Farmer Mac Reports First Quarter 2025 Results

- Outstanding Business Volume of $29.8 Billion -

WASHINGTON, May 9, 2025 /PRNewswire/ -- 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 March 31, 2025.Farmer Mac Logo: Accelerating Rural Opportunities (PRNewsfoto/Farmer Mac)

"I'm pleased to report that we delivered another outstanding quarter, surpassing previous records in revenue, net effective spread, and core earnings," said Brad Nordholm, President and Chief Executive Officer. "Our first quarter results reflect the strength of our long-term growth strategy and provide a solid foundation to navigate market volatility and evolving credit conditions. Our resilient business model—anchored by diversified revenue streams, a strong capital position, reliable access to markets, and disciplined asset-liability management—not only sets us apart but also enables us to stay focused on our mission while enhancing long-term shareholder returns."

First Quarter 2025

Provided $1.8 billion in liquidity and lending capacity to lenders serving rural America Net interest income grew 5% year-over-year to $90.9 million Net effective spread1 increased 8% from the prior-year period to a record $90.0 million Net income attributable to common stockholders was $44.0 million Record core earnings1 of $46.0 million, or $4.19 per diluted common share, reflecting 6% growth year-over-year Maintained strong capital position with total core capital of $1.5 billion, exceeding the statutory requirement by 65% and a Tier 1 Capital Ratio of 13.9% as of March 31, 2025 As of March 31, 2025, Farmer Mac had 289 days of liquidity

$ in thousands, except per
share amounts Quarter Ended March 31,
2025 December 31,
2024 March 31,
2024 Sequential % 
Change YoY % 
Change Net Change in

Business Volume $232,313 $1,054,727 $376,206 N/A N/A Net Interest Income (GAAP) $90,939 $93,368 $86,368 (3) % 5 % Net Effective Spread

(Non-GAAP) $89,990 $87,528 $83,044 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 %

1 Non-GAAP Measure

Earnings Conference Call Information

The conference call to discuss Farmer Mac's first quarter 2025 financial results will be held beginning at 8:30 a.m. eastern time on Friday, May 9, 2025, and can be accessed by telephone or live webcast as follows:

Telephone (Domestic): (800) 836-8184
Telephone (International): (646) 357-8785
Webcast: https://www.farmermac.com/investors/events-presentations/

Story Continues

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 first quarter 2025 is in Farmer Mac's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed today with the SEC.

Use of Non-GAAP Measures

In the accompanying analysis of its financial information, Farmer Mac uses "non-GAAP measures," which are measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per share," and "net effective spread." Farmer Mac uses these non-GAAP measures to measure corporate economic performance and develop financial plans because, in management's view, they are useful alternative measures in understanding Farmer Mac's economic performance, transaction economics, and business trends. The non-GAAP financial measures that Farmer Mac uses may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of these 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 share (non-GAAP measures) and net income attributable to common stockholders and earnings per common share (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 Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Another difference is that 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 Farmer Mac's core business. For example, in third quarter 2024, we excluded the loss on the retirement of the Series C Preferred Stock from core earnings and core earnings per share, which is consistent with Farmer Mac's historical treatment of any losses on the retirement of preferred stock.

Net Effective Spread

Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs of those assets. As further explained below, net effective spread differs from net interest income and net interest yield by excluding certain items from net interest income and net interest yield and including certain other items that net interest income and net interest yield do not contain.

Farmer Mac excludes from net effective spread the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts to reflect management's view that the net interest income Farmer Mac earns on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees in determining Farmer Mac's core earnings. Farmer Mac also excludes from net effective spread the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on Farmer Mac's financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.

Net effective spread also differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). Farmer Mac uses interest rate swaps to manage its interest rate risk exposure by synthetically modifying the interest rate reset or maturity characteristics of certain assets and liabilities. The accrual of the contractual amounts due on interest rate swaps designated in hedge accounting relationships is included as an adjustment to the yield or cost of the hedged item and is included in net interest income. For undesignated financial derivatives, Farmer Mac records 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. However, the accrual of the contractual amounts due for undesignated financial derivatives are included in Farmer Mac's calculation of net effective spread.

Net effective spread also differs from net interest income and net interest yield because it includes the net effects of terminations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other 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 Farmer Mac receives upon the inception of certain swaps. The inclusion of these items in net effective spread is intended to reflect our view of the complete net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.

