | — | % | (858) | (0.01) | % | (597) | — | % | (1,379) | (0.01) | % | |||||
| Amortization of premiums/discounts on assets consolidated at fair value | (23) | — | % | (22) | — | % | (24) | — | % | (69) | — | % | (72) | — | % | |||||
| Amortization of losses due to terminations or net settlements on financial derivatives | 987 | 0.01 | % | 1,022 | 0.01 | % | 757 | 0.01 | % | 2,876 | 0.01 | % | 2,287 | 0.01 | % | |||||
| Fair value changes on fair value hedge relationships | 137 | — | % | (2,709) | (0.04) | % | (205) | (0.01) | % | (3,671) | (0.01) | % | (5,811) | (0.02) | % | |||||
| Net effective spread | $ | 97,769 | 1.20 | % | $ | 93,893 | 1.19 | % | $ | 85,396 | 1.16 | % | $ | 281,652 | 1.19 | % | $ | 252,036 | 1.15 | % |
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 September 30, 2025:
| Core Earnings by Business Segment | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended September 30, 2025 | ||||||||||||||||
| Agricultural Finance | Infrastructure Finance | Treasury | ||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power &<br><br>Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Total | |||||||||
| (in thousands) | ||||||||||||||||
| Interest income | $ | 154,020 | $ | 26,662 | $ | 69,746 | $ | 13,375 | $ | 28,616 | $ | 36,139 | $ | 86,783 | $ | 415,341 |
| Interest expense(1) | (118,081) | (17,615) | (63,810) | (8,996) | (20,886) | (1,686) | (85,790) | (316,864) | ||||||||
| Less: reconciling adjustments(2)(3) | (1,099) | — | (26) | — | — | 324 | 93 | (708) | ||||||||
| Net effective spread | 34,840 | 9,047 | 5,910 | 4,379 | 7,730 | 34,777 | 1,086 | 97,769 | ||||||||
| Guarantee and commitment fees(3) | 4,572 | 218 | 212 | 701 | 429 | — | — | 6,132 | ||||||||
| Other income/(expense) | 1,080 | 111 | (7) | — | — | — | (1) | 1,183 | ||||||||
| (Provision for)/release of losses | (4,050) | (2,787) | 424 | (410) | (616) | — | 6 | (7,433) | ||||||||
| Operating expenses(1) | (6,721) | (3,131) | (1,122) | (1,362) | (1,649) | (2,712) | (760) | (17,457) | ||||||||
| Income tax (expense)/benefit | (6,240) | (727) | (1,137) | (695) | (1,238) | (6,734) | (70) | (16,841) | ||||||||
| Segment core earnings | $ | 23,481 | $ | 2,731 | $ | 4,280 | $ | 2,613 | $ | 4,656 | $ | 25,331 | $ | 261 | $ | 63,353 |
| Reconciliation to net income: | ||||||||||||||||
| Net effects of derivatives and trading securities | $ | (1,193) | ||||||||||||||
| Unallocated (expenses)/income | (12,311) | |||||||||||||||
| Income tax effect related to reconciling items | 5,154 | |||||||||||||||
| Net income | $ | 55,003 | ||||||||||||||
| Total Assets: | ||||||||||||||||
| Total on- and off-balance sheet segment assets at principal balance | $ | 18,218,755 | $ | 1,891,228 | $ | 7,426,517 | $ | 1,299,097 | $ | 2,283,565 | $ | — | $ | — | $ | 31,119,162 |
| Off-balance sheet assets under management | (5,264,616) | |||||||||||||||
| Unallocated assets | 7,525,014 | |||||||||||||||
| Total assets on the consolidated balance sheets | $ | 33,379,560 |
(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 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 <br>Balance Sheet | As of September 30, 2025 | As of December 31, 2024 | |||
| (in thousands) | |||||
| Agricultural Finance: | |||||
| Farm & Ranch: | |||||
| Loans | On-balance sheet | $ | 5,915,220 | $ | 5,414,732 |
| Loans held in consolidated trusts: | |||||
| Beneficial interests owned by third-party investors (single-class)(1) | On-balance sheet | 840,636 | 885,295 | ||
| Beneficial interests owned by third-party investors (structured)(1) | On-balance sheet | 1,364,577 | 1,152,988 | ||
| IO-FMGS(2) | On-balance sheet | 8,206 | 8,710 | ||
| USDA Securities | On-balance sheet | 2,443,583 | 2,402,423 | ||
| AgVantage Securities(1) | On-balance sheet | 3,745,000 | 4,720,000 | ||
| LTSPCs and unfunded loan commitments | Off-balance sheet | 3,100,205 | 3,070,554 | ||
| Other Farmer Mac Guaranteed Securities(3) | Off-balance sheet | 392,358 | 426,310 | ||
| Loans serviced for others | Off-balance sheet | 408,970 | 525,956 | ||
