- Announces 7% Dividend Increase
-
- Outstanding Business Volume of
$29.5 Billion -
WASHINGTON, Feb. 21,
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 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 we are
well-positioned to deliver on our multiyear strategy as we head
into 2025 with good momentum, strong liquidity and capital levels,
a diversified business mix, highly effective risk management
practices, and most importantly, a talented team of dedicated
professionals," said President and Chief Executive Officer,
Brad Nordholm. "Through our work, we
strengthen the economic framework that supports Rural America and
enables families, businesses, and entire communities to thrive. We
are optimistic about the future and will maintain our singular
focus on fulfilling our mission efficiently, innovatively, and
profitably."
Full Year 2024 and Recent Highlights
- Net interest income grew 8% year-over-year to $353.9 million
- Net effective spread1 increased 4% from the
prior-year period to $339.6
million
- Net income attributable to common stockholders was $180.4 million, compared to $172.8 million in the same period last year
- Core earnings1 of $171.6
million, or $15.64 per diluted
common share
- Total core capital of $1.5
billion and a Tier 1 Capital Ratio of 14.2% as of
December 31, 2024
- As of December 31, 2024, Farmer
Mac had 264 days of liquidity
- On February 20, 2025, Farmer
Mac's Board of Directors raised the quarterly common stock dividend
by 7% to $1.50 per share, the
fourteenth consecutive annual increase
|
$ in thousands,
except per
share amounts
|
Quarter
Ended
|
Year
Ended
|
|
December
31, 2024
|
December
31, 2023
|
YoY %
Change
|
December
31, 2024
|
December
31, 2023
|
YoY %
Change
|
|
Net Change
in
Business
Volume
|
$1,054,727
|
$819,013
|
N/A
|
$1,052,006
|
$2,548,942
|
N/A
|
|
Net Interest Income
(GAAP)
|
$93,368
|
$82,169
|
14 %
|
$353,867
|
$327,547
|
8 %
|
|
Net Effective
Spread
(Non-GAAP)
|
$87,528
|
$84,551
|
4 %
|
$339,564
|
$326,980
|
4 %
|
|
Diluted EPS
(GAAP)
|
$4.63
|
$3.73
|
24 %
|
$16.44
|
$15.81
|
4 %
|
|
Core EPS
(Non-GAAP)
|
$3.97
|
$4.10
|
(3) %
|
$15.64
|
$15.65
|
— %
|
Dividends
On February 20, 2025, Farmer Mac's Board of Directors
declared a quarterly dividend of $1.50 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, 2025 to
holders of record of common stock as of March 14, 2025. This
is the fourteenth consecutive year that Farmer Mac has increased
its quarterly common stock dividend, and this increase is supported
by Farmer Mac's earnings potential and overall capital
position.
Farmer Mac's Board of Directors also declared a dividend on each
of Farmer Mac's four 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), and
$0.3046875 per share of 4.875%
Non-Cumulative Preferred Stock, Series G (AGM.PR.G), is for the
period from but not including January 17,
2025 to and including April 17,
2025. The preferred dividends will be payable on
April 17, 2025 to holders of record
as of April 1, 2025.
Earnings Conference Call Information
The conference call to discuss Farmer Mac's fourth quarter and
full year 2024 financial results will be held beginning at
8:30 a.m. eastern time on Friday,
February 21, 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/
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 two weeks
following the conclusion of the call.
