As filed with the Securities and Exchange Commission on November 3, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or FEDERAL AGRICULTURAL MORTGAGE CORPORATION (Exact name of registrant as specified in its charter) Federally chartered instrumentality of the United States 52-1578738 (State or other jurisdiction of incorporation or ...

Farmer Mac Reports Third Quarter 2025 Results - Outstanding Business Volume of $31.1 Billion - WASHINGTON, D.C., November 3, 2025 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended September 30, 2025. "I'm pleased to announce we've once again achieved record n ...

PART I This section covers Farmer Mac's unaudited consolidated financial statements, management's analysis, market risk, and internal controls [Item 1. Financial Statements](index=4&type=page&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) This section details Farmer Mac's financial position, including assets, liabilities, and equity, for the specified periods | 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) This section details Farmer Mac's financial performance, covering interest income, expenses, net income, and EPS | 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) This section presents Farmer Mac's comprehensive income, including net income and other unrealized gains or losses | 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) This section outlines changes in Farmer Mac's equity, including retained earnings, AOCI, and stock classes | 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) This section reports Farmer Mac's cash flows from operating, investing, and financing activities for the specified periods | 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) This section provides detailed explanations and disclosures for financial statements, covering accounting policies, investments, and derivatives [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=page&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) This section highlights inherent uncertainties and risks associated with Farmer Mac's future financial performance and operations - 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) This section summarizes Farmer Mac's mission, recent business achievements, and key financial performance indicators for the quarter - 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) This section explains the purpose and methodology of Farmer Mac's non-GAAP financial measures for core business performance insights - 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) This section analyzes Farmer Mac's financial results, including net income, core earnings, net interest income, and business volume growth | 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) This section discusses Farmer Mac's future expectations for growth drivers, operating expenses, and market trends in key sectors - 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 $1.00 of credit**[258](index=258&type=chunk) - Rural telecommunication and data connectivity demand is strong, driven by AI, cloud computing, and wireless network densification, supported by federal programs like BEAD, RDOF, and ReConnect[260](index=260&type=chunk) - H.R. 1 includes an amendment to the Internal Revenue Code that excludes **25%** of net interest income on qualifying rural or agricultural real-property loans from gross income for banks, insurers, and Farmer Mac[266](index=266&type=chunk) [Balance Sheet Review](index=90&type=section&id=Balance%20Sheet%20Review) This section analyzes changes in Farmer Mac's assets, liabilities, and equity, highlighting the primary drivers | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change ($) | 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) This section details Farmer Mac's strategies for identifying, assessing, and mitigating financial risks, including credit and interest rate risk [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 fully guaranteed by the U.S. government, 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) This section outlines Farmer Mac's funding sources, liquidity management, and compliance with statutory capital requirements - 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) This section confirms no other significant matters requiring disclosure were reported during the period - No other matters were reported[347](index=347&type=chunk) [Supplemental Information](index=109&type=section&id=Supplemental%20Information) This section provides additional key operational metrics, including new business volume, repayments, and net effective spread | 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=page&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=page&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 This section addresses legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=115&type=page&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=page&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=page&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=page&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=page&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=page&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=page&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=page&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)

Farmer Mac Reports Second Quarter 2025 Results - Outstanding Business Volume Exceeds $30 Billion - WASHINGTON, D.C., August 7, 2025 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended June 30, 2025. "I'm very pleased to report that we delivered record results a ...

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 for the quarter ended March 31, 2025, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes on significant accounting policies, investment securities, Farmer Mac Guaranteed Securities, USDA Securities, financial derivatives, loans, guarantees and commitments, notes payable, equity, fair value disclosures, and business segment reporting [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased by **$479.2 million** to **$31.80 billion**, primarily from new loan volume and a larger investment portfolio, while total liabilities rose by **$442.6 million** to **$30.28 billion** due to higher notes payable, and total equity increased by **$36.6 million** to **$1.53 billion** from retained earnings | Metric | March 31, 2025 (in billions) | December 31, 2024 (in billions) | Change (in millions) | Change (%) | |:---|:---|:---|:---|:---| | Total Assets | $31.80 | $31.32 | $479.2 | 2% | | Total Liabilities | $30.28 | $29.84 | $442.6 | 1% | | Total Equity | $1.53 | $1.49 | $36.6 | 2% | - The increase in total assets was primarily attributable to new loan volume and a larger investment portfolio[236](index=236&type=chunk) - The increase in total liabilities was primarily due to an increase in total notes payable to fund the acquisition of loan volume[237](index=237&type=chunk) - The increase in total equity was primarily due to an increase in retained earnings[237](index=237&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, Farmer Mac reported a net income of **$49.65 million**, a decrease from **$53.75 million** in the prior year, mainly due to a provision for losses compared to a prior-year release, and a decrease in total interest income, partially offset by lower total interest expense | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---| | Total interest income | $381.41 | $396.32 | | Total interest expense | $290.48 | $309.95 | | Net interest income | $90.94 | $86.37 | | (Provision for)/release of losses | $(1.68) | $1.80 | | Income before income taxes | $63.13 | $68.25 | | Net income | $49.65 | $53.75 | | Net income attributable to common stockholders | $43.99 | $46.96 | | Basic earnings per common share | $4.04 | $4.33 | | Diluted earnings per common share | $4.01 | $4.28 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the three months ended March 31, 2025, was **$59.99 million**, a significant decrease from **$89.77 million** in the prior year, primarily driven by lower net unrealized gains on available-for-sale securities and net unrealized losses on cash flow hedges | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---| | Net income | $49.65 | $53.75 | | Net unrealized gains on available-for-sale securities | $21.76 | $39.95 | | Net unrealized (losses)/gains on cash flow hedges | $(8.37) | $6.29 | | Other comprehensive income net of tax | $10.34 | $36.03 | | Comprehensive income | $59.99 | $89.77 | [Consolidated Statements of Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity increased to **$1.53 billion** as of March 31, 2025, from **$1.49 billion** at December 31, 2024, primarily due to net income and other comprehensive income, partially offset by cash dividends paid on preferred and common stock | Metric | December 31, 2024 (in millions) | March 31, 2025 (in millions) | |:---|:---|:---| | Total Equity (Beginning Balance) | $1,489.03 | $1,489.03 | | Net Income | $49.65 | $49.65 | | Other comprehensive income, net of tax | $10.34 | $10.34 | | Cash dividends: Preferred stock | $(5.67) | $(5.67) | | Cash dividends: Common stock | $(16.35) | $(16.35) | | Issuance of Class C Common Stock | $0.12 | $0.12 | | Stock-based compensation cost | $3.53 | $3.53 | | Other stock-based award activity | $(5.00) | $(5.00) | | Total Equity (Ending Balance) | $1,525.65 | $1,525.65 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$24.13 million** to **$1.05 billion** as of March 31, 2025, compared to **$1.02 billion** at the end of 2024, driven by significant cash provided by financing activities, partially offset by cash used in investing and operating activities | Cash Flow Activity | March 31, 2025 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---|\ | Net cash provided by operating activities | $(49.82) | $233.34 | | Net cash used in investing activities | $(345.88) | $(525.47) | | Net cash provided by financing activities | $419.83 | $148.54 | | Net change in cash and cash equivalents | $24.13 | $(143.60) | | Cash, cash equivalents, and restricted cash at end of period | $1,048.14 | $745.11 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations and disclosures for the consolidated financial statements, covering accounting policies, specific financial instruments, loan portfolio details, guarantees, debt, equity, fair value measurements, and segment reporting, with key updates on new accounting standards and portfolio performance [1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=10&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines Farmer Mac's significant accounting policies, including principles of consolidation, calculation of earnings per common share, and comprehensive income, detailing recently issued accounting guidance not yet adopted - Farmer Mac's consolidated financial statements include its two subsidiaries (Farmer Mac Mortgage Securities Corporation and Farmer Mac II LLC) and Variable Interest Entities (VIEs) where Farmer Mac is the primary beneficiary[28](index=28&type=chunk) | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---|\ | Net income attributable to common stockholders (Basic EPS) | $43.99 | $46.96 | | Weighted Average Shares (Basic EPS) | 10,896 | 10,847 | | Basic EPS | $4.04 | $4.33 | | Net income attributable to common stockholders (Diluted EPS) | $43.99 | $46.96 | | Weighted Average Shares (Diluted EPS) | 10,983 | 10,969 | | Diluted EPS | $4.01 | $4.28 | - ASU 2023-09 (Income Taxes) and ASU 2024-03 (Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures) are not expected to have a material impact on Farmer Mac's financial position, results of operations, or cash flows upon adoption[38](index=38&type=chunk) [2. INVESTMENT SECURITIES](index=15&type=section&id=2.%20INVESTMENT%20SECURITIES) Farmer Mac's investment securities portfolio, primarily available-for-sale and held-to-maturity, saw an increase in fair value for available-for-sale securities to **$6.23 billion** as of March 31, 2025, from **$5.95 billion** at December 31, 2024, with unrealized losses considered recoverable due to high credit quality | Security Type | March 31, 2025 Fair Value (in billions) | December 31, 2024 Fair Value (in billions) | |:---|:---|:---|\ | Total Available-for-sale | $6.23 | $5.95 | | Total Held-to-maturity | $0.01 | $0.01 | - Unrealized losses on available-for-sale investment securities were **$122.44 million** as of March 31, 2025, primarily due to a general widening of market spreads and changes in interest rates[39](index=39&type=chunk)[44](index=44&type=chunk) - All investment securities in an unrealized loss position are backed by the full faith and credit of the U.S. government, a U.S. government sponsored enterprise, or have credit ratings of at least 'AA+', and Farmer Mac believes these losses are recoverable[44](index=44&type=chunk) [3. FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES](index=18&type=section&id=3.