PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Farmer Mac's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes on significant accounting policies, investment securities, derivatives, loans, guarantees, notes payable, equity, fair value disclosures, business segments, and income taxes for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (%) | | :-------------------------------- | :----------------------------- | :------------------------------- | :--------- | | Total Assets | $32,995,909 | $31,324,742 | 5% | | Total Liabilities | $31,451,602 | $29,835,716 | 5% | | Total Equity | $1,544,307 | $1,489,026 | 4% | | Loans, net of allowance | $14,479,983 | $13,204,638 | 9.66% | | Notes payable | $28,843,331 | $27,371,174 | 5.38% | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Total interest income | $399,022 | $403,706 | (1.16)% | $780,436 | $800,023 | (2.45)% | | Total interest expense | $302,225 | $316,366 | (4.47)% | $592,700 | $626,315 | (5.37)% | | Net interest income | $96,797 | $87,340 | 10.83% | $187,736 | $173,708 | 8.08% | | Provision for losses | $(7,713) | $(6,179) | 24.82% | $(9,397) | $(4,378) | 114.66% | | Non-interest income | $5,837 | $2,526 | 131.00% | $9,217 | $9,840 | (6.33)% | | Operating expenses | $29,490 | $24,469 | 20.59% | $59,000 | $51,706 | 14.10% | | Income before income taxes | $65,431 | $59,218 | 10.50% | $128,556 | $127,464 | 0.86% | | Income tax expense | $10,594 | $12,113 | (12.54)% | $24,068 | $26,613 | (9.56)% | | Net income | $54,837 | $47,105 | 16.42% | $104,488 | $100,851 | 3.61% | | Net income attributable to common stockholders | $49,170 | $40,313 | 22.00% | $93,155 | $87,268 | 6.75% | | Basic EPS | $4.50 | $3.71 | 21.29% | $8.53 | $8.04 | 6.10% | | Diluted EPS | $4.48 | $3.68 | 21.74% | $8.49 | $7.96 | 6.66% | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Net income | $54,837 | $47,105 | 16.42% | $104,488 | $100,851 | 3.61% | | Net unrealized (losses)/gains on available-for-sale securities | $(14,847) | $(5,287) | 180.83% | $6,915 | $34,665 | (80.09)% | | Net unrealized (losses)/gains on cash flow hedges | $(5,510) | $(1,392) | 295.83% | $(13,881) | $4,894 | (383.61)% | | Other comprehensive (loss)/income net of tax | $(15,857) | $(5,023) | 215.68% | $(5,518) | $31,004 | (117.80)% | | Comprehensive income | $38,980 | $42,082 | (7.40)% | $98,970 | $131,855 | (24.94)% | [Consolidated Statements of Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Equity) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total Equity | $1,544,307 | $1,489,026 | 3.71% | | Retained Earnings | $1,003,641 | $943,239 | 6.40% | | Accumulated other comprehensive loss, net of tax | $(17,665) | $(12,147) | 45.49% | | Preferred stock | $411,149 | $411,149 | 0.00% | | Common stock | $10,934 | $10,891 | 0.39% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | | Net cash (used in)/provided by operating activities | $(97,541) | $289,466 | (133.69)% | | Net cash used in investing activities | $(1,382,439) | $(633,852) | 118.12% | | Net cash provided by financing activities | $1,486,302 | $378,640 | 292.59% | | Net change in cash and cash equivalents | $6,322 | $34,254 | (81.58)% | | Cash, cash equivalents, and restricted cash at end of period | $1,030,329 | $922,961 | 11.63% | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies](index=10&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines Farmer Mac's accounting policies, including principles of consolidation, earnings per common share, and comprehensive income. It also details recently issued accounting guidance related to income tax disclosures and expense disaggregation, which Farmer Mac is currently assessing for potential impact - Farmer Mac consolidates its two subsidiaries and Variable Interest Entities (VIEs) where it is the primary beneficiary[25](index=25&type=chunk) - Basic EPS for Q2 2025 was **$4.50**, up from **$3.71** in Q2 2024. Diluted EPS was **$4.48**, up from **$3.68**[16](index=16&type=chunk)[30](index=30&type=chunk) - Comprehensive income for Q2 2025 was **$38.98 million**, down from **$42.08 million** in Q2 2024, primarily due to unrealized losses on available-for-sale securities and cash flow hedges[18](index=18&type=chunk)[31](index=31&type=chunk) - Farmer Mac is assessing ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation Disclosures) but does not expect a material impact on its financial statements[37](index=37&type=chunk) [2. Investment Securities](index=16&type=section&id=2.%20INVESTMENT%20SECURITIES) Farmer Mac's total investment securities increased to $6.70 billion as of June 30, 2025, from $5.97 billion at December 31, 2024. The portfolio is primarily composed of available-for-sale securities, with unrealized losses mainly due to market spread widening and interest rate changes, but these are considered recoverable | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total Investment Securities | $6,697,258 | $5,973,301 | 12.12% | | Available-for-sale, at fair value | $6,674,031 | $5,953,014 | 12.11% | | Held-to-maturity, at amortized cost | $8,970 | $9,270 | (3.24)% | | Unrealized Gains (Available-for-sale) | $28,996 | $9,514 | 204.77% | | Unrealized Losses (Available-for-sale) | $(111,122) | $(161,589) | (31.11)% | - Unrealized losses on available-for-sale investment securities are primarily due to market spread widening and interest rate changes, but all securities in a loss position are backed by the U.S. government or GSEs, or have "AA+" credit ratings, and are believed to be recoverable[43](index=43&type=chunk) - Farmer Mac did not sell any investment securities in H1 2025, compared to **$115.2 million** in sales in H1 2024, which resulted in a **$1.1 million** gain[41](index=41&type=chunk) [3. Farmer Mac Guaranteed Securities and USDA Securities](index=19&type=section&id=3.%20FARMER%20MAC%20GUARANTEED%20SECURITIES%20AND%20USDA%20SECURITIES) On-balance sheet Farmer Mac Guaranteed Securities and USDA Securities decreased to $7.86 billion and $2.41 billion, respectively, as of June 30, 2025, from $8.23 billion and $2.37 billion at December 31, 2024. Unrealized losses are mainly due to interest rate changes | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total Farmer Mac Guaranteed Securities | $7,862,498 | $8,232,234 | (4.49)% | | Total USDA Securities | $2,407,198 | $2,371,352 | 1.51% | | Available-for-sale AgVantage (Fair Value) | $5,722,890 | $5,505,531 | 3.95% | | Held-to-maturity AgVantage (Amortized Cost) | $2,061,940 | $2,667,564 | (22.64)% | | Unrealized Losses (Available-for-sale AgVantage) | $(234,617) | $(327,476) | (28.35)% | | Unrealized Losses (Held-to-maturity AgVantage) | $(13,435) | $(21,592) | (37.78)% | - Unrealized losses on these securities are primarily due to changes in interest rates[49](index=49&type=chunk) - Credit exposure related to USDA Securities is fully guaranteed by the U.S. government[50](index=50&type=chunk) - No sales of AgVantage, USDA Farmer Mac Guaranteed, or USDA Trading Securities occurred in H1 2025 or H1 2024, resulting in no realized gains or losses[52](index=52&type=chunk) [4. Financial Derivatives](index=22&type=section&id=4.%20FINANCIAL%20DERIVATIVES) Farmer Mac uses financial derivatives, primarily interest rate swaps, to manage interest rate risk, not for speculation. As of June 30, 2025, the total notional amount of derivatives was $24.12 billion, with a net liability of $(23.05) million. The company expects to reclassify $8.4 million after-tax from AOCI to earnings over the next twelve months related to cash flow hedges - Farmer Mac uses financial derivatives to protect against market price or interest rate movements, not for trading or speculative purposes[56](index=56&type=chunk) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total financial derivatives (Asset) | $30,650 | $27,789 | 10.30% | | Total financial derivatives (Liability) | $53,697 | $77,326 | (30.56)% | | Total Notional Amount | $24,117,672 | $24,896,331 | (3.13)% | | Fair value hedges (Notional Amount) | $21,251,703 | $21,609,943 | (1.66)% | | Cash flow hedges (Notional Amount) | $498,000 | $540,000 | (7.78)% | - Farmer Mac expects to reclassify **$8.4 million** after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges[61](index=61&type=chunk) [5. Loans](index=30&type=section&id=5.