More complete information about Farmer Mac's performance for
2024 is in Farmer Mac's Annual Report on Form 10-K for the year
ended December 31, 2024, 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 "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 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 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 or regulatory 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, 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 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. 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
|
|
|
As of
|
|
December 31,
2024
|
|
December 31,
2023
|
|
(in
thousands)
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents (includes restricted cash of $16,190 and $5,111,
respectively)
|
$
1,024,007
|
|
$
888,707
|
|
Investment
securities:
|
|
|
|
|
Available-for-sale, at
fair value (amortized cost of $6,105,116 and $5,060,135,
respectively)
|
5,953,014
|
|
4,918,931
|
|
Held-to-maturity, at
amortized cost
|
9,270
|
|
53,756
|
|
Other
investments
|
11,017
|
|
6,817
|
|
Total Investment
Securities
|
5,973,301
|
|
4,979,504
|
|
Farmer Mac Guaranteed
Securities:
|
|
|
|
|
Available-for-sale, at
fair value (amortized cost of $5,835,658 and $5,825,433,
respectively)
|
5,514,546
|
|
5,532,479
|
|
Held-to-maturity, at
amortized cost
|
2,717,688
|
|
4,213,069
|
|
Total Farmer Mac
Guaranteed Securities
|
8,232,234
|
|
9,745,548
|
|
USDA
Securities:
|
|
|
|
|
Trading, at fair
value
|
818
|
|
1,241
|
|
Held-to-maturity, at
amortized cost
|
2,370,534
|
|
2,354,171
|
|
Total USDA
Securities
|
2,371,352
|
|
2,355,412
|
|
Loans:
|
|
|
|
|
Loans held for sale,
at lower of cost or fair value
|
6,170
|
|
—
|
|
Loans held for
investment, at amortized cost
|
11,183,408
|
|
9,623,119
|
|
Loans held for
investment in consolidated trusts, at amortized cost
|
2,038,283
|
|
1,432,261
|
|
Allowance for
losses
|
(23,223)
|
|
(16,031)
|
|
Total loans, net of
allowance
|
13,204,638
|
|
11,039,349
|
|
Financial derivatives,
at fair value
|
27,789
|
|
37,478
|
|
Accrued interest
receivable (includes $28,563 and $16,764, respectively, related to
consolidated trusts)
|
310,592
|
|
287,128
|
|
Guarantee and
commitment fees receivable
|
50,499
|
|
49,832
|
|
Deferred tax asset,
net
|
1,544
|
|
8,470
|
|
Prepaid expenses and
other assets
|
128,786
|
|
132,954
|
|
Total
Assets
|
$
31,324,742
|
|
$
29,524,382
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
Liabilities:
|
|
|
|
|
Notes
payable
|
$
27,371,174
|
|
$
26,336,542
|
|
Debt securities of
consolidated trusts held by third parties
|
1,929,628
|
|
1,351,069
|
|
Financial derivatives,
at fair value
|
77,326
|
|
117,131
|
|
Accrued interest
payable (includes $12,387 and $9,407, respectively, related to
consolidated trusts)
|
195,113
|
|
181,841
|
|
Guarantee and
commitment obligation
|
48,326
|
|
47,563
|
|
Accounts payable and
accrued expenses
|
212,527
|
|
76,662
|
|
Reserve for
losses
|
1,622
|
|
1,711
|
|
Total
Liabilities
|
29,835,716
|
|
28,112,519
|
|
Commitments and
Contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
Series C, par
value $25 per share, 3,000,000 shares authorized, issued and
outstanding as of December
31, 2023
(redemption value $75,000,000)
|
—
|
|
73,382
|
|
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, 9,360,083
shares and 9,310,872 shares
