- Outstanding Business Volume of
$26.7 Billion -
WASHINGTON, Aug. 7, 2023
/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 ended June 30, 2023.
"I'm pleased to report that Farmer Mac once again posted record
revenue, core earnings, and net effective spread in the second
quarter, building on our consistent performance over the past
several years," said President and Chief Executive Officer
Brad Nordholm. "Our capital base
remains strong, which along with our disciplined asset-liability
management and uninterrupted access to the capital markets,
supports our long-term strategic growth objectives, and also serves
as a buffer against unexpected market developments and changing
credit market conditions. We remain focused on our mission to
support American agriculture and rural infrastructure."
Second Quarter 2023 Highlights
- Provided $1.6 billion in
liquidity and lending capacity to lenders serving rural
America
- Added $0.6 billion of new
business volume in the form of servicing rights on a pool of loans
serviced for others acquired during the quarter
- Net interest income grew 23% year-over-year to $78.7 million
- Net effective spread1 increased 34% from the
prior-year period to a record $81.8
million
- Net income attributable to common stockholders was $40.4 million, compared to $35.1 million in the same period last year
- Record core earnings1 of $42.2 million, or $3.86 per diluted common share, reflecting 37%
growth year-over-year
- 90-day delinquencies were 0.17% across the entire $26.7 billion portfolio as of June 30, 2023
- Maintained strong capital position with total core capital of
$1.4 billion, exceeding statutory
requirement by 70% and a Tier 1 Capital Ratio of 15.9% as of
June 30, 2023
|
$ in thousands,
except per
share amounts
|
Quarter
Ended
|
|
Jun. 30,
2023
|
Mar. 31,
2023
|
Jun. 30,
2022
|
Sequential
%
Change
|
YoY
%
Change
|
|
Net Change
in
Business
Volume
|
$252,934
|
$562,036
|
$235,981
|
N/A
|
N/A
|
|
Net Interest Income
(GAAP)
|
$78,677
|
$79,058
|
$63,914
|
— %
|
23 %
|
|
Net Effective
Spread
(Non-GAAP)
|
$81,832
|
$77,173
|
$60,946
|
6 %
|
34 %
|
|
Diluted EPS
(GAAP)
|
$3.70
|
$3.69
|
$3.23
|
— %
|
15 %
|
|
Core EPS
(Non-GAAP)
|
$3.86
|
$3.56
|
$2.83
|
8 %
|
36 %
|
Earnings Conference Call Information
The conference call to discuss Farmer Mac's second quarter 2023
financial results will be held beginning at 8:30 a.m. eastern time on Monday, August 7,
2023, and can be accessed by telephone or live webcast as
follows:
Telephone (Domestic): (888) 346-2616
Telephone (International): (412) 902-4254
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
second quarter 2023 is in Farmer Mac's Quarterly Report on
Form 10-Q for the quarter ended June 30, 2023, filed today
with the SEC.
Use of Non-GAAP Measures
In the accompanying analysis of its financial information,
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.
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.
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 these 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, 2022, filed February 24, 2023 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 and 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 rural
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 rural
infrastructure indebtedness;
- the effect of economic conditions stemming from disruptive
global events or otherwise on agricultural mortgage or rural
infrastructure lending, borrower repayment capacity, or collateral
values, including rapid 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, volatility from the recent commercial banking
failures, 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 and slow inflation; and
- other factors that could hinder agricultural mortgage lending
or borrower repayment capacity, including the effects of severe
weather, flooding and drought, climate change, 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, 2022, as filed
with the SEC on February 24, 2023.
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 a vital part of the agricultural credit markets
and was created to increase access to and reduce the cost of credit
for the benefit of American agricultural and rural communities. As
the nation's secondary market for agricultural credit, we provide
financial solutions to a broad spectrum of the agricultural
community, including agricultural lenders, agribusinesses, and
other institutions that can benefit from access to flexible,
low-cost financing and risk management tools. Farmer Mac's
customers benefit from our low cost of funds, low overhead costs,
and high operational efficiency. More information about Farmer Mac
(including the Annual Report on Form 10-K referenced above) is
available on Farmer Mac's website at www.farmermac.com.