%20LOANS) Total loans, net of allowance, increased to $14.48 billion as of June 30, 2025, from $13.20 billion at December 31, 2024. The allowance for losses increased to $29.96 million from $23.22 million, primarily due to provisions for losses in both Agricultural Finance and Infrastructure Finance, driven by specific borrower downgrades and new volume growth. 90-day delinquencies in Agricultural Finance decreased to $123.39 million (1.3% of portfolio) from $155.44 million (1.8%) in the prior quarter | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total loans, net of allowance | $14,479,983 | $13,204,638 | 9.66% | | Allowance for losses | $29,956 | $23,223 | 28.99% | | Agricultural Finance loans (unpaid principal balance) | $9,356,452 | $8,834,689 | 5.91% | | Infrastructure Finance loans (unpaid principal balance) | $5,484,656 | $4,774,483 | 14.88% | | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Provision for losses (total) | $7,713 | $6,179 | 24.82% | $9,397 | $4,378 | 114.66% | | Charge-offs (total) | $(2,840) | $(4,043) | (29.75)% | $(2,840) | $(4,043) | (29.75)% | - The **$5.0 million** net provision for Agricultural Finance loans in Q2 2025 was mainly due to two specific Farm & Ranch borrowers (permanent planting and crop loans) and credit downgrades. A **$2.8 million** charge-off was recorded for these relationships[76](index=76&type=chunk) - The **$2.7 million** net provision for Infrastructure Finance in Q2 2025 was due to downgrades in Renewable Energy and Broadband Infrastructure, and new volume growth[77](index=77&type=chunk) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------ | :------------------------------- | | Agricultural Finance 90-Day Delinquencies (On-Balance Sheet) | $123,393 | $155,438 | $101,340 | | Agricultural Finance 90-Day Delinquencies (Off-Balance Sheet) | $2,475 | $4,539 | $7,604 | | Infrastructure Finance 90-Day Delinquencies | $0 | $0 | $0 | - Substandard assets in Infrastructure Finance increased from **$42.2 million** to **$72.2 million** in Q2 2025 due to downgrades in a Renewable Energy solar project and a Broadband Infrastructure loan[170](index=170&type=chunk)[294](index=294&type=chunk) [6. Guarantees and Commitments](index=37&type=section&id=6.%20GUARANTEES%20AND%20COMMITMENTS) Off-balance sheet Farmer Mac Guaranteed Securities decreased to $399.17 million as of June 30, 2025, from $426.31 million at December 31, 2024. Long-Term Standby Purchase Commitments (LTSPCs) maximum principal amount increased to $4.42 billion from $4.03 billion. The reserve for losses remained stable at $1.62 million | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Off-Balance Sheet Farmer Mac Guaranteed Securities | $399,168 | $426,310 | (6.47)% | | LTSPCs Maximum Principal Amount | $4,416,846 | $4,029,019 | 9.63% | | Guarantee and commitment obligation (Off-Balance Sheet Farmer Mac Guaranteed Securities) | $5,221 | $5,595 | (6.68)% | | Guarantee and commitment obligation (LTSPCs) | $42,255 | $42,731 | (1.11)% | | Reserve for losses | $1,620 | $1,623 | (0.18)% | - The net provision to the reserve for losses during the three and six months ended June 30, 2025 for both Agricultural Finance and Infrastructure Finance was primarily due to declining economic forecast factors[98](index=98&type=chunk) - Proceeds from new securitizations decreased to **$286.51 million** in H1 2025 from **$343.65 million** in H1 2024[93](index=93&type=chunk) [7. Notes Payable](index=42&type=section&id=7.%20NOTES%20PAYABLE) Total notes payable increased to $28.84 billion as of June 30, 2025, from $27.37 billion at December 31, 2024, primarily to fund loan acquisitions. The weighted-average rate for total principal net of discounts was 3.58% as of June 30, 2025 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | | Total Notes Payable | $28,843,331 | $27,371,174 | 5.38% | | Discount notes (due within one year) | $1,972,497 | $2,167,258 | (9.00)% | | Medium-term notes (due within one year) | $3,260,919 | $2,343,264 | 39.16% | | Medium-term notes (due after one year) | $18,593,533 | $17,082,550 | 8.84% | | Weighted-Average Rate (Total principal net of discounts) | 3.58% | 3.51% | 0.07 pp | - Farmer Mac called **$1.2 billion** of callable medium-term notes in H1 2025, compared to **$0.5 billion** in H1 2024[109](index=109&type=chunk) - Farmer Mac has statutory authority to borrow up to **$1.5 billion** from the U.S. Treasury to fulfill guarantee obligations but has not used this authority as of June 30, 2025[110](index=110&type=chunk)[111](index=111&type=chunk) [8. Equity](index=45&type=section&id=8.%20EQUITY) Farmer Mac's core capital was $1.6 billion as of June 30, 2025, exceeding the minimum capital requirement of $959.9 million by $602.1 million. The company paid a quarterly common stock dividend of $1.50 per share in Q1 and Q2 2025, an increase from $1.40 per share in 2024 - Farmer Mac's core capital was **$1.6 billion** as of June 30, 2025, **$602.1 million** above the minimum capital requirement of **$959.9 million**[114](index=114&type=chunk) - Farmer Mac paid a quarterly dividend of **$1.50 per share** on common stock in Q1 and Q2 2025, up from **$1.40 per share** in 2024[112](index=112&type=chunk) - Farmer Mac is required to comply with the higher of minimum or risk-based capital requirements and was in compliance as of June 30, 2025[113](index=113&type=chunk)[344](index=344&type=chunk) [9. Fair Value Disclosures](index=46&type=section&id=9.%20FAIR%20VALUE%20DISCLOSURES) Farmer Mac's assets measured at fair value totaled $12.44 billion as of June 30, 2025, with Level 3 assets representing 46% of financial instruments measured at fair value. The fair value of financial assets and liabilities are estimated using various valuation techniques, including discounted cash flow models for loans and securities, and market standard methodologies for derivatives | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets at fair value | $12,441,885 | $11,507,709 | | Level 1 Assets | $1,484,237 | $1,289,893 | | Level 2 Assets | $5,200,969 | $4,677,594 | | Level 3 Assets | $5,756,679 | $5,540,222 | | Level 3 Assets as % of total financial instruments at fair value | 46% | 48% | - Farmer Mac internally models the fair value of its loan portfolio, Farmer Mac Guaranteed Securities, and USDA Securities using discounted cash flow models with management's best estimates of prepayment speeds, forward yield curves, and discount rates, classifying these as Level 3[129](index=129&type=chunk) - No material assets or liabilities were measured at fair value on a non-recurring basis, and no transfers occurred within the fair value hierarchy during the reporting periods[120](index=120&type=chunk) [10. Business Segment Reporting](index=53&type=section&id=10.%20BUSINESS%20SEGMENT%20REPORTING) Farmer Mac operates through seven reportable segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. Core earnings for Q2 2025 increased to $59.53 million from $54.67 million in Q2 2024, driven by strong performance in Funding and Agricultural Finance segments - Farmer Mac's seven reportable segments are Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments[131](index=131&type=chunk)[135](index=135&type=chunk) | Segment | Q2 2025 Core Earnings (in thousands) | Q2 2024 Core Earnings (in thousands) | Change (YoY) | H1 2025 Core Earnings (in thousands) | H1 2024 Core Earnings (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------------------- | :--------------------------------- | :----------- | :--------------------------------- | :--------------------------------- | :----------- | | Farm & Ranch | $22,959 | $26,205 | (12.40)% | $49,233 | $51,245 | (3.80)% | | Corporate AgFinance | $4,886 | $(330) | (1580.61)% | $9,527 | $4,882 | 95.15% | | Power & Utilities | $3,652 | $3,632 | 0.55% | $7,089 | $6,940 | 2.15% | | Broadband Infrastructure | $2,019 | $1,522 | 32.65% | $4,451 | $5,033 | (11.56)% | | Renewable Energy | $2,394 | $720 | 232.50% | $4,359 | $737 | 491.45% | | Funding | $22,645 | $22,080 | 2.56% | $45,400 | $45,710 | (0.68)% | | Investments | $976 | $843 | 15.78% | $1,808 | $646 | 179.88% | | Total Segment Core Earnings | $59,531 | $54,672 | 8.89% | $121,867 | $115,193 | 5.80% | - Core earnings is a non-GAAP measure that excludes fair value fluctuations and specified infrequent or unusual transactions to better reflect the company's core business performance[135](index=135&type=chunk)[176](index=176&type=chunk) [11. Income Taxes](index=57&type=section&id=11.