outstanding,
respectively
|
9,360
|
|
9,311
|
|
Additional paid-in
capital
|
135,894
|
|
132,919
|
|
Accumulated other
comprehensive loss, net of tax
|
(12,147)
|
|
(40,145)
|
|
Retained
earnings
|
943,239
|
|
823,716
|
|
Total
Equity
|
1,489,026
|
|
1,411,863
|
|
Total
Liabilities and Equity
|
$
31,324,742
|
|
$
29,524,382
|
|
FEDERAL AGRICULTURAL
MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
(in thousands,
except per share amounts)
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
Investments and cash
equivalents
|
$
87,160
|
|
$
77,715
|
|
$
345,501
|
|
$
287,144
|
|
Farmer Mac Guaranteed
Securities and USDA Securities
|
139,350
|
|
147,601
|
|
628,828
|
|
590,250
|
|
Loans
|
169,255
|
|
126,057
|
|
629,187
|
|
514,894
|
|
Total interest
income
|
395,765
|
|
351,373
|
|
1,603,516
|
|
1,392,288
|
|
Total interest
expense
|
302,397
|
|
269,204
|
|
1,249,649
|
|
1,064,741
|
|
Net interest
income
|
93,368
|
|
82,169
|
|
353,867
|
|
327,547
|
|
(Provision
for)/release of losses
|
(3,773)
|
|
626
|
|
(11,579)
|
|
(858)
|
|
Net interest income
after (provision for)/release of losses
|
89,595
|
|
82,795
|
|
342,288
|
|
326,689
|
|
Non-interest
income/(expense):
|
|
|
|
|
|
|
|
|
Guarantee and
commitment fees
|
4,009
|
|
3,770
|
|
15,738
|
|
16,712
|
|
Gains/(losses) on
financial derivatives
|
4,290
|
|
(1,881)
|
|
2,636
|
|
2,882
|
|
Losses on sale of
mortgage loans
|
—
|
|
—
|
|
(1,147)
|
|
—
|
|
Gains on sale of
available-for-sale investment securities
|
—
|
|
—
|
|
1,052
|
|
—
|
|
(Provision
for)/release of reserve for losses
|
(99)
|
|
(51)
|
|
89
|
|
(278)
|
|
Other
(expense)/income
|
(312)
|
|
942
|
|
3,029
|
|
4,195
|
|
Non-interest
income
|
7,888
|
|
2,780
|
|
21,397
|
|
23,511
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
15,641
|
|
15,523
|
|
63,975
|
|
58,914
|
|
General and
administrative
|
12,452
|
|
8,916
|
|
38,236
|
|
34,963
|
|
Regulatory
fees
|
1,000
|
|
725
|
|
3,175
|
|
3,222
|
|
Real estate owned
operating costs, net
|
—
|
|
—
|
|
196
|
|
—
|
|
Operating
expenses
|
29,093
|
|
25,164
|
|
105,582
|
|
97,099
|
|
Income before income
taxes
|
68,390
|
|
60,411
|
|
258,103
|
|
253,101
|
|
Income tax
expense
|
11,876
|
|
12,792
|
|
50,910
|
|
53,098
|
|
Net income
|
56,514
|
|
47,619
|
|
207,193
|
|
200,003
|
|
Preferred stock
dividends
|
(5,666)
|
|
(6,791)
|
|
(25,146)
|
|
(27,165)
|
|
Loss on retirement of
preferred stock
|
—
|
|
—
|
|
(1,619)
|
|
—
|
|
Net income
attributable to common stockholders
|
$
50,848
|
|
$
40,828
|
|
$
180,428
|
|
$
172,838
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
4.67
|
|
$
3.77
|
|
$
16.59
|
|
$
15.97
|
|
Diluted earnings per
common share
|
$
4.63
|
|
$
3.73
|
|
$
16.44
|
|
$
15.81
|
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
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
(in thousands, except per share amounts)
|
|
Net income attributable
to common stockholders
|
$
50,848
|
|
$
42,312
|
|
$
40,828
|
|
Less reconciling
items:
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial derivatives due to fair value
changes
|
3,084
|
|
(1,064)
|
|
(836)
|
|
Gains/(losses) on
hedging activities due to fair value changes
|
5,737
|
|
205
|
|
(3,598)
|
|
Unrealized
(losses)/gains on trading assets
|
(83)
|
|
99
|
|
(37)
|
|
Net effects of
amortization of premiums/discounts and deferred gains
on assets consolidated
at fair value
|
