Open the filing on EDGARFarmer Mac Reports 2025 Results
- Announces 7% Dividend Increase -
- Outstanding Business Volume of $33.4 Billion -
WASHINGTON, D.C., February 19, 2026 - 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 and year ended December 31, 2025.
“Farmer Mac delivered another strong year in 2025, highlighted by record net effective spread and outstanding business volumes, and our tenth consecutive year of record annual core earnings results," said Chief Executive Officer, Brad Nordholm. "While a few borrower‑specific credit events affected Core Earnings, particularly in the fourth quarter, these were isolated in nature and do not change the positive trajectory of our underlying performance. With a resilient business model, disciplined balance‑sheet and risk management, and a highly talented and capable management team, we are well‑positioned for the future and confident in our ability to continue delivering meaningful value to rural America and our shareholders.”
Full Year 2025 and Recent Highlights
- Record outstanding business volume growth of $3.8 billion, reflecting 13% growth year-over-year
- Provided $10.5 billion in liquidity and lending capacity to lenders serving rural America
- Net interest income grew 10% year-over-year to $390.7 million
- Net effective spread increased 13% from the prior-year period to a record $383.0 million
- Net income attributable to common stockholders of $182.5 million, or $16.62 per diluted share
- Record core earnings of $182.9 million, or $16.66 per diluted share, reflecting 7% growth year-over-year
- Total core capital of $1.7 billion and a Tier 1 Capital Ratio of 13.3% as of December 31, 2025
- On February 18, 2026, Farmer Mac's Board of Directors raised the quarterly common stock dividend by 7% to $1.60 per share, the fifteenth consecutive annual increase
| $ in thousands, except per share amounts | Quarter Ended | Year Ended |
| December 31, 2025 | December 31, 2024 | YoY % Change | December 31, 2025 | December 31, 2024 | % Change | |
| Net Change in Business Volume | $2,232,407 | $1,054,727 | N/A | $3,828,539 | $1,052,006 | N/A |
| Net Interest Income (GAAP) | $104,521 | $93,368 | 12% | $390,734 | $353,867 | 10% |
| Net Effective Spread (Non-GAAP) | $101,389 | $87,528 | 16% | $383,041 | $339,564 | 13% |
| Diluted EPS (GAAP) | $3.71 | $4.63 | (20)% | $16.62 | $16.44 | 1% |
| Diluted Core EPS (Non-GAAP) | $3.66 | $3.97 | (8)% | $16.66 | $15.64 | 7% |
Non-GAAP Measure
Dividends
On February 18, 2026, Farmer Mac's Board of Directors declared a quarterly dividend of $1.60 per share on all three classes of common stock - Class A voting common stock (NYSE: AGM.A), Class B voting common stock (not listed on any exchange), and Class C non-voting common stock (NYSE: AGM). This quarterly dividend, which represents an increase of 7% in Farmer Mac's quarterly dividend rate on a year-over-year basis, will be payable on March 31, 2026 to holders of record of common stock as of March 16, 2026. This is the fifteenth consecutive year that Farmer Mac has increased its quarterly common stock dividend, and this increase is supported by Farmer Mac's previous and expected earnings growth and overall capital position.
Farmer Mac's Board of Directors also declared a dividend on each of Farmer Mac's five classes of preferred stock. The quarterly dividend of $0.35625 per share of 5.700% Non-Cumulative Preferred Stock, Series D (NYSE: AGM.PR.D), $0.359375 per share of 5.750% Non-Cumulative Preferred Stock, Series E (NYSE: AGM.PR.E), $0.328125 per share of 5.250% Non-Cumulative Preferred Stock, Series F (NYSE: AGM.PR.F), $0.3046875 per share of 4.875% Non-Cumulative Preferred Stock, Series G (AGM.PR.G), and $0.40625 per share of 6.500% Non-Cumulative Preferred Stock, Series H (AGM.PR.H), is for the period from but not including January 17, 2026 to and including April 17, 2026. The preferred dividends will be payable on April 17, 2026 to holders of record as of April 1, 2026.
