Financial Data and Key Metrics Changes - Total revenues year-to-date improved over $10 million to $270 million compared to the same period last year, primarily due to higher net effective spread [8] - Core earnings year-to-date improved $1.8 million to $128 million compared to the prior year period, with a nearly $7 million improvement or over 5% year-over-year when excluding credit expense [9][34] - Operating efficiency has been better than the long-term target of 30% throughout 2024, achieving 26% for Q3 2024 and 27% year-to-date [10][37] - Core earnings were $44.9 million or $4.10 per share in Q3 2024, reflecting a $5.1 million sequential increase and a $300,000 decrease year-over-year [30] Business Line Data and Key Metrics Changes - Closed $2 billion of new business volume in Q3 and $4.9 billion year-to-date, driven largely by loan purchase volume in Renewable Energy and Farm & Ranch segments [15] - Surpassed $1 billion in total renewable energy volume in Q3, reflecting strong demand for renewable power generation and storage [15] - Closed nearly $1 billion of new Farm & Ranch loan purchase volume year-to-date compared to $780 million in the full year 2023 [17] Market Data and Key Metrics Changes - Outstanding business volume was $28.5 billion as of September 30, a net decrease of $290 million from June 30, 2024, due to scheduled maturities and repayments [26] - 90-day delinquencies increased to 51 basis points as of September 30, 2024, compared to 22 basis points at the end of June 30, 2024, primarily driven by a single permanent planting loan [44] Company Strategy and Development Direction - Company is focused on diversifying its loan portfolio into newer lines of business, such as Renewable Energy and Corporate AgFinance, which have been key priorities over the last several years [16] - The implementation of the Securities Treasury Accounting Reporting System (STARS) is a significant capital investment aimed at scaling the business over the next decade [12] - The company is exploring opportunities to introduce a new securitization product that could transform the agricultural mortgage market [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainty and potential regulatory policy changes, positioning itself to create opportunities for enhanced shareholder value [24] - The company is optimistic about continued strong growth in the Renewable Energy segment, supported by a robust pipeline and significant investment in infrastructure [71] - Management is closely monitoring election results and potential policy changes that may affect the business but does not foresee any material changes at this time [54] Other Important Information - The company redeemed $75 million of Series C Preferred Stock in July, which contributed to a decrease in the Tier 1 capital ratio from 15.3% to 14.2% [48] - The company maintains a strong capital position, with $1.5 billion of core capital exceeding statutory requirements by $580 million [48] Q&A Session Summary Question: What drove the increase in the Farm & Ranch yields? - The increase in Farm & Ranch yields was driven by the purchase of a pool of loans with strong accretive spreads and a greater increase in loan purchase opportunities due to tightening in the ag cycle [58] Question: Do you expect a similar earnings profile if rates remain range-bound? - Yes, if rates trend down, the company expects to see increased loan purchase volume and margin expansion due to proactive management of callable bonds [61][63] Question: Can you provide details on the new securitization program? - The new securitization program aims to pivot from a financing strategy to a product strategy, enhancing capital efficiency and potentially lowering borrowing costs for end borrowers [67][68] Question: How does the capital ratio impact growth strategies? - The company has a significant cushion of capital that allows for growth in capital-intensive businesses without needing to raise additional capital, providing flexibility for future strategies [86]