|
FEDERAL AGRICULTURAL
MORTGAGE CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(unaudited)
|
|
|
As of
|
|
June 30,
2023
|
|
December 31,
2022
|
|
(in
thousands)
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
874,090
|
|
$
861,002
|
|
Investment
securities:
|
|
|
|
|
Available-for-sale, at
fair value (amortized cost of $4,894,715 and $4,769,426,
respectively)
|
4,717,619
|
|
4,579,564
|
|
Held-to-maturity, at
amortized cost
|
45,032
|
|
45,032
|
|
Other
investments
|
5,164
|
|
3,672
|
|
Total Investment
Securities
|
4,767,815
|
|
4,628,268
|
|
Farmer Mac Guaranteed
Securities:
|
|
|
|
|
Available-for-sale, at
fair value (amortized cost of $8,159,474 and $8,019,495,
respectively)
|
7,745,415
|
|
7,607,226
|
|
Held-to-maturity, at
amortized cost
|
849,828
|
|
1,021,154
|
|
Total Farmer Mac
Guaranteed Securities
|
8,595,243
|
|
8,628,380
|
|
USDA
Securities:
|
|
|
|
|
Trading, at fair
value
|
1,348
|
|
1,767
|
|
Held-to-maturity, at
amortized cost
|
2,336,212
|
|
2,409,834
|
|
Total USDA
Securities
|
2,337,560
|
|
2,411,601
|
|
Loans:
|
|
|
|
|
Loans held for
investment, at amortized cost
|
9,129,176
|
|
9,008,979
|
|
Loans held for
investment in consolidated trusts, at amortized cost
|
1,448,180
|
|
1,211,576
|
|
Allowance for
losses
|
(16,748)
|
|
(15,089)
|
|
Total loans, net of
allowance
|
10,560,608
|
|
10,205,466
|
|
Financial derivatives,
at fair value
|
26,824
|
|
37,409
|
|
Accrued interest
receivable (includes $15,737 and $12,514, respectively, related to
consolidated trusts)
|
233,529
|
|
229,061
|
|
Guarantee and
commitment fees receivable
|
46,181
|
|
47,151
|
|
Deferred tax asset,
net
|
3,302
|
|
18,004
|
|
Prepaid expenses and
other assets
|
214,413
|
|
266,768
|
|
Total
Assets
|
$
27,659,565
|
|
$
27,333,110
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
Liabilities:
|
|
|
|
|
Notes
payable
|
$
24,510,004
|
|
$
24,469,113
|
|
Debt securities of
consolidated trusts held by third parties
|
1,357,763
|
|
1,181,948
|
|
Financial derivatives,
at fair value
|
188,652
|
|
175,326
|
|
Accrued interest
payable (includes $8,556 and $8,081, respectively, related to
consolidated trusts)
|
143,977
|
|
117,887
|
|
Guarantee and
commitment obligation
|
45,873
|
|
46,582
|
|
Accounts payable and
accrued expenses
|
65,036
|
|
68,863
|
|
Reserve for
losses
|
1,705
|
|
1,433
|
|
Total
Liabilities
|
26,313,010
|
|
26,061,152
|
|
Commitments and
Contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
Series C, par value $25 per share, 3,000,000 shares authorized,
issued and outstanding
|
73,382
|
|
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, 9,305,477
shares and 9,270,265
shares outstanding, respectively
|
9,305
|
|
9,270
|
|
Additional paid-in
capital
|
130,147
|
|
128,939
|
|
Accumulated other
comprehensive loss, net of tax
|
(34,351)
|
|
(50,843)
|
|
Retained
earnings
|
755,392
|
|
698,530
|
|
Total
Equity
|
1,346,555
|
|
1,271,958
|
|
Total Liabilities and
Equity
|
$
27,659,565
|
|
$
27,333,110
|
|
FEDERAL AGRICULTURAL
MORTGAGE CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
June 30,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
|
(in thousands,
except per share amounts)
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
Investments and cash
equivalents
|
$