Earnings Conference Call Information
The conference call to discuss Farmer Mac's fourth quarter and full year 2025 financial results will be held beginning at 4:30 p.m. eastern time on Thursday, February 19, 2026, and can be accessed by telephone or live webcast as follows:
Telephone (Domestic): (888) 880-3330
Telephone (International): (646) 357-8766
Webcast: https://www.farmermac.com/investors/events-presentations/
When dialing in to the call, please ask for the "Farmer Mac Earnings Conference Call." The call can be heard live and will also be available for replay on Farmer Mac’s website for one week following the conclusion of the call.
More complete information about Farmer Mac's performance for 2025 is in Farmer Mac's
Annual Report on Form 10-K for the year ended December 31, 2025, filed today with the SEC.
Use of Non-GAAP Measures
We use "non-GAAP measures" in our analysis of financial information. Non-GAAP measures represent measures of financial performance that are not presented in accordance with GAAP. Specifically, we use the following non-GAAP measures: (1) "core earnings," (2) "core earnings per common share," and (3) "net effective spread," in both dollars and percentage yield or spread. In our view, these non-GAAP measures are useful alternative measures in understanding our economic performance, transaction economics, and business trends. Our non-GAAP financial measures may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Our disclosure of non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.
Core Earnings and Core Earnings Per Share
The main difference between core earnings and core earnings per common share ("Core EPS"), which are non-GAAP measures, and net income attributable to common stockholders and earnings per common share ("EPS"), which are GAAP measures, is that those non-GAAP measures exclude the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on our financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Additionally, these two non-GAAP measures exclude specified infrequent or unusual transactions that we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of our core business.
Net Effective Spread
We use Net Effective Spread ("NES") to measure the net spread earned between interest-earning assets and the related net funding costs, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.
NES excludes the following:
- Interest income and interest expense associated with single-class consolidated trusts with beneficial interests owned by third parties and for which we guarantees all classes of securities issued ("single-class consolidated trusts") and reclassifies that activity to guarantee and commitment fees in determining our core earnings. This reclassification reflects our view that the net interest income earned on single-class consolidated trusts is effectively a guarantee fee.
- Fair value changes of financial derivatives and corresponding financial assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on our financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.
- The amortization of premiums and discounts on assets consolidated at fair value.
NES includes the following:
- Income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). For undesignated financial derivatives, we record the income or expense related to the accrual of the contractual amounts due in "(Losses)/gains on financial derivatives" on the Consolidated Statements of Operations.
- The net effects of terminations or net settlements on undesignated financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other government-sponsored enterprises ("GSEs") and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that we receive upon the inception of certain swaps. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the Consolidated Statements of Operations in the period in which they occur. For NES, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.
More information about Farmer Mac’s use of non-GAAP measures is available in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations" in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, filed today with the SEC. For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, and net interest income and net interest yield to net effective spread, see "Reconciliations" below.
Forward-Looking Statements
Management's expectations for Farmer Mac's future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause our actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release, including uncertainties about:
- the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;
- legislative, regulatory, or current or future political developments that could affect Farmer Mac, its sources of business, or agricultural or infrastructure industries;
- fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;
- the level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;
- the general rate of growth in agricultural mortgage and infrastructure indebtedness;
- the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or infrastructure lending, borrower repayment capacity, or collateral values, including inflation, fluctuations in interest rates, changes in U.S. trade policies (including tariffs and trade restrictions), fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices;
- the degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indices;
- developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving GSEs, including Farmer Mac;
- the effects of the Federal Reserve’s efforts to achieve monetary policy normalization to respond to inflation and employment levels; and
- other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, or fluctuations in agricultural real estate values.
Other risk factors are discussed in "Risk Factors" in Part I, Item 1A in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, filed today with the SEC. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. The forward-looking statements contained in this release represent management's expectations as of the date of this release. Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements included in this release to reflect new information or any future events or circumstances, except as otherwise required by applicable law. The information in this release is not necessarily indicative of future results.
About Farmer Mac
Farmer Mac is driven by its mission to increase the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure. The secondary market served by Farmer Mac provides liquidity to our nation’s agricultural and infrastructure businesses, supporting a vibrant and strong rural America. We offer a wide range of solutions to help meet financial institutions’ growth, liquidity, risk management, and capital relief needs across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy. We are uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and prosperity in America’s rural and agricultural communities. Additional information about Farmer
Mac is available on our website at www.farmermac.com.