%20FARMER%20MAC%20GUARANTEED%20SECURITIES%20AND%20USDA%20SECURITIES) The fair value of Farmer Mac Guaranteed Securities and USDA Securities held-to-maturity decreased to **$4.62 billion** as of March 31, 2025, from **$4.81 billion** at December 31, 2024, while available-for-sale securities increased to **$5.62 billion** from **$5.51 billion**, with unrealized losses mainly due to interest rate changes but covered by U.S. government guarantee | Security Type | March 31, 2025 Fair Value (in billions) | December 31, 2024 Fair Value (in billions) | |:---|:---|:---|\ | Total Held-to-maturity | $4.62 | $4.81 | | Total Available-for-sale | $5.62 | $5.51 | | Trading USDA Securities | $0.00 | $0.00 | - Unrealized losses on these securities are primarily due to changes in interest rates[51](index=51&type=chunk) - The credit exposure related to Farmer Mac's USDA Securities is covered by the full faith and credit guarantee of the United States of America[52](index=52&type=chunk) [4. FINANCIAL DERIVATIVES](index=21&type=section&id=4.%20FINANCIAL%20DERIVATIVES) Farmer Mac uses financial derivatives, primarily interest rate swaps, to manage interest rate risk, not for speculation, with a total notional amount of **$24.01 billion** and a net liability of **$35.52 million** as of March 31, 2025, expecting to reclassify **$9.1 million** after-tax from accumulated other comprehensive income to earnings over the next twelve months - Farmer Mac uses financial derivatives to protect against market price or interest rate movements on assets, cash flows, or debt issuance, not for trading or speculative purposes[58](index=58&type=chunk) | Metric | March 31, 2025 (in billions) | December 31, 2024 (in billions) | |:---|:---|:---|\ | Total Notional Amount | $24.01 | $24.90 | | Total Financial Derivatives (Asset Fair Value) | $0.03 | $0.03 | | Total Financial Derivatives (Liability Fair Value) | $(0.06) | $(0.08) | | Net Fair Value | $(0.04) | $(0.05) | - Farmer Mac expects to reclassify **$9.1 million** after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges[63](index=63&type=chunk) [5. LOANS](index=27&type=section&id=5.%20LOANS) Farmer Mac's total loans, net of allowance, increased to **$13.62 billion** as of March 31, 2025, from **$13.20 billion** at December 31, 2024, with the allowance for losses increasing to **$25.06 million** due to new loan volume in Infrastructure Finance and Corporate AgFinance, and increases in delinquencies and substandard assets in Agricultural Finance | Loan Category | March 31, 2025 (in billions) | December 31, 2024 (in billions) | |:---|:---|:---|\ | Total loans, net of allowance | $13.62 | $13.20 | | Agricultural Finance loans | $8.88 | $8.83 | | Infrastructure Finance loans | $5.11 | $4.77 | | Allowance for losses | $(0.03) | $(0.02) | | Delinquency Status (Agricultural Finance) | March 31, 2025 (in millions) | December 31, 2024 (in millions) | |:---|:---|:---|\ | Total Past Due | $39.63 | $30.11 | | Nonaccrual loans | $196.71 | $168.92 | - The **$1.0 million** net provision to the allowance for the Infrastructure Finance portfolio was primarily attributable to new loan volume within the Renewable Energy and Power & Utilities segments[76](index=76&type=chunk) - The **$0.8 million** net provision to the allowance for the Agricultural Finance mortgage loan portfolio was primarily attributable to new loan volume[77](index=77&type=chunk) [6. GUARANTEES AND COMMITMENTS](index=34&type=section&id=6.%20GUARANTEES%20AND%20COMMITMENTS) Farmer Mac's guarantee and commitment obligation decreased slightly to **$47.68 million** as of March 31, 2025, from **$48.33 million** at December 31, 2024, with the reserve for losses also decreasing due to ratings upgrades, and a maximum potential exposure of **$4.15 billion** under Long-Term Standby Purchase Commitments | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | |:---|:---|:---|\ | Guarantee and commitment obligation | $47.68 | $48.33 | | Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities | $414.29 | $426.31 | | Maximum principal amount (LTSPCs) | $4,146.72 | $4,029.02 | | Reserve for Losses | $1.52 | $1.62 | - The release from the reserve for losses during first quarter 2025 for both Agricultural Finance and Infrastructure Finance was primarily due to ratings upgrades[91](index=91&type=chunk) | Delinquency Status (Agricultural Finance) | March 31, 2025 (in millions) | December 31, 2024 (in millions) | |:---|:---|:---|\ | Total Past Due | $17.71 | $10.38 | [7. NOTES PAYABLE](index=38&type=section&id=7.%20NOTES%20PAYABLE) Farmer Mac's total notes payable increased to **$27.98 billion** as of March 31, 2025, from **$27.37 billion** at December 31, 2024, primarily comprising discount notes and medium-term notes, with a weighted-average rate of **3.55%** and unused statutory authority to borrow up to **$1.5 billion** from the U.S. Treasury | Metric | March 31, 2025 (in billions) | December 31, 2024 (in billions) | |:---|:---|:---|\ | Total Notes Payable | $27.98 | $27.37 | | Total principal net of discounts | $28.05 | $27.52 | | Weighted-Average Rate (Total principal net of discounts) | 3.55% | 3.51% | - Farmer Mac has statutory authority to borrow up to **$1.5 billion** from the U.S. Treasury to fulfill guarantee obligations, which has not been used as of March 31, 2025[100](index=100&type=chunk)[101](index=101&type=chunk) - During the three months ended March 31, 2025, Farmer Mac called **$488.5 million** of callable medium-term notes[99](index=99&type=chunk) [8. EQUITY](index=41&type=section&id=8.%20EQUITY) Farmer Mac's core capital level was **$1.5 billion** as of March 31, 2025, exceeding the minimum capital requirement by **$600.8 million**, and the company paid a quarterly common stock dividend of **$1.50 per share** while renewing its share repurchase program with **$9.8 million** remaining authorization - Farmer Mac paid a quarterly dividend of **$1.50 per share** on all classes of its common stock during first quarter 2025[103](index=103&type=chunk) - The share repurchase program was renewed in February 2025, with a remaining authorization of up to **$9.8 million** and an extended expiration date to February 2027[104](index=104&type=chunk) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | |:---|:---|:---|\ | Minimum capital requirement | $926.70 | $917.60 | | Core capital level | $1,525.65 | $1,489.03 | | Capital above minimum requirement | $600.80 | $583.50 | [9. FAIR VALUE DISCLOSURES](index=42&type=section&id=9.%20FAIR%20VALUE%20DISCLOSURES) Farmer Mac's fair value disclosures categorize assets and liabilities into Level 1, 2, and 3 based on valuation inputs, with Level 3 assets representing **18%** of total assets and **47%** of financial instruments measured at fair value as of March 31, 2025, and total assets at fair value of **$11.89 billion** and total liabilities of **$63.39 million** | Metric | March 31, 2025 (in billions) | December 31, 2024 (in billions) | |:---|:---|:---|\ | Total Assets at fair value | $11.89 | $11.51 | | Total Liabilities at fair value | $0.06 | $0.08 | | Level 3 assets as % of total assets | 18% | 18% | | Level 3 assets as % of financial instruments at fair value | 47% | 48% | - There were no material assets or liabilities measured at fair value on a non-recurring basis, and no transfers within the fair value hierarchy during the three months ended March 31, 2025 and 2024[110](index=110&type=chunk)[111](index=111&type=chunk) - Significant unobservable inputs for Level 3 assets include discount rates and constant prepayment rates (CPR), with discount rates for AgVantage securities ranging from **4.7%** to **5.1%** (weighted average **4.8%**) as of March 31, 2025[115](index=115&type=chunk) [10. BUSINESS SEGMENT REPORTING](index=48&type=section&id=10.%20BUSINESS%20SEGMENT%20REPORTING) Farmer Mac operates through seven reportable segments, with total segment core earnings for the three months ended March 31, 2025, totaling **$62.34 million**, and Farm & Ranch contributing the largest share at **$26.27 million**, while total on- and off-balance sheet segment assets at principal balance were **$29.76 billion** - Farmer Mac has seven reportable segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments[119](index=119&type=chunk) | Segment | March 31, 2025 Core Earnings (in millions) | March 31, 2024 Core Earnings (in millions) | |:---|:---|:---|\ | Farm & Ranch | $26.27 | $25.04 | | Corporate AgFinance | $4.64 | $5.21 | | Power & Utilities | $3.44 | $3.31 | | Broadband Infrastructure | $2.43 | $3.51 | | Renewable Energy | $1.97 | $0.02 | | Funding | $22.76 | $23.63 | | Investments | $0.83 | $(0.20) | | Total Segment Core Earnings | $62.34 | $60.52 | | Segment | March 31, 2025 Total On- and Off-Balance Sheet Segment Assets at Principal Balance (in billions) | |:---|:---|\ | Farm & Ranch | $18.09 | | Corporate AgFinance | $1.89 | | Power & Utilities | $7.19 | | Broadband Infrastructure | $0.97 | | Renewable Energy | $1.61 | | Total | $29.76 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&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 for the quarter ended March 31, 2025, covering forward-looking statements, business overview, non-GAAP measures, detailed results, future outlook, balance sheet review, risk management, liquidity, capital resources, and supplemental information [Forward-Looking Statements](index=51&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements regarding Farmer Mac's future financial results, business prospects, and developments, which involve assumptions, estimates, and risks, and actual results could differ materially due to various known and unknown factors - Forward-looking statements in the report address Farmer Mac's prospects for earnings, business volume growth, trends in net interest income and net effective spread, portfolio credit quality, expenses, investment securities, asset impairments, capital position, and future dividend payments[132](index=132&type=chunk) - Various factors could cause actual results to differ materially, including the availability of debt and equity financing, legislative/regulatory/political developments, fluctuations in asset fair value, lender interest, growth in agricultural/infrastructure indebtedness, economic conditions (inflation, interest rates, trade policies, supply chain, commodity prices), interest rate risk exposure, financial market developments, Federal Reserve policies, and other factors affecting agricultural lending or borrower repayment capacity (weather, real estate values)[133](index=133&type=chunk)[134](index=134&type=chunk) [Overview](index=53&type=section&id=Overview) Farmer Mac provided **$1.8 billion** in liquidity in Q1 2025, maintaining strong liquidity and capital, with net income attributable to common stockholders decreasing year-over-year by **$3.0 million** to **$43.99 million**, while core earnings increased by **$2.6 million** to **$45.97 million** due to net effective spread growth, and outstanding business volume increased by **$0.2 billion** to **$29.8 billion** - During Q1 2025, Farmer Mac provided **$1.8 billion** in liquidity and lending capacity, maintained strong liquidity and capital well above regulatory requirements, and had uninterrupted access to debt capital markets[138](index=138&type=chunk) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---|:---|\ | Net income attributable to common stockholders | $43.99 | $50.85 | $46.96 | | Core earnings | $45.97 | $43.55 | $43.39 | - The **$3.0 million** year-over-year decrease in net income was primarily due to a **$3.7 million** after-tax decrease in fair value of financial derivatives and a **$2.7 million** after-tax increase in provision for credit losses, partially offset by a **$3.6 million** after-tax increase in net interest income[140](index=140&type=chunk) - The **$2.6 million** year-over-year increase in core earnings was due to a **$5.5 million** after-tax increase in net effective spread, partially offset by a **$2.7 million** after-tax increase in provision for credit losses[142](index=142&type=chunk) - Outstanding business volume was **$29.8 billion** as of March 31, 2025, a net increase of **$0.2 billion** from December 31, 2024, primarily from