(39)
|
|
27
|
|
88
|
|
Net effects of
terminations or net settlements on financial derivatives
|
534
|
|
(503)
|
|
(800)
|
|
Issuance costs on the
retirement of preferred stock
|
—
|
|
(1,619)
|
|
—
|
|
Income tax effect
related to reconciling items
|
(1,939)
|
|
260
|
|
1,089
|
|
Sub-total
|
7,294
|
|
(2,595)
|
|
(4,094)
|
|
Core
earnings
|
$
43,554
|
|
$
44,907
|
|
$
44,922
|
|
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Net effective
spread(1)
|
$
87,528
|
|
$
85,396
|
|
$
84,551
|
|
Guarantee and
commitment fees(2)
|
5,086
|
|
4,997
|
|
4,865
|
|
Other(3)
|
(491)
|
|
1,133
|
|
767
|
|
Total
revenues
|
92,123
|
|
91,526
|
|
90,183
|
|
|
|
|
|
|
|
Credit related expense
(GAAP):
|
|
|
|
|
|
|
Provision for/(release
of) losses
|
3,872
|
|
3,258
|
|
(575)
|
|
REO operating
expenses
|
—
|
|
196
|
|
—
|
|
Total credit
related expense/(income)
|
3,872
|
|
3,454
|
|
(575)
|
|
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
|
|
Compensation and
employee benefits
|
15,641
|
|
15,237
|
|
15,523
|
|
General and
administrative
|
12,452
|
|
8,625
|
|
8,916
|
|
Regulatory
fees
|
1,000
|
|
725
|
|
725
|
|
Total operating
expenses
|
29,093
|
|
24,587
|
|
25,164
|
|
|
|
|
|
|
|
Net
earnings
|
59,158
|
|
63,485
|
|
65,594
|
|
Income tax
expense(4)
|
9,938
|
|
12,681
|
|
13,881
|
|
Preferred stock
dividends (GAAP)
|
5,666
|
|
5,897
|
|
6,791
|
|
Core
earnings
|
$
43,554
|
|
$
44,907
|
|
$
44,922
|
|
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
|
|
Basic
|
$
4.00
|
|
$
4.13
|
|
$
4.14
|
|
Diluted
|
$
3.97
|
|
$
4.10
|
|
$
4.10
|
|
|
|
(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 Net
Income Attributable to Common Stockholders to Core
Earnings
|
|
For the Years
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
(in thousands, except per share amounts)
|
|
Net income attributable
to common stockholders
|
$
180,428
|
|
$
172,838
|
|
Less reconciling
items:
|
|
|
|
|
Gains on undesignated
financial derivatives due to fair value changes
|
3,344
|
|
5,142
|
|
Gains/(losses) on
hedging activities due to fair value changes
|
11,548
|
|
(5,394)
|
|
Unrealized
(losses)/gains on trading assets
|
(85)
|
|
1,979
|
|
Net effects of
amortization of premiums/discounts and deferred gains on assets
consolidated
at fair
value
|
45
|
|
175
|
|
Net effects of
terminations or net settlements on financial derivatives
|
(1,666)
|
|
227
|
|
Issuance costs on the
retirement of preferred stock
|
(1,619)
|
|
—
|
|
Income tax effect
related to reconciling items
|
(2,769)
|
|
(447)
|
|
Sub-total
|
8,798
|
|
1,682
|
|
Core
earnings
|
$
171,630
|
|
$
171,156
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
Revenues:
|
|
|
|
|
Net effective
spread(1)
|
$
339,564
|
|
$
326,980
|
|
Guarantee and
commitment fees(2)
|
20,321
|
|
18,928
|
|
Gain on sale of
investment securities (GAAP)
|
1,052
|
|
—
|
|
Loss on sale of
mortgage loan (GAAP)
|
(1,147)
|
|
—
|
|
Other(3)
|
2,200
|
|
3,299
|
|
Total
revenues
|
361,990
|
|
349,207
|
|
|
|
|
|
Credit related expense
(GAAP):
|
|
|
|
|
Provision for
losses
|
11,490
|
|
1,136
|
|
REO operating
expenses
|
196
|
|
—
|
|
Total credit
related expense
|
11,686
|
|
1,136
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
Compensation and
employee benefits
|
63,975
|
|
58,914
|
|
General and
administrative
|
38,236
|
|
34,963
|
|
Regulatory
fees
|
3,175
|
|
3,222
|
|
Total operating