%20INCOME%20TAXES) Income tax expense decreased to $10.59 million for Q2 2025 from $12.11 million for Q2 2024, with the effective tax rate decreasing to 16.2% from 20.5%. This reduction is primarily due to the purchase of $35.6 million in renewable energy investment tax credits at approximately $0.91 per $1.00 of credit, resulting in a $3.2 million tax benefit | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Income tax expense | $10,594 | $12,113 | (12.54)% | $24,068 | $26,613 | (9.56)% | | Effective tax rate | 16.2% | 20.5% | (4.3) pp | 18.7% | 20.9% | (2.2) pp | - Farmer Mac purchased **$35.6 million** in renewable energy investment tax credits in Q2 2025, resulting in a **$3.2 million** tax benefit[144](index=144&type=chunk)[214](index=214&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Farmer Mac's financial condition and results of operations, including an overview of performance, use of non-GAAP measures, detailed results of operations, business outlook, balance sheet review, risk management strategies, and liquidity and capital resources. It also includes forward-looking statements and supplemental financial information [Forward-Looking Statements](index=58&type=section&id=Forward-Looking%20Statements) - Forward-looking statements predict future results, performance, or achievements and typically include terms like "anticipates," "believes," "expects," and "will"[148](index=148&type=chunk) - Key uncertainties include debt and equity financing availability, legislative/regulatory changes, fair value fluctuations, lender interest, agricultural/infrastructure growth rates, economic conditions (inflation, interest rates, trade policies), interest rate risk, and financial market developments[150](index=150&type=chunk)[151](index=151&type=chunk) [Overview](index=60&type=section&id=Overview) - Farmer Mac's mission is to increase financing accessibility for American agriculture and infrastructure[152](index=152&type=chunk) - In Q2 2025, Farmer Mac exceeded **$30 billion** in outstanding business volume and provided **$2.1 billion** in liquidity[156](index=156&type=chunk) - Farmer Mac's board of directors increased the share repurchase program authorization from **$9.8 million** to **$50 million** and extended its expiration to August 5, 2027[153](index=153&type=chunk) | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Net income attributable to common stockholders | $49,170 | $43,985 | $40,313 | | Core earnings | $47,365 | $45,966 | $39,777 | - The **$8.9 million** YoY increase in net income attributable to common stockholders was due to a **$7.5 million** after-tax increase in net interest income, a **$3.2 million** tax benefit from renewable energy investment tax credits, and a **$1.5 million** after-tax increase in financial derivatives' fair value[158](index=158&type=chunk) - Outstanding business volume reached **$30.6 billion** as of June 30, 2025, a net increase of **$0.8 billion** from March 31, 2025, primarily from Infrastructure Finance (**$0.6 billion**) and Agricultural Finance (**$0.2 billion**)[166](index=166&type=chunk) [Use of Non-GAAP Measures](index=64&type=section&id=Use%20of%20Non-GAAP%20Measures) - Non-GAAP measures (core earnings, Core EPS, net effective spread) are used to understand economic performance, transaction economics, and business trends[174](index=174&type=chunk) - Core earnings and Core EPS exclude fair value fluctuations and specified infrequent or unusual transactions that are not indicative of future operating results[176](index=176&type=chunk) - Net effective spread measures the net spread between interest-earning assets and related funding costs, including associated derivatives, and excludes certain items from net interest income while including others[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) [Results of Operations](index=66&type=section&id=Results%20of%20Operations) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Net income attributable to common stockholders | $49,170 | $40,313 | 22.00% | $93,155 | $87,268 | 6.75% | | Core earnings | $47,365 | $39,777 | 19.08% | $93,331 | $83,169 | 12.22% | | Basic EPS | $4.50 | $3.71 | 21.29% | $8.53 | $8.04 | 6.10% | | Core Basic EPS | $4.33 | $3.66 | 18.31% | $8.55 | $7.66 | 11.62% | | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | :--------------------- | :--------------------- | :----------- | | Net interest income | $96,797 | $87,340 | 10.83% | $187,736 | $173,708 | 8.08% | | Net effective spread | $93,893 | $83,596 | 12.32% | $183,883 | $166,640 | 10.35% | - The **$10.3 million** YoY increase in net effective spread for Q2 2025 was primarily due to a **$7.4 million** increase from net new business volume, a **$1.4 million** contribution from the Investments segment, and a **$1.4 million** decrease in funding costs[165](index=165&type=chunk)[203](index=203&type=chunk) - Operating expenses increased by **21%** YoY for Q2 2025 and **14%** for H1 2025, mainly due to increased headcount, information technology infrastructure costs, transactional legal fees, hiring expenses, and servicing advance expenses[212](index=212&type=chunk)[213](index=213&type=chunk) | Line of Business | Q2 2025 Net Growth/(Decrease) (in thousands) | Q2 2024 Net Growth/(Decrease) (in thousands) | H1 2025 Net Growth/(Decrease) (in thousands) | H1 2024 Net Growth/(Decrease) (in thousands) | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Farm & Ranch | $123,390 | $(396,405) | $(389,063) | $(304,300) | | Corporate AgFinance | $64,160 | $50,599 | $65,818 | $122,914 | | Power & Utilities | $112,388 | $37,737 | $490,988 | $28,705 | | Broadband Infrastructure | $199,606 | $86,013 | $371,975 | $52,045 | | Renewable Energy | $332,372 | $133,165 | $524,511 | $387,951 | | Total | $831,916 | $(88,891) | $1,064,229 | $287,315 | - Outstanding business volume increased by **$0.8 billion** from March 31, 2025, to **$30.6 billion** as of June 30, 2025, driven by Infrastructure Finance (**$0.6 billion**) and Agricultural Finance (**$0.2 billion**)[166](index=166&type=chunk)[217](index=217&type=chunk) [Outlook](index=82&type=section&id=Outlook) - Farmer Mac's growth is tied to the capital and liquidity needs of agricultural and infrastructure lenders and the financial health of borrowers[234](index=234&type=chunk) - Elevated market interest rates have slowed loan prepayments in Farm & Ranch, contributing to strong loan purchase portfolio growth in Q2 2025[235](index=235&type=chunk) - Operating expenses are expected to increase due to planned investments in human capital, technology, and business infrastructure to enhance capacity and efficiency[240](index=240&type=chunk) - USDA forecasts a **22%** increase in net cash farm income for 2025, driven by **$33 billion** in government support payments from the American Relief Act[242](index=242&type=chunk) - Renewable energy net generation grew by **70%** in the last five years, leading Farmer Mac to deploy specialized financing products[256](index=256&type=chunk) - H.R. 1, signed July 4, 2025, phases out renewable energy tax credits, potentially increasing marginal costs and decreasing investment growth velocity over the next five years[257](index=257&type=chunk) - Farmer Mac has purchased approximately **$64.8 million** in renewable energy investment tax credits through June 30, 2025, at about **$0.91 per $1.00** of credit[258](index=258&type=chunk) - Rural telecommunication and data connectivity demand is strong, driven by AI, cloud computing, and wireless network densification, supported by federal programs like BEAD, RDOF, and ReConnect[260](index=260&type=chunk) - H.R. 1 includes an amendment to the Internal Revenue Code that excludes **25%** of net interest income on qualifying rural or agricultural real-property loans from gross income for banks, insurers, and Farmer Mac[266](index=266&type=chunk) [Balance Sheet Review](index=90&type=section&id=Balance%20Sheet%20Review) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------------- | :----------------------------- | :------------------------------- | :--------- | :--------- | | Total assets | $32,995,909 | $31,324,742 | $1,671,167 | 5% | | Total liabilities | $31,451,602 | $29,835,716 | $1,615,886 | 5% | | Total equity | $1,544,307 | $1,489,026 | $55,281 | 4% | | Loans, net of allowance | $12,205,432 | $11,166,984 | $1,038,448 | 9% | | Loans held in trusts | $2,274,551 | $2,037,654 | $236,897 | 12% | | Notes Payable | $28,843,331 | $27,371,174 | $1,472,157 | 5% | - The increase in total assets was primarily attributable to new loan volume and a larger investment portfolio[270](index=270&type=chunk) - The increase in total liabilities was primarily due to an increase in total notes payable to fund the acquisition of loan volume[271](index=271&type=chunk) - The increase in total equity was primarily due to an increase in retained earnings[271](index=271&type=chunk) [Risk Management](index=91&type=section&id=Risk%20Management) [Credit Risk – Loans and Guarantees](index=91&type=section&id=Credit%20Risk%20%E2%80%93%20Loans%20and%20Guarantees) Farmer Mac's direct credit exposure to Agricultural Finance mortgage loans was $12.8 billion across 48 states. 