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $42.3 million, a sequential increase of $2.0 million from Q2 2024 but a year-over-year decrease of $9.0 million [190][191]. - Core earnings for Q3 2024 were $44.9 million, reflecting a sequential increase of $5.1 million but a year-over-year decrease of $0.3 million [190][193]. - Total revenues for the quarter were $91.5 million, an increase from $89.3 million year-over-year [220]. - Core earnings for the nine months ended September 30, 2024, increased to $128,076,000 from $126,234,000 year-over-year [224]. - Net income attributable to common stockholders for the nine months ended September 30, 2024, was $129,580,000, a slight decrease from $132,010,000 in the same period of 2023 [224]. Income and Expenses - Net interest income for Q3 2024 was $86.8 million, a slight sequential decrease of $0.5 million and a year-over-year decrease of $0.9 million [197][199]. - Total operating expenses rose to $24.6 million, compared to $24.0 million in the previous year [220]. - Operating expenses for the nine months ended September 30, 2024, totaled $76,293,000, an increase from $71,935,000 in the same period of 2023 [224]. - The provision for losses was $3.3 million, compared to a release of $0.2 million in the same quarter last year [220]. Asset and Liability Management - As of September 30, 2024, total assets increased to $30.62 billion, up 4% from $29.52 billion as of December 31, 2023, primarily due to new loan volume and a larger investment portfolio [312]. - Total liabilities rose to $29.15 billion, a 4% increase from $28.11 billion, mainly driven by an increase in notes payable to fund loan volume [313]. - Total equity reached $1.46 billion, reflecting a 4% increase from $1.41 billion, attributed to higher retained earnings and accumulated other comprehensive income [313]. Loan and Business Volume - Outstanding business volume as of September 30, 2024, was $28.5 billion, a net decrease of $290.0 million from June 30, 2024 [202]. - The $0.4 billion net decrease in Farm & Ranch during Q3 2024 resulted from $1.2 billion of scheduled maturities and repayments, partially offset by $0.8 billion of new purchases, commitments, and guarantees [257]. - Loans, Farmer Mac Guaranteed Securities, and USDA Securities reached $22.93 billion for the three months ended September 30, 2024, up from $21.86 billion in the same period of 2023, marking an increase of 4.9% [237]. Delinquencies and Credit Quality - 90-day delinquencies for on-balance sheet portfolios surged to $138.0 million, or 1.67%, from $57.8 million (0.71%) in the previous quarter [208]. - The total amount of 90-day delinquencies increased to $144.4 million, up from $62.1 million as of June 30, 2024, with 84 delinquent loans reported [315]. - The increase in delinquencies was primarily driven by issues in permanent plantings, crops, livestock, and agricultural storage and processing [315]. Capital and Liquidity - Core capital as of September 30, 2024, was $1.46 billion, with capital in excess of the minimum capital level required at $579.9 million [204]. - Farmer Mac maintained strong liquidity in its investment portfolio, well above regulatory requirements [188]. - Cash and investments amounted to $6.49 billion for the three months ended September 30, 2024, compared to $5.97 billion for the same period in 2023, indicating a growth of 8.7% [237]. Market and Economic Conditions - The USDA estimates that net cash farm income dropped by 21% in 2023 and is expected to decrease another 7% in 2024, impacting the agricultural sector [290]. - Commodity prices are expected to experience increased volatility in 2024 and 2025 due to a rebound in global supply levels [291]. - U.S. agricultural exports are projected to decline to $169.5 billion in 2025, which is 2% lower than 2024 and down 14% from peak levels in 2022 [297]. Risk Management - Farmer Mac's primary strategy for managing interest rate risk involves issuing debt securities across various maturities to align cash flows with forecasted asset cash flows [360]. - The company has established guidelines for interest rate risk management, overseen by its Asset and Liability Committee (ALCO) [357]. - Farmer Mac's interest rate risk metrics are derived from asset/liability models and are based on estimates of implied forward interest rates and interest rate volatility [370].