expenses
|
105,386
|
|
97,099
|
|
|
|
|
|
Net
earnings
|
244,918
|
|
250,972
|
|
Income tax
expense(4)
|
48,142
|
|
52,651
|
|
Preferred stock
dividends (GAAP)
|
25,146
|
|
27,165
|
|
Core
earnings
|
$
171,630
|
|
$
171,156
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
Basic
|
$
15.78
|
|
$
15.80
|
|
Diluted
|
$
15.64
|
|
$
15.65
|
|
|
|
(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
|
|
For the Years
Ended
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
(in thousands,
except per share amounts)
|
|
GAAP - Basic
EPS
|
$
4.67
|
|
$
3.89
|
|
$
3.77
|
|
$
16.59
|
|
$
15.97
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial
derivatives due to
fair value changes
|
0.28
|
|
(0.09)
|
|
(0.08)
|
|
0.31
|
|
0.49
|
|
Gains/(losses) on
hedging activities due to fair
value
changes
|
0.53
|
|
0.02
|
|
(0.33)
|
|
1.06
|
|
(0.50)
|
|
Unrealized
(losses)/gains on trading securities
|
(0.01)
|
|
0.01
|
|
—
|
|
(0.01)
|
|
0.18
|
|
Net effects of
amortization of
premiums/discounts and
deferred gains on assets
consolidated at fair
value
|
—
|
|
—
|
|
0.01
|
|
—
|
|
0.02
|
|
Net effects of
terminations or net settlements on
financial
derivatives
|
0.05
|
|
(0.05)
|
|
(0.07)
|
|
(0.15)
|
|
0.02
|
|
Issuance costs on the
retirement of preferred
stock
|
—
|
|
(0.15)
|
|
—
|
|
(0.15)
|
|
—
|
|
Income tax effect
related to reconciling items
|
(0.18)
|
|
0.02
|
|
0.10
|
|
(0.25)
|
|
(0.04)
|
|
Sub-total
|
0.67
|
|
(0.24)
|
|
(0.37)
|
|
0.81
|
|
0.17
|
|
Core Earnings - Basic
EPS
|
$
4.00
|
|
$
4.13
|
|
$
4.14
|
|
$
15.78
|
|
$
15.80
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and
Core
Earnings)
|
10,889
|
|
10,883
|
|
10,841
|
|
10,874
|
|
10,829
|
|
Reconciliation of GAAP
Diluted Earnings Per Share to Core Earnings Diluted Earnings Per
Share
|
|
For the Three Months
Ended
|
|
For the Years
Ended
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
(in thousands,
except per share amounts)
|
|
GAAP - Diluted
EPS
|
$
4.63
|
|
$
3.86
|
|
$
3.73
|
|
$
16.44
|
|
$
15.81
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial
derivatives due to
fair value changes
|
0.28
|
|
(0.09)
|
|
(0.08)
|
|
0.30
|
|
0.47
|
|
Gains/(losses) on
hedging activities due to fair
value
changes
|
0.52
|
|
0.02
|
|
(0.33)
|
|
1.05
|
|
(0.49)
|
|
Unrealized
(losses)/gains on trading securities
|
(0.01)
|
|
0.01
|
|
—
|
|
(0.01)
|
|
0.18
|
|
Net effects of
amortization of
premiums/discounts and
deferred gains on
assets consolidated at
fair value
|
—
|
|
—
|
|
0.01
|
|
—
|
|
0.02
|
|
Net effects of
terminations or net settlements on
financial
derivatives
|
0.05
|
|
(0.05)
|
|
(0.07)
|
|
(0.14)
|
|
0.02
|
|
Issuance costs on the
retirement of preferred
stock
|
—
|
|
(0.15)
|
|
—
|
|
(0.15)
|
|
—
|
|
Income tax effect
related to reconciling items
|
(0.18)
|
|
0.02
|
|
0.10
|
|
(0.25)
|
|
(0.04)
|
|
Sub-total
|
0.66
|
|
(0.24)
|
|
(0.37)
|
|
0.80
|
|
0.16
|
|
Core Earnings - Diluted
EPS
|
$
3.97
|
|
$
4.10
|
|
$
4.10
|
|
$
15.64
|
|
$
15.65
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and
Core
Earnings)
|
10,982
|
|
10,966
|
|
10,952
|
|
10,975
|
|
10,937
|
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
|
|
For the Years
Ended
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
(dollars in
thousands)
|
|
Net interest
income/yield
|
$
93,368
|
|
1.21 %
|
|
$
86,791
|
|
1.15 %
|
|
$
82,169
|
|
1.12 %
|
|
$
353,867
|