90-day delinquencies in this portfolio decreased to $125.9 million (0.98%) as of June 30, 2025, from $160.0 million (1.29%) in the prior quarter, primarily due to a decrease in permanent plantings and crop loans. Substandard assets in Agricultural Finance were $453.0 million (3.5% of portfolio), a decrease of $13.0 million from the prior quarter. Infrastructure Finance had no 90-day delinquencies, but substandard assets increased to $72.2 million due to two borrower downgrades - Farmer Mac has direct credit exposure to Agricultural Finance mortgage loans, Infrastructure Finance loans, and loans underlying LTSPCs, and indirect exposure to loans securing AgVantage securities[273](index=273&type=chunk) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------ | :------------------------------- | | Agricultural Finance Mortgage Loans (Direct Exposure) | $12,836,478 | $12,389,478 | $12,369,477 | | Agricultural Finance 90-Day Delinquencies | $125,868 | $159,977 | $108,944 | | Agricultural Finance 90-Day Delinquency Rate | 0.98% | 1.29% | 0.88% | | Agricultural Finance Substandard Assets | $453,000 | $466,000 | $398,300 | | Infrastructure Finance Substandard Assets | $72,200 | $42,200 | $42,200 | - The decrease in 90-day delinquencies in Q2 2025 was primarily driven by a decrease in permanent plantings and crop loans, concentrated in the Southwest region[275](index=275&type=chunk) - Infrastructure Finance had no 90-day delinquencies as of June 30, 2025[294](index=294&type=chunk) - The credit exposure on USDA Securities is guaranteed by the full faith and credit of the United States, resulting in little to no credit risk[297](index=297&type=chunk) [Credit Risk – Counterparty Risk](index=99&type=section&id=Credit%20Risk%20%E2%80%93%20Counterparty%20Risk) Farmer Mac manages counterparty credit risk with AgVantage issuers, lenders, servicers, and interest rate swap counterparties. AgVantage counterparties are required to meet creditworthiness standards and maintain collateralization levels. Farmer Mac had $8.02 billion in outstanding AgVantage securities as of June 30, 2025. Interest rate swap counterparties are managed through collateralization provisions, with $24.1 billion notional amount of swaps outstanding - Farmer Mac is exposed to credit risk from AgVantage issuers, approved lenders/servicers, and interest rate swap counterparties[301](index=301&type=chunk)[303](index=303&type=chunk) - AgVantage counterparties are required to meet creditworthiness standards and maintain specified collateralization levels, with Farmer Mac having recourse to pledged collateral in case of default[301](index=301&type=chunk) | Counterparty | June 30, 2025 Balance (in thousands) | December 31, 2024 Balance (in thousands) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | | CFC | $3,776,849 | $3,521,143 | | MetLife | $2,050,000 | $2,050,000 | | Rabo AgriFinance | $1,385,000 | $2,020,000 | | Other | $809,938 | $930,297 | | Total outstanding AgVantage | $8,021,787 | $8,521,440 | - Farmer Mac manages interest rate swap counterparty risk through collateralization provisions, with **$24.1 billion** notional amount of swaps outstanding as of June 30, 2025[330](index=330&type=chunk) [Credit Risk – Other Investments](index=101&type=section&id=Credit%20Risk%20%E2%80%93%20Other%20Investments) Farmer Mac's cash and cash equivalents ($1.0 billion) and investment securities ($6.7 billion) are managed to minimize financial market volatility, preserve capital, and support debt market access. Investments must meet high creditworthiness standards (very strong capacity to meet financial commitments, low default risk) and comply with concentration limits (5% of regulatory capital for single entities, 100% for GSE senior non-convertible debt) - Farmer Mac held **$1.0 billion** in cash and cash equivalents and **$6.7 billion** in investment securities as of June 30, 2025[308](index=308&type=chunk) - Investment portfolio goals include mitigating enterprise risk, providing reliable liquidity, and supporting asset growth[343](index=343&type=chunk) - Investments must meet strict creditworthiness standards (very strong capacity, low default risk) and comply with concentration limits (**5%** of regulatory capital for single entities, **100%** for GSE senior non-convertible debt)[309](index=309&type=chunk)[310](index=310&type=chunk) [Interest Rate Risk](index=102&type=section&id=Interest%20Rate%20Risk) Farmer Mac is exposed to interest rate risk due to timing differences in asset and debt cash flows. The company manages this risk by matching asset purchases with debt and financial derivatives that have similar duration and convexity characteristics. Key metrics used include sensitivity to market value of equity (MVE), forecasted net effective spread (NES), and duration gap analysis. As of June 30, 2025, Farmer Mac maintained a positive effective duration gap of 3.7 months - Farmer Mac manages interest rate risk by funding asset purchases with debt and financial derivatives that have similar duration and convexity characteristics[315](index=315&type=chunk) - Interest rate risk metrics include MVE sensitivity, forecasted NES, and duration gap analysis[322](index=322&type=chunk) | Interest Rate Scenario | Percentage Change in MVE from Base Case (June 30, 2025) | Percentage Change in MVE from Base Case (December 31, 2024) | | :--------------------- | :------------------------------------------------------ | :---------------------------------------------------------- | | +100 basis points | (3.8)% | (4.0)% | | -100 basis points | 3.7% | 3.6% | | Interest Rate Scenario | Percentage Change in NES from Base Case (June 30, 2025) | Percentage Change in NES from Base Case (December 31, 2024) | | :--------------------- | :------------------------------------------------------ | :---------------------------------------------------------- | | +100 basis points | (0.5)% | (0.8)% | | -100 basis points | 1.8% | 1.6% | - As of June 30, 2025, Farmer Mac maintained a positive effective duration gap of **3.7 months**, relatively unchanged from December 31, 2024[329](index=329&type=chunk) - Farmer Mac uses pay-fixed, receive-fixed, and basis interest rate swaps, and exchange-traded futures contracts to manage interest rate risk[332](index=332&type=chunk) [Liquidity and Capital Resources](index=107&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary funding sources include debt issuances, guarantee/commitment fees, net effective spread, and asset repayments[339](index=339&type=chunk) - As of June 30, 2025, outstanding debt included **$2.0 billion** in discount notes and **$26.9 billion** in medium-term notes[339](index=339&type=chunk) - Farmer Mac maintained a monthly average of **303 days** of liquidity in Q2 2025, exceeding the **90-day** regulatory minimum[340](index=340&type=chunk) - Farmer Mac was in compliance with all statutory capital requirements (minimum, critical, and risk-based) as of June 30, 2025, classified as "level 1" (highest compliance)[344](index=344&type=chunk) - Tier 1 capital ratio was **13.6%** as of June 30, 2025, and **14.2%** as of December 31, 2024[345](index=345&type=chunk) [Other Matters](index=108&type=section&id=Other%20Matters) - No other matters were reported[347](index=347&type=chunk) [Supplemental Information](index=109&type=section&id=Supplemental%20Information) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | | New Business Volume | $2,125,019 | $1,494,450 | 42.28% | | Repayments (Total) | $1,223,547 | $1,576,216 | (22.49)% | | Outstanding Business Volume | $30,587,259 | $28,758,339 | 6.36% | | Net Effective Spread | $93,893 | $83,596 | 12.32% | - Outstanding business volume increased to **$30.59 billion** as of June 30, 2025, from **$29.52 billion** at