Financial Performance - Net income attributable to common stockholders was $42.3 million[3] - Core earnings were $44.9 million, translating to $4.10 per diluted common share[3] - Net income attributable to common stockholders decreased to $42,312 from $51,345, reflecting a decline of 17.5% year-over-year[21] - Basic earnings per common share decreased to $3.89 from $4.74, a decline of 17.9%[21] - For the nine months ended September 30, 2024, net income attributable to common stockholders was $129,580,000, down from $132,010,000 year-over-year[27] - Total revenues for the three months ended September 30, 2024, were $91,526,000, up from $89,238,000 in the previous quarter and slightly up from $89,308,000 year-over-year[23] - Total revenues for the nine months ended September 30, 2024, were $269,867,000, compared to $259,024,000 in the previous year[27] Assets and Liabilities - Total assets increased to $30,615,221, up from $29,524,382, representing a growth of 3.7%[20] - Total liabilities rose to $29,152,877, an increase of 3.7% from $28,112,519[20] - Total investment securities increased to $5,895,793, up from $4,979,504, a growth of 18.4%[20] - Retained earnings increased to $907,639 from $823,716, reflecting a growth of 10.2%[20] Income and Expenses - Net interest income was $86.8 million, a slight decrease of 1% from $87.6 million in Q3 2023[3] - Total interest income for the three months ended September 30, 2024, was $407,728, an increase of 6.5% compared to $381,811 for the same period in 2023[21] - Total interest expense for the three months ended September 30, 2024, was $320,937, an increase of 9.1% compared to $294,168 in the prior year[21] - Operating expenses for the three months ended September 30, 2024, totaled $24,587,000, slightly up from $24,469,000 in the previous quarter[23] - Total credit-related expenses for the three months ended September 30, 2024, were $3,454,000, down from $6,230,000 in the previous quarter[23] Capital and Liquidity - Total core capital stood at $1.5 billion, exceeding statutory requirements by 66%[3] - Tier 1 Capital Ratio was 14.2% as of September 30, 2024[3] - Farmer Mac maintained 309 days of liquidity as of September 30, 2024[3] Revenue Streams and Business Volume - Outstanding business volume reached $28.5 billion as of September 30, 2024[1] - The company continues to focus on diversifying revenue streams and managing its balance sheet proactively[2] - The total outstanding business volume across all segments is $28,468,303 thousand as of September 30, 2024, a marginal decrease from $28,471,024 thousand as of December 31, 2023[35] Loan Performance - Loans held for investment increased to $10,668,844, up 10.8% from $9,623,119[20] - Loans in the Rural Infrastructure Finance segment increased to $8,535,149 thousand as of September 30, 2024, up from $7,968,244 thousand as of December 31, 2023, indicating a growth of approximately 7.1%[35] - The total outstanding loans for Corporate AgFinance reached $1,842,780 thousand as of September 30, 2024, an increase from $1,693,979 thousand as of December 31, 2023, reflecting a growth of about 8.8%[35] - The total outstanding loans for Renewable Energy increased significantly to $1,095,008 thousand as of September 30, 2024, compared to $487,521 thousand as of December 31, 2023, marking a substantial growth of approximately 125%[35] - The total outstanding loans for Rural Utilities reached $7,440,141 thousand as of September 30, 2024, slightly down from $7,480,723 thousand as of December 31, 2023, indicating a decrease of approximately 0.5%[35] Effective Spread - Net effective spread improved by 2% year-over-year to $85.4 million[3] - The net effective spread for the three months ended September 30, 2024, was $85,396,000, compared to $83,596,000 in the previous quarter and $83,424,000 year-over-year[23] - The net effective spread for Agricultural Finance (Farm & Ranch) for the quarter ended September 30, 2024, is $35,755 thousand, with a yield of 1.05%, compared to $34,156 thousand and 0.98% in the previous quarter[36] - The net effective spread for Renewable Energy for the quarter ended September 30, 2024, is $3,810 thousand with a yield of 1.78%[36]