CONTACT: Jalpa Nazareth, Investor Relations
Lisa Meyer, Media Inquiries
(202) 872-7700
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| As of |
|---|
| December 31, 2025 | December 31, 2024 |
|---|
| (in thousands) |
|---|
| Assets: | | |
| Cash and cash equivalents (includes restricted cash of $24,475 and $16,190, respectively) | $931,067 | $1,024,007 |
| Investment securities: | | |
| Available-for-sale, at fair value (amortized cost of $13,813,551 and $11,940,774, respectively) | 13,580,285 | 11,467,560 |
| Held-to-maturity, at amortized cost | 3,954,223 | 5,097,492 |
| Other investments | 15,871 | 11,835 |
| Total Investment Securities | 17,550,379 | 16,576,887 |
| Loans: | | |
| Loans held for sale, at lower of cost or fair value | - | 6,170 |
| Loans held for investment, at amortized cost | 13,877,051 | 11,183,408 |
| Loans held for investment in consolidated trusts, at amortized cost | 2,482,010 | 2,038,283 |
| Allowance for losses | (37,785) | (23,223) |
| Total loans, net of allowance | 16,321,276 | 13,204,638 |
| Financial derivatives, at fair value | 44,875 | 27,789 |
| Accrued interest receivable (includes $40,945 and $28,563, respectively, related to consolidated trusts) | 357,155 | 310,592 |
| Guarantee and commitment fees receivable | 57,214 | 50,499 |
| Deferred tax asset, net | 173 | 1,544 |
| Prepaid expenses and other assets | 108,018 | 128,786 |
| Total Assets | $35,370,157 | $31,324,742 |
| Liabilities and Equity: | | |
| Liabilities: | | |
| Notes payable | $30,822,570 | $27,371,174 |
| Debt securities of consolidated trusts held by third parties | 2,365,435 | 1,929,628 |
| Financial derivatives, at fair value | 21,618 | 77,326 |
| Accrued interest payable (includes $15,795 and $12,387, respectively, related to consolidated trusts) | 233,714 | 195,113 |
| Guarantee and commitment obligation | 54,770 | 48,326 |
| Other liabilities | 153,101 | 214,149 |
| Total Liabilities | 33,651,208 | 29,835,716 |
| Commitments and Contingencies | | |
| Equity: | | |
| Preferred stock: | | |
| Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,659 | 96,659 |
| Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding | 77,003 | 77,003 |
| Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding | 116,160 | 116,160 |
| Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding | 121,327 | 121,327 |
| Series H, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,844 | - |
| Common stock: | | |
| Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding | 1,031 | 1,031 |
| Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding | 500 | 500 |
| Class C Non-Voting, $1 par value, no maximum authorization, 9,325,556 shares and 9,360,083 shares outstanding, respectively | 9,326 | 9,360 |
| Additional paid-in capital | 139,370 | 135,894 |
| Accumulated other comprehensive income/(loss), net of tax | 13,382 | (12,147) |
| Retained earnings | 1,047,347 | 943,239 |
| Total Equity | 1,718,949 | 1,489,026 |
| Total Liabilities and Equity | $35,370,157 | $31,324,742 |
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended | For the Year Ended |
|---|
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
|---|
| (in thousands, except per share amounts) |
|---|
| Interest income: | | | | |
| Investment securities and cash equivalents | $205,926 | $226,510 | $846,441 | $974,329 |
| Loans | 210,544 | 169,255 | 765,806 | 629,187 |
| Total interest income | 416,470 | 395,765 | 1,612,247 | 1,603,516 |
| Total interest expense | 311,949 | 302,397 | 1,221,513 | 1,249,649 |
| Net interest income | 104,521 | 93,368 | 390,734 | 353,867 |
| Provision for losses | (15,986) | (3,773) | (32,860) | (11,579) |