69,779
|
|
$
11,200
|
|
$
129,482
|
|
$
16,916
|
|
Farmer Mac Guaranteed
Securities and USDA Securities
|
144,761
|
|
51,616
|
|
281,298
|
|
94,536
|
|
Loans
|
129,292
|
|
76,632
|
|
248,324
|
|
143,879
|
|
Total
interest income
|
343,832
|
|
139,448
|
|
659,104
|
|
255,331
|
|
Total interest
expense
|
265,155
|
|
75,534
|
|
501,369
|
|
125,879
|
|
Net
interest income
|
78,677
|
|
63,914
|
|
157,735
|
|
129,452
|
|
(Provision
for)/release of losses
|
(1,073)
|
|
1,372
|
|
(1,620)
|
|
1,316
|
|
Net
interest income after (provision for)/release of losses
|
77,604
|
|
65,286
|
|
156,115
|
|
130,768
|
|
Non-interest
income/(expense):
|
|
|
|
|
|
|
|
|
Guarantee and
commitment fees
|
3,489
|
|
3,213
|
|
7,422
|
|
6,908
|
|
Gains on financial
derivatives
|
1,693
|
|
3,791
|
|
2,092
|
|
20,779
|
|
(Losses)/gains on
trading securities
|
(9)
|
|
29
|
|
16
|
|
(34)
|
|
(Provision
for)/release of reserve for losses
|
(69)
|
|
163
|
|
(272)
|
|
273
|
|
Other
income
|
767
|
|
479
|
|
1,968
|
|
1,154
|
|
Non-interest income
|
5,871
|
|
7,675
|
|
11,226
|
|
29,080
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
13,937
|
|
11,715
|
|
29,288
|
|
25,013
|
|
General and
administrative
|
9,420
|
|
7,520
|
|
16,947
|
|
14,798
|
|
Regulatory
fees
|
831
|
|
813
|
|
1,666
|
|
1,625
|
|
Operating
expenses
|
24,188
|
|
20,048
|
|
47,901
|
|
41,436
|
|
Income
before income taxes
|
59,287
|
|
52,913
|
|
119,440
|
|
118,412
|
|
Income tax
expense
|
12,075
|
|
11,058
|
|
25,193
|
|
25,104
|
|
Net
income
|
47,212
|
|
41,855
|
|
94,247
|
|
93,308
|
|
Preferred stock
dividends
|
(6,791)
|
|
(6,792)
|
|
(13,582)
|
|
(13,583)
|
|
Net
income attributable to common stockholders
|
$
40,421
|
|
$
35,063
|
|
$
80,665
|
|
$
79,725
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
3.73
|
|
$
3.25
|
|
$
7.46
|
|
$
7.40
|
|
Diluted earnings per
common share
|
$
3.70
|
|
$
3.23
|
|
$
7.39
|
|
$
7.33
|
|
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
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
(in thousands, except per share amounts)
|
|
Net income attributable
to common stockholders
|
$
40,421
|
|
$
40,244
|
|
$
35,063
|
|
Less reconciling
items:
|
|
|
|
|
|
|
Gains on undesignated
financial derivatives due to fair value changes
|
2,141
|
|
916
|
|
2,846
|
|
(Losses)/gains on
hedging activities due to fair value changes
|
(4,901)
|
|
(105)
|
|
428
|
|
Unrealized
(losses)/gains on trading assets
|
(57)
|
|
359
|
|
(285)
|
|
Net effects of
amortization of premiums/discounts and deferred gains
on assets consolidated at fair value
|
29
|
|
29
|
|
(62)
|
|
Net effects of
terminations or net settlements on financial derivatives
|
583
|
|
523
|
|
2,536
|
|
Income tax effect
related to reconciling items
|
464
|
|
(362)
|
|
(1,148)
|
|
Sub-total
|
(1,741)
|
|
1,360
|
|
4,315
|
|
Core
earnings
|
$
42,162
|
|
$
38,884
|
|
$
30,748
|
|
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Net effective
spread(1)
|
$
81,832
|
|
$
77,173
|
|
$
60,946
|
|
Guarantee and
commitment fees(2)
|
4,581
|
|
4,654
|
|
4,709
|
|
Other(3)
|
409
|
|
1,067
|
|
307
|
|
Total
revenues
|
86,822
|
|
82,894
|
|
65,962
|
|
|
|
|
|
|
|
Credit related expense
(GAAP):
|
|
|
|
|
|
|
Provision for/(release
of) losses
|
1,142
|
|
750
|
|
(1,535)
|
|
Total