|
1.16 %
|
|
$
327,547
|
|
1.15 %
|
|
Net effects of
consolidated
trusts
|
(989)
|
|
0.02 %
|
|
(1,065)
|
|
0.02 %
|
|
(1,048)
|
|
0.02 %
|
|
(4,477)
|
|
0.02 %
|
|
(4,171)
|
|
0.02 %
|
|
Expense related
to
undesignated
financial
derivatives
|
2
|
|
— %
|
|
(858)
|
|
(0.01) %
|
|
(846)
|
|
(0.01) %
|
|
(1,377)
|
|
— %
|
|
(4,845)
|
|
(0.02) %
|
|
Amortization
of
premiums/discounts on
assets
consolidated at fair
value
|
42
|
|
— %
|
|
(24)
|
|
— %
|
|
(104)
|
|
— %
|
|
(29)
|
|
— %
|
|
(175)
|
|
— %
|
|
Amortization of losses
due to
terminations or net
settlements
on financial
derivatives
|
842
|
|
0.01 %
|
|
757
|
|
0.01 %
|
|
782
|
|
0.01 %
|
|
3,128
|
|
0.01 %
|
|
3,230
|
|
0.01 %
|
|
Fair value changes on
fair
value hedge
relationships
|
(5,737)
|
|
(0.08) %
|
|
(205)
|
|
(0.01) %
|
|
3,598
|
|
0.05 %
|
|
(11,548)
|
|
(0.04) %
|
|
5,394
|
|
0.02 %
|
|
Net effective
spread
|
$
87,528
|
|
1.16 %
|
|
$
85,396
|
|
1.16 %
|
|
$
84,551
|
|
1.19 %
|
|
$
339,564
|
|
1.15 %
|
|
$
326,980
|
|
1.18 %
|
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, 2024:
|
Core Earnings by
Business Segment
|
|
For the Three Months
Ended December 31, 2024
|
|
Agricultural
Finance
|
|
Rural
Infrastructure
|
|
Treasury
|
|
|
|
Farm &
Ranch
|
|
Corporate
AgFinance
|
|
Power &
Utilities
|
|
Broadband
Infrastructure
|
|
Renewable
Energy
|
|
Funding
|
|
Investments
|
|
Total
|
|
(in
thousands)
|
|
Interest
income
|
$
149,861
|
|
$
25,063
|
|
$
62,610
|
|
$
10,846
|
|
$
18,760
|
|
$ 49,211
|
|
$ 79,414
|
|
$ 395,765
|
|
Interest
expense(1)
|
(116,320)
|
|
(17,172)
|
|
(57,590)
|
|
(7,432)
|
|
(13,901)
|
|
(13,075)
|
|
(76,907)
|
|
(302,397)
|
|
Less: reconciling
adjustments(2)(3)
|
(985)
|
|
—
|
|
39
|
|
—
|
|
—
|
|
(4,894)
|
|
—
|
|
(5,840)
|
|
Net effective
spread
|
32,556
|
|
7,891
|
|
5,059
|
|
3,414
|
|
4,859
|
|
31,242
|
|
2,507
|
|
87,528
|
|
Guarantee and
commitment fees(3)
|
4,296
|
|
189
|
|
232
|
|
209
|
|
160
|
|
—
|
|
—
|
|
5,086
|
|
Other
income/(expense)
|
473
|
|
(959)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(486)
|
|
(Provision for)/release
of losses
|
(411)
|
|
(96)
|
|
179
|
|
(783)
|
|
(2,759)
|
|
—
|
|
(2)
|
|
(3,872)
|
|
Operating
expenses(1)
|
(6,564)
|
|
(2,256)
|
|
(1,126)
|
|
(1,060)
|
|
(1,391)
|
|
(3,620)
|
|
(1,086)
|
|
(17,103)
|
|
Income tax
(expense)/benefit
|
(6,373)
|
|
(1,002)
|
|
(912)
|
|
(374)
|
|
(183)
|
|
(5,801)
|
|
(298)
|
|
(14,943)
|
|
Segment core
earnings
|
$ 23,977
|
|
$ 3,767
|
|
$ 3,432
|
|
$
1,406
|
|
$
686
|
|
$ 21,821
|
|
$
1,121
|
|
$
56,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effects of
derivatives and
trading
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
9,272
|
|
Unallocated
(expenses)/income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,035)
|
|
Income tax effect
related to
reconciling
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,067
|
|
Net
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
56,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total on- and
off-balance sheet
segment assets at
principal balance
|
$
18,606,968
|
|
$
1,887,705
|
|
$
6,809,366
|
|
$
802,466
|
|
$
1,416,525
|
|
$
—
|
|
$
—
|
|
$ 29,523,030
|
|
Off-balance sheet
assets under
management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,981,285)
|
|
Unallocated
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,782,997
|
|
Total assets on