| Net interest income after provision for losses | 88,535 | 89,595 | 357,874 | 342,288 |
| Non-interest income/(expense): | | | | |
| Guarantee and commitment fees | 5,259 | 4,009 | 19,575 | 15,738 |
| (Losses)/gains on financial derivatives | (1,502) | 4,290 | (5,120) | 2,636 |
| Other income | (821) | (411) | 3,183 | 2,827 |
| Non-interest income | 2,936 | 7,888 | 17,638 | 21,201 |
| Operating expenses: | | | | |
| Compensation and employee benefits | 18,199 | 15,641 | 71,325 | 63,975 |
| General and administrative | 11,944 | 12,452 | 44,613 | 38,236 |
| Regulatory fees | 863 | 1,000 | 3,863 | 3,175 |
| Operating expenses | 31,006 | 29,093 | 119,801 | 105,386 |
| Income before income taxes | 60,465 | 68,390 | 255,711 | 258,103 |
| Income tax expense | 12,541 | 11,876 | 48,296 | 50,910 |
| Net income | 47,924 | 56,514 | 207,415 | 207,193 |
| Preferred stock dividends | (7,286) | (5,666) | (24,922) | (25,146) |
| Loss on retirement of preferred stock | - | - | - | (1,619) |
| Net income attributable to common stockholders | $40,638 | $50,848 | $182,493 | $180,428 |
| Earnings per common share: | | | | |
| Basic earnings per common share | $3.73 | $4.67 | $16.73 | $16.59 |
| Diluted earnings per common share | $3.71 | $4.63 | $16.62 | $16.44 |
Reconciliations
Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings for the periods indicated:
| For the Three Months Ended |
|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 |
|---|
| (in thousands, except per share amounts) |
|---|
| Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings |
| Net income attributable to common stockholders | $40,638 | $48,700 | $50,848 |
| Less reconciling items: | | | |
| Gains on undesignated financial derivatives due to fair value changes | 447 | 882 | 3,084 |
| Gains/(losses) on hedging activities due to fair value changes | 3,107 | (137) | 5,737 |
| Unrealized losses on trading assets | (66) | (4) | (83) |
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 24 | 26 | (39) |
| Net effects of terminations or net settlements on financial derivatives | (2,699) | (1,934) | 534 |
| Issuance costs on the retirement of preferred stock | - | - | - |
| Income tax effect related to reconciling items | (171) | 245 | (1,939) |
| Sub-total | 642 | (922) | 7,294 |
| Core earnings | $39,996 | $49,622 | $43,554 |
| Composition of Core Earnings: | | | |
| Revenues: | | | |
| Net effective spread | $101,389 | $97,769 | $87,528 |
| Guarantee and commitment fees | 6,298 | 6,132 | 5,086 |
| Other | 224 | 1,185 | (491) |
| Total revenues | 107,911 | 105,086 | 92,123 |
| Credit related expense/(income) (GAAP): | | | |
| Provision for losses | 15,986 | 7,477 | 3,773 |
| Other credit related expense/(income) | 1,267 | (44) | 99 |
| Total credit related expense/(income) | 17,253 | 7,433 | 3,872 |
| Operating expenses (GAAP): | | | |
| Compensation and employee benefits | 18,199 | 17,743 | 15,641 |
| General and administrative | 11,944 | 11,052 | 12,452 |
| Regulatory fees | 863 | 1,000 | 1,000 |
| Total operating expenses | 31,006 | 29,795 | 29,093 |
| Net earnings | 59,652 | 67,858 | 59,158 |
| Income tax expense | 12,370 | 11,933 | 9,938 |
| Preferred stock dividends (GAAP) | 7,286 | 6,303 | 5,666 |
| Core earnings | $39,996 | $49,622 | $43,554 |
| Core earnings per share: | | | |
| Basic | $3.68 | $4.54 | $4.00 |
| Diluted | $3.66 | $4.52 | $3.97 |
Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.
Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.
Includes net interest income of $1.0 million for both the three months ended December 31, 2025 and 2024, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.
Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.
