Federal Agricultural Mortgage Corporation【AGM】株式ニュース

Farmer Mac Reports 2025 ResultsFebruary 19, 2026 4:05 PM
PR Newswire (US)

- Announces 7% Dividend Increase -
- Outstanding Business Volume of $33.4 Billion -WASHINGTON, Feb. 19, 2026 /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 and year ended December 31, 2025.

"Farmer Mac delivered another strong year in 2025, highlighted by record net effective spread and outstanding business volumes, and our tenth consecutive year of record annual core earnings results," said Chief Executive Officer, Brad Nordholm. "While a few borrower-specific credit events affected Core Earnings, particularly in the fourth quarter, these were isolated in nature and do not change the positive trajectory of our underlying performance. With a resilient business model, disciplined balance-sheet and risk management, and a highly talented and capable management team, we are well-positioned for the future and confident in our ability to continue delivering meaningful value to rural America and our shareholders."Full Year 2025 and Recent HighlightsRecord outstanding business volume growth of $3.8 billion, reflecting 13% growth year-over-yearProvided $10.5 billion in liquidity and lending capacity to lenders serving rural AmericaNet interest income grew 10% year-over-year to $390.7 millionNet effective spread1 increased 13% from the prior-year period to a record $383.0 millionNet income attributable to common stockholders of $182.5 million, or $16.62 per diluted shareRecord core earnings1 of $182.9 million, or $16.66 per diluted share, reflecting 7% growth year-over-yearTotal core capital of $1.7 billion and a Tier 1 Capital Ratio of 13.3% as of December 31, 2025On February 18, 2026, Farmer Mac's Board of Directors raised the quarterly common stock dividend by 7% to $1.60 per share, the fifteenth consecutive annual increase$ in thousands, except per share amountsQuarter EndedYear EndedDecember 31,
2025December 31,
2024YoY %
ChangeDecember 31,
2025December 31,
2024%
ChangeNet Change in Business Volume$2,232,407$1,054,727N/A$3,828,539$1,052,006N/ANet Interest Income (GAAP)$104,521$93,36812 %$390,734$353,86710 %Net Effective Spread (Non-GAAP)$101,389$87,52816 %$383,041$339,56413 %Diluted EPS (GAAP)$3.71$4.63(20) %$16.62$16.441 %Diluted Core EPS (Non-GAAP)$3.66$3.97(8) %$16.66$15.647 %_____________________1 Non-GAAP MeasureDividendsOn February 18, 2026, Farmer Mac's Board of Directors declared a quarterly dividend of $1.60 per share on all three classes of common stock – Class A voting common stock (NYSE: AGM.A), Class B voting common stock (not listed on any exchange), and Class C non-voting common stock (NYSE: AGM). This quarterly dividend, which represents an increase of 7% in Farmer Mac's quarterly dividend rate on a year-over-year basis, will be payable on March 31, 2026 to holders of record of common stock as of March 16, 2026. This is the fifteenth consecutive year that Farmer Mac has increased its quarterly common stock dividend, and this increase is supported by Farmer Mac's previous and expected earnings growth and overall capital position.Farmer Mac's Board of Directors also declared a dividend on each of Farmer Mac's five classes of preferred stock. The quarterly dividend of $0.35625 per share of 5.700% Non-Cumulative Preferred Stock, Series D (NYSE: AGM.PR.D), $0.359375 per share of 5.750% Non-Cumulative Preferred Stock, Series E (NYSE: AGM.PR.E), $0.328125 per share of 5.250% Non-Cumulative Preferred Stock, Series F (NYSE: AGM.PR.F), $0.3046875 per share of 4.875% Non-Cumulative Preferred Stock, Series G (AGM.PR.G), and $0.40625 per share of 6.500% Non-Cumulative Preferred Stock, Series H (AGM.PR.H), is for the period from but not including January 17, 2026 to and including April 17, 2026. The preferred dividends will be payable on April 17, 2026 to holders of record as of April 1, 2026.Earnings Conference Call InformationThe conference call to discuss Farmer Mac's fourth quarter and full year 2025 financial results will be held beginning at 4:30 p.m. eastern time on Thursday, February 19, 2026, and can be accessed by telephone or live webcast as follows:Telephone (Domestic): (888) 880-3330
Telephone (International): (646) 357-8766
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 2025 is in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, filed today with the SEC.Use of Non-GAAP MeasuresWe use "non-GAAP measures" in our analysis of financial information. Non-GAAP measures represent measures of financial performance that are not presented in accordance with GAAP. Specifically, we use the following non-GAAP measures: (1) "core earnings," (2) "core earnings per common share," and (3) "net effective spread," in both dollars and percentage yield or spread. In our view, these non-GAAP measures are useful alternative measures in understanding our economic performance, transaction economics, and business trends. Our non-GAAP financial measures may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Our disclosure of 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 ShareThe 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 our financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Additionally, 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 our core business.Net Effective SpreadWe use Net Effective Spread ("NES") to measure the net spread earned between interest-earning assets and the related net funding costs, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.NES excludes the following:Interest income and interest expense associated with single-class consolidated trusts with beneficial interests owned by third parties and for which we guarantees all classes of securities issued ("single-class consolidated trusts") and reclassifies that activity to guarantee and commitment fees in determining our core earnings. This reclassification reflects our view that the net interest income earned on single-class consolidated trusts is effectively a guarantee fee.Fair value changes of financial derivatives and corresponding financial assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on our financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.The amortization of premiums and discounts on assets consolidated at fair value.NES includes the following: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, we record 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.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 government-sponsored enterprises ("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 we receive upon the inception of certain swaps. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the Consolidated Statements of Operations in the period in which they occur. For NES, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.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, 2025, filed today 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 StatementsManagement'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 our 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 indices;developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving GSEs, including Farmer Mac;the effects of the Federal Reserve's efforts to achieve monetary policy normalization to respond to inflation and employment levels; andother 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, 2025, filed today with the SEC. 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 MacFarmer Mac is driven by its mission to increase the accessibility of financing to provide vitalliquidity for American agriculture and rural infrastructure. The secondary market served by Farmer Mac 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. FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
As of
December 31, 2025
December 31, 2024
(in thousands)Assets:

Cash and cash equivalents (includes restricted cash of $24,475 and $16,190, respectively)$                   931,067
$                 1,024,007Investment securities:

Available-for-sale, at fair value (amortized cost of $13,813,551 and $11,940,774, respectively)13,580,285
11,467,560Held-to-maturity, at amortized cost3,954,223
5,097,492Other investments15,871
11,835Total Investment Securities17,550,379
16,576,887Loans:

Loans held for sale, at lower of cost or fair value—
6,170Loans held for investment, at amortized cost13,877,051
11,183,408Loans held for investment in consolidated trusts, at amortized cost2,482,010
2,038,283Allowance for losses(37,785)
(23,223)Total loans, net of allowance16,321,276
13,204,638Financial derivatives, at fair value44,875
27,789Accrued interest receivable (includes $40,945 and $28,563, respectively, related to consolidated trusts)357,155
310,592Guarantee and commitment fees receivable57,214
50,499Deferred tax asset, net173
1,544Prepaid expenses and other assets108,018
128,786Total Assets$               35,370,157
$               31,324,742

Liabilities and Equity:

Liabilities:

Notes payable$               30,822,570
$               27,371,174Debt securities of consolidated trusts held by third parties2,365,435
1,929,628Financial derivatives, at fair value21,618
77,326Accrued interest payable (includes $15,795 and $12,387, respectively, related to consolidated trusts)233,714
195,113Guarantee and commitment obligation54,770
48,326Other liabilities153,101
214,149Total Liabilities33,651,208
29,835,716Commitments and Contingencies

Equity:

Preferred stock:

Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding96,659
96,659Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding77,003
77,003Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding116,160
116,160Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding121,327
121,327Series H, par value $25 per share, 4,000,000 shares authorized, issued and outstanding96,844
—Common stock:

Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding1,031
1,031Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding500
500Class C Non-Voting, $1 par value, no maximum authorization, 9,325,556 shares and 9,360,083 shares outstanding, respectively9,326
9,360Additional paid-in capital139,370
135,894Accumulated other comprehensive income/(loss), net of tax13,382
(12,147)Retained earnings1,047,347
943,239Total Equity1,718,949
1,489,026Total Liabilities and Equity$               35,370,157
$               31,324,742 FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
For the Year Ended
December 31,
2025
December 31,
2024
December 31,
2025
December 31,
2024
(in thousands, except per share amounts)Interest income:

Investment securities and cash equivalents$          205,926
$          226,510
$          846,441
$          974,329Loans210,544
169,255
765,806
629,187Total interest income416,470
395,765
1,612,247
1,603,516Total interest expense311,949
302,397
1,221,513
1,249,649Net interest income104,521
93,368
390,734
353,867Provision for losses(15,986)
(3,773)
(32,860)
(11,579)Net interest income after provision for losses88,535
89,595
357,874
342,288Non-interest income/(expense):

Guarantee and commitment fees5,259
4,009
19,575
15,738(Losses)/gains on financial derivatives(1,502)
4,290
(5,120)
2,636Other income(821)
(411)
3,183
2,827Non-interest income2,936
7,888
17,638
21,201Operating expenses:

Compensation and employee benefits18,199
15,641
71,325
63,975General and administrative11,944
12,452
44,613
38,236Regulatory fees863
1,000
3,863
3,175Operating expenses31,006
29,093
119,801
105,386Income before income taxes60,465
68,390
255,711
258,103Income tax expense12,541
11,876
48,296
50,910Net income47,924
56,514
207,415
207,193Preferred stock dividends(7,286)
(5,666)
(24,922)
(25,146)Loss on retirement of preferred stock—
—
—
(1,619)Net income attributable to common stockholders$            40,638
$            50,848
$          182,493
$          180,428

Earnings per common share:

Basic earnings per common share$                3.73
$                4.67
$              16.73
$              16.59Diluted earnings per common share$                3.71
$                4.63
$              16.62
$              16.44ReconciliationsReconciliations 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
December 31, 2025
September 30, 2025
December 31, 2024
(in thousands, except per share amounts)Net income attributable to common stockholders$                    40,638
$                    48,700
$                   50,848Less reconciling items:

Gains on undesignated financial derivatives due to fair value changes447
882
3,084Gains/(losses) on hedging activities due to fair value changes3,107
(137)
5,737Unrealized losses on trading assets(66)
(4)
(83)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1)24
26
(39)Net effects of terminations or net settlements on financial derivatives(2,699)
(1,934)
534Issuance costs on the retirement of preferred stock—
—
—Income tax effect related to reconciling items(171)
245
(1,939)Sub-total642
(922)
7,294Core earnings$                    39,996
$                    49,622
$                   43,554

Composition of Core Earnings:

Revenues:

Net effective spread(2)$                  101,389
$                    97,769
$                   87,528Guarantee and commitment fees(3)6,298
6,132
5,086Other(4)224
1,185
(491)Total revenues107,911
105,086
92,123

Credit related expense/(income) (GAAP):

Provision for losses15,986
7,477
3,773Other credit related expense/(income)1,267
(44)
99Total credit related expense/(income)17,253
7,433
3,872

Operating expenses (GAAP):

Compensation and employee benefits18,199
17,743
15,641General and administrative11,944
11,052
12,452Regulatory fees863
1,000
1,000Total operating expenses31,006
29,795
29,093

Net earnings59,652
67,858
59,158Income tax expense(5)12,370
11,933
9,938Preferred stock dividends (GAAP)7,286
6,303
5,666Core earnings$                    39,996
$                    49,622
$                   43,554