the consolidated
balance
sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 31,324,742
|
|
|
|
(1)
|
The significant expense
categories and amounts align with the segment-level information
that is regularly provided to the 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 "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 December
31,
|
|
|
|
2024
|
|
2023
|
|
|
|
|
(in thousands)
|
|
Agricultural
Finance:
|
|
|
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
5,414,732
|
|
$
5,133,450
|
|
Loans
held in consolidated trusts:
|
|
|
|
|
|
|
|
Beneficial
interests owned by third-party investors
(single-class)(1)
|
|
On-balance
sheet
|
|
885,295
|
|
870,912
|
|
Beneficial
interests owned by third-party investors
(structured)(1)
|
|
On-balance
sheet
|
|
1,152,988
|
|
561,349
|
|
IO-FMGS(2)
|
|
On-balance
sheet
|
|
8,710
|
|
9,409
|
|
USDA
Securities
|
|
On-balance
sheet
|
|
2,402,423
|
|
2,368,872
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
4,720,000
|
|
5,835,000
|
|
LTSPCs
and unfunded loan commitments
|
|
Off-balance
sheet
|
|
3,070,554
|
|
2,999,943
|
|
Other
Farmer Mac Guaranteed Securities(3)
|
|
Off-balance
sheet
|
|
426,310
|
|
452,602
|
|
Loans
serviced for others
|
|
Off-balance
sheet
|
|
525,956
|
|
577,264
|
|
Total Farm &
Ranch
|
|
|
|
$
18,606,968
|
|
$
18,808,801
|
|
Corporate
AgFinance:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
1,381,674
|
|
$
1,259,723
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
280,297
|
|
288,879
|
|
Unfunded
loan commitments
|
|
Off-balance
sheet
|
|
225,734
|
|
145,377
|
|
Total Corporate
AgFinance
|
|
|
|
$
1,887,705
|
|
$
1,693,979
|
|
Total Agricultural
Finance
|
|
|
|
$
20,494,673
|
|
$
20,502,780
|
|
Infrastructure
Finance:
|
|
|
|
|
|
|
|
Power &
Utilities:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
2,886,576
|
|
$
2,616,359
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
3,521,143
|
|
3,898,468
|
|
LTSPCs
and unfunded loan commitments
|
|
Off-balance
sheet
|
|
401,647
|
|
464,743
|
|
Total Power &
Utilities
|
|
|
|
$
6,809,366
|
|
$
6,979,570
|
|
Broadband
Infrastructure:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
622,207
|
|
$
478,118
|
|
Unfunded
loan commitments
|
|
Off-balance
sheet
|
|
180,259
|
|
23,035
|
|
Total Broadband
Infrastructure
|
|
|
|
$
802,466
|
|
$
501,153
|
|
Renewable
Energy:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
1,265,700
|
|
$
440,286
|
|
Unfunded
loan commitments
|
|
Off-balance
sheet
|
|
150,825
|
|
47,235
|
|
Total Renewable
Energy
|
|
|
|
$
1,416,525
|
|
$
487,521
|
|
Total
Infrastructure Finance
|
|
|
|
$
9,028,357
|
|
$
7,968,244
|
|
Total
|
|
|
|
$
29,523,030
|
|
$
28,471,024
|
|
|
|
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 %
|
|
December 31,
2022
|
32,770
|
|
7,471
|
|
3,271
|
|
1,689
|
|
935
|
|
27,656
|
|
(2,689)
|
|
71,103
|
|
0.98 %
|
|
1.94 %
|
|
0.24 %
|
|
2.39 %
|
|
1.76 %
|
|
0.42 %
|
|
(0.19) %
|
|
1.07 %
|
The following table presents quarterly core earnings reconciled
to net income attributable to common stockholders:
|
Core Earnings by
Quarter Ended
|
|
December
2024
|
|
September
2024
|
|
June
2024
|
|
March
2024
|
|
December
2023
|
|
September
2023
|
|
June
2023
|
|
March
2023
|
|
December
2022
|
|
(in
thousands)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread
|
$
87,528
|
|
$
85,396
|
|
$
83,596
|
|
$
83,044
|
|
$