| For the Years Ended |
|---|
| December 31, 2025 | December 31, 2024 |
|---|
| (in thousands, except per share amounts) |
|---|
| Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings |
| Net income attributable to common stockholders | $182,493 | $180,428 |
| Less reconciling items: | | |
| (Losses)/gains on undesignated financial derivatives due to fair value changes | (1,883) | 3,344 |
| Gains on hedging activities due to fair value changes | 6,778 | 11,548 |
| Unrealized losses on trading assets | (126) | (85) |
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 103 | 45 |
| Net effects of terminations or net settlements on financial derivatives | (5,448) | (1,666) |
| Issuance costs on the retirement of preferred stock | - | (1,619) |
| Income tax effect related to reconciling items | 120 | (2,769) |
| Sub-total | (456) | 8,798 |
| Core earnings | $182,949 | $171,630 |
| Composition of Core Earnings: | | |
| Revenues: | | |
| Net effective spread | $383,041 | $339,564 |
| Guarantee and commitment fees | 23,792 | 20,321 |
| Other | 3,466 | 2,105 |
| Total revenues | 410,299 | 361,990 |
| Credit related expense (GAAP): | | |
| Provision for losses | 32,860 | 11,579 |
| Other credit related expense | 1,350 | 107 |
| Total credit related expense | 34,210 | 11,686 |
| Operating expenses (GAAP): | | |
| Compensation and employee benefits | 71,325 | 63,975 |
| General and administrative | 44,613 | 38,236 |
| Regulatory fees | 3,863 | 3,175 |
| Total operating expenses | 119,801 | 105,386 |
| Net earnings | 256,288 | 244,918 |
| Income tax expense | 48,417 | 48,142 |
| Preferred stock dividends (GAAP) | 24,922 | 25,146 |
| Core earnings | $182,949 | $171,630 |
| Core earnings per share: | | |
| Basic | $16.77 | $15.78 |
| Diluted | $16.66 | $15.64 |
Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.
Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.
Includes net interest income of $4.1 million and $4.5 million for the years ended December 31, 2025 and 2024, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.
Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.
| For the Three Months Ended | For the Year Ended |
|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
|---|
| (in thousands, except per share amounts) |
|---|
| Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share |
| GAAP - Basic EPS | $3.73 | $4.45 | $4.67 | $16.73 | $16.59 |
| Less reconciling items: | | | | | |
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.04 | 0.08 | 0.28 | (0.17) | 0.31 |
| Gains/(losses) on hedging activities due to fair value changes | 0.29 | (0.01) | 0.53 | 0.62 | 1.06 |
| Unrealized losses on trading securities | (0.01) | - | (0.01) | (0.01) | (0.01) |
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | - | - | - | 0.01 | - |
| Net effects of terminations or net settlements on financial derivatives | (0.25) | (0.18) | 0.05 | (0.50) | (0.15) |
| Issuance costs on the retirement of preferred stock | - | - | - | - | (0.15) |
| Income tax effect related to reconciling items | (0.02) | 0.02 | (0.18) | 0.01 | (0.25) |
| Sub-total | 0.05 | (0.09) | 0.67 | (0.04) | 0.81 |
| Core Earnings - Basic EPS | $3.68 | $4.54 | $4.00 | $16.77 | $15.78 |
| Shares used in per share calculation (GAAP and Core Earnings) | 10,882 | 10,934 | 10,889 | 10,911 | 10,874 |
| For the Three Months Ended | For the Year Ended |
|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
|---|
| (in thousands, except per share amounts) |
|---|
| Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share |
| GAAP - Diluted EPS | $3.71 | $4.44 | $4.63 | $16.62 | $16.44 |
| Less reconciling items: | | | | | |
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.04 | 0.08 | 0.28 | (0.17) | 0.30 |
| Gains/(losses) on hedging activities due to fair value changes | 0.29 | (0.01) | 0.52 | 0.62 | 1.05 |
| Unrealized losses on trading securities | (0.01) | - | (0.01) | (0.01) | (0.01) |