| Total Farm & Ranch | $ | 18,218,755 | $ | 18,606,968 | |
| Corporate AgFinance: | |||||
| Loans | On-balance sheet | $ | 1,452,398 | $ | 1,381,674 |
| AgVantage Securities(1) | On-balance sheet | 202,561 | 280,297 | ||
| Unfunded loan commitments | Off-balance sheet | 236,269 | 225,734 | ||
| Total Corporate AgFinance | $ | 1,891,228 | $ | 1,887,705 | |
| Total Agricultural Finance | $ | 20,109,983 | $ | 20,494,673 | |
| Infrastructure Finance: | |||||
| Power & Utilities: | |||||
| Loans | On-balance sheet | $ | 3,337,176 | $ | 2,886,576 |
| AgVantage Securities(1) | On-balance sheet | 3,734,085 | 3,521,143 | ||
| LTSPCs and unfunded loan commitments | Off-balance sheet | 355,256 | 401,647 | ||
| Total Power & Utilities | $ | 7,426,517 | $ | 6,809,366 | |
| Broadband Infrastructure: | |||||
| Loans | On-balance sheet | $ | 817,587 | $ | 622,207 |
| Unfunded loan commitments | Off-balance sheet | 481,510 | 180,259 | ||
| Total Broadband Infrastructure | $ | 1,299,097 | $ | 802,466 | |
| Renewable Energy: | |||||
| Loans | On-balance sheet | $ | 1,993,517 | $ | 1,265,700 |
| Unfunded loan commitments | Off-balance sheet | 290,048 | 150,825 | ||
| Total Renewable Energy | $ | 2,283,565 | $ | 1,416,525 | |
| Total Infrastructure Finance | $ | 11,009,179 | $ | 9,028,357 | |
| Total | $ | 31,119,162 | $ | 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 & <br>Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Net Effective Spread | |||||||||||||||||
| Dollars<br><br>Yield | Dollars<br>Yield | Dollars<br>Yield | Dollars<br>Yield | Dollars<br>Yield | Dollars<br>Yield | Dollars<br>Yield | Dollars<br>Yield | |||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| For the quarter ended: | ||||||||||||||||||||||||
| September 30, 2025 | $ | 34,840 | $ | 9,047 | $ | 5,910 | $ | 4,379 | $ | 7,730 | $ | 34,777 | $ | 1,086 | $ | 97,769 | ||||||||
| 1.04 | % | 2.16 | % | 0.34 | % | 2.30 | % | 1.75 | % | 0.43 | % | 0.05 | % | 1.20 | % | |||||||||
| June 30, 2025 | 35,710 | 8,609 | 5,636 | 3,932 | 6,227 | 31,668 | 2,111 | 93,893 | ||||||||||||||||
| 1.07 | % | 2.07 | % | 0.33 | % | 2.24 | % | 1.68 | % | 0.40 | % | 0.11 | % | 1.19 | % | |||||||||
| 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 | % |
The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:
| Core Earnings by Quarter Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 2025 | June 2025 | March 2025 | December 2024 | September 2024 | June 2024 | March 2024 | December 2023 | September 2023 | ||||||||||
| (in thousands) | ||||||||||||||||||
| Revenues: | ||||||||||||||||||
| Net effective spread | $ | 97,769 | $ | 93,893 | $ | 89,990 | $ | 87,528 | $ | 85,396 | $ | 83,596 | $ | 83,044 | $ | 84,551 | $ | 83,424 |
| Guarantee and commitment fees | 6,132 | 5,874 | 5,488 | 5,086 | 4,997 | 5,256 | 4,982 | 4,865 | 4,828 | |||||||||
| Gain on sale of investment securities | — | — | — | — | — | 1,052 | — | — | — | |||||||||
| Loss on sale of mortgage loan | — | — | — | — | — | (1,147) | — | — | — | |||||||||
| Other | 1,185 | 742 | 1,315 | (491) | 1,133 | 481 | 1,077 | 767 | 1,056 | |||||||||
| Total revenues | 105,086 | 100,509 | 96,793 | 92,123 | 91,526 | 89,238 | 89,103 | 90,183 | 89,308 | |||||||||
| Credit related expense/(income): | ||||||||||||||||||
| Provision for/(release of) losses | 7,433 | 7,812 | 1,583 | 3,872 | 3,258 | 6,230 | (1,870) | (575) | (181) | |||||||||
| REO operating expenses | — | 148 | — | — | 196 | — | — | — | — | |||||||||
| (Gain)/loss on REO | — | (87) | 68 | — | — | — | — | — | — | |||||||||
| Total credit related expense/(income) | 7,433 | 7,873 | 1,651 | 3,872 | 3,454 | 6,230 | (1,870) | (575) | (181) | |||||||||
| Operating expenses: | ||||||||||||||||||
| Compensation and employee benefits | 17,743 | 17,631 | 17,752 | 15,641 | 15,237 | 14,840 | 18,257 | 15,523 | 14,103 | |||||||||
| General and administrative | 11,052 | 10,859 | 10,758 | 12,452 | 8,625 | 8,904 | 8,255 | 8,916 | 9,100 | |||||||||
| Regulatory fees | 1,000 | 1,000 | 1,000 | 1,000 | 725 | 725 | 725 | 725 | 831 | |||||||||
