Equity Investor Presentation Third Quarter 2025 Forward-Looking Statements 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 o ...

Financial Performance - Net income attributable to common stockholders for Q3 2025 was $48.7 million, a decrease of $0.5 million from Q2 2025, while core earnings increased to $49.6 million[148][150]. - Year-over-year net income increased by $6.4 million, primarily due to an $11.7 million increase in net interest income[149]. - Core earnings for the three months ended September 30, 2025, were $49.6 million, compared to $44.9 million for the same period in 2024, reflecting an increase of 4.8%[173]. - Total revenues for the three months ended September 30, 2025, were $105.1 million, compared to $91.5 million in 2024, marking an increase of 14.8%[173]. - GAAP Basic EPS for Q3 2025 was $4.45, up from $3.89 in Q3 2024, representing a 14.4% increase[176]. - Core EPS for the three months ended September 30, 2025, was $4.54, compared to $4.13 in 2024, representing a growth of 9.9%[173]. - Net interest income for Q3 2025 was $98.5 million, a sequential increase of $1.7 million[153]. - The net effective spread for Q3 2025 was 1.20%, up from 1.19% in Q2 2025[154]. - The provision for losses for the nine months ended September 30, 2025, was $16.8 million, compared to $7.6 million in the same period of 2024, reflecting a significant increase in credit-related expenses[175]. - The company reported a decrease in funding costs by $3.9 million in Q3 2025 compared to Q3 2024[186]. Business Volume and Assets - Outstanding business volume reached $31.1 billion as of September 30, 2025, reflecting a net increase of $0.5 billion from the previous quarter[156]. - Total assets increased by $2.05 billion (7%) to $33.38 billion as of September 30, 2025, primarily due to new loan volume and a larger investment portfolio[250]. - Loans, net of allowance, rose by $1.99 billion (18%) to $13.16 billion, indicating strong growth in loan origination[250]. - The total outstanding business volume reached $31,119,162 thousand, an increase from $30,587,259 thousand as of June 30, 2025, representing a growth of approximately 1.74%[328]. - The on-balance sheet outstanding business volume as of September 30, 2025, was $25,854,546 thousand, compared to $25,329,911 thousand on June 30, 2025, indicating a growth of about 2.07%[329]. Delinquencies and Credit Quality - As of September 30, 2025, 90-day delinquencies for on-balance sheet Agricultural Finance portfolios were $164.8 million, representing 1.7% of the portfolio, while off-balance sheet delinquencies were $13.0 million, or 0.4%[161]. - The increase in on-balance sheet delinquencies from the prior quarter was $41.4 million (0.4%) and from the prior year was $63.4 million (0.6%)[161]. - The total amount of 90-day delinquencies increased to $177.76 million, with 106 delinquent loans reported as of September 30, 2025[254]. - The 90-day delinquency rate for Agricultural Finance mortgage loans was 1.35% as of September 30, 2025, up from 0.88% at the end of 2024[254][255]. - The increase in delinquencies was primarily attributed to challenges in profitability within certain agricultural commodity segments, particularly in the Southwest region[254]. Capital and Funding - Core capital increased to $1.69 billion as of September 30, 2025, up from $1.50 billion at the end of 2024[157]. - The capital in excess of the minimum capital level required increased to $723.4 million as of September 30, 2025, from $583.5 million at the end of 2024[157]. - Total liabilities increased by $1.86 billion (6%) to $31.69 billion, mainly driven by an increase in notes payable to fund loan volume[251]. - Farmer Mac's Tier 1 capital ratio was 13.9% as of September 30, 2025, slightly down from 14.2% as of December 31, 2024[322]. - Farmer Mac was classified as within "level 1" compliance with statutory capital requirements as of September 30, 2025[321]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $88.8 million, a 16% increase from $76.3 million in the same period of 2024, driven by higher compensation and employee benefits expenses[197]. - The company’s total operating expenses for the three months ended September 30, 2025, were $29.8 million, reflecting a 21% increase from $24.6 million in the same period of 2024[197]. - Operating expenses totaled $29,510,000, slightly down from $29,795,000 in the previous quarter, showing a reduction of 1.0%[331]. Market and Economic Conditions - The USDA forecasts a 29% increase in net cash farm income for 2025, reaching one of the highest inflation-adjusted levels in history, driven by over $40 billion in government support[224]. - The agricultural sector is expected to face volatility due to evolving U.S. trade policies, which could impact demand for U.S. agricultural products[227]. - Average farm real estate values increased by 4.3% from June 2024 to June 2025, with the highest gains in the Southern Plains (5.9%) and Lake states (5.7%)[230]. - The USDA projects U.S. agricultural exports to drop to $173 billion in 2025, a 1% decrease from 2024 and a 12% decline from peak levels in 2022[233]. - Drought conditions increased, with approximately 23% of the continental U.S. classified as experiencing severe to exceptional drought as of October 2025[234]. Renewable Energy and Infrastructure - The Renewable Energy segment saw a $0.3 billion increase in outstanding business volume during Q3 2025, reflecting strong demand for renewable power generation[201]. - Farmer Mac expects to continue participating in renewable energy project finance transactions despite potential challenges from tax credit phase-outs[239]. - Farmer Mac's Infrastructure Finance portfolio included $2.911 billion in Distribution Cooperative loans, $780.822 million in Generation and Transmission Cooperative loans, and $2.283 billion in Renewable Energy loans[273]. Risk Management - Farmer Mac is actively managing interest rate risk through financial derivatives and monitoring exposure to changes in interest rates[332]. - The company is subject to interest rate risk on loans and securities it has committed to acquire but not yet purchased, managing this risk through financial derivatives[297]. - Farmer Mac's strategy includes issuing debt securities across various maturities to align cash flows from assets and liabilities[293].