December 31, 2024[231](index=231&type=chunk)[351](index=351&type=chunk) - The weighted-average remaining maturity of outstanding AgVantage securities was **4.8 years** as of June 30, 2025[233](index=233&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=114&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Farmer Mac is exposed to market risk from interest rate changes, which it manages through financial transactions, including derivatives, and by monitoring its exposure. Further details are provided in the Risk Management section - Farmer Mac is exposed to market risk from changes in interest rates[355](index=355&type=chunk) - Market risk is managed through financial transactions, including derivatives, and by monitoring interest rate exposure[355](index=355&type=chunk) [Item 4. Controls and Procedures](index=114&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that Farmer Mac's disclosure controls and procedures were effective as of June 30, 2025. There were no material changes in internal control over financial reporting during the quarter - Farmer Mac's disclosure controls and procedures were effective as of June 30, 2025[357](index=357&type=chunk) - No material changes in internal control over financial reporting occurred during Q2 2025[358](index=358&type=chunk) PART II [Item 1. Legal Proceedings](index=115&type=section&id=Item%201.%20Legal%20Proceedings) There are no legal proceedings to report - No legal proceedings were reported[361](index=361&type=chunk) [Item 1A. Risk Factors](index=115&type=section&id=Item%201A.%20Risk%20Factors) Information about risk factors is referenced to the "Forward-Looking Statements" section in Part I, Item 2 of this Form 10-Q and Part I, Item 1A of Farmer Mac's 2024 Annual Report - Risk factor information is cross-referenced to the "Forward-Looking Statements" section and the 2024 Annual Report[362](index=362&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=115&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Farmer Mac issued 432 shares of Class C non-voting common stock in April 2025 to directors who elected to receive stock in lieu of cash retainers. These securities are exempt from registration under Section 3(a)(2) of the Securities Act of 1933 - Farmer Mac issued **432 shares** of Class C non-voting common stock in April 2025 to directors electing stock in lieu of cash retainers[363](index=363&type=chunk) - These securities are exempt from registration under Section 3(a)(2) of the Securities Act of 1933[363](index=363&type=chunk) [Item 3. Defaults Upon Senior Securities](index=115&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[364](index=364&type=chunk)[365](index=365&type=chunk) [Item 4. Mine Safety Disclosures](index=115&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Farmer Mac - This item is not applicable[364](index=364&type=chunk) [Item 5. Other Information](index=116&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025[366](index=366&type=chunk) [Item 6. Exhibits](index=116&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including the registrant's charter, by-laws, specimen certificates for various stock classes, certifications of executive officers, and Inline XBRL documents - Exhibits include the registrant's charter, by-laws, stock certificates, and certifications of principal executive and financial officers[367](index=367&type=chunk)[368](index=368&type=chunk) [Signatures](index=118&type=section&id=Signatures) The report is signed by Bradford T. Nordholm, President and Chief Executive Officer, and Gregory N. Ramsey, Vice President – Chief Accounting Officer, on August 7, 2025 - The report was signed by Bradford T. Nordholm (President and CEO) and Gregory N. Ramsey (VP – Chief Accounting Officer) on August 7, 2025[371](index=371&type=chunk)[372](index=372&type=chunk)

[Second Quarter 2025 Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Results%20Overview) Farmer Mac achieved record Q2 2025 results, with significant growth in core earnings, net effective spread, and total outstanding business volume, while maintaining a strong capital position [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Farmer Mac delivered record results in Q2 2025, with core earnings and net effective spread growing significantly year-over-year. The company surpassed $30 billion in total outstanding business volume for the first time, maintained a strong capital position, and increased its share repurchase authorization - Farmer Mac achieved record results in Q2 2025, with core earnings and net effective spread increasing by **19%** and **12%** year-over-year, respectively. Total outstanding business volume exceeded **$30 billion** for the first time[3](index=3&type=chunk) Second Quarter 2025 Key Financial Metrics | Metric ($ in thousands, except per share) | Q2 2025 | Q1 2025 | Q2 2024 | Sequential % Change | YoY % Change | | :--------------------------------------- | :------ | :------ | :------ | :------------------ | :----------- | | Net Change in Business Volume | $831,916 | $232,313 | $(88,891) | N/A | N/A | | Net Interest Income (GAAP) | $96,797 | $90,939 | $87,340 | 6% | 11% | | Net Effective Spread (Non-GAAP) | $93,893 | $89,990 | $83,596 | 4% | 12% | | Diluted EPS (GAAP) | $4.48 | $4.01 | $3.68 | 12% | 22% | | Core EPS (Non-GAAP) | $4.32 | $4.19 | $3.63 | 3% | 19% | - The company provided **$2.1 billion** in liquidity and lending capacity to rural America, maintained a strong capital position with total core capital of **$1.6 billion** (exceeding statutory requirement by **63%**), and increased its share repurchase program authorization to **$50.0 million**[5](index=5&type=chunk) [Use of Non-GAAP Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Measures) This section defines and explains non-GAAP financial measures, including core earnings, core EPS, and net effective spread, highlighting their adjustments from GAAP to reflect core business performance [Core Earnings and Core Earnings Per Share](index=2&type=section&id=Core%20Earnings%20and%20Core%20Earnings%20Per%20Share) Core earnings and Core EPS are non-GAAP measures that exclude the effects of fair value fluctuations and specified infrequent or unusual transactions, providing management with a clearer view of Farmer Mac's economic performance and business trends by focusing on core business operations - Core earnings and Core EPS are non-GAAP measures that differ from GAAP net income and EPS by excluding fair value fluctuations, which are not expected to have a cumulative net impact if financial instruments are held to maturity[9](index=9&type=chunk) - These non-GAAP measures also exclude infrequent or unusual transactions that are not indicative of future operating results or core business trends, such as losses on the retirement of preferred stock[9](index=9&type=chunk) [Net Effective Spread](index=2&type=section&id=Net%20Effective%20Spread) Net effective spread is a non-GAAP measure used to assess the comprehensive net spread earned between interest-earning assets and their funding costs, including derivatives. It adjusts GAAP net interest income by reclassifying certain items and including others to reflect the economic performance of Farmer Mac's core business - Net effective spread measures the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs, including any associated derivatives[10](index=10&type=chunk)[13](index=13&type=chunk) - It excludes interest income and expense from consolidated trusts (reclassified as guarantee fees) and fair value changes of financial derivatives in hedge accounting relationships, as these are not expected to have an economic effect if held to maturity[12](index=12&type=chunk) - It includes the accrual of income and expense related to contractual amounts on undesignated financial derivatives and the net effects of terminations or net settlements on these derivatives[13](index=13&type=chunk)[14](index=14&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section outlines forward-looking statements, associated risk factors, Farmer Mac's mission to support rural America, and essential contact information [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) Management's future expectations involve inherent assumptions, estimates, and risks. Various known and unknown factors, including financing availability, regulatory changes, market fluctuations, and economic conditions, could cause actual results to differ materially from forward-looking statements - Future results may differ materially from expectations due to uncertainties regarding debt and equity financing availability and terms[16](index=16&type=chunk) - Legislative, regulatory, or political developments, fluctuations in asset fair value, and the level of lender interest in Farmer Mac's products are significant risk factors[16](index=16&type=chunk) - Economic conditions (e.g., inflation, interest rates, trade policies, commodity prices) and other factors affecting agricultural mortgage lending or borrower repayment capacity (e.g., weather, real estate values) pose risks[19](index=19&type=chunk) [About Farmer Mac](index=4&type=section&id=About%20Farmer%20Mac) Farmer Mac's mission is to enhance the accessibility of financing and provide vital liquidity for American agriculture and rural infrastructure. It offers diverse solutions to financial institutions across various markets, including agriculture, agribusiness, broadband, power, utilities, and renewable energy - Farmer Mac's mission is to increase the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure[18](index=18&type=chunk) - The company offers solutions to financial institutions for growth, liquidity, risk management, and capital relief across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy[18](index=18&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Contact details for investor relations and media inquiries are provided for Farmer Mac - Jalpa Nazareth is the contact for Investor Relations, and Lisa Meyer handles Media Inquiries, both reachable at **(202) 872-7700**[19](index=19&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Farmer Mac's consolidated balance sheets and statements of operations, detailing asset and liability growth, net interest income, and net income for Q2 2025 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Farmer Mac's consolidated balance sheet shows an increase in total assets by approximately **$1.67 billion** from December 31, 2024, to June 30, 2025, primarily driven by growth in investment securities and loans. Total liabilities and equity also increased proportionally Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Total Assets | $32,995,909 | $31,324,742 | | Total Liabilities | $31,451,602 | $29,835,716 | | Total Equity | $1,544,307 | $1,489,026 | | Cash & Equivalents| $1,030,329 | $1,024,007 | | Total Inv. Sec. | $6,697,258 | $5,973,301 | | Total Loans, net | $14,479,983 | $13,204,638 | | Notes Payable | $28,843,331 | $27,371,174 | - Total assets increased by **$1,671,167 thousand (5.3%)** from December 31, 2024, to June 30, 2025, primarily due to increases in investment securities and loans[20](index=20&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, Farmer Mac reported an **11%** year-over-year increase in Net Interest Income and a **22%** increase in Net Income Attributable to Common Stockholders, despite a slight decrease in total interest income. Operating expenses also saw an increase Consolidated Statements of Operations Highlights (in thousands, except per share) | Item | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :-------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Interest Income | $399,022 | $403,706 | -1.16% | $780,436 | $800,023 | -2.45% | | Total Interest Expense | $302,225 | $316,366 | -4.47% | $592,700 | $626,315 | -5.37% | | Net Interest Income | $96,797 | $87,340 | +10.83% | $187,736 | $173,708 | +8.07% | | Provision for losses | $(7,713) | $(6,179) | +24.82% | $(9,397) | $(4,378) | +114.66% | | Non-interest income | $5,837 | $2,526 | +131.00% | $9,217 | $9,840 | -6.33% | | Operating expenses | $29,490 | $24,469 | +20.59% | $59,000 | $51,706 | +14.10% | | Net income attributable to common stockholders | $49,170 | $40,313 | +22.00% | $93,155 | $87,268 | +6.75% | | Diluted earnings per common share | $4.48 | $3.68 | +21.74% | $8.49 | $7.96 | +6.66% | [Reconciliations of Non-GAAP Measures](index=7&type=section&id=Reconciliations) This section provides detailed reconciliations of GAAP net income and EPS to non-GAAP core earnings and core EPS, and GAAP net interest income to net effective spread [Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20Attributable%20to%20Common%20Stockholders%20to%20Core%20Earnings) This section reconciles GAAP net income attributable to common stockholders to non-GAAP core earnings, detailing adjustments for fair value changes in financial derivatives and hedging activities. Core earnings for Q2 2025 increased by **19%** year-over-year Core Earnings Reconciliation (in thousands) | Item | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to common stockholders | $49,170 | $43,985 | $40,313 | $93,155 | $87,268 | | Less reconciling items (Sub-total) | $1,805 | $(1,981) | $536 | $(176) | $4,099 | | **Core earnings** | **$47,365** | **$45,966** | **$39,777** | **$93,331** | **$83,169** | - Core earnings for the three months ended June 30, 2025, increased by **19%** year-over-year, reaching **$47,365 thousand**[23](index=23&type=chunk) - Key reconciling items include losses/gains on undesignated financial derivatives due to fair value changes and gains on hedging activities due to fair value changes[23](index=23&type=chunk)[25](index=25&type=chunk) [Reconciliation of GAAP EPS to Core EPS](index=9&type=section&id=Reconciliation%20of%20GAAP%20EPS%20to%20Core%20EPS) This reconciliation details the adjustments from GAAP basic and diluted EPS to their non-GAAP core equivalents, showing that Core Diluted EPS for Q2 2025 grew by **19%** year-over-year, reflecting the impact of excluding fair value fluctuations Core EPS Reconciliation (except per share amounts) | Item | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | GAAP - Basic EPS | $4.50 | $4.04 | $3.71 | $8.53 | $8.04 | | Sub-total (reconciling items) | $0.17 | $(0.18) | $0.05 | $(0.02) | $0.38 | | **Core Earnings - Basic EPS** | **$4.33** | **$4.22** | **$3.66** | **$8.55** | **$7.66** | | GAAP - Diluted EPS | $4.48 | $4.01 | $3.68 | $8.49 | $7.96 | | Sub-total (reconciling items) | $0.16 | $(0.18) | $0.05 | $(0.02) | $0.37 | | **Core Earnings - Diluted EPS** | **$4.32** | **$4.19** | **$3.63** | **$8.51** | **$7.59** | - Core Diluted EPS for Q2 2025 was **$4.32**, representing a **19%** increase from **$3.63** in Q2 2024[27](index=27&type=chunk) [Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread](index=10&type=section&id=Reconciliation%20of%20GAAP%20Net%20Interest%20Income/Yield%20to%20Net%20Effective%20Spread) This section reconciles GAAP net interest income and yield to non-GAAP net effective spread, showing the adjustments made for consolidated trusts, undesignated financial derivatives, and fair value hedge relationships. Net effective spread for Q2 2025 increased by **12%** year-over-year Net Effective Spread Reconciliation (dollars in thousands) | Item | Q2 2025 ($) | Yield (Q2 2025) | Q1 2025 ($) | Yield (Q1 2025) | Q2 2024 ($) | Yield (Q2 2024) | H1 2025 ($) | Yield (H1 2025) | H1 2024 ($) | Yield (H1 2024) | | :-------------------------------------- | :----------- | :-------------- | :----------- | :-------------- | :----------- | :-------------- | :----------- | :-------------- | :----------- | :-------------- | | Net interest income/yield | $96,797 | 1.20% | $90,939 | 1.15% | $87,340 | 1.15% | $187,736 | 1.17% | $173,708 | 1.15% | | Net effects of consolidated trusts | $(987) | 0.02% | $(1,371) | 0.02% | $(1,010) | 0.02% | $(1,998) | 0.02% | $(2,423) | 0.02% | | Expense related to undesignated financial derivatives | $(208) | —% | $(486) | (0.01)% | $318 | —% | $110 | —% | $(521) | —% | | Amortization of premiums/discounts on assets consolidated at fair value | $(22) | —% | — | —% | $(25) | —% | $(47) | —% | $(48) | —% | | Amortization of losses due to terminations or net settlements on financial derivatives | $1,022 | 0.01% | $738 | 0.01% | $867 | 0.01% | $1,890 | 0.01% | $1,530 | 0.01% | | Fair value changes on fair value hedge relationships | $(2,709) | (0.04)% | $(2,604) | (0.03)% | $(1,099) | (0.01)% | $(3,808) | (0.02)% | $(5,606) | (0.04)% | | **Net effective spread** | **$93,893** | **1.19%** | **$89,990** | **1.17%** | **$83,596** | **1.14%** | **$183,883** | **1.18%** | **$166,640** | **1.14%** | - Net effective spread for Q2 2025 was **$93,893 thousand**, an increase of **12%** from **$83,596 thousand** in Q2 2024[29](index=29&type=chunk) [Supplemental