credit related expense
|
1,142
|
|
750
|
|
(1,535)
|
|
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
|
|
Compensation and
employee benefits
|
13,937
|
|
15,351
|
|
11,715
|
|
General and
administrative
|
9,420
|
|
7,527
|
|
7,520
|
|
Regulatory
fees
|
831
|
|
835
|
|
813
|
|
Total
operating expenses
|
24,188
|
|
23,713
|
|
20,048
|
|
|
|
|
|
|
|
Net
earnings
|
61,492
|
|
58,431
|
|
47,449
|
|
Income tax
expense(4)
|
12,539
|
|
12,756
|
|
9,909
|
|
Preferred stock
dividends (GAAP)
|
6,791
|
|
6,791
|
|
6,792
|
|
Core
earnings
|
$
42,162
|
|
$
38,884
|
|
$
30,748
|
|
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
|
|
Basic
|
$
3.89
|
|
$
3.60
|
|
$
2.85
|
|
Diluted
|
$
3.86
|
|
$
3.56
|
|
$
2.83
|
|
|
|
(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 Six Months
Ended
|
|
June 30,
2023
|
|
June 30,
2022
|
|
(in thousands, except per share amounts)
|
|
Net income attributable
to common stockholders
|
$
80,665
|
|
$
79,725
|
|
Less reconciling
items:
|
|
|
|
|
Gains on undesignated
financial derivatives due to fair value changes
|
3,057
|
|
5,458
|
|
(Losses)/gains on
hedging activities due to fair value changes
|
(5,006)
|
|
6,115
|
|
Unrealized
gains/(losses) on trading assets
|
302
|
|
(191)
|
|
Net effects of
amortization of premiums/discounts and deferred gains on assets
consolidated at fair value
|
58
|
|
(42)
|
|
Net effects of
terminations or net settlements on financial derivatives
|
1,106
|
|
18,048
|
|
Income tax effect
related to reconciling items
|
102
|
|
(6,172)
|
|
Sub-total
|
(381)
|
|
23,216
|
|
Core
earnings
|
$
81,046
|
|
$
56,509
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
Revenues:
|
|
|
|
|
Net effective
spread(1)
|
$
159,005
|
|
$
118,785
|
|
Guarantee and
commitment fees(2)
|
9,235
|
|
9,266
|
|
Other(3)
|
1,476
|
|
821
|
|
Total
revenues
|
169,716
|
|
128,872
|
|
|
|
|
|
Credit related expense
(GAAP):
|
|
|
|
|
Provision for/(release
of) losses
|
1,892
|
|
(1,589)
|
|
Total
credit related expense
|
1,892
|
|
(1,589)
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
Compensation and
employee benefits
|
29,288
|
|
25,013
|
|
General and
administrative
|
16,947
|
|
14,798
|
|
Regulatory
fees
|
1,666
|
|
1,625
|
|
Total
operating expenses
|
47,901
|
|
41,436
|
|
|
|
|
|
Net
earnings
|
119,923
|
|
89,025
|
|
Income tax
expense(4)
|
25,295
|
|
18,933
|
|
Preferred stock
dividends (GAAP)
|
13,582
|
|
13,583
|
|
Core
earnings
|
$
81,046
|
|
$
56,509
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
Basic
|
$
7.49
|
|
$
5.24
|
|
Diluted
|
$
7.42
|
|
$
5.20
|
|
|
|
(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 Six Months
Ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
|
(in thousands,
except per share amounts)
|
|
GAAP - Basic
EPS
|
$
3.73
|
|
$
3.73
|
|
$
3.25
|
|
$
7.46
|
|
$
7.40
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
Gains on undesignated
financial derivatives due to fair value
changes
|
0.20
|
|
0.09
|
|
0.26
|
|
0.28
|
|
0.51
|
|
(Losses)/gains on
hedging activities due to fair value
changes
|
(0.45)
|
|
(0.01)
|
|
0.04
|
|
(0.46)
|
|
0.57
|
|
Unrealized
gains/(losses) on trading securities
|
—
|
|
0.03
|
|
(0.03)
|
|
0.03
|
|
(0.02)
|
|
Net effects of
amortization of premiums/discounts and
deferred gains on assets consolidated at fair value