| Total operating expenses | 29,795 | 29,490 | 29,510 | 29,093 | 24,587 | 24,469 | 27,237 | 25,164 | 24,034 | |||||||||
| Net earnings | 67,858 | 63,146 | 65,632 | 59,158 | 63,485 | 58,539 | 63,736 | 65,594 | 65,455 | |||||||||
| Income tax expense | 11,933 | 10,114 | 14,000 | 9,938 | 12,681 | 11,970 | 13,553 | 13,881 | 13,475 | |||||||||
| Preferred stock dividends | 6,303 | 5,667 | 5,666 | 5,666 | 5,897 | 6,792 | 6,791 | 6,791 | 6,792 | |||||||||
| Core earnings | $ | 49,622 | $ | 47,365 | $ | 45,966 | $ | 43,554 | $ | 44,907 | $ | 39,777 | $ | 43,392 | $ | 44,922 | $ | 45,188 |
| Reconciling items: | ||||||||||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | $ | 882 | $ | (639) | $ | (2,573) | $ | 3,084 | $ | (1,064) | $ | (359) | $ | 1,683 | $ | (836) | $ | 2,921 |
| (Losses)/gains on hedging activities due to fair value changes | (137) | 2,709 | 1,099 | 5,737 | 205 | 2,604 | 3,002 | (3,598) | 3,210 | |||||||||
| Unrealized (losses)/gains on trading assets | (4) | (65) | 9 | (83) | 99 | (87) | (14) | (37) | 1,714 | |||||||||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 26 | 25 | 28 | (39) | 27 | 26 | 31 | 88 | 29 | |||||||||
| Net effects of terminations or net settlements on financial derivatives | (1,934) | 255 | (1,070) | 534 | (503) | (1,505) | (192) | (800) | (79) | |||||||||
| Issuance costs on the retirement of preferred stock | — | — | — | — | (1,619) | — | — | — | — | |||||||||
| Income tax effect related to reconciling items | 245 | (480) | 526 | (1,939) | 260 | (143) | (947) | 1,089 | (1,638) | |||||||||
| Net income attributable to common stockholders | $ | 48,700 | $ | 49,170 | $ | 43,985 | $ | 50,848 | $ | 42,312 | $ | 40,313 | $ | 46,955 | $ | 40,828 | $ | 51,345 |
15
a3q25equityinvestorprese
Equity Investor Presentation Third Quarter 2025
Forward-Looking Statements 2 This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about Farmer Mac's plans, objectives, expectations, beliefs and intentions and other statements including words such as “may,” “likely,” “believe,” “expect,” “consider,” “intend,” “should,” “estimate,” “continue,” and “commit,” or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of Farmer Mac and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this presentation. 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 presentation, 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 current or future 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. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in Farmer Mac’s filings from time to time with the Securities and Exchange Commission (the "SEC"), including in Farmer Mac’s Annual Reports on Form 10-K and Quarterly Reports on Form 10- Q, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as Farmer Mac’s other filings with the SEC (including Current Reports on Form 8-K) available at the SEC’s website (www.sec.gov). These reports are also available on Farmer Mac’s website (www.farmermac.com). All forward-looking statements are based on information available to Farmer Mac on the date hereof, and Farmer Mac assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. NO OFFER OR SOLICITATION OF SECURITIES This presentation does not constitute an offer to sell or a solicitation of an offer to buy any Farmer Mac security. Farmer Mac securities are offered only in jurisdictions where permissible by offering documents available through qualified securities dealers. Any investor who is considering purchasing a Farmer Mac security should consult the applicable offering documents for the security and their own financial and legal advisors for information about and analysis of the security, the risks associated with the security, and the suitability of the investment for the investor’s particular circumstances. Copyright © 2025 by Farmer Mac. No part of this document may be duplicated, reproduced, distributed, or displayed in public in any manner or by any means without the written permission of Farmer Mac.