Core earnings per share:

Basic$                        3.68
$                        4.54
$                       4.00 Diluted$                        3.66
$                        4.52
$                       3.97

(1)   Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.(2)   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.(3) Includes net interest income of $1.0 million for both the three months ended December 31, 2025 and 2024, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.(4) Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.(5) Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
For the Years Ended
December 31, 2025
December 31, 2024
(in thousands, except per share amounts)Net income attributable to common stockholders$                  182,493
$                  180,428Less reconciling items:

(Losses)/gains on undesignated financial derivatives due to fair value changes(1,883)
3,344Gains on hedging activities due to fair value changes6,778
11,548Unrealized losses on trading assets(126)
(85)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1)103
45Net effects of terminations or net settlements on financial derivatives(5,448)
(1,666)Issuance costs on the retirement of preferred stock—
(1,619)Income tax effect related to reconciling items120
(2,769)Sub-total(456)
8,798Core earnings$                  182,949
$                  171,630

Composition of Core Earnings:

Revenues:

Net effective spread(2)$                  383,041
$                  339,564Guarantee and commitment fees(3)23,792
20,321Other(4)3,466
2,105Total revenues410,299
361,990

Credit related expense (GAAP):

Provision for losses32,860
11,579Other credit related expense1,350
107Total credit related expense34,210
11,686

Operating expenses (GAAP):

Compensation and employee benefits71,325
63,975General and administrative44,613
38,236Regulatory fees3,863
3,175Total operating expenses119,801
105,386

Net earnings256,288
244,918Income tax expense(5)48,417
48,142Preferred stock dividends (GAAP)24,922
25,146Core earnings$                  182,949
$                  171,630

Core earnings per share:

Basic$                      16.77
$                      15.78 Diluted$                      16.66
$                      15.64

(1) Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.(2)   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.(3) Includes net interest income of $4.1 million and $4.5 million for the years ended December 31, 2025 and 2024, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.(4) Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.(5) Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share
For the Three Months Ended
For the Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
(in thousands, except per share amounts)GAAP - Basic EPS$                3.73
$                4.45
$                4.67
$              16.73
$              16.59Less reconciling items:

Gains/(losses) on undesignated financial derivatives due to fair value changes0.04
0.08
0.28
(0.17)
0.31Gains/(losses) on hedging activities due to fair value changes0.29
(0.01)
0.53
0.62
1.06Unrealized losses on trading securities(0.01)
—
(0.01)
(0.01)
(0.01)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value—
—
—
0.01
—Net effects of terminations or net settlements on financial derivatives(0.25)
(0.18)
0.05
(0.50)
(0.15)Issuance costs on the retirement of preferred stock—
—
—
—
(0.15)Income tax effect related to reconciling items(0.02)
0.02
(0.18)
0.01
(0.25)Sub-total0.05
(0.09)
0.67
(0.04)
0.81Core Earnings - Basic EPS$                3.68
$                4.54
$                4.00
$              16.77
$              15.78

Shares used in per share calculation (GAAP and Core Earnings)10,882
10,934
10,889
10,911
10,874 Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share
For the Three Months Ended
For the Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
(in thousands, except per share amounts)GAAP - Diluted EPS$                3.71
$                4.44
$                4.63
$              16.62
$              16.44Less reconciling items:

Gains/(losses) on undesignated financial derivatives due to fair value changes0.04
0.08
0.28
(0.17)
0.30Gains/(losses) on hedging activities due to fair value changes0.29
(0.01)
0.52
0.62
1.05Unrealized losses on trading securities(0.01)
—
(0.01)
(0.01)
(0.01)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value—
—
—
0.01
—Net effects of terminations or net settlements on financial derivatives(0.25)
(0.17)
0.05
(0.50)
(0.14)Issuance costs on the retirement of preferred stock—
—
—
—
(0.15)Income tax effect related to reconciling items(0.02)
0.02
(0.18)
0.01
(0.25)Sub-total0.05
(0.08)
0.66
(0.04)
0.80Core Earnings - Diluted EPS$                3.66
$                4.52
$                3.97
$              16.66
$              15.64