Infrastructure Finance, partially offset by a decrease in Agricultural Finance[148](index=148&type=chunk) [Use of Non-GAAP Measures](index=57&type=section&id=Use%20of%20Non-GAAP%20Measures) Farmer Mac utilizes non-GAAP measures like "core earnings," "core earnings per share," and "net effective spread" to provide a clearer view of its economic performance, transaction economics, and business trends, excluding fair value fluctuations and infrequent or unusual transactions - Farmer Mac uses non-GAAP measures (core earnings, core earnings per share, net effective spread) to assess corporate economic performance and develop financial plans, as they are useful in understanding economic performance, transaction economics, and business trends[154](index=154&type=chunk) - Core earnings and core earnings per share exclude the effects of fair value fluctuations and specified infrequent or unusual transactions not indicative of future operating results[156](index=156&type=chunk) - Net effective spread measures the net spread earned between interest-earning assets and related net funding costs, including associated derivatives, differing from net interest income by reclassifying consolidated trust interest to guarantee fees and including accruals for undesignated financial derivatives[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Results of Operations](index=58&type=section&id=Results%20of%20Operations) Farmer Mac's results of operations for Q1 2025 show a year-over-year increase in net effective spread by **$6.9 million** to **$89.99 million**, primarily due to new business volume, while net income attributable to common stockholders decreased to **$43.99 million**, and operating expenses rose by **8%** [Net Interest Income](index=61&type=section&id=Net%20Interest%20Income) Net interest income increased by **$4.6 million** year-over-year to **$90.94 million** for Q1 2025, primarily due to new business volume and decreased funding costs, partially offset by a decrease in the fair value of designated financial derivatives, with net effective spread also increasing by **$6.9 million** to **$89.99 million** | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---|\ | Net interest income | $90.94 | $86.37 | | Net interest yield % | 1.15% | 1.15% | | Net effective spread | $89.99 | $83.04 | | Net effective spread % | 1.17% | 1.14% | - The **$4.6 million** year-over-year increase in net interest income was primarily attributable to a **$6.4 million** increase from net new business volume and a **$0.6 million** decrease in funding costs, partially offset by a **$1.9 million** decrease in the fair value of designated financial derivatives[173](index=173&type=chunk) - The **$6.9 million** year-over-year increase in net effective spread was primarily due to a **$6.4 million** increase from net new business volume and a **$0.6 million** decrease in funding costs, with a **0.03%** increase in percentage terms attributable to a shift towards higher-yielding assets[147](index=147&type=chunk)[177](index=177&type=chunk) [Provision for and Release of Allowance for Losses and Reserve for Losses](index=63&type=section&id=Provision%20for%20and%20Release%20of%20Allowance%20for%20Losses%20and%20Reserve%20for%20Losses) Farmer Mac recorded a net provision of **$1.58 million** to the total allowance for losses in Q1 2025, a significant change from a **$1.87 million** net release in Q1 2024, primarily driven by new loan volume in Infrastructure Finance and Agricultural Finance | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | |:---|:---|:---|\ | Beginning Balance (Allowance for Losses) | $23.67 | $16.59 | | Beginning Balance (Reserve for Losses) | $1.62 | $1.71 | | Provision for/(release of) losses | $1.68 | $(1.80) | | Recovery | $0.08 | $0.00 | | Ending Balance (Allowance for Losses) | $25.44 | $14.79 | | Ending Balance (Reserve for Losses) | $1.52 | $1.64 | | Total Allowance for Losses (Ending) | $26.96 | $16.43 | - During Q1 2025, Farmer Mac recorded a **$1.6 million** net provision to the total allowance for losses, primarily due to new loan volume in the Infrastructure Finance and Agricultural Finance lines of business[180](index=180&type=chunk) [Guarantee and Commitment Fees](index=64&type=section&id=Guarantee%20and%20Commitment%20Fees) Guarantee and commitment fee income increased by **14%** to **$4.48 million** for Q1 2025 compared to Q1 2024, primarily due to increased business volume in unused commitments within the Infrastructure Finance line of business, with non-GAAP core earnings fees at **$5.5 million** | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | Change ($ in millions) | Change (%) | |:---|:---|:---|:---|:---|\ | Contractual guarantee and commitment fees | $4.43 | $3.90 | $0.53 | 13% | | Guarantee obligation amortization | $1.76 | $1.78 | $(0.03) | (1)% | | Guarantee asset fair value changes | $(1.71) | $(1.77) | $0.06 | 4% | | Guarantee and commitment fee income | $4.48 | $3.92 | $0.56 | 14% | - Guarantee and commitment fee income increased primarily due to increased business volume in unused commitments in the Infrastructure Finance line of business[181](index=181&type=chunk) - As adjusted for non-GAAP core earnings, guarantee and commitment fees were **$5.5 million** for Q1 2025, up from **$5.0 million** for Q1 2024[181](index=181&type=chunk) [(Losses)/gains on financial derivatives](index=65&type=section&id=%28Losses%29%2Fgains%20on%20financial%20derivatives) Farmer Mac reported a net loss of **$2.64 million** on financial derivatives for Q1 2025, a significant shift from a **$2.08 million** gain in Q1 2024, primarily driven by a **$4.26 million** increase in losses due to fair value changes influenced by long-term interest rates | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | Change ($ in millions) | Change (%) | |:---|:---|:---|:---|:---|\ | (Losses)/gains due to fair value changes | $(2.57) | $1.68 | $(4.26) | (253)% | | Accrual of contractual payments | $0.32 | $(0.03) | $0.35 | (1,035)% | | (Losses)/gains due to terminations or net settlements | $(0.38) | $0.43 | $(0.81) | (189)% | | (Losses)/gains on financial derivatives | $(2.64) | $2.08 | $(4.72) | (227)% | - Changes in the fair value of financial derivatives are primarily the result of fluctuations in long-term interest rates[184](index=184&type=chunk) [Operating Expenses](index=65&type=section&id=Operating%20Expenses) Total operating expenses increased by **8%** to **$29.51 million** for Q1 2025 compared to Q1 2024, mainly due to a **30%** rise in general and administrative (G&A) expenses driven by higher IT infrastructure costs, transactional legal fees, hiring expenses, and servicing advance expenses, while compensation and employee benefits decreased by **3%** | Expense Category | March 31, 2025 (in millions) | March 31, 2024 (in millions) | Change ($ in millions) | Change (%) | |:---|:---|:---|:---|:---|\ | Compensation and employee benefits | $17.75 | $18.26 | $(0.51) | (3)% | | General and administrative | $10.76 | $8.26 | $2.50 | 30% | | Regulatory fees | $1.00 | $0.73 | $0.27 | 38% | | Total Operating Expenses | $29.51 | $27.24 | $2.27 | 8% | - The decrease in compensation and employee benefits expenses was primarily attributable to lower short-term incentive compensation awards[185](index=185&type=chunk) - The increase in G&A expenses was primarily attributable to an increase in information technology infrastructure costs, transactional legal fees, hiring expenses, and servicing advance expenses[186](index=186&type=chunk) [Income Tax Expense](index=66&type=section&id=Income%20Tax%20Expense) Income tax expense for Q1 2025 decreased by **7%** to **$13.47 million** compared to **$14.50 million** in Q1 2024, with the effective tax rate remaining stable at **21.2%** for Q1 2025, a slight decrease from **21.3%** in the prior year | Metric | March 31, 2025 (in millions) | March 31, 2024 (in millions) | Change ($ in millions) | Change (%) | |:---|:---|:---|:---|:---|\ | Income tax expense | $13.47 | $14.50 | $(1.03) | (7)% | | Effective tax rate | 21.2% | 21.3% | - | 0.1% | [Business Volume](index=67&type=section&id=Business%20Volume) Farmer Mac's outstanding business volume increased by **$0.2 billion** to **$29.76 billion** as of March 31, 2025, from **$29.52 billion** at December 31, 2024, driven by a **$0.7 billion** net increase in Infrastructure Finance, which offset a **$0.5 billion** net decrease in Agricultural Finance due to AgVantage securities maturities | Line of Business | March 31, 2025 Net Growth/(Decrease) (in millions) | March 31, 2024 Net Growth/(Decrease) (in millions) | |:---|:---|:---|\ | Total Agricultural Finance | $(510.80) | $164.42 | | Total Infrastructure Finance | $743.11 | $211.79 | | Total Business Volume | $232.31 | $376.21 | - The **$0.5 billion** net decrease in Farm & Ranch during Q1 2025 was primarily attributable to maturities of AgVantage securities that counterparties did not re-issue, reflecting slower loan growth and less liquidity needs[191](index=191&type=chunk) - The **$0.4 billion** net increase in Power & Utilities was primarily attributable to the purchase of a **$0.3 billion** AgVantage security[191](index=191&type=chunk) - The **$0.2 billion** net increase in Broadband Infrastructure was primarily attributable to **$0.2 billion** of new commitments[192](index=192&type=chunk) - The **$0.2 billion** net increase in Renewable Energy was primarily attributable to **$0.3 billion** in loan purchases and commitments, reflecting strong demand for renewable power generation and storage[192](index=192&type=chunk) | Line of Business | March 31, 2025 Outstanding Business Volume (in billions) | December 31, 2024 Outstanding Business Volume (in billions) | |:---|:---|:---|\ | Total Agricultural Finance | $19.98 | $20.49 | | Total Infrastructure Finance | $9.77 | $9.03 | | Total | $29.76 | $29.52 | [Outlook](index=72&type=section&id=Outlook) Farmer Mac anticipates continued business volume growth, particularly in Infrastructure Finance, driven by strong demand for renewable energy and broadband, while Agricultural Finance faces mixed dynamics with elevated interest rates and a tightening agricultural economy, and operating expenses are projected to increase due to investments in human capital and technology [Business Outlook](index=72&type=section&id=Business%20Outlook) Farmer Mac expects continued business volume growth, with outstanding business volume and net effective spread increasing **3.1%** and **8.4%** respectively in Q1 2025 year-over-year, driven by significant growth in Infrastructure Finance segments (**19.5%**), while Agricultural Finance faces mixed dynamics but offers growth opportunities through new AgVantage facilities and expanded loan servicing capabilities - Farmer Mac's outstanding business volume and net effective spread increased **3.1%** and **8.4%** respectively in Q1 2025 versus Q1 2024, reflecting business model diversification and sector resiliency[207](index=207&type=chunk) - Infrastructure Finance segments grew over **$1.5 billion** (**19.5%**) in Q1 2025, driven by increased financing for renewable energy projects and broadband infrastructure[208](index=208&type=chunk) - Corporate AgFinance loan purchases and unfunded commitments increased **16.1%** in Q1 2025 versus Q1 2024[208](index=208&type=chunk) - Opportunities for profitable growth include alleviating liquidity, capital, and return-on-equity challenges for agricultural and infrastructure lenders, expanding loan servicing capabilities, and attracting institutional investors and nontraditional lenders[209](index=209&type=chunk) [Funding](index=73&type=section&id=Funding) Farmer Mac's business benefits from natural hedges that help mitigate interest rate volatility, as rising rates tend to decrease prepayments but increase interest on excess cash, while declining rates increase loan volume but also prepayments, providing counterbalance against short-term interest rate changes - Farmer Mac's business benefits from natural business hedges that help mitigate vulnerability to interest rate volatility[211](index=211&type=chunk) - When interest rates rise, prepayments tend to decline, but interest earned on excess cash and capital could increase; conversely, when interest rates decline, loan purchase volume often increases, but prepayments tend to rise as well[211](index=211&type=chunk) [Operations](index=73&type=section&id=Operations) Farmer Mac anticipates ongoing increases in operating expenses over the next several years due to planned investments in human capital, technology, and business