Use of Non-GAAP Financial Measures 3 This presentation is for general informational purposes only, is current only as of September 30, 2025 and should be read in conjunction with Farmer Mac’s Quarterly Report on Form 10-Q filed with the SEC on November 3, 2025. In the accompanying analysis of its financial information, Farmer Mac uses the following non-GAAP financial 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 financial 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. For a reconciliation of core earnings to GAAP net income attributable to common stockholders and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 23-24 of the Appendix. Core earnings and core earnings per share principally differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding 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. Core earnings and core earnings per share also differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding specified infrequent or unusual transactions that Farmer Mac believes are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. 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 these assets. Net effective spread differs from net interest income and net interest yield because it excludes: (1) the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts; and (2) the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships. Net effective spread also principally 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") and the net effects of terminations or net settlements on financial derivatives, which consists of: 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 the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps.
4 FARMER MAC AT A GLANCE (NYSE: AGM) Key Highlights Market Cap* $2B 10-Year Revenue CAGR** 11% 10-Year Core EPS CAGR** 13% 10-Year Dividend CAGR** 28% Employees* 209 $18.2B Farm & Ranch $1.9B Corporate AgFinance $7.4B Power & Utilities $2.3B Renewable Energy $1.3B Broadband Infrastructure As of 9/30/2025 Business Volume by Segment *As of September 30, 2025 **The 10-year period is from December 31, 2014 – December 31, 2024. CAGR is defined as Compound Annual Growth Rate.
3Q25 Key Metrics Core Return on Common Equity*, Annualized Efficiency Ratio 17% 27% Unique, Mission-Driven Operating Model • Mission directly supports low-cost access to capital for U.S. agriculture and rural infrastructure • GSE status provides steady, low-cost access to funding markets • Disciplined asset-liability management supports consistent returns for shareholders Resilient Business Model Supports Consistent Dividend Growth • Greater than 90% of total revenues are recurring net effective spread and fees • Core Return on Common Equity* maintained above 15% over last 5 years • 14 consecutive annual dividend increases Lean & Efficient Operations • Generated approximately $900,000 net earnings per employee in FY24 • Maintain an operating efficiency ratio at or below 30% 5 FARMER MAC’S COMPETITIVE ADVANTAGE Our Operating Model Operating model excludes issued agricultural mortgage-backed securities and long-term standby purchase commitment credit protection components of our business. *Core Return on Common Equity is defined as core earnings divided by average common equity.