Shares used in per share calculation (GAAP and Core Earnings)10,943
10,972
10,982
10,983
10,975The 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 Year Ended
December 31,
2025
September 30,
2025
December 31,
2024
December 31,
2025
December 31,
2024
Dollars
Yield
Dollars
Yield
Dollars
Yield
Dollars
Yield
Dollars
Yield
(dollars in thousands)Net interest income$ 104,521
1.23 %
$ 98,477
1.18 %
$ 93,368
1.21 %
$ 390,734
1.19 %
$ 353,867
1.16 %Net effects of consolidated trusts(973)
0.02 %
(1,102)
0.02 %
(989)
0.02 %
(4,072)
0.02 %
(4,477)
0.02 %Expense related to undesignated financial derivatives156
— %
(707)
(0.01) %
2
— %
(441)
— %
(1,377)
— %Amortization of premiums/discounts on assets consolidated at fair value(22)
— %
(23)
— %
42
— %
(92)
— %
(29)
— %Amortization of losses due to terminations or net settlements on financial derivatives814
0.01 %
987
0.01 %
842
0.01 %
3,690
0.01 %
3,128
0.01 %Fair value changes on fair value hedge relationships(3,107)
(0.04) %
137
— %
(5,737)
(0.08) %
(6,778)
(0.02) %
(11,548)
(0.04) %Net effective spread$ 101,389
1.22 %
$ 97,769
1.20 %
$ 87,528
1.16 %
$ 383,041
1.20 %
$ 339,564
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 December 31, 2025:Core Earnings by Business SegmentFor the Three Months Ended December 31, 2025
Agricultural Finance
Infrastructure Finance
Treasury

Farm &
Ranch
Corporate
AgFinance
Power & Utilities
Broadband
Infrastructure
Renewable
Energy
Funding
Investments
Total
(in thousands)Interest income$   158,412
$    25,171
$    71,312
$         15,742
$       31,851
$      32,288
$      81,694
$     416,470Interest expense(1)(121,262)
(16,570)
(65,128)
(10,132)
(22,856)
3,543
(79,544)
(311,949)Less: reconciling adjustments(2)(3)(970)
—
(25)
—
—
(2,137)
—
(3,132)Net effective spread36,180
8,601
6,159
5,610
8,995
33,694
2,150
101,389Guarantee and commitment fees(3)4,550
278
202
851
417
—
—
6,298Other income/(expense)(766)
(16)
—
—
—
—
(163)
(945)(Provision for)/release of losses(268)
(11,096)
(190)
(4,658)
106
—
21
(16,085)Operating expenses(1)(7,328)
(2,730)
(1,174)
(1,415)
(1,716)
(3,129)
(899)
(18,391)Income tax (expense)/benefit(6,797)
1,042
(1,049)
(81)
(1,638)
(6,419)
(233)
(15,175)Segment core earnings$     25,571
$    (3,921)
$      3,948
$             307
$         6,164
$      24,146
$          876
$       57,091

Reconciliation to net income:

Net effects of derivatives and trading securities

$            789Unallocated (expenses)/income

(12,590)Income tax effect related to reconciling items

2,634 Net income

$       47,924

Total Assets:

Total on- and off-balance sheet segment assets at principal balance$ 19,564,916
$ 1,950,536
$ 7,860,622
$    1,532,206
$ 2,443,289
$            —
$            —
$ 33,351,569Off-balance sheet assets under management

(5,765,446)Unallocated assets

7,784,034Total assets on the consolidated balance sheets

$ 35,370,157

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker.(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 InformationThe 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 December 31, 2025
As of December 31, 2024

(in thousands)Agricultural Finance:

Farm & Ranch:

Loans
On-balance sheet
$                         6,002,738
$                       5,414,732Loans held in consolidated trusts:

Single-class consolidated trusts(1)
On-balance sheet
829,391
885,295Structured consolidated trusts(1)
On-balance sheet
1,652,619
1,152,988IO-FMGS(2)
On-balance sheet
8,040
8,710USDA Securities
On-balance sheet
2,443,432
2,402,423AgVantage Securities(2)
On-balance sheet
4,270,000
4,720,000LTSPCs and unfunded loan commitments
Off-balance sheet
3,591,079
3,070,554Other Farmer Mac Guaranteed Securities(3)
Off-balance sheet
386,057
426,310Loans serviced for others
Off-balance sheet
381,560
525,956Total Farm & Ranch

$                       19,564,916
$                     18,606,968Corporate AgFinance:

Loans
On-balance sheet
$                         1,460,691
$                       1,381,674AgVantage Securities(2)
On-balance sheet
190,977
280,297Unfunded loan commitments
Off-balance sheet
298,868
225,734Total Corporate AgFinance

$                         1,950,536
$                       1,887,705Total Agricultural Finance

$                       21,515,452
$                     20,494,673Infrastructure Finance:

Power & Utilities:

Loans
On-balance sheet
$                         3,548,523
$                       2,886,576AgVantage Securities(2)
On-balance sheet
3,967,154
3,521,143LTSPCs and unfunded loan commitments
Off-balance sheet
344,945
401,647Total Power & Utilities

$                         7,860,622
$                       6,809,366Broadband Infrastructure:

Loans
On-balance sheet
$                         1,009,890
$                          622,207Unfunded loan commitments
Off-balance sheet
522,316
180,259Total Broadband Infrastructure

$                         1,532,206
$                          802,466Renewable Energy:

Loans
On-balance sheet
$                         2,202,668
$                       1,265,700Unfunded loan commitments
Off-balance sheet
240,621
150,825Total Renewable Energy

$                         2,443,289
$                       1,416,525Total Infrastructure Finance

$                       11,836,117
$                       9,028,357Total

$                       33,351,569
$                     29,523,030

(1)   The securities issued by these trusts are referred to as Farmer Mac Guaranteed Securities.(2) These categories are referred to as Farmer Mac Guaranteed Securities.(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 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
DollarsYield
DollarsYield
DollarsYield
DollarsYield
DollarsYield
DollarsYield
DollarsYield
DollarsYield
(dollars in thousands)For the quarter ended:

December 31, 2025$     36,180
$       8,601
$       6,159
$       5,610
$       8,995
$     33,694
$       2,150
$   101,389
1.06 %
2.07 %
0.34 %
2.42 %
1.74 %
0.41 %
0.11 %
1.22 %September 30, 202534,840
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, 202535,710
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, 202533,885
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, 202432,556
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, 202435,755
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, 202434,156
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, 202432,843
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, 202333,329
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 %The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:Core Earnings by Quarter Ended
December
2025
September
2025
June
2025
March
2025
December
2024
September
2024
June
2024
March
2024
December
2023
(in thousands)Revenues:

Net effective spread$ 101,389
$   97,769
$ 93,893
$ 89,990
$   87,528
$   85,396
$ 83,596
$ 83,044
$   84,551Guarantee and commitment fees6,298
6,132
5,874
5,488
5,086
4,997
5,256
4,982
4,865Other224
1,185
742
1,315
(491)
1,133
386
1,077
767Total revenues107,911
105,086
100,509
96,793
92,123
91,526
89,238
89,103
90,183

Credit related expense/(income):

Provision for/(release of) losses15,986
7,477
7,713
1,684
3,773
3,428
6,179
(1,801)
(626)Other credit related expense/(income)1,267
(44)
160
(33)
99
26
51
(69)
51Total credit related expense/(income)17,253
7,433
7,873
1,651
3,872
3,454
6,230
(1,870)
(575)

Operating expenses:

Compensation and employee benefits18,199
17,743
17,631
17,752
15,641
15,237
14,840
18,257
15,523General and administrative11,944
11,052
10,859
10,758
12,452
8,625
8,904
8,255
8,916Regulatory fees863
1,000
1,000
1,000
1,000
725
725
725
725Total operating expenses31,006
29,795
29,490
29,510
29,093
24,587
24,469
27,237
25,164

Net earnings59,652
67,858
63,146
65,632
59,158
63,485
58,539
63,736
65,594Income tax expense12,370
11,933
10,114
14,000
9,938
12,681
11,970
13,553
13,881Preferred stock dividends7,286
6,303
5,667
5,666
5,666
5,897
6,792
6,791
6,791Core earnings$   39,996
$   49,622
$ 47,365
$ 45,966
$   43,554
$   44,907
$ 39,777
$ 43,392
$   44,922

Reconciling items:

Gains/(losses) on undesignated financial derivatives due to fair value changes$        447
$        882
$     (639)
$ (2,573)
$     3,084
$   (1,064)
$     (359)
$    1,683
$      (836)Gains/(losses) on hedging activities due to fair value changes3,107
(137)
2,709
1,099
5,737
205
2,604
3,002
(3,598)Unrealized (losses)/gains on trading assets(66)
(4)
(65)
9
(83)
99
(87)
(14)
(37)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value24
26
25
28
(39)
27
26
31
88Net effects of terminations or net settlements on financial derivatives(2,699)
(1,934)
255
(1,070)
534
(503)
(1,505)
(192)
(800)Issuance costs on the retirement of preferred stock—
—
—
—
—
(1,619)
—
—
—Income tax effect related to reconciling items(171)
245
(480)
526
(1,939)
260
(143)
(947)
1,089Net income attributable to common stockholders$   40,638
$   48,700
$ 49,170
$ 43,985
$   50,848
$   42,312
$ 40,313
$ 46,955
$   40,828

View original content to download multimedia:https://www.prnewswire.com/news-releases/farmer-mac-reports-2025-results-302693014.htmlSOURCE Farmer Mac

Original: Farmer Mac Reports 2025 Results

Farmer Mac Reports 2008 Results

Reduces Quarterly Dividend on Common Stock

WASHINGTON, March 16 /PRNewswire-FirstCall/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) today reported a fourth quarter net loss of $61.1 million, or $6.03 per diluted common share for the three months ended December 31, 2008, and a full year 2008 net loss to common stockholders of $154.1 million or $15.40 per diluted common share. These results primarily reflected fourth quarter losses on financial derivatives and provisions for losses principally related to certain of its credits in the ethanol sector and the previously announced third quarter losses on certain investments. Consistent with Farmer Mac's focus on capital compliance, the board of directors reduced the common stock dividend to $0.05 per share from its previous level of $0.10 per share. The common stock dividend will be payable on April 3, 2009 to stockholders of record on March 24, 2009.

"The unprecedented turmoil in the capital markets and the sharp downturn in the national economy have been significant factors in causing the second half of 2008 to be the most difficult in Farmer Mac's history," said Michael A. Gerber, Farmer Mac's newly appointed President and Chief Executive Officer. "In response, we have begun taking actions intended to mitigate the impact of these conditions going forward. We have concluded a review of Farmer Mac's investment portfolio operations and taken actions to address the difficult market dynamics that have emerged and seem likely to prevail in the time ahead. We have adjusted our funding strategies to reduce the reliance on financial derivatives that have adversely affected our capital position, notwithstanding that all of our derivatives have been economically effective.

"Despite the difficult second half of 2008, Farmer Mac has continued to have access to the debt markets to fund its program assets. We raised $124.2 million in capital through preferred stock offerings at the end of the third quarter and during the fourth quarter, ensuring compliance with regulatory capital requirements. As we look ahead to Farmer Mac responding to the credit needs of rural America in 2009 and beyond, capital strength will continue to be important. Within this context, the Corporation's Board of Directors decided to reduce the quarterly common stock dividend from 10 cents per share to 5 cents per share."