Group 1 - Farmer Mac's board of directors declared a third quarter dividend of $1.40 per share for each class of common stock [1] - The dividend will be payable on September 30, 2024, to holders of record as of September 16, 2024 [1] - A dividend was also declared for four classes of preferred stock, with varying amounts per share [2] Group 2 - The preferred stock dividends are for the period from July 17, 2024, to October 17, 2024 [2] - These preferred stock dividends will be payable on October 17, 2024, to holders of record as of October 1, 2024 [2] - Farmer Mac aims to increase financing accessibility for American agriculture and rural infrastructure [3] Group 3 - Farmer Mac serves as a secondary market provider for agricultural and rural infrastructure credit [3] - The company provides financial solutions to agricultural lenders, agribusinesses, and rural electric cooperatives [3] - Farmer Mac is positioned to facilitate competitive access to financing that supports growth in rural and agricultural communities [3]

Financial Performance - Net income attributable to common stockholders for Q2 2024 was $40.313 million, a sequential decrease of $6.6 million due to a $6.4 million increase in provision for credit losses[153]. - Core earnings for Q2 2024 were $39.777 million, down $3.6 million sequentially, primarily due to a $6.4 million increase in provision for credit losses[155]. - Core earnings for the three months ended June 30, 2024, were $39,777 thousand, a decrease from $42,162 thousand in the same period of 2023[179]. - The company reported a net income attributable to common stockholders of $40,313 thousand for the three months ended June 30, 2024, compared to $40,421 thousand in the same period of 2023[179]. - For the three months ended June 30, 2024, GAAP Basic EPS was $3.71, a slight decrease from $3.73 in the same period of 2023, while Core Earnings - Basic EPS was $3.66, down from $3.89[182]. - For the six months ended June 30, 2024, GAAP Diluted EPS increased to $7.96 from $7.39 in 2023, while Core Earnings - Diluted EPS rose to $7.59 from $7.42[183]. - Core earnings per share for the three months ended June 30, 2024, were $3.66 (basic) and $3.63 (diluted), down from $3.89 and $3.86, respectively, in the same period of 2023[179]. Revenue and Income Sources - Net interest income for Q2 2024 was $87.340 million, reflecting a $1.0 million sequential increase driven by a shift towards higher-yielding loans[158]. - The net effective spread for Q2 2024 was 1.14%, consistent with the previous quarter[158]. - Total revenues for the six months ended June 30, 2024, increased to $178,341 thousand from $169,716 thousand in the same period of 2023[181]. - The provision for losses for the six months ended June 30, 2024, was $4,360 thousand, compared to $1,892 thousand in the same period of 2023[181]. - Guarantee and commitment fee income for the six months ended June 30, 2024, was $7.7 million, a 4% increase from $7.4 million in the same period of 2023[200]. Asset and Liability Management - Core capital increased to $1.510 billion as of June 30, 2024, up from $1.452 billion at the end of 2023[164]. - As of June 30, 2024, Farmer Mac's total assets increased to $30.19 billion, up by $669.93 million (2%) from December 31, 2023[265]. - The total liabilities rose to $28.69 billion, reflecting an increase of $580.82 million (2%) primarily due to higher notes payable[266]. - Farmer Mac's total equity reached $1.50 billion, an increase of $89.12 million (6%) driven by higher retained earnings and accumulated other comprehensive income[266]. Credit Quality and Delinquencies - The 90-day delinquency rate for Agricultural Finance mortgage loans was 0.54% as of June 30, 2024, down from 0.69% as of March 31, 2024[269]. - The total 90-day delinquencies amounted to $62.06 million, with 34 delinquent loans reported as of June 30, 2024[272]. - Substandard assets in the Agricultural Finance mortgage loan portfolio were $248.0 million (2.2% of the portfolio) as of June 30, 2024, compared to $255.2 million (2.3%) as of March 31, 2024[277]. - Agricultural Finance substandard assets decreased by $7.2 million in Q2 2024, driven by credit upgrades in permanent plantings and crops[278]. - The top ten borrower exposures over 90 days delinquent represented over half of the total 90-day delinquencies as of June 30, 2024[269]. Business Volume and Growth - Outstanding business volume as of June 30, 2024, was $28.8 billion, a net decrease of $88.9 million from the previous quarter[162]. - Farmer Mac's outstanding business volume increased by 7.6% in Q2 2024 compared to Q2 2023, reflecting the diversification of its business model and the resilience of the agriculture and rural infrastructure sectors[238]. - The company has consistently increased its total outstanding business volume from $26,484,118 thousand as of March 31, 2023, to $28,758,339 thousand as of June 30, 2024, representing a growth of approximately 8.59% over the period[342]. - The total outstanding business volume for the company has shown a steady upward trend over the past year, with a notable increase from $24,479,391 thousand as of June 30, 2022, to the current figure, indicating a year-over-year growth of approximately 17.67%[342]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, increased by 1% to $24.5 million compared to $24.2 million in 2023, while for the six months, expenses rose by 8% to $51.7 million[208]. - Compensation and employee benefits expenses increased by 6% to $14.8 million for Q2 2024, and by 13% to $33.1 million for the six months, primarily due to higher headcount and stock compensation[210]. Market and Economic Conditions - The USDA projects net cash farm income to drop by 21% in 2023 and another 24% in 2024, primarily due to lower commodity prices and higher farm expenses[248]. - U.S. agricultural exports are projected to decline to $170.5 billion in 2024, a 5% decrease from 2023 and a 13% drop from peak levels in 2022[254]. - The U.S. experienced 28 separate billion-dollar weather disasters in 2023, impacting agricultural production significantly[255]. Regulatory and Compliance - Farmer Mac's compliance with statutory capital requirements is classified as "level 1," the highest compliance level[336]. - The FCA's proposed regulatory agenda includes a review of Farmer Mac's regulatory capital framework, with potential rulemaking expected in May 2025[263].

Farmer Mac Reports Second Quarter 2024 Results - Outstanding Business Volume of $28.8 Billion - WASHINGTON, D.C., August 5, 2024 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended June 30, 2024. More complete information about Farmer Mac's performance for second quarter 2024 is in Farme ...

Sorapop/iStock via Getty Images Co-authored by Treading Softly. Investors today have a much shorter holding in the history of the financial markets. There are many things encouraging someone to be a momentum or swing trader: someone who does not hold for long periods and rapidly buys or sells based on the emotions of the moment, or the fears that govern their concerns about capital preservation. Most brokers offer commission-free trades, and those bright-green or bright red colors next to your holdings ...

WASHINGTON, June 21, 2024 /PRNewswire/ -- Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing for American agriculture and rural infrastructure, today announced that it has been recognized by The Washington Post with a 2024 Top Workplaces award for the greater Washington area. This respected employer recognition program celebrates organizations that have built exceptional workplace cultures. Top Wor ...

Benoit BACOU/Photononstop via Getty Images I have been recommending Federal Agricultural Mortgage Corporation (NYSE:AGM) (Farmer Mac) stock on Seeking Alpha since 2019. Since my first report, the stock is up 117%. Earnings are up 90%. And results have been outstanding for all three of the key risks for a financial company: Credit risk Interest rate risk Capital, or leverage risk I'm going to quickly review those risks, but then also point out that Farmer Mac has some game in areas that modern investors va ...

WASHINGTON, May 15, 2024 /PRNewswire/ -- The board of directors of the Federal Agricultural Mortgage Corporation (Farmer Mac) has declared a second quarter dividend of $1.40 per share for each of Farmer Mac's 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). The quarterly dividend will be payable on June 28, 2024, to holders of record of common stock as of June 14, 2024.   Farm ...