infrastructure, aiming to enhance capacity, efficiency, product delivery, and funding efficiency, supporting long-term strategic objectives and scalability - Farmer Mac anticipates ongoing increases in operating expenses over the next several years, aligned with planned expansion of investments in human capital, technology, and business infrastructure[212](index=212&type=chunk) - These investments are designed to enhance capacity and efficiency, improve product delivery and funding efficiency, and drive scalability and consistency in loan onboarding and servicing[212](index=212&type=chunk)[213](index=213&type=chunk) [Agricultural Finance Industry Outlook](index=74&type=section&id=Agricultural%20Finance%20Industry%20Outlook) Overall farm profitability has compressed in recent years, but the USDA forecasts a **22%** increase in net cash farm income for 2025, driven by government support payments, while trade policy uncertainty and changing environmental/immigration laws could introduce volatility, and land values moderated in late 2024 with subdued growth expected in 2025 - USDA forecasts a **22%** increase in net cash farm income for 2025, fueled by a **$33 billion** increase in government support payments[214](index=214&type=chunk) - Commodity prices stabilized in Q1 2025 for some crops, with lower feed costs benefiting the livestock sector[215](index=215&type=chunk) - Trade policy uncertainty, changing environmental regulations, and immigration laws under the new administration could impact the agricultural sector, potentially increasing volatility[216](index=216&type=chunk)[217](index=217&type=chunk) - Farmland value growth rates moderated in late 2024 due to higher interest rates and stagnating commodity prices, with subdued growth expected in 2025[221](index=221&type=chunk) - Drought conditions increased in intensity and prevalence in Q1 2025 across several western and southwestern states, including nearly one-quarter of California[225](index=225&type=chunk) [Infrastructure Finance Industry Outlook](index=76&type=section&id=Infrastructure%20Finance%20Industry%20Outlook) The Power & Utilities sector saw increased electricity sales and revenue in 2024, with stable financial performance for Farmer Mac's loans, and Renewable Energy capacity is projected to grow significantly, creating new financing opportunities, while Broadband Infrastructure is experiencing rapid growth due to digital technologies and federal funding, though new political leadership and policy changes could introduce challenges - U.S. Energy Information Administration data shows a **2.2%** annual increase in electricity sales and a **3.5%** increase in revenue in the last 12 months through January 2025[228](index=228&type=chunk) - Renewable electricity capacity is expected to grow by **128%** in the next ten years, compared to total electric capacity growth of **46%**, driven by falling costs and investor interest[230](index=230&type=chunk) - Broadband infrastructure is experiencing rapid growth due to digital technologies, AI, cloud computing, and federal funding programs (e.g., BEAD, RDOF, ReConnect), leading to increased investments in fiber networks and data centers[231](index=231&type=chunk) - Changes in tax policy, trade, and immigration laws under new political leadership could lead to delays and increased costs for renewable energy and broadband infrastructure projects[232](index=232&type=chunk) [Legislative, Regulatory, and Political Outlook](index=78&type=section&id=Legislative,%20Regulatory,%20and%20Political%20Outlook) Farmer Mac is closely monitoring several legislative and regulatory developments, including the Administration's wide-ranging tariff plan, which could impact agricultural exports and infrastructure project costs, though a **90-day** pause on reciprocal tariffs was issued for many partners (excluding China), and changes in FCA leadership, new cyber risk management rules, and the upcoming consideration of expiring Tax Cuts and Jobs Act provisions and the farm bill reauthorization are also key areas of focus - The Administration issued an executive order on April 2, 2025, unveiling a universal **10%** tariff on all countries, with major U.S. trading partners announcing retaliatory tariffs[233](index=233&type=chunk) - A **90-day** pause on reciprocal tariffs was issued on April 9, 2025, for dozens of U.S. trading partners, but did not apply to China[233](index=233&type=chunk) - Tariffs and trade restrictions may lead to higher domestic inventory levels of agricultural commodities, lower prices, and supply chain disruptions for infrastructure projects[233](index=233&type=chunk)[234](index=234&type=chunk) - Congress is expected to consider significant issues in 2025, including expiring provisions of the Tax Cuts and Jobs Act of 2017, the debt ceiling, annual spending bills, and the reauthorization or extension of the farm bill, which expires on September 30, 2025[235](index=235&type=chunk) [Balance Sheet Review](index=80&type=section&id=Balance%20Sheet%20Review) Farmer Mac's total assets increased by **2%** to **$31.80 billion** as of March 31, 2025, primarily due to new loan volume and a larger investment portfolio, while total liabilities also increased by **1%** to **$30.28 billion**, mainly from higher notes payable to fund asset acquisitions, and total equity grew by **2%** to **$1.53 billion**, driven by an increase in retained earnings | Metric | March 31, 2025 (in billions) | December 31, 2024 (in billions) | Change ($ in millions) | Change (%) | |:---|:---|:---|:---|:---|\ | Total assets | $31.80 | $31.32 | $479.20 | 2% | | Total liabilities | $30.28 | $29.84 | $442.58 | 1% | | Total equity | $1.53 | $1.49 | $36.62 | 2% | - The increase in total assets was primarily attributable to new loan volume and a larger investment portfolio[236](index=236&type=chunk) - The increase in total liabilities was primarily due to an increase in total notes payable to fund the acquisition of loan volume[237](index=237&type=chunk) [Risk Management](index=80&type=section&id=Risk%20Management) Farmer Mac manages various risks, including credit risk in its loan and guarantee portfolios, counterparty risk with AgVantage issuers and swap counterparties, and credit risk in its investment portfolio, with interest rate risk managed through duration matching and financial derivatives, and MVE sensitivity showing a **(3.7)%** change for a **+100 basis points** shift and a **3.3%** change for a **-100 basis points** shift in the yield curve as of March 31, 2025 [Credit Risk – Loans and Guarantees](index=80&type=section&id=Credit%20Risk%20%E2%80%93%20Loans%20and%20Guarantees) Farmer Mac's direct credit exposure to Agricultural Finance mortgage loans was **$12.4 billion** as of March 31, 2025, with 90-day delinquencies in this portfolio increasing to **$160.0 million** (**1.29%**) from **$108.9 million** (**0.88%**) at December 31, 2024, primarily in permanent plantings and crops in the Southwest, and substandard assets also increasing to **$466.0 million** (**3.8%**), while Infrastructure Finance loans had no 90-day delinquencies - Farmer Mac's direct credit exposure to Agricultural Finance mortgage loans was **$12.4 billion** across 48 states as of March 31, 2025[238](index=238&type=chunk) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | |:---|:---|:---|\ | Agricultural Finance 90-Day Delinquencies | $160.0 | $108.9 | | % of Agricultural Finance Mortgage Loan Portfolio | 1.29% | 0.88% | | Agricultural Finance Substandard Assets | $466.0 | $398.3 | | % of Agricultural Finance Mortgage Loan Portfolio | 3.8% | 3.2% | - The increase in 90-day delinquencies was primarily driven by increased delinquencies in permanent plantings and crops, concentrated in the Southwest region[240](index=240&type=chunk) - As of March 31, 2025, there were no 90-day delinquencies in Farmer Mac's Infrastructure Finance loan portfolio, and two substandard assets totaling **$42.2 million**[260](index=260&type=chunk) [Credit Risk – Counterparty Risk](index=90&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 by requiring creditworthiness standards and collateralization levels, with no credit losses experienced to date on AgVantage securities, and swap counterparties managed through collateralization provisions and cleared derivatives, ensuring no uncollateralized net exposures - Farmer Mac manages institutional credit risk related to AgVantage counterparties by requiring them to meet creditworthiness standards and maintain specified collateralization levels[267](index=267&type=chunk) - As of March 31, 2025, Farmer Mac had not experienced any credit losses on any AgVantage securities over the life of the program[268](index=268&type=chunk) - Farmer Mac manages institutional credit risk related to interest rate swap counterparties through collateralization provisions and the use of cleared derivatives, with no uncollateralized net exposures as of March 31, 2025[273](index=273&type=chunk)[300](index=300&type=chunk) [Credit Risk – Other Investments](index=91&type=section&id=Credit%20Risk%20%E2%80%93%20Other%20Investments) Farmer Mac's cash and cash equivalents totaled **$1.0 billion** and investment securities **$6.3 billion** as of March 31, 2025, managed under strict internal policies and FCA regulations requiring high creditworthiness, low credit risk, and adherence to concentration limits to minimize market volatility exposure and preserve capital - As of March 31, 2025, Farmer Mac had **$1.0 billion** of cash and cash equivalents and **$6.3 billion** of investment securities[274](index=274&type=chunk) - Investments must meet high creditworthiness standards (very strong capacity to meet financial commitments, very low risk of default) and exhibit low credit risk, consistent with FCA Liquidity and Investment Regulations[275](index=275&type=chunk) - Farmer Mac's internal policy limits total credit exposure to any single entity, issuer, or obligor of securities to **5%** of its regulatory capital (**$77.7 million** as of March 31, 2025), excluding U.S. government agencies or GSEs[276](index=276&type=chunk) [Interest Rate Risk](index=92&type=section&id=Interest%20Rate%20Risk) Farmer Mac manages interest rate risk to generate stable earnings across various interest rate environments, primarily by funding asset purchases with duration-matched debt and financial derivatives, using interest rate swaps and callable debt to mitigate prepayment risk and align cash flows, maintaining a positive effective duration gap of **3.7 months**, and showing MVE sensitivity of **(3.7)%** for a **+100 bps** shift and **3.3%** for a **-100 bps** shift - Farmer Mac's primary strategy for managing interest rate risk is to fund asset purchases with debt and financial derivatives that have similar duration and convexity characteristics[281](index=281&type=chunk) - Farmer Mac uses financial derivatives, primarily interest rate swaps, and callable medium-term notes to better match asset and liability durations and mitigate prepayment risk[283](index=283&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk) | Interest Rate Scenario | March 31, 2025 MVE Change (%) | December 31, 2024 MVE Change (%) | |:---|:---|:---|\ | +100 basis points | (3.7)% | (4.0)% | | -100 basis points | 3.3% | 3.6% | | +100 basis points | 0% | (0.8)% | | -100 basis points | 0.7% | 1.6% | - As of March 31, 2025, Farmer Mac maintained a positive effective duration gap of **3.7 months**, indicating that the fair value change of its interest-earning assets is more sensitive than its debt and financial derivatives to small interest rate movements[295](index=295&type=chunk)[292](index=292&type=chunk) [Liquidity and Capital Resources](index=97&type=section&id=Liquidity%20and%20Capital%20Resources) Farmer Mac's liquidity and funding needs are met through debt issuances, fees, net effective spread, and asset repayments, maintaining steady access to debt capital markets with **$1.9 billion** in discount notes and **$26.1 billion** in medium-term notes outstanding as of March 31, 2025, and a monthly average of **290 days** of liquidity in 2025, well above the **90-day** regulatory minimum, while remaining in compliance with all statutory capital requirements at "level 1" - Farmer Mac's primary sources of funds are debt issuances, guarantee and commitment fees, net effective spread, and asset repayments[306](index=306&type=chunk) - As of March 31, 2025, Farmer Mac had **$1.9 billion** in discount notes and **$26.1 billion** (**$8.2 billion** within one year, **$17.9 billion** after one year) in