Information](index=11&type=section&id=Supplemental%20Information) This section offers detailed breakdowns of core earnings by business segment, outstanding business volume, net effective spread by segment, and quarterly core earnings reconciliation to net income [Core Earnings by Business Segment](index=11&type=section&id=Core%20Earnings%20by%20Business%20Segment) For Q2 2025, Farmer Mac's total segment core earnings were **$59,531 thousand**, with significant contributions from Agricultural Finance and Treasury Funding. The report also details the on- and off-balance sheet assets managed by each segment Core Earnings by Business Segment (Q2 2025, in thousands) | Segment | Net Effective Spread | Guarantee & Commitment Fees | Other Income/(Expense) | Provision for Losses | Operating Expenses | Income Tax Expense | Segment Core Earnings | | :----------------------- | :------------------- | :-------------------------- | :--------------------- | :------------------- | :----------------- | :----------------- | :-------------------- | | Farm & Ranch AgFinance | $35,710 | $4,551 | $313 | $(4,494) | $(7,020) | $(6,101) | $22,959 | | Corporate AgFinance | $8,609 | $224 | $345 | $(614) | $(2,378) | $(1,300) | $4,886 | | Power & Utilities | $5,636 | $215 | — | $(73) | $(1,156) | $(970) | $3,652 | | Broadband Infrastructure | $3,932 | $564 | — | $(666) | $(1,274) | $(537) | $2,019 | | Renewable Energy | $6,227 | $320 | $8 | $(1,964) | $(1,560) | $(637) | $2,394 | | Treasury Funding | $31,668 | — | — | — | $(3,003) | $(6,020) | $22,645 | | Treasury Investments | $2,111 | — | $14 | $(1) | $(888) | $(260) | $976 | | **Total Segment Core Earnings** | **$93,893** | **$5,874** | **$680** | **$(7,812)** | **$(17,279)** | **$(15,825)** | **$59,531** | - Total on- and off-balance sheet segment assets at principal balance amounted to **$30,587,259 thousand** as of June 30, 2025[31](index=31&type=chunk) [Outstanding Business Volume](index=12&type=section&id=Outstanding%20Business%20Volume) Farmer Mac's total outstanding business volume increased to **$30,587,259 thousand** as of June 30, 2025, up from **$29,523,030 thousand** at December 31, 2024. This growth was primarily driven by a significant increase in Infrastructure Finance, while Agricultural Finance saw a slight decrease Outstanding Business Volume (in thousands) | Line of Business | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :---------------------- | :------------ | :---------------- | :----------- | :--------- | | Agricultural Finance | $20,171,428 | $20,494,673 | $(323,245) | -1.58% | | Infrastructure Finance | $10,415,831 | $9,028,357 | $1,387,474 | +15.37% | | **Total** | **$30,587,259** | **$29,523,030** | **$1,064,229** | **+3.60%** | - Infrastructure Finance experienced substantial growth, with Power & Utilities increasing from **$6,809,366 thousand** to **$7,300,354 thousand**, Broadband Infrastructure from **$802,466 thousand** to **$1,174,441 thousand**, and Renewable Energy from **$1,416,525 thousand** to **$1,941,036 thousand**[32](index=32&type=chunk) [Net Effective Spread by Segment](index=13&type=section&id=Net%20Effective%20Spread%20by%20Segment) The quarterly net effective spread by segment shows consistent performance, with total net effective spread reaching **$93,893 thousand** in Q2 2025 at a yield of **1.19%**. Agricultural Finance and Treasury Funding remain key contributors, while Infrastructure Finance segments show varying yields Quarterly Net Effective Spread by Segment (in thousands) | Segment | Q2 2025 ($) | Q2 2025 Yield | Q1 2025 ($) | Q1 2025 Yield | Q2 2024 ($) | Q2 2024 Yield | | :----------------------- | :---------- | :------------ | :---------- | :------------ | :---------- | :------------ | | Farm & Ranch AgFinance | $35,710 | 1.07% | $33,885 | 1.01% | $34,156 | 0.98% | | Corporate AgFinance | $8,609 | 2.07% | $8,640 | 2.09% | $7,866 | 1.91% | | Power & Utilities | $5,636 | 0.33% | $5,329 | 0.32% | $5,253 | 0.32% | | Broadband Infrastructure | $3,932 | 2.24% | $3,566 | 2.27% | $2,393 | 2.16% | | Renewable Energy | $6,227 | 1.68% | $5,112 | 1.55% | $2,999 | 1.86% | | Treasury Funding | $31,668 | 0.40% | $31,604 | 0.41% | $30,268 | 0.41% | | Treasury Investments | $2,111 | 0.11% | $1,854 | 0.10% | $661 | 0.04% | | **Total Net Effective Spread** | **$93,893** | **1.19%** | **$89,990** | **1.17%** | **$83,596** | **1.14%** | [Quarterly Core Earnings Reconciliation to Net Income](index=14&type=section&id=Quarterly%20Core%20Earnings%20Reconciliation%20to%20Net%20Income) This table provides a detailed quarterly breakdown of core earnings and its reconciliation to net income attributable to common stockholders, showing trends in revenues, expenses, and the impact of reconciling items over several quarters Quarterly Core Earnings and Net Income (in thousands) | Item | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net effective spread | $93,893 | $89,990 | $87,528 | $85,396 | $83,596 | | Total revenues | $100,509 | $96,793 | $92,123 | $91,526 | $89,238 | | Total credit related expense/(income) | $7,873 | $1,651 | $3,872 | $3,454 | $6,230 | | Total operating expenses | $29,490 | $29,510 | $29,093 | $24,587 | $24,469 | | Income tax expense | $10,114 | $14,000 | $9,938 | $12,681 | $11,970 | | Preferred stock dividends | $5,667 | $5,666 | $5,666 | $5,897 | $6,792 | | **Core earnings** | **$47,365** | **$45,966** | **$43,554** | **$44,907** | **$39,777** | | Net income attributable to common stockholders | $49,170 | $43,985 | $50,848 | $42,312 | $40,313 | - Reconciling items, primarily fair value changes on financial derivatives and hedging activities, significantly impact the difference between core earnings and net income attributable to common stockholders[35](index=35&type=chunk)

Group 1 - The article discusses the importance of public-sector financial institutions in providing capital access in rural areas, specifically focusing on the Federal Agricultural Mortgage Corporation [1] - The review examines the structure, performance, and investment profile of the Federal Agricultural Mortgage Corporation [1] - The investing group Trade With Beta offers services such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1] Group 2 - The article emphasizes that past performance is not indicative of future results, highlighting the need for careful consideration in investment decisions [2] - It clarifies that no specific investment recommendations are provided, and opinions expressed may not reflect the views of Seeking Alpha as a whole [2] - The article notes that analysts contributing to the platform may not be licensed or certified by any regulatory body [2]

Core Insights - The article emphasizes the importance of creating a portfolio that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It promotes a community-focused investment service that offers various tools and resources to support investors [2] Group 1: Investment Strategy - The service provides a model portfolio with buy/sell alerts, catering to both conservative and aggressive investors [2] - It includes preferred and baby bond portfolios, which are designed for more risk-averse investors [2] Group 2: Community and Support - The investment philosophy is centered around community engagement, education, and the belief that investors should not navigate the market alone [2] - The service features an active chat platform that allows members to interact with service leaders and each other [2] Group 3: Monitoring and Alerts - The service closely monitors all positions and issues buy and sell alerts exclusively for its members [4]

Core Viewpoint - The conference call is focused on the Q1 2025 earnings results of Federal Agricultural Mortgage Corporation (Farmer Mac), highlighting the company's performance and future outlook [1]. Group 1: Company Overview - Farmer Mac's earnings conference call is led by Jalpa Nazareth, Senior Director of Investor Relations and Finance Strategies [3]. - The call includes participation from key executives such as Brad Nordholm, President & CEO, and Aparna Ramesh, EVP, CFO & Treasurer [1][5]. Group 2: Financial Disclosures - The call will discuss non-GAAP financial measures, with disclosures and reconciliations available in the most recent Form 10-Q and earnings release on Farmer Mac's website [5]. - Forward-looking statements regarding the company's business strategies and prospects will be presented, based on management's current expectations [4].