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | - | - | - | 0.01 | - |
| Net effects of terminations or net settlements on financial derivatives | (0.25) | (0.17) | 0.05 | (0.50) | (0.14) |
| Issuance costs on the retirement of preferred stock | - | - | - | - | (0.15) |
| Income tax effect related to reconciling items | (0.02) | 0.02 | (0.18) | 0.01 | (0.25) |
| Sub-total | 0.05 | (0.08) | 0.66 | (0.04) | 0.80 |
| Core Earnings - Diluted EPS | $3.66 | $4.52 | $3.97 | $16.66 | $15.64 |
| Shares used in per share calculation (GAAP and Core Earnings) | 10,943 | 10,972 | 10,982 | 10,983 | 10,975 |
The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:
| For the Three Months Ended | For the Year Ended |
|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
|---|
| Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield |
|---|
| (dollars in thousands) |
|---|
| Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread |
| Net interest income | $104,521 | 1.23% | $98,477 | 1.18% | $93,368 | 1.21% | $390,734 | 1.19% | $353,867 | 1.16% |
| Net effects of consolidated trusts | (973) | 0.02% | (1,102) | 0.02% | (989) | 0.02% | (4,072) | 0.02% | (4,477) | 0.02% |
| Expense related to undesignated financial derivatives | 156 | - % | (707) | (0.01)% | 2 | - % | (441) | - % | (1,377) | - % |
| Amortization of premiums/discounts on assets consolidated at fair value | (22) | - % | (23) | - % | 42 | - % | (92) | - % | (29) | - % |
| Amortization of losses due to terminations or net settlements on financial derivatives | 814 | 0.01% | 987 | 0.01% | 842 | 0.01% | 3,690 | 0.01% | 3,128 | 0.01% |
| Fair value changes on fair value hedge relationships | (3,107) | (0.04)% | 137 | - % | (5,737) | (0.08)% | (6,778) | (0.02)% | (11,548) | (0.04)% |
| Net effective spread | $101,389 | 1.22% | $97,769 | 1.20% | $87,528 | 1.16% | $383,041 | 1.20% | $339,564 | 1.15% |
The following table presents core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended December 31, 2025:
| Agricultural Finance | Infrastructure Finance | Treasury | |
|---|
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Total |
|---|
| (in thousands) |
|---|
| Core Earnings by Business Segment |
| For the Three Months Ended December 31, 2025 |
| Interest income | $158,412 | $25,171 | $71,312 | $15,742 | $31,851 | $32,288 | $81,694 | $416,470 |
| Interest expense | (121,262) | (16,570) | (65,128) | (10,132) | (22,856) | 3,543 | (79,544) | (311,949) |
| Less: reconciling adjustments(2)(3) | (970) | - | (25) | - | - | (2,137) | - | (3,132) |
| Net effective spread | 36,180 | 8,601 | 6,159 | 5,610 | 8,995 | 33,694 | 2,150 | 101,389 |
| Guarantee and commitment fees | 4,550 | 278 | 202 | 851 | 417 | - | - | 6,298 |
| Other income/(expense) | (766) | (16) | - | - | - | - | (163) | (945) |
| (Provision for)/release of losses | (268) | (11,096) | (190) | (4,658) | 106 | - | 21 | (16,085) |
| Operating expenses | (7,328) | (2,730) | (1,174) | (1,415) | (1,716) | (3,129) | (899) | (18,391) |
| Income tax (expense)/benefit | (6,797) | 1,042 | (1,049) | (81) | (1,638) | (6,419) | (233) | (15,175) |
| Segment core earnings | $25,571 | $(3,921) | $3,948 | $307 | $6,164 | $24,146 | $876 | $57,091 |
| Reconciliation to net income: | | | | | | | | |
| Net effects of derivatives and trading securities | | | | | | | | $789 |
| Unallocated (expenses)/income | | | | | | | | (12,590) |
| Income tax effect related to reconciling items | | | | | | | | 2,634 |
| Net income | | | | | | | | $47,924 |
| Total Assets: | | | | | | | | |
| Total on- and off-balance sheet segment assets at principal balance | $19,564,916 | $1,950,536 | $7,860,622 | $1,532,206 | $2,443,289 | $ - | $ - | $33,351,569 |
| Off-balance sheet assets under management | | | | | | | | (5,765,446) |
| Unallocated assets | | | | | | | | 7,784,034 |
| Total assets on the consolidated balance sheets | | | | | | | | $35,370,157 |
The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker.
Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
Supplemental Information
The following table sets forth information about outstanding volume in each of Farmer Mac's lines of business as of the dates indicated:
| On or Off Balance Sheet | As of December 31, 2025 | As of December 31, 2024 |
|---|
| | (in thousands) |
|---|
| Outstanding Business Volume |
| Agricultural Finance: | | | |
| Farm & Ranch: | | | |
| Loans | On-balance sheet | $6,002,738 | $5,414,732 |
| Loans held in consolidated trusts: | | | |
| Single-class consolidated trusts | On-balance sheet | 829,391 | 885,295 |
| Structured consolidated trusts | On-balance sheet | 1,652,619 | 1,152,988 |
| IO-FMGS | On-balance sheet | 8,040 | 8,710 |
| USDA Securities | On-balance sheet | 2,443,432 | 2,402,423 |
| AgVantage Securities | On-balance sheet | 4,270,000 | 4,720,000 |
| LTSPCs and unfunded loan commitments | Off-balance sheet | 3,591,079 | 3,070,554 |
| Other Farmer Mac Guaranteed Securities | Off-balance sheet | 386,057 | 426,310 |
| Loans serviced for others | Off-balance sheet | 381,560 | 525,956 |
| Total Farm & Ranch | | $19,564,916 | $18,606,968 |
| Corporate AgFinance: | | | |
| Loans | On-balance sheet | $1,460,691 | $1,381,674 |
| AgVantage Securities | On-balance sheet | 190,977 | 280,297 |
| Unfunded loan commitments | Off-balance sheet | 298,868 | 225,734 |
| Total Corporate AgFinance | | $1,950,536 | $1,887,705 |
| Total Agricultural Finance | | $21,515,452 | $20,494,673 |
| Infrastructure Finance: | | | |
| Power & Utilities: | | | |
| Loans | On-balance sheet | $3,548,523 | $2,886,576 |
| AgVantage Securities | On-balance sheet | 3,967,154 | 3,521,143 |
| LTSPCs and unfunded loan commitments | Off-balance sheet | 344,945 | 401,647 |
| Total Power & Utilities | | $7,860,622 | $6,809,366 |
| Broadband Infrastructure: | | | |
| Loans | On-balance sheet | $1,009,890 | $622,207 |
| Unfunded loan commitments | Off-balance sheet | 522,316 | 180,259 |
| Total Broadband Infrastructure | | $1,532,206 | $802,466 |
| Renewable Energy: | | | |
| Loans | On-balance sheet | $2,202,668 | $1,265,700 |
| Unfunded loan commitments | Off-balance sheet | 240,621 | 150,825 |
| Total Renewable Energy | | $2,443,289 | $1,416,525 |
| Total Infrastructure Finance | | $11,836,117 | $9,028,357 |
| Total | | $33,351,569 | $29,523,030 |
The securities issued by these trusts are referred to as Farmer Mac Guaranteed Securities.
These categories are referred to as Farmer Mac Guaranteed Securities.
Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties.
The following table presents the quarterly net effective spread by segment:
| Net Effective Spread |
|---|
| Agricultural Finance | Infrastructure Finance | Treasury | |
|---|
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Net Effective Spread |
|---|
| DollarsYield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield |
|---|
| (dollars in thousands) |
|---|
| For the quarter ended: | | | | | | | | |
| December 31, 2025 | $36,180 | $8,601 | $6,159 | $5,610 | $8,995 | $33,694 | $2,150 | $101,389 |
| 1.06% | 2.07% | 0.34% | 2.42% | 1.74% | 0.41% | 0.11% | 1.22% |
| September 30, 2025 | 34,840 | 9,047 | 5,910 | 4,379 | 7,730 | 34,777 | 1,086 | 97,769 |
| 1.04% | 2.16% | 0.34% | 2.30% | 1.75% | 0.43% | 0.05% | 1.20% |
| June 30, 2025 | 35,710 | 8,609 | 5,636 | 3,932 | 6,227 | 31,668 | 2,111 | 93,893 |
| 1.07% | 2.07% | 0.33% | 2.24% | 1.68% | 0.40% | 0.11% | 1.19% |
| March 31, 2025 | 33,885 | 8,640 | 5,329 | 3,566 | 5,112 | 31,604 | 1,854 | 89,990 |
| 1.01% | 2.09% | 0.32% | 2.27% | 1.55% | 0.41% | 0.10% | 1.17% |
| December 31, 2024 | 32,556 | 7,891 | 5,059 | 3,414 | 4,859 | 31,242 | 2,507 | 87,528 |