|
—
|
|
—
|
|
(0.01)
|
|
0.01
|
|
—
|
|
Net effects of
terminations or net settlements on financial
derivatives
|
0.05
|
|
0.05
|
|
0.24
|
|
0.10
|
|
1.67
|
|
Income tax effect
related to reconciling items
|
0.04
|
|
(0.03)
|
|
(0.10)
|
|
0.01
|
|
(0.57)
|
|
Sub-total
|
(0.16)
|
|
0.13
|
|
0.40
|
|
(0.03)
|
|
2.16
|
|
Core Earnings - Basic
EPS
|
$
3.89
|
|
$
3.60
|
|
$
2.85
|
|
$
7.49
|
|
$
5.24
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and Core
Earnings)
|
10,833
|
|
10,802
|
|
10,796
|
|
10,817
|
|
10,782
|
|
Reconciliation of GAAP
Diluted Earnings Per Share to Core Earnings Diluted Earnings Per
Share
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
|
(in thousands,
except per share amounts)
|
|
GAAP - Diluted
EPS
|
$
3.70
|
|
$
3.69
|
|
$
3.23
|
|
$
7.39
|
|
$
7.33
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
Gains on undesignated
financial derivatives due to fair
value changes
|
0.20
|
|
0.09
|
|
0.26
|
|
0.28
|
|
0.50
|
|
(Losses)/gains on
hedging activities due to fair value
changes
|
(0.45)
|
|
(0.01)
|
|
0.04
|
|
(0.46)
|
|
0.56
|
|
Unrealized
gains/(losses) on trading securities
|
—
|
|
0.03
|
|
(0.03)
|
|
0.03
|
|
(0.02)
|
|
Net effects of
amortization of premiums/discounts and
deferred gains on assets consolidated at fair value
|
—
|
|
—
|
|
(0.01)
|
|
0.01
|
|
—
|
|
Net effects of
terminations or net settlements on financial
derivatives
|
0.05
|
|
0.05
|
|
0.23
|
|
0.10
|
|
1.66
|
|
Income tax effect
related to reconciling items
|
0.04
|
|
(0.03)
|
|
(0.09)
|
|
0.01
|
|
(0.57)
|
|
Sub-total
|
(0.16)
|
|
0.13
|
|
0.40
|
|
(0.03)
|
|
2.13
|
|
Core Earnings - Diluted
EPS
|
$
3.86
|
|
$
3.56
|
|
$
2.83
|
|
$
7.42
|
|
$
5.20
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and Core
Earnings)
|
10,916
|
|
10,918
|
|
10,864
|
|
10,917
|
|
10,876
|
|
|
|
|
|
|
|
|
|
|
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 Six Months
Ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
(dollars in
thousands)
|
|
Net interest
income/yield
|
$
78,677
|
|
1.12 %
|
|
$
79,058
|
|
1.14 %
|
|
$
63,914
|
|
1.00 %
|
|
$
157,735
|
|
1.13 %
|
|
$
129,452
|
|
1.03 %
|
|
Net effects of
consolidated
trusts
|
(1,044)
|
|
0.02 %
|
|
(1,055)
|
|
0.02 %
|
|
(1,183)
|
|
0.02 %
|
|
(2,099)
|
|
0.02 %
|
|
(2,201)
|
|
0.02 %
|
|
Expense related to
undesignated financial
derivatives
|
(1,568)
|
|
(0.02) %
|
|
(1,626)
|
|
(0.02) %
|
|
(2,026)
|
|
(0.03) %
|
|
(3,193)
|
|
(0.02) %
|
|
(3,020)
|
|
(0.02) %
|
|
Amortization of
premiums/discounts on assets
consolidated at fair value
|
(24)
|
|
— %
|
|
(23)
|
|
— %
|
|
65
|
|
— %
|
|
(48)
|
|
— %
|
|
49
|
|
— %
|
|
Amortization of losses
due to
terminations or net
settlements on financial
derivatives
|
890
|
|
0.01 %
|
|
714
|
|
0.01 %
|
|
725
|
|
0.01 %
|
|
1,604
|
|
0.01 %
|
|
1,083
|
|
0.01 %
|
|
Fair value changes on
fair
value hedge relationships
|
4,901
|
|
0.07 %
|
|
105
|
|
— %
|
|
(549)
|
|
(0.01) %
|
|
5,006
|
|
0.03 %
|
|
(6,578)
|
|
(0.06) %
|
|
Net effective
spread
|
$
81,832
|
|
1.20 %
|
|
$
77,173
|
|
1.15 %
|
|
$
60,946
|
|
0.99 %
|
|
$
159,005
|
|
1.17 %
|
|
$
118,785
|
|
0.98 %
|
|
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 June
30, 2023:
|
Core Earnings by
Business Segment
|
|
For the Three Months
Ended June 30, 2023