medium-term notes outstanding[306](index=306&type=chunk) - Farmer Mac maintained a monthly average of **290 days** of liquidity throughout 2025, exceeding the minimum **90 days** required by regulations, and had **289 days** of liquidity as of March 31, 2025[307](index=307&type=chunk) - Farmer Mac was in compliance with its statutory capital requirements as of March 31, 2025, classified as "**level 1**" (the highest compliance level)[310](index=310&type=chunk) [Other Matters](index=98&type=section&id=Other%20Matters) This section indicates that there are no other material matters to report - No other matters were reported[313](index=313&type=chunk) [Supplemental Information](index=99&type=section&id=Supplemental%20Information) This section provides quarterly and annual supplemental information on new business volume, repayments of assets, outstanding business volume, and net effective spread by segment, with new business volume for Q1 2025 at **$1.84 billion**, total repayments at **$1.59 billion**, outstanding business volume reaching **$29.76 billion**, and net effective spread at **$89.99 million** with a yield of **1.17%** | Metric | March 31, 2025 (in billions) | |:---|:---|\ | New Business Volume | $1.84 | | Total Repayments of Assets | $1.59 | | Outstanding Business Volume | $29.76 | | Net Effective Spread | $0.09 | | Net Effective Spread Yield | 1.17% | - New business volume for Q1 2025 was **$1.84 billion**, with Infrastructure Finance contributing **$978.1 million** and Agricultural Finance contributing **$819.5 million**[314](index=314&type=chunk) - Total repayments of assets for Q1 2025 were **$1.59 billion**, comprising **$1.20 billion** in scheduled repayments and **$388.76 million** in unscheduled repayments[315](index=315&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=101&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Farmer Mac is exposed to market risk from changes in interest rates, which it manages through financial transactions, including derivatives, and by monitoring its exposure, with further details on interest rate risk management strategies provided in the Management's Discussion and Analysis section - Farmer Mac is exposed to market risk from changes in interest rates[321](index=321&type=chunk) - Market risk is managed by entering into various financial transactions, including financial derivatives, and by monitoring and measuring exposure to interest rate changes[321](index=321&type=chunk) [Item 4. Controls and Procedures](index=102&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of Farmer Mac's disclosure controls and procedures as of March 31, 2025, and concluded they were effective, with no material changes in internal control over financial reporting during the quarter - Farmer Mac's disclosure controls and procedures were evaluated by management, including the CEO and CFO, and concluded to be effective as of March 31, 2025[323](index=323&type=chunk)[324](index=324&type=chunk) - There were no changes in Farmer Mac's internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[325](index=325&type=chunk) PART II [Item 1. Legal Proceedings](index=105&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report - No legal proceedings were reported[327](index=327&type=chunk) [Item 1A. Risk Factors](index=105&type=section&id=Item%201A.%20Risk%20Factors) Information regarding risk factors is referenced to the "Forward-Looking Statements" section within Item 2 of this Form 10-Q and Part I, Item 1A of Farmer Mac's 2024 Annual Report - Information about risk factors can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Forward-Looking Statements" in Part I, Item 2 of this Form 10-Q and in Part I, Item 1A of Farmer Mac's 2024 Annual Report[328](index=328&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=105&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, Farmer Mac issued **401 shares** of Class C non-voting common stock to directors electing stock in lieu of cash retainers, and made various grants of Stock Appreciation Rights (SARs) and Restricted Stock Units (RSUs) to executive officers and employees as incentive compensation - Farmer Mac issued **401 shares** of Class C non-voting common stock in January 2025 to directors who elected to receive stock in lieu of cash retainers, based on a price of **$196.95 per share**[329](index=329&type=chunk) - On March 6, 2025, Farmer Mac granted **2,541 SARs**, **765 target performance-vested RSUs**, and **1,530 time-vested RSUs** to executive officers, and **18,699 time-vested RSUs** to non-executive employees as incentive compensation[330](index=330&type=chunk)[335](index=335&type=chunk) - A new director received **358 time-vested RSUs** on March 26, 2025, scheduled to vest on March 31, 2026[331](index=331&type=chunk) [Item 3. Defaults Upon Senior Securities](index=106&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there are no defaults upon senior securities to report - No defaults upon senior securities were reported[332](index=332&type=chunk) [Item 4. Mine Safety Disclosures](index=106&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to Farmer Mac - Mine safety disclosures are not applicable[332](index=332&type=chunk) [Item 5. Other Information](index=106&type=section&id=Item%205.%20Other%20Information) This section confirms that none of Farmer Mac's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025 - None of Farmer Mac's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[333](index=333&type=chunk) [Item 6. Exhibits](index=106&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including financial statements, articles of incorporation, by-laws, specimen certificates for various stock classes, descriptions of securities, and certifications from the principal executive and financial officers - The exhibits include financial statements, articles of incorporation, by-laws, specimen certificates for various stock classes, descriptions of securities, and certifications from the principal executive and financial officers[334](index=334&type=chunk)[336](index=336&type=chunk) Signatures [Signatures](index=108&type=section&id=Signatures) The report is duly signed on behalf of Federal Agricultural Mortgage Corporation by Bradford T. Nordholm, President and Chief Executive Officer, and Aparna Ramesh, Executive Vice President – Chief Financial Officer and Treasurer, as of May 9, 2025 - The report was signed by Bradford T. Nordholm, President and Chief Executive Officer, and Aparna Ramesh, Executive Vice President – Chief Financial Officer and Treasurer, on May 9, 2025[339](index=339&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Farmer Mac reported record Q1 2025 revenue, net effective spread, and core earnings, reflecting a resilient business model and strong capital position Q1 2025 Financial Performance Summary | Metric | Q1 2025 | Q4 2024 | Q1 2024 | Sequential Change | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income (GAAP) | $90.9M | $93.4M | $86.4M | (3)% | 5% | | Net Effective Spread (Non-GAAP) | $90.0M | $87.5M | $83.0M | 3% | 8% | | Diluted EPS (GAAP) | $4.01 | $4.63 | $4.28 | (13)% | (6)% | | Core EPS (Non-GAAP) | $4.19 | $3.97 | $3.96 | 6% | 6% | - Achieved record core earnings of **$46.0 million**, or **$4.19 per diluted common share**, representing a **6% year-over-year growth**[5](index=5&type=chunk) - Provided **$1.8 billion** in liquidity and lending capacity to lenders serving rural America during the quarter[5](index=5&type=chunk) - Maintained a strong capital position with total core capital of **$1.5 billion**, which is **65% above the statutory requirement**, and a **Tier 1 Capital Ratio of 13.9%**[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Consolidated financial statements show total assets grew to **$31.8 billion** from loan growth, and net interest income increased **5%** to **$90.9 million** [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$31.80 billion** as of March 31, 2025, driven by loan growth, with total equity rising to **$1.53 billion** Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Loans, net | $13,623,484 | $13,204,638 | | **Total Assets** | **$31,803,939** | **$31,324,742** | | Notes Payable | $27,975,196 | $27,371,174 | | **Total Liabilities** | **$30,278,293** | **$29,835,716** | | **Total Equity** | **$1,525,646** | **$1,489,026** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 net interest income increased **5%** to **$90.9 million**, with net income attributable to common stockholders at **$44.0 million** (**$4.01** per diluted share) Key Income Statement Items (in thousands, except per share amounts) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $90,939 | $86,368 | | Income Before Income Taxes | $63,125 | $68,246 | | Net Income | $49,651 | $53,746 | | Net Income Attributable to Common Stockholders | $43,985 | $46,955 | | Diluted Earnings Per Common Share | $4.01 | $4.28 | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Farmer Mac uses non-GAAP measures, including core earnings and net effective spread, to provide alternative perspectives on economic performance, adjusting for fair value fluctuations [Core Earnings and Core Earnings Per Share](index=2&type=section&id=Core%20Earnings%20and%20Core%20Earnings%20Per%20Share) Core earnings, a non-GAAP measure, excludes fair value fluctuations from GAAP net income, offering a clearer view of underlying economic performance - Core earnings and core earnings per share are non-GAAP measures that exclude the effects of fair value fluctuations and specified infrequent transactions[9](index=9&type=chunk) - Management uses these measures to assess corporate economic performance and develop financial plans, as they are believed to be useful in understanding business trends[8](index=8&type=chunk) [Net Effective Spread](index=2&type=section&id=Net%20Effective%20Spread) Net effective spread, a non-GAAP measure, quantifies the net spread between interest-earning assets and funding costs, adjusting GAAP net interest income for specific items - Net effective spread is used to measure the net spread earned between interest-earning assets and the related net funding costs[10](index=10&type=chunk) - It differs from GAAP net interest income by excluding interest associated with consolidated trusts and fair value changes of financial derivatives in hedge accounting relationships[12](index=12&type=chunk) - The measure includes accrual of income/expense on undesignated financial derivatives and the net effects of terminations or settlements on derivatives[13](index=13&type=chunk)[14](index=14&type=chunk) [Reconciliations of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details reconciliations of GAAP to non-GAAP measures, with Q1 2025 GAAP Net Income of **$44.0 million** reconciled to Core Earnings of **$46.0 million** [Reconciliation of Net Income to Core Earnings](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Core%20Earnings) Q1 2025 GAAP net income of **$44.0 million** was reconciled to core earnings of **$46.0 million**, with a **($2.0 million)** net adjustment from derivatives and hedging Reconciliation to Core Earnings (Q1 2025, in thousands) | Description | Amount | | :--- | :--- | | Net income attributable to common stockholders (GAAP) | $43,985 | | Less: Reconciling items (net) | ($1,981) | | **Core earnings (Non-GAAP)** | **$45,966** | [Reconciliation of GAAP EPS to Core EPS](index=9&type=section&id=Reconciliation%20of%20GAAP%20EPS%20to%20Core%20EPS) Q1 2025 GAAP diluted EPS of **$4.01** was reconciled to Core Earnings diluted EPS of **$4.19**, reflecting a **$0.18** net negative adjustment Reconciliation to Core Diluted EPS (Q1 2025) | Description | Amount | | :--- | :--- | | GAAP - Diluted EPS | $4.01 | | Less: Reconciling items (net) | ($0.18) | | **Core Earnings - Diluted EPS** | **$4.19** | [Reconciliation of Net Interest Income to Net Effective Spread](index=10&type=section&id=Reconciliation%20of%20Net%20Interest%20Income%20to%20Net%20Effective%20Spread) Q1 2025 GAAP net interest income of **$90.9 million** was reconciled to a net effective spread of **$90.0 million**, with adjustments for consolidated trusts and hedge fair value changes Reconciliation to Net Effective Spread (Q1 2025, in thousands) | Description | Amount | Yield | | :--- | :--- | :--- | | Net interest income/yield (GAAP) | $90,939 | 1.15% | | Adjustments (net) | ($949) | 0.02% | | **Net effective spread (Non-GAAP)** | **$89,990** | **1.17%** | [Segment Performance](index=11&type=section&id=Segment%20Performance) Total outstanding business volume grew to **$29.8 