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue, net effective spread, and core earnings in Q1 2025, with core earnings increasing by 6% year-over-year to $46 million [5][16] - Gross new business volume reached $1.8 billion, reflecting high single-digit growth in total revenue and net effective spread [6][15] - Outstanding business volume grew by $232 million, ending the quarter at $29.8 billion [7][16] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by approximately $750 million, with a notable $300 million AgVantage security closed in the power and utility segment [8][9] - The broadband infrastructure segment grew by 22% since year-end, reaching nearly $1 billion [8] - The renewable energy segment grew by nearly $200 million, a 14% increase since year-end [9] - Farm and ranch loan purchases saw a net increase of $86 million despite $500 million in scheduled maturities [9][10] Market Data and Key Metrics Changes - The company noted a strong demand for refinancing and incremental borrowing in the farm and ranch segment, which is core to its mission [11][12] - The overall credit profile remained strong, with a total allowance for losses of $27 million as of March 31, 2025, reflecting a $1.7 million increase from year-end 2024 [19][20] Company Strategy and Development Direction - The company continues to focus on mission-based profitable growth, diversifying its portfolio to create opportunities in various interest rate environments [6][12] - There is an emphasis on strategic investments and talent acquisition in infrastructure finance and renewable energy to build expertise and capacity [9][12] - The company plans to enhance its securitization program to optimize the balance sheet and target new asset opportunities [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating broader market uncertainties stemming from interest rates, regulatory shifts, and policy changes [5][28] - The company anticipates continued growth in the farm and ranch segment due to agricultural economic tightening and potential government support programs [11][28] - Management highlighted a strong liquidity position with $1 billion in cash and short-term instruments, positioning the company well against potential market disruptions [24][25] Other Important Information - Operating expenses increased by 8% year-over-year due to investments in infrastructure technology and higher licensing fees [17] - The efficiency ratio for Q1 2025 was 29%, reflecting a disciplined approach to expense management [17][24] Q&A Session Summary Question: Impact of tariffs on agricultural shipments to China - Management discussed historical support programs for farmers during tariff disruptions and noted current shifts in trade to Mexico due to high tariffs [31][32] Question: Dynamics of net effective spread across business lines - Management explained that the net effective spread increase was driven by strong loan activity in the farm and ranch segment, with a strong pipeline heading into Q2 [35][37] Question: Renewable energy tax credits and outlook - Management confirmed no similar tax credit activity in Q1 2025 but remains optimistic about future opportunities [55] Question: Applications of AI within the company - Management indicated a focus on using AI to improve internal processes, particularly in loan document management [72][73]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue, net effective spread, and core earnings in Q1 2025, with core earnings increasing by 6% year-over-year to $46 million [5][16] - Gross new business volume reached $1.8 billion, contributing to a net increase of $232 million in outstanding business volume, totaling $29.8 billion at the end of the quarter [6][16] - Net effective spread reached a record of $90 million or 117 basis points, with sequential and year-over-year improvements of $2.5 million and $6.9 million respectively [16][23] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by approximately $750 million, with significant contributions from the broadband infrastructure segment, which grew 22% since year-end [8][9] - The renewable energy segment saw growth of nearly $200 million, a 14% increase since year-end [9] - Farm and ranch loan purchases increased by $86 million despite $500 million in scheduled maturities, indicating strong demand in this segment [9][10] Market Data and Key Metrics Changes - The company noted a strong demand for financing opportunities in rural telecommunication providers driven by fiber line expansion and wireless broadband deployment [8] - The overall credit profile remained strong, with a total allowance for losses of $27 million, reflecting a $1.7 million increase from year-end 2024 [19][20] - Ninety-day delinquencies increased to 54 basis points, up from 37 basis points at year-end, reflecting seasonal patterns [20] Company Strategy and Development Direction - The company continues to focus on mission-based profitable growth, emphasizing diversification of its portfolio to create opportunities in various interest rate environments [6][12] - Strategic investments and talent acquisition in infrastructure finance and renewable energy are prioritized to build expertise and capacity [9][12] - The company plans to enhance its securitization program to optimize the balance sheet and target new asset opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating broader market uncertainties stemming from interest rates, regulatory shifts, and policy changes [5][13] - The company anticipates continued growth in the farm and ranch segment due to agricultural economic tightening and potential government support programs [9][11] - Management remains optimistic about the future, focusing on fulfilling its mission efficiently and innovatively [27] Other Important Information - Operating expenses increased by 8% year-over-year due to investments in infrastructure technology and higher licensing fees [17] - The company maintains a strong capital position, with core capital of $1.5 billion exceeding statutory requirements by $601 million [20][21] - The company has approximately $1 billion in cash and short-term instruments, providing a strong liquidity position [23] Q&A Session Summary Question: Impact of tariffs on agricultural shipments to China - Management discussed historical support programs for farmers during tariff disruptions and noted current shifts in trade patterns towards Mexico [30][32] Question: Dynamics of net effective spread across business lines - Management explained that the net effective spread increase was driven by strong loan activity in the farm and ranch segment, with a robust pipeline heading into Q2 [34][36] Question: Changes in funding costs and securitization expectations - Management highlighted improved funding dynamics from Q4 to Q1 and expressed optimism about upcoming securitization transactions [48][49] Question: Renewable energy tax credits and outlook - Management confirmed no new tax credit activity in Q1 but remains optimistic about future opportunities [55] Question: Applications of AI within the company - Management indicated a focus on using AI to improve internal processes, particularly in loan document management [71][72]

Group 1 - Federal Agricultural Mortgage (Farmer Mac) reported quarterly earnings of $4.19 per share, exceeding the Zacks Consensus Estimate of $4 per share, and up from $3.96 per share a year ago, representing an earnings surprise of 4.75% [1] - The company posted revenues of $96.79 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.61%, compared to year-ago revenues of $93.68 million [2] - Farmer Mac has surpassed consensus EPS estimates just once over the last four quarters, while it has topped consensus revenue estimates two times in the same period [2] Group 2 - The stock has underperformed the market, losing about 10% since the beginning of the year, compared to the S&P 500's decline of -3.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $4.32 on revenues of $96.4 million, and for the current fiscal year, it is $17.17 on revenues of $388.42 million [7] Group 3 - The Zacks Industry Rank indicates that the Financial - Mortgage & Related Services sector is currently in the bottom 9% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The estimate revisions trend for Farmer Mac is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue, net effective spread, and core earnings in Q1 2025, with core earnings increasing by 6% year-over-year to $46 million [4][15] - Gross new business volume reached $1.8 billion, with outstanding business volume growing by $232 million to $29.8 billion [5][15] - Net effective spread reached a record of $90 million or 117 basis points, with sequential and year-over-year improvements of $2.5 million and $6.9 million respectively [15][22] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by approximately $750 million, with significant contributions from the power and utility segment and broadband infrastructure segment growing by 22% [6][8] - Renewable energy segment grew by nearly $200 million, a 14% increase since year-end 2024 [8] - Farm and ranch loan purchases saw a net increase of $86 million despite $500 million in scheduled maturities [9][10] Market Data and Key Metrics Changes - The company noted a strong demand for farm and ranch assets, with a focus on liquidity and working capital needs due to tightening agricultural economic conditions [60] - The overall credit profile remained strong, with 90-day delinquencies at 54 basis points, up from 37 basis points at year-end 2024 [18][19] Company Strategy and Development Direction - The company continues to focus on mission-based profitable growth, diversifying its portfolio to create opportunities in various interest rate environments [5][12] - Strategic investments and talent acquisition in infrastructure finance and renewable energy are prioritized to build expertise and capacity [8][12] - The company plans to enhance its securitization program to optimize the balance sheet and target new asset opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating broader market uncertainties related to interest rates, regulatory shifts, and government actions [5][12] - The company anticipates continued growth in the farm and ranch segment due to ongoing agricultural economic tightening and potential government support programs [10][61] - Management highlighted a strong liquidity position with 289 days of liquidity and approximately $1 billion in cash and short-term instruments [22][23] Other Important Information - Operating expenses increased by 8% year-over-year due to investments in infrastructure technology and higher licensing fees [16] - The company’s core capital of $1.5 billion exceeded statutory requirements by $601 million or 65% as of March 31, 2025 [19][20] Q&A Session Summary Question: Impact of tariffs on agricultural shipments to China - Management discussed historical support programs for farmers during tariff disruptions and noted current shifts in trade patterns towards Mexico [28][30] Question: Dynamics of net effective spread across business lines - Management explained that the net effective spread increase was driven by strong loan activity in the farm and ranch segment, while broadband and renewable energy segments experienced slight declines [34][36] Question: Changes in funding costs and upcoming securitization - Management indicated improved funding dynamics from Q4 to Q1 and expressed optimism about the upcoming securitization transaction [48][50] Question: Outlook for renewable energy and tax credits - Management confirmed no new tax credit activity in Q1 but remains optimistic about future opportunities [54][55] Question: Applications of AI within the company - Management highlighted the focus on using AI to improve internal processes, particularly in loan document management [70][72]

Equity Investor Presentation First Quarter 2025 Forward-Looking Statements In addition to historical information, this presentation includes forward-looking statements that reflect management's current expectations for Farmer Mac's future financial results, business prospects, and business developments. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. Management's expectations for Farmer Mac's f ...