Over the past 10 years, Farmer Mac’s revenue has consistently grown through a variety of different economic cycles, with revenue growth being driven by: • Strong underlying fundamentals and resilient business model • Low-cost access to debt capital markets and disciplined asset-liability management strategies • Diversified lines of business • Consistent credit underwriting standards and policies 6 CONSISTENT REVENUE GROWTH 10 Year CAGR Farmer Mac 11.2% S&P 500 4.9% S&P 500 Financials 5.3% *Revenue performance is indexed at $100 million in 2013 to help provide a better comparison of the performance of Farmer Mac, the S&P 500, and the S&P 500 Financials Index. 0 1 2 3 4 5 6 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fe d Fu nd s Ef fe ct iv e R at e (% ) R ev en ue P er fo rm an ce Indexed Revenue Performance* AGM S&P 500 S&P 500-40 Fed Fund Rate
$197 $221 $256 $327 $340 $282$101 $114 $124 $171 $172 $143 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2020 2021 2022 2023 2024 YTD 2025 C O R E EAR N IN G S $ IN M ILLIO N S N ET E FF EC TI VE S PR EA D $ IN M IL LI O N S Net Effective Spread & Core Earnings Net Effective Spread Core Earnings Consistent historical financial performance highlights the diversification and resiliency of Farmer Mac’s business model Disciplined asset-liability management and uninterrupted access to the capital markets have provided buffer against market volatility and changing credit market conditions 7 GROWING, RECURRING, HIGH-QUALITY EARNINGS Core earnings and net effective spread are non-GAAP measures. For more information on the use of these non-GAAP measures, please see page 3. 14% NES CAGR (2020-2024) 14% Core Earnings CAGR (2020-2024)
Each business segment is comprised of both spread-based and fee-income products: • Loan Purchases (spread) • Wholesale Funding (spread) • Purchase Commitments (fee) • Loans Serviced for Others (fee) Net effective spread and fees determined by a variety of factors, including: • Funding execution • Credit profile • Economic factors 8 SEGMENT PROFITABILITY Line of Business Segment Volume ($ IN BILLIONS AS OF 9/30/2025) 3Q2025 Net Effective Spread (%) Risk-Adjusted Gross Return on Allocated Capital (%) Agricultural Finance Farm & Ranch $18.2 1.04% 28% Corporate AgFinance $1.9 2.16% 22% Infrastructure Finance Power & Utilities $7.4 0.34% 17% Broadband Infrastructure $1.3 2.30% 27% Renewable Energy $2.3 1.75% 26% Treasury Funding – 0.43% - Investments – 0.05% - $31.1 1.20% -
9 TREASURY/INVESTMENTS SEGMENT *As of September 30, 2025 Includes the financial results of the company’s funding, liquidity, and capital allocation strategies and operations Liquidity & Investment Portfolio • Maintain investment portfolio to provide back-up source of liquidity in excess of regulatory requirements • $7.6 billion as of September 30, 2025 • Investments net effective spread of 0.05% in third quarter 2025 Benefits from Asset-Liability Management Strategies • Leverage a funds transfer pricing process to allocate interest expense to each segment, and allocate the costs and benefits of hedging strategies to the Treasury segment Cash & Equiv. 11.9% Guaranteed By GSEs and U.S. Gov't Agencies 87.8% Asset-Backed Securities 0.3% Liquidity Portfolio*
Consistent, strong earnings growth has supported capital base and allowed for consistent returns to shareholders Opportunistically issued Preferred Stock, further bolstering capital • $100M Preferred Series D in May 2019 @ 5.700% • $79.5M Preferred Series E in May 2020 @ 5.750% • $120M Preferred Series F in August 2020 @ 5.250% • $125M Preferred Series G in May 2021 @ 4.875% • $100M Preferred Series H in August 2025 @ 6.500% Securitization provides capital relief through the transfer of credit risk to capital markets 10 STRONG, GROWING CAPITAL BASE * Statutory Minimum Core Capital defined as total stockholders’ equity less accumulated other comprehensive income. $713 $806 $863 $918 $969 $497 $517 $589 $584 $723 $1,210 $1,323 $1,452 $1,501 $1,693 14.8% 14.9% 15.4% 14.2% 13.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2021 2022 2023 2024 Q3 2025 TI ER 1 C AP IT AL R AT IO (% ) CO RE C AP IT AL ($ IN M IL LI O N S) Core Capital Amount Above Statutory Minimum Capital Statutory Minimum Core Capital* Tier 1 Capital Ratio
11 QUALITY EARNINGS DRIVE STRONG DIVIDENDS Strong earnings and consistent capital position support continued dividend growth for Farmer Mac • Farmer Mac’s dividend growth rate over the past 14 years is substantially greater than that seen from the two major market indices • 2025 marks the 14th consecutive year of higher annual dividends for Farmer Mac • Farmer Mac is committed to strong returns and responsible growth Dividend Yield* 14 Yr. Dividend CAGR Farmer Mac 3.6% 27.5% S&P 500 1.2% 5.1% Russell 2000 1.3% 6.6% $0.05 $0.10 $0.12 $0.14 $0.16 $0.26 $0.36 $0.58 $0.70 $0.80 $0.88 $0.95 $1.10 $1.40 $1.50 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $ PE R S H AR E Quarterly Dividend per Common Share 7% year-over-year increase in 2025 Increased quarterly dividend payments for 14 consecutive years *Dividend yield data as of 9/30/2025.
