Federal Agricultural Mortgage (AGM) - 2025 Q3 - Quarterly Results

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