billion**, primarily driven by Infrastructure Finance, with Agricultural Finance contributing **$30.9 million** to core earnings [Core Earnings by Business Segment](index=11&type=section&id=Core%20Earnings%20by%20Business%20Segment) In Q1 2025, Agricultural Finance generated **$30.9 million** in core earnings, while Infrastructure Finance contributed **$7.8 million**, driving overall profitability Q1 2025 Core Earnings by Segment (in thousands) | Segment | Net Effective Spread | Segment Core Earnings | | :--- | :--- | :--- | | Agricultural Finance | $42,525 | $30,915 | | Infrastructure Finance | $13,907 | $7,834 | | Treasury | $33,458 | $23,587 | | **Total** | **$89,990** | **$62,336** | [Outstanding Business Volume](index=12&type=section&id=Outstanding%20Business%20Volume) Total outstanding business volume reached **$29.8 billion** as of March 31, 2025, with Infrastructure Finance growing to **$9.8 billion** and Agricultural Finance at **$20.0 billion** Outstanding Business Volume by Segment (in thousands) | Segment | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Agricultural Finance | $19,983,878 | $20,494,673 | | Infrastructure Finance | $9,771,465 | $9,028,357 | | **Total** | **$29,755,343** | **$29,523,030** | [Net Effective Spread by Business Segment](index=13&type=section&id=Net%20Effective%20Spread%20by%20Business%20Segment) Total net effective spread for Q1 2025 was **$90.0 million**, demonstrating consistent growth, with the Farm & Ranch segment contributing **$33.9 million** Quarterly Net Effective Spread (in thousands) | Quarter | Total Net Effective Spread | | :--- | :--- | | Q1 2025 | $89,990 | | Q4 2024 | $87,528 | | Q3 2024 | $85,396 | | Q2 2024 | $83,596 | | Q1 2024 | $83,044 | [Supplemental Information](index=12&type=section&id=Supplemental%20Information) This section offers additional detailed financial data, including outstanding business volume and historical quarterly trends for net effective spread and core earnings [Quarterly Core Earnings and Reconciliation](index=14&type=section&id=Quarterly%20Core%20Earnings%20and%20Reconciliation) This table provides a historical view of quarterly core earnings and GAAP net income reconciliation, showing Q1 2025 core earnings at **$46.0 million** Quarterly Core Earnings Trend (in thousands) | Quarter | Core Earnings | Net Income Attributable to Common Stockholders | | :--- | :--- | :--- | | Q1 2025 | $45,966 | $43,985 | | Q4 2024 | $43,554 | $50,848 | | Q3 2024 | $44,907 | $42,312 | | Q2 2024 | $39,777 | $40,313 | | Q1 2024 | $43,392 | $46,955 | [Other Information](index=2&type=section&id=Other%20Information) This section contains disclosures, forward-looking statements highlighting risks like interest rate fluctuations, and a corporate overview of Farmer Mac's mission [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements subject to risks such as financing availability, regulatory changes, interest rate fluctuations, and economic conditions - The company's future results are subject to risks and uncertainties, and forward-looking statements are not guarantees of future performance[16](index=16&type=chunk) - Key risk factors include availability of financing, regulatory changes, interest rate fluctuations, and economic conditions impacting borrower repayment capacity[19](index=19&type=chunk) [About Farmer Mac](index=4&type=section&id=About%20Farmer%20Mac) Farmer Mac's mission is to enhance financing accessibility and provide liquidity for American agriculture and rural infrastructure through its secondary market operations - Farmer Mac's core mission is to provide a secondary market to increase liquidity for lenders in American agriculture and rural infrastructure[18](index=18&type=chunk) - The company serves a wide range of markets, including agriculture, agribusiness, power and utilities, broadband infrastructure, and renewable energy[18](index=18&type=chunk)

PART I [Business](index=7&type=section&id=Item%201.%20Business) The Federal Agricultural Mortgage Corporation (Farmer Mac) is a government-sponsored enterprise (GSE) that provides a secondary market for agricultural and rural infrastructure loans to increase liquidity and financing accessibility in rural America. Its operations are divided into two main lines of business: Agricultural Finance and Infrastructure Finance, which are further broken down into five operating segments. The company funds its activities primarily through the issuance of debt in public capital markets and is regulated by the Farm Credit Administration (FCA) - Farmer Mac's mission is to provide a secondary market for loans made to borrowers in rural America, thereby increasing the accessibility of financing and providing liquidity[24](index=24&type=chunk) - The company's two primary sources of revenue are net interest income earned on assets and guarantee/commitment fees for off-balance sheet securities and LTSPCs[28](index=28&type=chunk) - Farmer Mac funds its asset purchases primarily by issuing discount notes and medium-term notes in the public capital markets[28](index=28&type=chunk)[102](index=102&type=chunk) - The company operates through two lines of business: Agricultural Finance (comprising Farm & Ranch and Corporate AgFinance segments) and Infrastructure Finance (comprising Power & Utilities, Broadband Infrastructure, and Renewable Energy segments)[34](index=34&type=chunk) Total Outstanding Business Volume by Line of Business (as of Dec 31) | Line of Business | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | **Agricultural Finance** | $20,494,673 | $20,502,780 | | **Infrastructure Finance** | $9,028,357 | $7,968,244 | | **Total** | **$29,523,030** | **$28,471,024** | [Farmer Mac's Lines of Business](index=9&type=section&id=Farmer%20Mac%27s%20Lines%20of%20Business) Farmer Mac's operations are structured into two primary lines of business: Agricultural Finance and Infrastructure Finance, with a total outstanding business volume of $29.5 billion as of year-end 2024. Agricultural Finance, the larger segment at $20.5 billion, focuses on mortgage loans for farms, ranches, and agribusinesses. Infrastructure Finance, at $9.0 billion, provides financing for rural electric, telecommunications, and renewable energy projects. Each line of business has specific loan eligibility criteria, underwriting standards, and product offerings, including direct loan purchases, AgVantage securities, and Long-Term Standby Purchase Commitments (LTSPCs) - The Agricultural Finance line of business includes the Farm & Ranch and Corporate AgFinance segments, providing a secondary market for agricultural mortgage loans and USDA-guaranteed loans[39](index=39&type=chunk)[40](index=40&type=chunk) - The Infrastructure Finance line of business includes the Power & Utilities, Broadband Infrastructure, and Renewable Energy segments, focusing on loans for rural electric, telecommunications, and renewable energy facilities[65](index=65&type=chunk)[66](index=66&type=chunk) - AgVantage securities are a key product where Farmer Mac guarantees and purchases securities issued by lenders that are secured by pools of eligible loans. These securities require the issuer to maintain specific collateralization levels, typically ranging from **103% to 125%** for Agricultural Finance[55](index=55&type=chunk)[58](index=58&type=chunk) - Long-Term Standby Purchase Commitments (LTSPCs) allow lenders to retain loans on their portfolio while transferring the ultimate credit risk to Farmer Mac in exchange for a commitment fee[60](index=60&type=chunk)[61](index=61&type=chunk) [Competition](index=19&type=section&id=Competition) While Farmer Mac is the sole federally-chartered secondary market for agricultural and rural infrastructure loans, it faces competition from various entities including commercial and investment banks, insurance companies, other Farm Credit System institutions, and financial funds. Its competitiveness is influenced by the variety of its product offerings, its ability to provide competitive pricing, and the willingness of loan originators to sell into the secondary market - Competitors include commercial banks, insurance companies, other FCS institutions, and financial funds that purchase, securitize, or finance similar types of assets[74](index=74&type=chunk) - Farmer Mac's competitive position is affected by factors such as the overall supply of capital, product variety offered by competitors, and the demand for its secondary market products[74](index=74&type=chunk)[78](index=78&type=chunk) [Capital and Corporate Governance](index=20&type=section&id=Capital%20and%20Corporate%20Governance) Farmer Mac's governance structure includes a 15-member board, with five members appointed by the U.S. President and ten elected by two classes of voting common stockholders (Class A for non-FCS institutions and Class B for FCS institutions). The company also has a class of non-voting common stock (Class C). As a publicly-traded GSE, it aims to fulfill its mission while providing a return to a broad base of stockholders. The company is subject to statutory capital standards and regulatory oversight by the Farm Credit Administration (FCA) - The **15-member board of directors** is composed of five presidential appointees, five members elected by Class A stockholders (non-FCS institutions), and five members elected by Class B stockholders (FCS institutions)[77](index=77&type=chunk)[79](index=79&type=chunk) - The company has three classes of common stock: Class A (voting, for non-FCS), Class B (voting, for FCS), and Class C (non-voting, no ownership restrictions). All classes have the same dividend and liquidation rights[79](index=79&type=chunk)[80](index=80&type=chunk) - Farmer Mac is subject to three capital standards: minimum capital, critical capital, and risk-based capital, and must comply with the higher of the minimum or risk-based requirement[84](index=84&type=chunk) [Human Capital](index=22&type=section&id=Human%20Capital) As of year-end 2024, Farmer Mac employed 191 people, a net increase of 6 from 2023. The company has adopted a flexible, hybrid work model and has received multiple 'Top Workplaces' awards. It offers competitive compensation and benefits, including an 'equity for all' program. The company focuses on talent development through its 'Farmer Mac LEARN' program and maintains a strategic focus on succession planning. The employee turnover rate was 6.8% in 2024 - Farmer Mac employed **191 people** as of December 31, 2024, a net increase of **3.24%** from year-end 2023[87](index=87&type=chunk) - The company utilizes a hybrid work model called "Presence With Purpose" and has won several workplace awards in 2024[89](index=89&type=chunk) - Employee turnover was **6.8%** in 2024, slightly up from **6.4%** in 2023[93](index=93&type=chunk) [Financing](index=26&type=section&id=Financing) Farmer Mac finances its operations primarily through the issuance of debt obligations, including discount notes and medium-term notes. Its equity structure consists of three classes of common stock and four series of outstanding non-cumulative preferred stock (Series D, E, F, and G). In 2024, the company redeemed all of its Series C Preferred Stock. Dividends on common stock were increased to $1.50 per share for Q1 2025, up from $1.40 per share in 2024 - The company funds its asset purchases and liquidity investments by issuing unsecured discount notes (maturities ≤ 1 year) and medium-term notes (maturities 0.5 to 25.0 years)[102](index=102&type=chunk) - On July 18, 2024, Farmer Mac redeemed all outstanding shares of its **6.000% Series C Preferred Stock**, resulting in a **$1.6 million loss** on retirement related to deferred issuance costs[110](index=110&type=chunk)[112](index=112&type=chunk) Common Stock Dividends Declared | Date Declared | Per Share Amount | For Holders of Record As Of | Date Paid | | :--- | :--- | :--- | :--- | | Feb 21, 2024 | $1.40 | Mar 15, 2024 | Mar 28, 2024 | | May 15, 2024 | $1.40 | Jun 14, 2024 | Jun 28, 2024 | | Aug 7, 2024 | $1.40 | Sep 16, 2024 | Sep 30, 2024 | | Nov 6, 2024 | $1.40 | Dec 16, 2024 | Dec 31, 2024 | | Feb 20, 2025 | $1.50 | Mar 14, 2025 | Mar 31, 2025* | [Government Regulation of Farmer Mac](index=31&type=section&id=Government%20Regulation%20of%20Farmer%20Mac) Farmer Mac is regulated for safety and soundness by the Farm Credit Administration (FCA) through its Office of Secondary Market Oversight (OSMO). The company is subject to three statutory capital standards: minimum capital, critical capital, and a risk-based capital stress test, and must comply with the highest applicable