Financial Performance - Outstanding business volume reached $31.1 billion for the third quarter of 2025, reflecting strong growth momentum[1] - Net interest income increased by 13% year-over-year to $98.5 million, up from $86.8 million in the same quarter last year[5] - Core earnings reached $49.6 million, or $4.52 per diluted common share, reflecting a 10% growth year-over-year[5] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $48,700 thousand, a 15.4% increase from $42,312 thousand for the same period in 2024[22] - Basic earnings per common share for the three months ended September 30, 2025, was $4.45, up from $3.89 for the same period in 2024, representing a growth of 14.4%[22] - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $141,855,000, an increase of 9.7% from $129,580,000 in the same period of 2024[26] - Total revenues for the nine months ended September 30, 2025, reached $302,388,000, up 11.3% from $269,867,000 in 2024[26] - Core earnings for the nine months ended September 30, 2025, were $142,953,000, compared to $128,076,000 in 2024, reflecting a growth of 11.6%[26] - For the three months ended September 30, 2025, total core earnings amounted to $63,353,000, with segment contributions from Agricultural Finance at $23,481,000 and Infrastructure Finance at $39,872,000[31] - The company reported a net income of $55,003,000 after accounting for unallocated expenses and income tax effects related to reconciling items[31] - Net earnings for September 2025 were $67,858,000, compared to $63,146,000 in June 2025, marking an increase of 7.0%[36] Capital and Liquidity - The company maintained a strong capital position with total core capital of $1.7 billion, exceeding statutory requirements by 75%[5] - As of September 30, 2025, Farmer Mac had 317 days of liquidity available[5] - The Tier 1 Capital Ratio stood at 13.9% as of the end of the third quarter[5] - The company issued $100 million of Tier 1 capital through a public offering of 6.500% Series H non-cumulative preferred stock[5] Asset and Liability Management - Total assets increased to $33,379,560 thousand as of September 30, 2025, up from $31,324,742 thousand at December 31, 2024, representing a growth of 6.56%[20] - Total liabilities rose to $31,692,477 thousand as of September 30, 2025, compared to $29,835,716 thousand at December 31, 2024, indicating an increase of 6.16%[20] - Loans held for investment increased to $13,192,117 thousand as of September 30, 2025, up from $11,183,408 thousand at December 31, 2024, marking an increase of 17.94%[20] - Total assets on the consolidated balance sheets reached $33,379,560,000, with total on- and off-balance sheet segment assets at $31,119,162,000[31] Interest and Spread - Net effective spread rose to a record $97.8 million, representing a 14% increase compared to the prior-year period[5] - Interest income for the period was $415,341,000, while interest expense totaled $316,864,000, resulting in a net effective spread of $97,769,000[31] - The net effective spread for the quarter ended September 30, 2025, was 1.20%, an increase from 1.19% in June 2025[34] Expenses and Provisions - Total operating expenses for the nine months ended September 30, 2025, were $88,795 thousand, up from $76,293 thousand for the same period in 2024, indicating a rise of 16.4%[22] - The allowance for losses increased to $35,340 thousand as of September 30, 2025, compared to $23,223 thousand at December 31, 2024, reflecting a rise of 52.0%[20] - Provision for losses increased to $16,828,000 for the nine months ended September 30, 2025, compared to $7,618,000 in 2024, indicating a rise of 121.5%[26] - The provision for losses for September 2025 was $7,433,000, slightly down from $7,812,000 in June 2025, showing a decrease of 4.8%[36] - Operating expenses for the quarter were $29,795,000, a marginal increase from $29,490,000 in the previous quarter, representing a rise of 1.0%[36] Segment Performance - Outstanding business volume in Agricultural Finance as of September 30, 2025, was $20,109,983,000, a decrease from $20,494,673,000 as of December 31, 2024[32] - Loans in the Power & Utilities segment increased to $7,426,517,000 as of September 30, 2025, compared to $6,809,366,000 at the end of 2024[32] - The total outstanding volume for Infrastructure Finance was $11,009,179,000, reflecting growth from $9,028,357,000 in the previous year[32] - The total loans for Farm & Ranch on-balance sheet increased to $5,915,220,000 from $5,414,732,000[32] - Unfunded loan commitments in the Renewable Energy segment rose to $290,048,000, up from $150,825,000[32]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Wall Street anticipates a year-over-year increase in earnings for Federal Agricultural Mortgage (AGM) due to higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] - AGM is expected to report quarterly earnings of $4.43 per share, reflecting an 8.1% increase year-over-year, and revenues of $101.01 million, up 11.7% from the previous year [3] - The consensus EPS estimate has been revised 1.43% lower in the last 30 days, indicating a reassessment by analysts [4] Earnings Expectations - The earnings report is set to be released on November 3, and better-than-expected results could lead to a stock price increase, while a miss may result in a decline [2] - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a focus on positive readings [9][10] Analyst Insights - For AGM, the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, and the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12] - Historical performance shows that AGM has beaten consensus EPS estimates in two out of the last four quarters, with a recent surprise of +0.70% [13][14] Industry Comparisons - In the Zacks Financial - Mortgage & Related Services industry, Rocket Companies (RKT) is expected to report earnings of $0.04 per share, indicating a 50% year-over-year decline, with revenues projected at $1.75 billion, up 32.1% [18][19] - The consensus EPS estimate for Rocket Companies has been revised 37.5% higher in the last 30 days, but an Earnings ESP of 0% and a Zacks Rank of 2 (Buy) make predictions of an earnings beat uncertain [19][20]