| 0.96% | 1.95% | 0.32% | 2.34% | 1.76% | 0.42% | 0.15% | 1.16% |
| September 30, 2024 | 35,755 | 6,397 | 4,785 | 2,794 | 3,810 | 30,912 | 943 | 85,396 |
| 1.05% | 1.56% | 0.30% | 2.21% | 1.78% | 0.42% | 0.05% | 1.16% |
| June 30, 2024 | 34,156 | 7,866 | 5,253 | 2,393 | 2,999 | 30,268 | 661 | 83,596 |
| 0.98% | 1.91% | 0.32% | 2.16% | 1.86% | 0.41% | 0.04% | 1.14% |
| March 31, 2024 | 32,843 | 7,971 | 4,890 | 2,342 | 2,049 | 32,474 | 475 | 83,044 |
| 0.95% | 2.05% | 0.30% | 2.08% | 1.75% | 0.45% | 0.03% | 1.14% |
| December 31, 2023 | 33,329 | 8,382 | 4,916 | 2,426 | 1,540 | 33,361 | 597 | 84,551 |
| 0.98% | 2.06% | 0.31% | 2.06% | 1.69% | 0.47% | 0.04% | 1.19% |
The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:
| December 2025 | September 2025 | June 2025 | March 2025 | December 2024 | September 2024 | June 2024 | March 2024 | December 2023 |
|---|
| (in thousands) |
|---|
| Core Earnings by Quarter Ended |
| Revenues: | | | | | | | | | |
| Net effective spread | $101,389 | $97,769 | $93,893 | $89,990 | $87,528 | $85,396 | $83,596 | $83,044 | $84,551 |
| Guarantee and commitment fees | 6,298 | 6,132 | 5,874 | 5,488 | 5,086 | 4,997 | 5,256 | 4,982 | 4,865 |
| Other | 224 | 1,185 | 742 | 1,315 | (491) | 1,133 | 386 | 1,077 | 767 |
| Total revenues | 107,911 | 105,086 | 100,509 | 96,793 | 92,123 | 91,526 | 89,238 | 89,103 | 90,183 |
| Credit related expense/(income): | | | | | | | | | |
| Provision for/(release of) losses | 15,986 | 7,477 | 7,713 | 1,684 | 3,773 | 3,428 | 6,179 | (1,801) | (626) |
| Other credit related expense/(income) | 1,267 | (44) | 160 | (33) | 99 | 26 | 51 | (69) | 51 |
| Total credit related expense/(income) | 17,253 | 7,433 | 7,873 | 1,651 | 3,872 | 3,454 | 6,230 | (1,870) | (575) |
| Operating expenses: | | | | | | | | | |
| Compensation and employee benefits | 18,199 | 17,743 | 17,631 | 17,752 | 15,641 | 15,237 | 14,840 | 18,257 | 15,523 |
| General and administrative | 11,944 | 11,052 | 10,859 | 10,758 | 12,452 | 8,625 | 8,904 | 8,255 | 8,916 |
| Regulatory fees | 863 | 1,000 | 1,000 | 1,000 | 1,000 | 725 | 725 | 725 | 725 |
| Total operating expenses | 31,006 | 29,795 | 29,490 | 29,510 | 29,093 | 24,587 | 24,469 | 27,237 | 25,164 |
| Net earnings | 59,652 | 67,858 | 63,146 | 65,632 | 59,158 | 63,485 | 58,539 | 63,736 | 65,594 |
| Income tax expense | 12,370 | 11,933 | 10,114 | 14,000 | 9,938 | 12,681 | 11,970 | 13,553 | 13,881 |
| Preferred stock dividends | 7,286 | 6,303 | 5,667 | 5,666 | 5,666 | 5,897 | 6,792 | 6,791 | 6,791 |
| Core earnings | $39,996 | $49,622 | $47,365 | $45,966 | $43,554 | $44,907 | $39,777 | $43,392 | $44,922 |
| Reconciling items: | | | | | | | | | |
| Gains/(losses) on undesignated financial derivatives due to fair value changes | $447 | $882 | $(639) | $(2,573) | $3,084 | $(1,064) | $(359) | $1,683 | $(836) |
| Gains/(losses) on hedging activities due to fair value changes | 3,107 | (137) | 2,709 | 1,099 | 5,737 | 205 | 2,604 | 3,002 | (3,598) |
| Unrealized (losses)/gains on trading assets | (66) | (4) | (65) | 9 | (83) | 99 | (87) | (14) | (37) |
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 24 | 26 | 25 | 28 | (39) | 27 | 26 | 31 | 88 |
| Net effects of terminations or net settlements on financial derivatives | (2,699) | (1,934) | 255 | (1,070) | 534 | (503) | (1,505) | (192) | (800) |
| Issuance costs on the retirement of preferred stock | - | - | - | - | - | (1,619) | - | - | - |
| Income tax effect related to reconciling items | (171) | 245 | (480) | 526 | (1,939) | 260 | (143) | (947) | 1,089 |
| Net income attributable to common stockholders | $40,638 | $48,700 | $49,170 | $43,985 | $50,848 | $42,312 | $40,313 | $46,955 | $40,828 |