requirement. Additionally, an FCA rule requires Farmer Mac to maintain a Tier 1 capital ratio of at least 7.0% plus a capital conservation buffer of over 2.5% to avoid restrictions on capital distributions. As of December 31, 2024, Farmer Mac was in compliance with all requirements, with a Tier 1 capital ratio of 14.2% - The FCA, through its Office of Secondary Market Oversight (OSMO), is responsible for the examination and supervision of Farmer Mac's safety and soundness[126](index=126&type=chunk)[127](index=127&type=chunk) - Farmer Mac must comply with the higher of its minimum capital requirement (**2.75%** of on-balance sheet assets plus **0.75%** of off-balance sheet obligations) or its risk-based capital requirement determined by an FCA stress test[129](index=129&type=chunk)[130](index=130&type=chunk) - An FCA rule on capital planning requires Farmer Mac to maintain a **Tier 1 capital ratio of at least 7.0%** and a capital conservation buffer of over **2.5%** to avoid restrictions on dividends and bonuses. As of December 31, 2024, the company's Tier 1 capital ratio was **14.2%**[138](index=138&type=chunk)[139](index=139&type=chunk) - The company is required to maintain a liquidity reserve sufficient to fund at least **90 days** of maturing obligations[140](index=140&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Farmer Mac faces a range of risks that could materially affect its business. Key risks include credit and counterparty risk from borrower defaults due to economic stress, weather events, or political factors, and concentration risk in its loan portfolio. Strategic and business risks stem from an inability to access capital markets and the loss of key business counterparties. Operational risks include failures of internal systems, cybersecurity incidents, and reliance on third-party servicers. The company is also exposed to market risk from interest rate fluctuations and financial risk from incorrect accounting estimates and volatility in its stock price - **Credit and Counterparty Risk:** The company assumes ultimate credit risk on its loan assets. Risks are heightened by disruptive global events, severe weather, political factors, declines in collateral value, and portfolio concentrations. As of Dec 31, 2024, three counterparties issued **$7.6 billion** of the **$8.5 billion** in outstanding AgVantage securities[145](index=145&type=chunk)[146](index=146&type=chunk)[154](index=154&type=chunk) - **Strategic and Business Risk:** Farmer Mac's performance depends on continued access to debt and equity markets. The company has significant business concentration, with ten institutions generating **65%** of Agricultural Finance loan purchase volume in 2024 and three institutions representing **89.1%** of outstanding AgVantage securities[159](index=159&type=chunk)[161](index=161&type=chunk) - **Operational Risk:** The company is exposed to risks from inadequate or failed internal processes, systems, or cybersecurity programs, including those of third parties. This includes risks associated with its internal loan servicing function and reliance on third-party servicers and software[162](index=162&type=chunk)[166](index=166&type=chunk)[169](index=169&type=chunk) - **Market Risk:** Farmer Mac is subject to interest rate risk due to timing differences in cash flows between its assets and liabilities. Changes in interest rates can affect earnings through prepayment risk and repricing risk, and can cause volatility in the fair value of its derivative portfolio[176](index=176&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk) - **Regulatory and Compliance Risk:** As a GSE, Farmer Mac is subject to comprehensive government regulation, and changes to its charter or other regulations could adversely affect its business. Failure to meet capital requirements could result in supervisory measures[185](index=185&type=chunk)[188](index=188&type=chunk) [Unresolved Staff Comments](index=50&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - None [Cybersecurity](index=50&type=section&id=Item%201C.%20Cybersecurity) Farmer Mac has established a comprehensive risk management strategy to identify, assess, and manage cybersecurity threats. This process is integrated into its overall enterprise risk management program and includes security reviews, a dedicated security operations center, regular employee training, and a third-party risk management program. Governance is provided by the board of directors, which has a dedicated cybersecurity subcommittee, and is managed by the Chief Information Security Officer (CISO). The company states that prior cybersecurity incidents have not materially affected its business - The company's cybersecurity approach includes an enterprise risk management program, security reviews, a security operations center, employee training, vulnerability management, and a third-party risk management program[196](index=196&type=chunk) - Board-level oversight is provided by a dedicated cybersecurity subcommittee of the enterprise risk committee, which meets monthly with the CISO[201](index=201&type=chunk) - The cybersecurity program is managed by the CISO, who has over **20 years of experience** and reports to the Senior Vice President – Enterprise Risk Officer[203](index=203&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties) Farmer Mac leases its principal office in Washington, D.C., with the current lease ending in April 2036. It also maintains a leased office in Johnston, Iowa, with that lease ending in August 2027. The company believes these facilities are adequate for its current and near-future needs - Maintains a principal office in Washington, D.C. under a lease ending **April 30, 2036**[205](index=205&type=chunk) - Maintains another office in Johnston, Iowa, under a lease ending **August 31, 2027**[205](index=205&type=chunk) [Legal Proceedings](index=52&type=section&id=Item%203.%20Legal%20Proceedings) There are no legal proceedings to report - None [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Farmer Mac - Not applicable PART II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Farmer Mac has three classes of common stock: Class A (AGM.A) and Class C (AGM) are listed on the NYSE, while Class B is not publicly traded. As of February 7, 2025, there were 819, 72, and 774 registered owners of Class A, B, and C stock, respectively. The board declared a dividend increase to $1.50 per share for Q1 2025, a 7% increase from the $1.40 quarterly dividend paid in 2024. Future dividends are at the board's discretion and subject to capital requirements - Class A (AGM.A) and Class C (AGM) common stocks are listed on the New York Stock Exchange[211](index=211&type=chunk) - The quarterly dividend for common stock was increased to **$1.50 per share** for Q1 2025, a **7% increase** over the **$1.40 per share** paid quarterly in 2024[213](index=213&type=chunk)[214](index=214&type=chunk) - Future dividend payments depend on financial condition, earnings, capital needs, and regulatory requirements, and are at the discretion of the board of directors[215](index=215&type=chunk) [Reserved](index=55&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, Farmer Mac's net income attributable to common stockholders increased to $180.4 million from $172.8 million in 2023, driven by higher net interest income. Core earnings, a non-GAAP measure, remained stable at $171.6 million. Total business volume grew by $1.1 billion to $29.5 billion, led by a $1.1 billion increase in the Infrastructure Finance line of business. Credit quality saw an increase in on-balance sheet substandard assets, primarily in the Agricultural Finance portfolio, though 90-day delinquencies remained slightly below the 15-year historical average. The company maintained a strong capital position, well above regulatory minimums Key Financial Performance Metrics (Years Ended Dec 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Stockholders (in thousands) | $180,428 | $172,838 | $150,979 | | Core Earnings (Non-GAAP, in thousands) | $171,630 | $171,156 | $124,314 | | Net Interest Income (in thousands) | $353,867 | $327,547 | $270,940 | | Net Effective Spread (Non-GAAP, in thousands) | $339,564 | $326,980 | $255,529 | - Total outstanding business volume grew by **$1.1 billion** year-over-year to **$29.5 billion** as of December 31, 2024, primarily driven by growth in the Infrastructure Finance line of business[237](index=237&type=chunk) Agricultural Finance Credit Quality (as of Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **On-Balance Sheet Substandard Assets** | | | | Amount (in thousands) | $367,012 | $152,865 | | % of Portfolio | 4.2% | 2.0% | | **On-Balance Sheet 90-Day Delinquencies** | | | | Amount (in thousands) | $101,340 | $32,893 | | % of Portfolio | 1.15% | 0.42% | - The company's capital remained strong, with core capital of **$1.5 billion**, which was **$583.5 million** in excess of the minimum required level as of December 31, 2024[238](index=238&type=chunk) [Results of Operations](index=63&type=section&id=Results%20of%20Operations) For the year ended December 31, 2024, net income attributable to common stockholders rose by $7.6 million to $180.4 million, primarily due to a $20.8 million after-tax increase in net interest income. Core earnings were flat at $171.6 million. Net effective spread increased by $12.6 million to $339.6 million, driven by a shift toward higher-yielding loans. The provision for credit losses increased significantly to $11.5 million from $1.1 million in 2023. Operating expenses grew by $8.3 million to $105.4 million, mainly from increased headcount and IT costs. Business volume saw a net increase of $1.1 billion, with strong growth in Renewable Energy and Broadband Infrastructure offsetting a decline in Farm & Ranch AgVantage securities Reconciliation of Net Income to Core Earnings (Year Ended Dec 31) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Net income attributable to common stockholders** | **$180,428** | **$172,838** | | Less reconciling items (fair value changes, etc.) | 8,798 | 1,682 | | **Core earnings** | **$171,630** | **$171,156** | - The **$26.3 million increase** in net interest income was primarily due to a **$20.2 million positive impact** from shifting new business volume to higher-yielding loans and a **$16.9 million increase** from fair value changes in designated derivatives[271](index=271&type=chunk) - The provision for losses increased to **$11.5 million** in 2024, up from **$1.1 million** in 2023, mainly due to risk rating downgrades in the Agricultural Finance portfolio and new loan volume in Infrastructure Finance[279](index=279&type=chunk) - Operating expenses increased by **8.5%** to **$105.4 million** in 2024, driven by higher compensation costs from increased headcount and higher G&A expenses related to IT system deployments and legal fees[284](index=284&type=chunk)[285](index=285&type=chunk) [Outlook](index=80&type=section&id=Outlook) Farmer Mac anticipates continued business volume growth, influenced by the capital and liquidity needs of lenders in the agriculture and infrastructure sectors. While higher interest rates may temper Farm & Ranch loan demand, a tightening agricultural economy could increase the need for liquidity. Significant growth is expected in Infrastructure Finance, particularly in renewable energy and broadband. The company plans ongoing investments in human capital and technology, which will increase operating expenses but are aimed at enhancing long-term efficiency and capacity. The agricultural outlook is mixed, with farm incomes expected to rebound in 2025 due to government support, but commodity price volatility and higher interest rates present headwinds. The infrastructure sector outlook remains strong, driven by demand for renewable energy and data connectivity - **Business Outlook:** Expects continued growth, with strong demand in Infrastructure Finance (renewable energy, broadband data centers) and opportunities in Agricultural Finance driven by lenders' liquidity and capital needs[316](index=316&type=chunk)[317](index=317&type=chunk)[319](index=319&type=chunk) - **Agricultural Industry Outlook:** USDA forecasts a **22% increase** in net cash farm income for 2025, supported by government payments. However, commodity price volatility, higher interest rates, and slowing land value appreciation present challenges[325](index=325&type=chunk)[326](index=326&type=chunk)[330](index=330&type=chunk) - **Infrastructure Industry Outlook:** Strong demand is expected to continue for rural power, renewable energy, and