Group 1 - The article discusses the infrequent need for adjustments in household appliances like water heaters and car fuel pumps, suggesting a trend towards more reliable technology [1] - It highlights the importance of understanding the operational efficiency of such systems in the context of investment opportunities in related industries [1] Group 2 - There is a mention of the author's long position in specific stocks, indicating a personal investment interest that may influence the analysis presented [1] - The article does not provide specific financial metrics or performance data related to the companies mentioned, focusing instead on general observations about technology reliability [1]

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a popular strategy that has shown success across various market conditions, relying on traditional analysis of key valuation metrics [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category, where stocks with "A" grades and high Zacks Ranks are considered strong value picks [3] Company Analysis: Federal Agricultural Mortgage (AGM) - AGM currently holds a Zacks Rank 2 (Buy) and an A grade for Value, indicating strong investment potential [4] - The stock has a Forward P/E ratio of 9.69, significantly lower than the industry average of 25.20, suggesting it may be undervalued [4] - AGM's Forward P/E has fluctuated between a high of 12.42 and a low of 9.28 over the past year, with a median of 10.72 [4] - The P/S ratio for AGM is 1.07, compared to the industry's average P/S of 1.7, further indicating potential undervaluation [5] - Overall, AGM is positioned as one of the market's strongest value stocks, supported by its favorable earnings outlook [6]

Core Viewpoint - The recent decline in the share price of Federal Agricultural Mortgage (NYSE: AGM) presents an opportunity to re-establish a long position in the company [1]. Group 1: Investment Position - The company currently holds positions in two series of preferred shares issued by Federal Agricultural Mortgage [1]. - There is an intention to initiate a long position in AGM's common shares in the near future [2]. Group 2: Investment Strategy - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities, emphasizing capital gains and dividend income [1]. - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1].

Group 1 - Federal Agricultural Mortgage Corporation (NYSE:AGM) is considered one of the most undervalued financial stocks by Wall Street analysts [1] - CEO Bradford T. Nordholm will retire on March 31, 2027, and Zachary N. Carpenter has been appointed as President and COO, effective immediately [1][2] - Under Nordholm's leadership since October 2018, the company doubled its annual earnings and increased its business volume to over $30 billion [2][4] Group 2 - The Board's decision for Carpenter's promotion followed a year-long evaluation process, which included amendments to Nordholm's employment agreement [3] - Carpenter's base salary and long-term incentive eligibility were increased as part of the transition plan [3]

Core Insights - Federal Agricultural Mortgage Corporation (AGM) has demonstrated significant revenue and dividend growth, making it one of the top stocks to buy and hold for a lifetime [1] - The company has appointed Carpenter as the new CEO following Nordholm's retirement, marking a transition in leadership [2] - Under Nordholm's leadership, AGM doubled its annual earnings and increased its business volume to over $30 billion [3] Financial Performance - AGM reported second-quarter 2025 revenue of $102.63 million, surpassing the forecast of $76.12 million, with an earnings per share (EPS) of $4.32 [3] - The company issued $100 million in Series H non-cumulative perpetual preferred stock, expected to list on the NYSE with a dividend rate of 6.5% [3] Business Operations - AGM provides secondary market financing solutions for American agriculture and rural infrastructure, divided into seven business categories, including Farm & Ranch and Corporate AgFinance [5] - The company's initiatives reflect a strong financial position and a commitment to enhancing financing availability and liquidity for rural infrastructure and American agriculture [4]