Loans underlying the Corporation's guarantees and commitments grew to a record $10.1 billion at year end and, with the exception of ethanol loans, continued to perform well during 2008. Delinquencies on non-ethanol loans have remained near historically low levels consistent with the strength of the U.S. agricultural economy through the end of the year. Farmer Mac's 90day delinquencies, including ethanol loans, were $67.1 million, representing 1.35 percent of the portfolio, as of December 31, 2008. Excluding the ethanol loans, 90-day delinquencies were $17.9 million, or 0.36 percent of the portfolio. The fourth quarter provisions for losses of $17.2 million were largely due to the bankruptcy of one ethanol producer and construction issues related to another ethanol plant. The ethanol industry has suffered due to the volatility of commodity prices. While those prices have stabilized, the industry still faces significant challenges.

"Farmer Mac's outlook for 2009 is mixed," Mr. Gerber continued. "We expect the turmoil in the financial markets will continue to create challenges to Farmer Mac's ability to raise capital and securitize its assets. While agriculture has been strong, the industry is not insulated from the effects of the economic downturn. Some sectors continue to prosper, while others, such as ethanol producers, dairy farmers and the protein sector (e.g., cattle, poultry and pork producers) are experiencing pressure on profitability. In addition, significant portions of California and Texas are facing the effects of persistent drought. Farmer Mac continues to closely monitor developments in those industries and areas experiencing stress. We anticipate stress in the portfolio is likely to increase in 2009, although any resultant credit issues are expected to remain within manageable levels.

"Looking ahead, there should be a growing need for financial vehicles to expand credit availability to those agricultural industries that have sound financial fundamentals due to the broader trends underway now, such as the deleveraging of capital. These trends will likely have the effect of reducing credit availability from traditional lenders to the agricultural sector. This presents opportunities that Farmer Mac is actively pursuing.

"There will also be opportunities for loan growth in the rural utilities segment, a new area for Farmer Mac as a result of the legislative expansion of its charter in May 2008. Farmer Mac expects to continue the growth it experienced in this sector during 2008 in providing financing to rural utilities lenders. Farmer Mac expects that demand for rural utilities loans will be robust, particularly as the industry adds significant new capacity for the first time since the 1970s. Furthermore, additional power transmission lines will need to be constructed as the development of wind and solar power plants increase the demand for means to transfer power from the source of clean power generation to the ultimate consumer. Farmer Mac's ability to participate in the growth of the rural utilities portion of its business will be limited by Farmer Mac's limits on borrower exposures and its overall risk tolerance. Public policy shifts in the energy sector may also alter Farmer Mac's opportunities in this area, as electrical power generated by and for rural electric cooperatives tends to be biased toward coal as a fuel."

In addition to reporting financial results on a GAAP basis, Farmer Mac also reports its core earnings, a non-GAAP measure. Farmer Mac uses core earnings to measure corporate economic performance and develop financial plans because, in management's view, core earnings more accurately represent Farmer Mac's economic performance, transaction economics and business trends before the effects on earnings of changes in the fair values of financial derivatives and trading assets. Those changes reflect the application of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities ("SFAS 133") and Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities - Including an amendment of FASB Statement No. 115 ("SFAS 159"). Farmer Mac's disclosure of this non-GAAP measure is not intended to replace GAAP information but, rather, to supplement it.

Core earnings were a loss of $8.8 million or $0.86 per diluted share for fourth quarter 2008, compared to core earnings of $10.5 million or $1.00 per diluted share for fourth quarter 2007. For the year ended December 31, 2008, core earnings were a loss of $81.5 million or $8.15 per diluted share, compared to 2007 core earnings of $29.9 million or $2.82 per diluted share. Excluding the effects of the other-than-temporary impairment charges recognized during 2008, core earnings would have been $24.7 million. Farmer Mac had no other-than-temporary impairment charges during 2007.