broadband. Renewable electricity capacity is projected to grow significantly, and investments in fiber networks and data centers are increasing[338](index=338&type=chunk)[340](index=340&type=chunk)[341](index=341&type=chunk) - **Legislative Outlook:** Key areas of focus include the reauthorization of the farm bill, expiring provisions of the Tax Cuts and Jobs Act of 2017, and a potential review of Farmer Mac's regulatory capital framework by the FCA[344](index=344&type=chunk) [Balance Sheet Review](index=88&type=section&id=Balance%20Sheet%20Review) As of December 31, 2024, Farmer Mac's total assets grew by 6% to $31.3 billion, driven by a $1.6 billion increase in loans and a $1.0 billion increase in investment securities, partially offset by a $1.5 billion decrease in Farmer Mac Guaranteed Securities. Total liabilities increased by 6% to $29.8 billion, primarily due to a $1.0 billion rise in notes payable to fund asset growth. Total equity increased by 5% to $1.5 billion, reflecting higher retained earnings Consolidated Balance Sheet Summary | (in thousands) | Dec 31, 2024 | Dec 31, 2023 | Change % | | :--- | :--- | :--- | :--- | | **Total Assets** | **$31,324,742** | **$29,524,382** | **6%** | | Loans, net of allowance | $11,166,984 | $9,607,531 | 16% | | Investment securities | $5,973,301 | $4,979,504 | 20% | | Farmer Mac Guaranteed Securities | $8,232,234 | $9,745,548 | (16)% | | **Total Liabilities** | **$29,835,716** | **$28,112,519** | **6%** | | Notes Payable | $27,371,174 | $26,336,542 | 4% | | **Total Equity** | **$1,489,026** | **$1,411,863** | **5%** | [Risk Management](index=89&type=section&id=Risk%20Management) Farmer Mac manages credit, counterparty, interest rate, and re-funding risks. Credit risk in the Agricultural Finance portfolio saw an increase in 90-day delinquencies to 0.88% and substandard assets to 3.2%, driven by weakness in permanent plantings and crops. The Infrastructure Finance portfolio remained strong with minimal credit issues. Counterparty risk is concentrated, with three institutions representing a significant portion of AgVantage securities. Interest rate risk is managed by matching the duration of assets and liabilities using debt and derivatives; the effective duration gap was a modest 3.7 months as of year-end 2024. Liquidity is managed through a portfolio of high-quality investments and access to debt markets - In the Agricultural Finance portfolio, **90-day delinquencies increased to $108.9 million (0.88% of the portfolio)** as of Dec 31, 2024, up from **$34.7 million (0.31%)** a year prior, primarily driven by permanent plantings and crops[350](index=350&type=chunk) - Substandard assets in the Agricultural Finance portfolio increased to **$398.3 million (3.2% of the portfolio)** from **$186.0 million (1.7%)** at year-end 2023[356](index=356&type=chunk) - Counterparty risk on AgVantage securities is concentrated, with three issuers (CFC, MetLife, Rabo AgriFinance) accounting for **$7.6 billion**, or **89%**, of the **$8.5 billion** total outstanding at year-end 2024[375](index=375&type=chunk) - Interest rate risk sensitivity remained within policy limits. A **+100 basis point parallel shift** in interest rates was estimated to decrease the Market Value of Equity (MVE) by **4.0%** as of Dec 31, 2024[398](index=398&type=chunk) [Liquidity and Capital Resources](index=105&type=section&id=Liquidity%20and%20Capital%20Resources) Farmer Mac maintains a strong liquidity and capital position. Primary funding sources are debt issuances, fees, and loan repayments. The company had steady access to capital markets throughout 2024. As of December 31, 2024, it held $7.0 billion in cash and high-quality investment securities. It maintained 264 days of liquidity, well above the 90-day regulatory minimum. The company was in compliance with all statutory capital requirements, with core capital of $1.5 billion exceeding the minimum requirement by $583.5 million. Its Tier 1 capital ratio was 14.2%, comfortably above the 7.0% policy minimum - The company maintained an average of **301 days of liquidity** throughout 2024, significantly exceeding the **90-day regulatory requirement**[410](index=410&type=chunk) Capital Position (as of Dec 31, 2024) | Metric | Amount (in millions) | | :--- | :--- | | Core Capital | $1,501.2 | | Minimum Capital Requirement | $917.6 | | Capital in Excess of Minimum | $583.5 | | Tier 1 Capital Ratio | 14.2% | - Total off-balance sheet arrangements, primarily LTSPCs and guaranteed securities, increased to **$4.5 billion** as of December 31, 2024, from **$4.1 billion** a year prior[423](index=423&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=113&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the 'Risk Management—Interest Rate Risk' section within Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, for disclosures regarding market risk. Farmer Mac is primarily exposed to market risk from changes in interest rates, which it manages through financial derivatives and by monitoring its exposure - Disclosures about market risk, primarily interest rate risk, are provided in the MD&A section under 'Risk Management—Interest Rate Risk'[432](index=432&type=chunk)[433](index=433&type=chunk) [Financial Statements](index=114&type=section&id=Item%208.%20Financial%20Statements) This section contains Farmer Mac's consolidated financial statements for the fiscal year ended December 31, 2024, and the accompanying notes. It includes management's report on internal control over financial reporting, which concluded that controls were effective. The independent auditor's report from PricewaterhouseCoopers LLP provides an unqualified opinion on both the financial statements and the effectiveness of internal controls, identifying the valuation of AgVantage securities as a critical audit matter - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2024, based on the COSO framework[437](index=437&type=chunk) - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[442](index=442&type=chunk) - The auditor identified the valuation of AgVantage Farmer Mac Guaranteed Securities as a critical audit matter due to the high degree of audit effort and subjective judgment related to the discount rate assumption used in the valuation model[450](index=450&type=chunk)[451](index=451&type=chunk) [Notes to Consolidated Financial Statements](index=123&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on Farmer Mac's accounting policies, business segments, and financial instruments. Key policies include the consolidation of Variable Interest Entities (VIEs) where Farmer Mac is the primary beneficiary and the use of fair value measurements. In Q4 2024, the company began reporting Broadband Infrastructure as a separate segment. Related party transactions are detailed, with significant business conducted with major stockholders like Zions, CFC, and CoBank. The notes also cover details on debt, equity (including the redemption of Series C preferred stock), guarantees, and the allowance for credit losses, which increased to $25.3 million in 2024 - In Q4 2024, Farmer Mac began reporting Broadband Infrastructure as a new, separate business segment; prior period results were recast to reflect this change[525](index=525&type=chunk) - Significant related party transactions exist with major stockholders, including Zions (**31.2%** of Class A stock), CFC (**7.9%** of Class A stock), and CoBank (**32.6%** of Class B stock), involving loan purchases, AgVantage securities, and servicing fees[533](index=533&type=chunk)[535](index=535&type=chunk)[538](index=538&type=chunk) - The total allowance for losses (on- and off-balance sheet) was **$25.3 million** as of Dec 31, 2024, up from **$18.3 million** at year-end 2023, with the increase primarily driven by provisions for the Agricultural Finance loan portfolio[279](index=279&type=chunk)[592](index=592&type=chunk) - On July 18, 2024, all outstanding Series C Preferred Stock was redeemed, resulting in a **$1.6 million loss** on retirement[610](index=610&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=192&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None [Controls and Procedures](index=192&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of December 31, 2024. The report on internal control over financial reporting is included in Item 8. During Q4 2024, Farmer Mac modernized its systems for its investments, AgVantage, and debt portfolios, but there were no other changes that materially affected internal controls over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2024[682](index=682&type=chunk) - In Q4 2024, the company modernized its systems of record for its investments, AgVantage, debt portfolios, and treasury management[684](index=684&type=chunk) [Other Information](index=193&type=section&id=Item%209B.%20Other%20Information) No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fourth quarter of 2024 - None of Farmer Mac's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement in Q4 2024[685](index=685&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=193&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Farmer Mac - Not Applicable PART III [Directors, Executive Officers, and Corporate Governance](index=194&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) The information required for this item is incorporated by reference from Farmer Mac's definitive proxy statement, which is scheduled to be filed on or about April 16, 2025 - Information is incorporated by reference from the 2025 Proxy Statement[689](index=689&type=chunk) [Executive Compensation](index=194&type=section&id=Item%2011.%20Executive%20Compensation) The information required for this item is incorporated by reference from Farmer Mac's definitive proxy statement, which is scheduled to be filed on or about April 16, 2025 - Information is incorporated by reference from the 2025 Proxy Statement[690](index=690&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=194&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) The information required for this item is incorporated by reference from Farmer Mac's definitive proxy statement, which is scheduled to be filed on or about April 16, 2025 - Information is incorporated by reference from the 2025 Proxy Statement[691](index=691&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=194&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) The information required for this item is incorporated by reference from Farmer Mac's definitive proxy statement, which is scheduled to be filed on or about April 16, 2025 - Information is incorporated by reference from the 2025 Proxy Statement[692](index=692&type=chunk) [Principal Accountant Fees and Services](index=194&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The information required for this item is incorporated by reference from Farmer Mac's definitive proxy statement, which is scheduled to be filed on or about April 16, 2025 - Information is incorporated by reference from the 2025 Proxy Statement[693](index=693&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=194&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements included in Item 8 and notes that no financial statement schedules are provided as they are not applicable. It also provides a list of exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and certifications - This item lists all exhibits filed with the Form 10-K, including governing documents, material contracts, certifications, and XBRL data files[695](index=695&type=chunk)[696](index=696&type=chunk)[697](index=697&type=chunk) [Form 10-K Summary](index=197&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None

Farmer Mac Reports 2024 Results - Announces 7% Dividend Increase - - Outstanding Business Volume of $29.5 Billion - WASHINGTON, D.C., February 21, 2025 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing for American agriculture and rural infrastructure, today announced its results for the fiscal quarter and year ended December 31, 2024. "We are very pleased with our 2024 results, and believe ...

As filed with the Securities and Exchange Commission on November 4, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____. Commission File Number 001-14951 FEDERAL AGRICULTURAL MORTGAGE CORPORATION (E ...

Farmer Mac Reports Third Quarter 2024 Results - Outstanding Business Volume of $28.5 Billion - WASHINGTON, D.C., November 4, 2024 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended September 30, 2024. "Farmer Mac delivered another solid quarter, demonstrating yet again the benefits of o ...