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, 2024, filed February 21, 2025 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 Farmer Mac's 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 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 indexes; developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, 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, 2024, filed with the SEC on February 21, 2025. 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. Our secondary market 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 (including the Annual Report on Form 10-K referenced above) is available on our website at www.farmermac.com.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)  As of March 31, 2025  December 31, 2024 (in thousands) Assets:  Cash and cash equivalents (includes restricted cash of $16,346 and $16,190, respectively) $                 1,048,135  $                 1,024,007 Investment securities:  Available-for-sale, at fair value (amortized cost of $6,329,188 and $6,105,116, respectively) 6,230,080  5,953,014 Held-to-maturity, at amortized cost 9,125  9,270 Other investments 13,281  11,017 Total Investment Securities 6,252,486  5,973,301 Farmer Mac Guaranteed Securities:  Available-for-sale, at fair value (amortized cost of $5,859,630 and $5,835,658, respectively) 5,623,384  5,514,546 Held-to-maturity, at amortized cost 2,451,407  2,717,688 Total Farmer Mac Guaranteed Securities 8,074,791  8,232,234 USDA Securities:  Trading, at fair value 651  818 Held-to-maturity, at amortized cost 2,376,690  2,370,534 Total USDA Securities 2,377,341  2,371,352 Loans:  Loans held for sale, at lower of cost or fair value 6,045  6,170 Loans held for investment, at amortized cost 11,636,815  11,183,408 Loans held for investment in consolidated trusts, at amortized cost 2,005,680  2,038,283 Allowance for losses (25,056)  (23,223) Total loans, net of allowance 13,623,484  13,204,638 Financial derivatives, at fair value 27,867  27,789 Accrued interest receivable (includes $16,524 and $28,563, respectively, related to consolidated trusts) 262,809  310,592 Guarantee and commitment fees receivable 49,888  50,499 Deferred tax asset, net —  1,544 Prepaid expenses and other assets 87,138  128,786 Total Assets $               31,803,939  $               31,324,742  Liabilities and Equity:  Liabilities:  Notes payable $               27,975,196  $               27,371,174 Debt securities of consolidated trusts held by third parties 1,894,920  1,929,628 Financial derivatives, at fair value 63,389  77,326 Accrued interest payable (includes $9,281 and $12,387, respectively, related to consolidated trusts) 221,954  195,113 Guarantee and commitment obligation 47,679  48,326 Accounts payable and accrued expenses 71,232  212,527 Deferred tax liability, net 2,402  — Reserve for losses 1,521  1,622 Total Liabilities 30,278,293  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 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, 9,401,649 shares and 9,360,083 shares
outstanding, respectively 9,402  9,360 Additional paid-in capital 134,500  135,894 Accumulated other comprehensive loss, net of tax (1,808)  (12,147) Retained earnings 970,872  943,239 Total Equity 1,525,646  1,489,026 Total Liabilities and Equity $               31,803,939  $               31,324,742

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)  For the Three Months Ended March 31, 2025  March 31, 2024 (in thousands, except per share amounts) Interest income:  Investments and cash equivalents $                       83,308  $                       84,924 Farmer Mac Guaranteed Securities and USDA Securities 126,342  166,813 Loans 171,764  144,580 Total interest income 381,414  396,317 Total interest expense 290,475  309,949 Net interest income 90,939  86,368 (Provision for)/release of losses (1,684)  1,801 Net interest income after (provision for)/release of losses 89,255  88,169 Non-interest income/(expense):  Guarantee and commitment fees 4,479  3,917 (Losses)/gains on financial derivatives (2,636)  2,079 Release of reserve for losses 101  69 Other income 1,436  1,249 Non-interest income 3,380  7,314 Operating expenses:  Compensation and employee benefits 17,752  18,257 General and administrative 10,758  8,255 Regulatory fees 1,000  725 Operating expenses 29,510  27,237 Income before income taxes 63,125  68,246 Income tax expense 13,474  14,500 Net income 49,651  53,746 Preferred stock dividends (5,666)  (6,791) Net income attributable to common stockholders $                       43,985  $                       46,955  Earnings per common share:  Basic earnings per common share $                           4.04  $                           4.33 Diluted earnings per common share $                           4.01  $                           4.28

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:

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings For the Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 (in thousands, except per share amounts) Net income attributable to common stockholders $                    43,985  $                    50,848  $                   46,955 Less reconciling items:  (Losses)/gains on undesignated financial derivatives due to fair value
changes (2,573)  3,084  1,683 Gains on hedging activities due to fair value changes 1,099  5,737  3,002 Unrealized gains/(losses) on trading assets 9  (83)  (14) Net effects of amortization of premiums/discounts and deferred gains
on assets consolidated at fair value 28  (39)  31 Net effects of terminations or net settlements on financial derivatives (1,070)  534  (192) Income tax effect related to reconciling items 526  (1,939)  (947) Sub-total (1,981)  7,294  3,563 Core earnings $                    45,966  $                    43,554  $                   43,392  Composition of Core Earnings:  Revenues:  Net effective spread(1) $                    89,990  $                    87,528  $                   83,044 Guarantee and commitment fees(2) 5,488  5,086  4,982 Other(3) 1,315  (491)  1,077 Total revenues 96,793  92,123  89,103  Credit related expense/(income) (GAAP):  Provision for/(release of) losses 1,583  3,872  (1,870) Loss on sale of REO 68  —  — Total credit related expense/(income) 1,651  3,872  (1,870)  Operating expenses (GAAP):  Compensation and employee benefits 17,752  15,641  18,257 General and administrative 10,758  12,452  8,255 Regulatory fees 1,000  1,000  725 Total operating expenses 29,510  29,093  27,237  Net earnings 65,632  59,158  63,736 Income tax expense(4) 14,000  9,938  13,553 Preferred stock dividends (GAAP) 5,666  5,666  6,791 Core earnings $                    45,966  $                    43,554  $                   43,392  Core earnings per share:  Basic $                        4.22  $                        4.00  $                       4.00 Diluted $                        4.19  $                        3.97  $                       3.96

(1) 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. (2) Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities. (3) Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges 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. (4) Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share For the Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 (in thousands, except per share amounts) GAAP - Basic EPS $                       4.04  $                       4.67  $                       4.33 Less reconciling items:  (Losses)/gains on undesignated financial derivatives due to fair value
changes (0.23)  0.28  0.16 Gains on hedging activities due to fair value changes 0.10  0.53  0.28 Unrealized (losses)/gains on trading securities —  (0.01)  — Net effects of amortization of premiums/discounts and deferred gains on
assets consolidated at fair value —  —  — Net effects of terminations or net settlements on financial derivatives (0.10)  0.05  (0.02) Income tax effect related to reconciling items 0.05  (0.18)  (0.09) Sub-total (0.18)  0.67  0.33 Core Earnings - Basic EPS $                       4.22  $                       4.00  $                       4.00  Shares used in per share calculation (GAAP and Core Earnings) 10,896  10,889  10,847

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share For the Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 (in thousands, except per share amounts) GAAP - Diluted EPS $                       4.01  $                       4.63  $                       4.28 Less reconciling items:  (Losses)/gains on undesignated financial derivatives due to fair value
changes (0.23)  0.28  0.15 Gains on hedging activities due to fair value changes 0.10  0.52  0.28 Unrealized (losses)/gains on trading securities —  (0.01)  — Net effects of amortization of premiums/discounts and deferred gains on
assets consolidated at fair value —  —  — Net effects of terminations or net settlements on financial derivatives (0.10)  0.05  (0.02) Income tax effect related to reconciling items 0.05  (0.18)  (0.09) Sub-total (0.18)  0.66  0.32 Core Earnings - Diluted EPS $                       4.19  $                       3.97  $                       3.96  Shares used in per share calculation (GAAP and Core Earnings) 10,983  10,982  10,969

The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:

Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread For the Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 Dollars  Yield  Dollars  Yield  Dollars  Yield (dollars in thousands) Net interest income/yield $    90,939  1.15 %  $    93,368  1.21 %  $    86,368  1.15 % Net effects of consolidated trusts (1,010)  0.02 %  (989)  0.02 %  (1,052)  0.02 % Expense related to undesignated financial derivatives 318  — %  2  — %  (34)  — % Amortization of premiums/discounts on assets consolidated at
fair value (25)  — %  42  — %  (27)  — % Amortization of losses due to terminations or net settlements on
financial derivatives 867  0.01 %  842  0.01 %  791  0.01 % Fair value changes on fair value hedge relationships (1,099)  (0.01) %  (5,737)  (0.08) %  (3,002)  (0.04) % Net effective spread $    89,990  1.17 %  $    87,528  1.16 %  $    83,044  1.14 %

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 March 31, 2025:

Core Earnings by Business Segment For the Three Months Ended March 31, 2025 Agricultural Finance  Infrastructure Finance  Treasury  Farm &
Ranch  Corporate
AgFinance  Power &

Utilities  Broadband
Infrastructure  Renewable
Energy  Funding  Investments  Total (in thousands) Interest income $   149,681  $    25,122  $    64,995  $         10,833  $       20,315  $      32,978  $      77,490  $     381,414 Interest expense(1) (114,789)  (16,482)  (59,638)  (7,267)  (15,203)  (1,460)  (75,636)  (290,475) Less: reconciling adjustments(2)(3) (1,007)  —  (28)  —  —  86  —  (949) Net effective spread 33,885  8,640  5,329  3,566  5,112  31,604  1,854  89,990 Guarantee and commitment fees(3) 4,551  197  221  336  183  —  —  5,488 Other income/(expense) 1,222  —  —  —  —  —  22  1,244 Release of/(provision for) losses 193  (828)  (77)  229  (1,100)  —  —  (1,583) Operating expenses(1) (6,595)  (2,133)  (1,123)  (1,052)  (1,708)  (2,800)  (823)  (16,234) Income tax (expense)/benefit (6,982)  (1,235)  (913)  (647)  (522)  (6,049)  (221)  (16,569) Segment core earnings $     26,274  $      4,641  $      3,437  $          2,432  $         1,965  $      22,755  $          832  $       62,336  Reconciliation to net income:  Net effects of derivatives and
trading securities               $       (2,535) Unallocated (expenses)/income               (13,245) Income tax effect related to
reconciling items               3,095 Net income               $       49,651  Total Assets:  Total on- and off-balance sheet
segment assets at principal balance $  18,094,515  $  1,889,363  $  7,187,966  $       974,835  $  1,608,664  $            —  $            —  $ 29,755,343 Off-balance sheet assets under
management               (5,071,733) Unallocated assets               7,120,329 Total assets on the consolidated
balance sheets               $ 31,803,939

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker ("CODM") . (2) 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. (3) 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:

Outstanding Business Volume On or Off 
Balance Sheet  As of March 31, 2025  As of December 31, 2024 (in thousands) Agricultural Finance:  Farm & Ranch:  Loans  On-balance sheet  $                         5,501,067  $                       5,414,732 Loans held in consolidated trusts:  Beneficial interests owned by third-party investors
(single-class)(1)  On-balance sheet  884,234  885,295 Beneficial interests owned by third-party investors
(structured)(1)  On-balance sheet  1,121,446  1,152,988 IO-FMGS(2)  On-balance sheet  8,537  8,710 USDA Securities  On-balance sheet  2,408,857  2,402,423 AgVantage Securities(1)  On-balance sheet  4,215,000  4,720,000 LTSPCs and unfunded loan commitments  Off-balance sheet  3,030,360  3,070,554 Other Farmer Mac Guaranteed Securities(3)  Off-balance sheet  414,291  426,310 Loans serviced for others  Off-balance sheet  510,723  525,956 Total Farm & Ranch    $                       18,094,515  $                     18,606,968 Corporate AgFinance:  Loans  On-balance sheet  $                         1,371,202  $                       1,381,674 AgVantage Securities(1)  On-balance sheet  267,728  280,297 Unfunded loan commitments  Off-balance sheet  250,433  225,734 Total Corporate AgFinance    $                         1,889,363  $                       1,887,705 Total Agricultural Finance    $                       19,983,878  $                     20,494,673 Infrastructure Finance:  Power & Utilities:  Loans  On-balance sheet  $                         3,020,475  $                       2,886,576 AgVantage Securities(1)  On-balance sheet  3,796,549  3,521,143 LTSPCs and unfunded loan commitments  Off-balance sheet  370,942  401,647 Total Power & Utilities    $                         7,187,966  $                       6,809,366 Broadband Infrastructure:  Loans  On-balance sheet  $                            657,836  $                          622,207 Unfunded loan commitments  Off-balance sheet  316,999  180,259 Total Broadband Infrastructure    $                            974,835  $                          802,466 Renewable Energy:  Loans  On-balance sheet  $                         1,430,679  $                       1,265,700 Unfunded loan commitments  Off-balance sheet  177,985  150,825 Total Renewable Energy    $                         1,608,664  $                       1,416,525 Total Infrastructure Finance    $                         9,771,465  $                       9,028,357 Total    $                       29,755,343  $                     29,523,030