12 FARMER MAC USES PROVEN, RIGOROUS UNDERWRITING Industry-leading credit requirements • Total debt coverage ratio of at least 1.25x • LTVs average 40% to 45% on mortgages purchased • Minimum borrower net equity of 50% Credits are less likely to default • Not a “lender of last resort” • Focus on repayment capacity through stressed inputs • Farm Credit Administration is our safety and soundness regulator Losses less likely even in default • Average portfolio LTV of 47% as of September 30, 2025 • Land values need to decline >55% to generate material losses across Agricultural Finance mortgage loans portfolio • “Stress scenario” losses of 17% to 48% • 1980s crisis saw land value declines of ~23%(1) (1)USDA, National Agricultural Statistics Service (as of August 2015). Historic values are not necessarily predictive of future results or outcomes.
CREDIT CONSISTENTLY OUTPERFORMS 13 All Commercial Bank Loans and Leases Average: 0.87%(3) Farm Credit System Average: 0.09% Banks Average: 0.16% Farmer Mac Average: 0.02% Peer Analysis: Charge-Offs -0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 C H AR G E- O FF S AS % O F AS SE TS Agricultural Lender Charge-off Rates Banks Farm Credit System Farmer Mac(4)(2)(3) (5) (2)Kansas City Federal Reserve Agriculture Finance Databook (https://www.kansascityfed.org/agriculture/agfinance -updates/). (3)Banks’ charge-off rate is a percentage of agricultural loan assets. (4)Farm Credit Banks Funding Corporation Annual Information Statements; Farm Credit System’s charge-off rate is the percentage of total loans and guarantees. (5)Farmer Mac’s charge-off rate is the percentage of total loans and guarantees.
14 ALLOWANCE FOR LOSSES —QUARTERLY* The total allowance for losses increased $5.2 million to $37.2 million in third quarter 2025 • $7.4 million provision to the total allowance for losses was primarily attributable to: • $6.8 million net provision in the Agricultural Finance portfolio was attributable to weakening macroeconomic conditions with certain substandard assets; specific properties affected by groundwater regulations in California; and volume growth • $0.6 million provision in the Infrastructure Finance portfolio was attributable to a credit downgrade on one borrower, and volume growth • $4.4 million charge-off was related to three borrowers • $2.2 million recovery in the Agricultural Finance portfolio partially offset the increases to the provision $0.6 $6.8 $2.2 ($4.4) ($0.0) $32.0 $37.2 $ IN M IL LI O N S $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 June 30, 2025 to September 30, 2025 Allowance Fluctuation Increase Decrease Total *Represents the total allowance for losses, inclusive of all on- and off-balance sheet assets
GROWTH OPPORTUNITIES TO INCREASE ASSETS UNDER MANAGEMENT 15Farm & Ranch Corporate AgFinance Core Farm & Ranch business provides consistent growth opportunities throughout market cycles. Well positioned to benefit from the growing demand for renewable power and generation Agricultural Finance Infrastructure Finance Renewable Energy Relative Size of Volume Opportunity Securitization Pool Purchases Syndications Wholesale Funding Loan Servicing Collateral Value Efficiencies Renewable Energy & Project Finance Rural Broadband Growing Electricity Demand Power & Utilities Broadband Infrastructure