84,551
|
|
$
83,424
|
|
$
81,832
|
|
$
77,173
|
|
$
71,103
|
|
Guarantee and
commitment fees
|
5,086
|
|
4,997
|
|
5,256
|
|
4,982
|
|
4,865
|
|
4,828
|
|
4,581
|
|
4,654
|
|
4,677
|
|
Gain on sale of
investment securities
|
—
|
|
—
|
|
1,052
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Loss on sale of
mortgage loan
|
—
|
|
—
|
|
(1,147)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other
|
(491)
|
|
1,133
|
|
481
|
|
1,077
|
|
767
|
|
1,056
|
|
409
|
|
1,067
|
|
390
|
|
Total
revenues
|
92,123
|
|
91,526
|
|
89,238
|
|
89,103
|
|
90,183
|
|
89,308
|
|
86,822
|
|
82,894
|
|
76,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
expense/(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for/(release
of) losses
|
3,872
|
|
3,258
|
|
6,230
|
|
(1,870)
|
|
(575)
|
|
(181)
|
|
1,142
|
|
750
|
|
1,945
|
|
REO operating
expenses
|
—
|
|
196
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
819
|
|
Total credit
related expense/(income)
|
3,872
|
|
3,454
|
|
6,230
|
|
(1,870)
|
|
(575)
|
|
(181)
|
|
1,142
|
|
750
|
|
2,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
15,641
|
|
15,237
|
|
14,840
|
|
18,257
|
|
15,523
|
|
14,103
|
|
13,937
|
|
15,351
|
|
12,105
|
|
General and
administrative
|
12,452
|
|
8,625
|
|
8,904
|
|
8,255
|
|
8,916
|
|
9,100
|
|
9,420
|
|
7,527
|
|
8,055
|
|
Regulatory
fees
|
1,000
|
|
725
|
|
725
|
|
725
|
|
725
|
|
831
|
|
831
|
|
835
|
|
832
|
|
Total operating
expenses
|
29,093
|
|
24,587
|
|
24,469
|
|
27,237
|
|
25,164
|
|
24,034
|
|
24,188
|
|
23,713
|
|
20,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
59,158
|
|
63,485
|
|
58,539
|
|
63,736
|
|
65,594
|
|
65,455
|
|
61,492
|
|
58,431
|
|
52,414
|
|
Income tax
expense
|
9,938
|
|
12,681
|
|
11,970
|
|
13,553
|
|
13,881
|
|
13,475
|
|
12,539
|
|
12,756
|
|
11,210
|
|
Preferred stock
dividends
|
5,666
|
|
5,897
|
|
6,792
|
|
6,791
|
|
6,791
|
|
6,792
|
|
6,791
|
|
6,791
|
|
6,791
|
|
Core
earnings
|
$
43,554
|
|
$
44,907
|
|
$
39,777
|
|
$
43,392
|
|
$
44,922
|
|
$
45,188
|
|
$
42,162
|
|
$
38,884
|
|
$
34,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated
financial derivatives
due to fair value
changes
|
$ 3,084
|
|
$
(1,064)
|
|
$ (359)
|
|
$
1,683
|
|
$ (836)
|
|
$ 2,921
|
|
$
2,141
|
|
$ 916
|
|
$ 1,596
|
|
Gains/(losses) on
hedging activities
due to fair value
changes
|
5,737
|
|
205
|
|
2,604
|
|
3,002
|
|
(3,598)
|
|
3,210
|
|
(4,901)
|
|
(105)
|
|
(148)
|
|
Unrealized
(losses)/gains on trading
assets
|
(83)
|
|
99
|
|
(87)
|
|
(14)
|
|
(37)
|
|
1,714
|
|
(57)
|
|
359
|
|
31
|
|
Net effects of
amortization of
premiums/discounts and
deferred gains
on assets consolidated
at fair value
|
(39)
|
|
27
|
|
26
|
|
31
|
|
88
|
|
29
|
|
29
|
|
29
|
|
57
|
|
Net effects of
terminations or net
settlements on
financial derivatives
|
534
|
|
(503)
|
|
(1,505)
|
|
(192)
|
|
(800)
|
|
(79)
|
|
583
|
|
523
|
|
1,268
|
|
Issuance costs on the
retirement of
preferred
stock
|
—
|
|
(1,619)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Income tax effect
related to reconciling
items
|
(1,939)
|
|
260
|
|
(143)
|
|
(947)
|
|
1,089
|
|
(1,638)
|
|
464
|
|
(362)
|
|
(590)
|
|
Net income
attributable to common
stockholders
|
$
50,848
|
|
$
42,312
|
|
$
40,313
|
|
$
46,955
|
|
$
40,828
|
|
$
51,345
|
|
$
40,421
|
|
$
40,244
|
|
$
36,627
|
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SOURCE Farmer Mac