(1) A type of Farmer Mac Guaranteed Security. (2) An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization. (3) 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 (a non-GAAP measure) 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 Dollars

Yield  Dollars

Yield  Dollars

Yield  Dollars

Yield  Dollars

Yield  Dollars

Yield  Dollars

Yield  Dollars

Yield (dollars in thousands) For the quarter ended:  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 % September 30, 2023 32,718  8,250  3,979  2,383  1,150  34,412  532  83,424 0.97 %  2.05 %  0.26 %  2.15 %  1.46 %  0.49 %  0.04 %  1.20 % June 30, 2023 34,388  7,444  3,681  2,127  1,100  32,498  594  81,832 1.03 %  1.92 %  0.25 %  2.25 %  1.47 %  0.48 %  0.04 %  1.20 % March 31, 2023 32,465  7,148  3,599  1,908  858  31,738  (543)  77,173 0.97 %  1.94 %  0.24 %  2.53 %  1.53 %  0.47 %  (0.04) %  1.15 %

The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:

Core Earnings by Quarter Ended March
2025  December
2024  September
2024  June
2024  March
2024  December
2023  September
2023  June
2023  March
2023 (in thousands) Revenues:  Net effective spread $   89,990  $   87,528  $   85,396  $  83,596  $  83,044  $   84,551  $   83,424  $  81,832  $  77,173 Guarantee and commitment fees 5,488  5,086  4,997  5,256  4,982  4,865  4,828  4,581  4,654 Gain on sale of investment securities —  —  —  1,052  —  —  —  —  — Loss on sale of mortgage loan —  —  —  (1,147)  —  —  —  —  — Other 1,315  (491)  1,133  481  1,077  767  1,056  409  1,067 Total revenues 96,793  92,123  91,526  89,238  89,103  90,183  89,308  86,822  82,894  Credit related expense/(income):  Provision for/(release of) losses 1,583  3,872  3,258  6,230  (1,870)  (575)  (181)  1,142  750 REO operating expenses —  —  196  —  —  —  —  —  — Losses on sale of REO 68  —  —  —  —  —  —  —  — Total credit related expense/(income) 1,651  3,872  3,454  6,230  (1,870)  (575)  (181)  1,142  750  Operating expenses:  Compensation and employee benefits 17,752  15,641  15,237  14,840  18,257  15,523  14,103  13,937  15,351 General and administrative 10,758  12,452  8,625  8,904  8,255  8,916  9,100  9,420  7,527 Regulatory fees 1,000  1,000  725  725  725  725  831  831  835 Total operating expenses 29,510  29,093  24,587  24,469  27,237  25,164  24,034  24,188  23,713  Net earnings 65,632  59,158  63,485  58,539  63,736  65,594  65,455  61,492  58,431 Income tax expense 14,000  9,938  12,681  11,970  13,553  13,881  13,475  12,539  12,756 Preferred stock dividends 5,666  5,666  5,897  6,792  6,791  6,791  6,792  6,791  6,791 Core earnings $   45,966  $   43,554  $   44,907  $  39,777  $  43,392  $   44,922  $   45,188  $  42,162  $  38,884  Reconciling items:  (Losses)/gains on undesignated
financial derivatives due to fair value
changes $   (2,573)  $     3,084  $   (1,064)  $     (359)  $    1,683  $      (836)  $     2,921  $    2,141  $      916 Gains/(losses) on hedging activities
due to fair value changes 1,099  5,737  205  2,604  3,002  (3,598)  3,210  (4,901)  (105) Unrealized gains/(losses) on trading
assets 9  (83)  99  (87)  (14)  (37)  1,714  (57)  359 Net effects of amortization of
premiums/discounts and deferred gains
on assets consolidated at fair value 28  (39)  27  26  31  88  29  29  29 Net effects of terminations or net
settlements on financial derivatives (1,070)  534  (503)  (1,505)  (192)  (800)  (79)  583  523 Issuance costs on the retirement of
preferred stock —  —  (1,619)  —  —  —  —  —  — Income tax effect related to reconciling
items 526  (1,939)  260  (143)  (947)  1,089  (1,638)  464  (362) Net income attributable to common
stockholders $   43,985  $   50,848  $   42,312  $  40,313  $  46,955  $   40,828  $   51,345  $  40,421  $  40,244Cision

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SOURCE Farmer Mac