FARM Securitization Program exemplifies Farmer Mac’s core mission to lower costs for borrowers and improve credit availability in rural America, while transforming the agricultural mortgage market industry with new efficiencies Building upon the existing FARM Securitization Program by creating a securitization product for our customers • Utilize the current capability to originate new types of eligible loans into a conduit that de-risks the sector • Creates new financing for borrowers and expands sources of revenue for Farmer Mac 16 AGRICULTURAL MORTGAGE-BACKED SECURITIES OPPORTUNITY Farm & Ranch Borrowers Originators Farmer Mac (Mortgage Loan Seller & Guarantor) FARM Program Mortgage Trust (Securitization Issuing Entity) Senior Guaranteed (A) Tranche Subordinated Unguaranteed (B) Tranche
Unique, Mission-Driven Operating Model • Mission directly supports low-cost access to capital for U.S. agriculture and rural infrastructure • GSE status provides steady, low-cost access to funding markets • Disciplined asset-liability management supports consistent returns for shareholders Resilient Business Model Supports Consistent Dividend Growth • Greater than 90% of total revenues are recurring net effective spread and fees • Core Return on Common Equity* maintained above 15% over last 5 years • 14 consecutive annual dividend increases Lean & Efficient Operations • Generated approximately $900,000 net earnings per employee in FY24 • Maintain an operating efficiency ratio at or below 30% 17 KEY TAKEWAYS 27% 29% 29% 27% 28% 25% 26% 27% 28% 29% 30% 31% 2020 2021 2022 2023 2024 Maintain Efficiency Ratio Below 30% 16% 16% 16% 19% 17% 0% 5% 10% 15% 20% 25% 2020 2021 2022 2023 2024 Core Return on Common Equity greater than 15% Core Return on Common Equity Operating Efficiency *Core Return on Common Equity is defined as core earnings divided by average common equity.
Jalpa Nazareth Senior Director – Investor Relations & Finance Strategy Phone: (202) 872-5570 Email: jnazareth@farmermac.com CONTACT INVESTOR RELATIONS
APPENDIX
20 KEY COMPANY METRICS* ($ in thousands, except per share amounts) 2025 YTD 2024 2023 2022 2021 Core Earnings $142,953 $171,630 $171,156 $124,314 $113,570 Core Earnings per Diluted Share $13.03 $15.64 $15.65 $11.42 $10.47 Net Effective Spread ($) $281,652 $339,564 $326,980 $255,529 $220,668 Net Effective Spread (%) 1.19% 1.15% 1.18% 1.02% 0.98% Guarantee & Commitment Fees $17,494 $20,321 $18,928 $18,144 $17,533 Core Capital Above Statutory Minimum $723,370 $583,527 $589,400 $516,900 $496,800 Common Stock Dividends per Share $4.50 $5.60 $4.40 $3.80 $3.52 Outstanding Business Volume $31,119,162 $29,523,030 $28,471,024 $25,922,082 $23,614,463 90-Day Delinquencies 0.57% 0.37% 0.12% 0.17% 0.20% Recovery/(Credit Losses) ($5,040) ($4,694) $0 ($903) $1,054 Book Value per Share** $116.20 $97.85 $89.24 $77.61 $67.37 Core Earnings Return on Equity 17% 17% 19% 16% 16% *Core earnings, core earnings per diluted share, and net effective spread are non-GAAP measures. For more information on the use of these non-GAAP measures, please see page 3. **Book Value per Share excludes accumulated other comprehensive income.
21 EQUITY CAPITAL STRUCTURE *Common stock dividend annualized divided by quarter-end closing price. **Par value of annual dividend for preferred stock. Summary Stratifications NYSE Ticker Dividend Yield Shares Outstanding COMMON STOCK CLASS A VOTING COMMON STOCK • Ownership restricted to non-Farm Credit System financial institutions AGM.A 4.84%* 1.0 million CLASS B VOTING COMMON STOCK • Ownership restricted to Farm Credit System institutions – – 0.5 million CLASS C NON-VOTING COMMON STOCK • No ownership restrictions AGM 3.57%* 9.4 million PREFERRED STOCK SERIES D NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 17, 2024 • Redemption Value: $25 per share AGM.PR.D 5.700%** 4.0 million SERIES E NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 17, 2025 • Redemption Value: $25 per share AGM.PR.E 5.750%** 3.2 million SERIES F NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after October 18, 2025 • Redemption Value: $25 per share AGM.PR.F 5.250%** 4.8 million SERIES G NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 17, 2026 • Redemption Value: $25 per share AGM.PR.G 4.875%** 5.0 million SERIES H NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after October 17, 2030 • Redemption Value: $25 per share AGM.PR.H 6.500%** 4.0 million
As Farmer Mac grows its business, securitization is available as a tool to achieve capital relief • Securitization is expected to stimulate growth by increasing Farmer Mac’s brand awareness in the capital markets Securitization provides an alternative option to funding longer-term loans, while reducing interest rate risk 22 POSITIONING FOR GROWTH WITH SECURITIZATION FARM 2025-1 FARM 2024-2 FARM 2024-1 FARM 2023-1 FARM 2022-1 FARM 2021-1 Number of Loans 350 446 443 408 450 384 Average Principal Balance $300,090,019 $318,798,290 $308,090,132 $283,591,175 $301,105,804 $302,744,111 Product Type Fixed (15.44%) Variable-Rate (84.56%) Fixed (22.85%) Variable-Rate (77.15%) Fixed (41%) Variable-Rate (59%) Fixed (80%) Variable Rate (20%) Fixed (82%) Variable Rate (18%) Fixed (82%) Variable Rate (18%) Average Debt Coverage Ratio 2.14x 1.64x 1.93x 2.05x 2.04x 1.56x Average Original LTV 51% 47% 50% 49% 49% 42% Average Net Rate 5.63% 5.598% 5.122% 3.031% 2.940% 3.249% Top 5 States CA (21%), TX (13%), MN (8%), IL (7%), SD (6%) CA (22%), TX (8%), MN (7%), MO (6%), NE (6%) CA (24%), NE (10%), OR (8%), TX (7%), SD (5%) MN (17%), CA (11%), MO (9%), IL (9%), NE (8%) MN (17%), CA (13%), NE (9%), MO (8%), IL (7%) CA (17%), MN (15%), OR (9%), MO (8%), IL (8%)
23 RECONCILIATION OF NET INCOME TO CORE EARNINGS (in thousands) 2025 YTD 2024 2023 2022 2021 Net income attributable to common stockholders 141,855$ 180,428$ 172,838$ 150,979$ 111,413$ Less reconciling items: (Losses)/gains on undesignated financial derivatives due to fair value changes (2,330) 3,344 5,142 13,495 (1,430) Gains/(losses) on hedging activities due to fair value changes 3,671 11,548 (5,394) 5,343 (1,809) Unrealized (losses)/gains on trading securities (60) (85) 1,979 (917) (115) Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value 79 45 175 39 130 Net effects of terminations or net settlements on financial derivatives (2,749) (1,666) 227 15,794 494 Issuance costs on retirement of preferred stock - (1,619) - - - Income tax effect related to reconciling items 291 (2,769) (447) (7,089) 573 Sub-total (1,098) 8,798 1,682 26,665 (2,157) Core earnings 142,953$ 171,630$ 171,156$ 124,314$ 113,570$ Core Earnings by Period Ended
24 RECONCILIATION OF NET INTEREST INCOME TO NET EFFECTIVE SPREAD 2023 2022 2021 $ in thousands Dollars Yield Dollars Yield Dollars Yield Dollars Yield Dollars Yield Net interest income/yield 286,213$ 1.17% 353,867$ 1.16% 327,547$ 1.15% 270,940$ 1.04% 221,951$ 0.87% Net effects of consolidated trusts (3,100) 0.02% (4,477) 0.02% (4,171) 0.02% (4,239) 0.02% (4,864) 0.02% Expense related to undesignated financial derivatives (597) 0.00% (1,377) 0.00% (4,845) -0.02% (7,756) -0.03% 2,841 0.02% Amortization of premiums/discounts on assets consolidated at fair value (69) 0.00% (29) 0.00% (175) 0.00% (24) 0.00% (45) 0.00% Amortization of losses due to terminations or net settlements on financial derivatives 2,876 0.01% 3,128 0.01% 3,230 0.01% 2,413 0.01% 446 0.00% Fair Value Changes on fair value hedge relationships (3,671) -0.01% (11,548) -0.04% 5,394 0.02% (5,805) -0.02% 339 0.02% Net Effective Spread 281,652$ 1.19% 339,564$ 1.15% 326,980$ 1.18% 255,529$ 1.02% 220,668$ 0.93% 2025 YTD Net Effective Spread By Period Ended 2024
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