|
|
Agricultural
Finance
|
|
Rural
Infrastructure
|
|
Treasury
|
|
Corporate
|
|
|
|
|
|
Farm &
Ranch
|
|
Corporate
AgFinance
|
|
Rural
Utilities
|
|
Renewable
Energy
|
|
Funding
|
|
Investments
|
|
|
Reconciling
Adjustments
|
|
Consolidated
Net Income
|
|
(in
thousands)
|
|
Net interest
income
|
$
35,425
|
|
$
7,444
|
|
$ 5,839
|
|
$
1,100
|
|
$
28,402
|
|
$
467
|
|
$
—
|
|
$
—
|
|
$
78,677
|
|
Less: reconciling
adjustments(1)(2)(3)
|
(1,037)
|
|
—
|
|
(31)
|
|
—
|
|
4,096
|
|
127
|
|
—
|
|
(3,155)
|
|
—
|
|
Net effective
spread
|
34,388
|
|
7,444
|
|
5,808
|
|
1,100
|
|
32,498
|
|
594
|
|
—
|
|
(3,155)
|
|
—
|
|
Guarantee and
commitment fees
|
4,221
|
|
62
|
|
281
|
|
17
|
|
—
|
|
—
|
|
—
|
|
(1,092)
|
|
3,489
|
|
Other
income/(expense)(3)
|
342
|
|
12
|
|
—
|
|
—
|
|
—
|
|
11
|
|
44
|
|
2,042
|
|
2,451
|
|
Total
revenues
|
38,951
|
|
7,518
|
|
6,089
|
|
1,117
|
|
32,498
|
|
605
|
|
44
|
|
(2,205)
|
|
84,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision
for)/release
of losses
|
(5)
|
|
(327)
|
|
(632)
|
|
(110)
|
|
—
|
|
1
|
|
—
|
|
—
|
|
(1,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision
for)/release
of reserve for losses
|
(75)
|
|
—
|
|
6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(69)
|
|
Operating
expenses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(24,188)
|
|
—
|
|
(24,188)
|
|
Total non-interest
expense
|
(75)
|
|
—
|
|
6
|
|
—
|
|
—
|
|
—
|
|
(24,188)
|
|
—
|
|
(24,257)
|
|
Core earnings
before
income taxes
|
38,871
|
|
7,191
|
|
5,463
|
|
1,007
|
|
32,498
|
|
606
|
|
(24,144)
|
|
(2,205)
|
(4)
|
59,287
|
|
Income tax
(expense)/benefit
|
(8,163)
|
|
(1,510)
|
|
(1,147)
|
|
(211)
|
|
(6,825)
|
|
(127)
|
|
5,444
|
|
464
|
|
(12,075)
|
|
Core earnings
before
preferred stock
dividends
|
30,708
|
|
5,681
|
|
4,316
|
|
796
|
|
25,673
|
|
479
|
|
(18,700)
|
|
(1,741)
|
(4)
|
47,212
|
|
Preferred stock
dividends
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(6,791)
|
|
—
|
|
(6,791)
|
|
Segment core
earnings/(losses)
|
$
30,708
|
|
$
5,681
|
|
$
4,316
|
|
$
796
|
|
$
25,673
|
|
$
479
|
|
$ (25,491)
|
|
$
(1,741)
|
(4)
|
$
40,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
14,456,296
|
|
$
1,584,841
|
|
$
6,169,811
|
|
$
314,538
|
|
$
—
|
|
$ 4,959,243
|
|
$ 174,836
|
|
$
—
|
|
$ 27,659,565
|
|
Total on- and off-
balance sheet program
assets at principal
balance
|
$
18,116,503
|
|
$
1,680,756
|
|
$
6,611,892
|
|
$
327,901
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$ 26,737,052
|
|
|
|
(1)
|
Includes the
amortization of premiums and discounts on assets consolidated at
fair value, originally included in interest income, to reflect core
earnings amounts.
|
|
(2)
|
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.
|
|
(3)
|
Includes 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.
|
|
(4)
|
Net adjustments to
reconcile to the corresponding income measures: core earnings
before income taxes reconciled to income before income taxes; core
earnings before preferred stock dividends reconciled to net income;
and segment core earnings reconciled to net income attributable to
common stockholders.
|
|
|
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 June 30,
2023
|
|
As of December 31,
2022
|
|
|
|
|
(in thousands)
|
|
Agricultural
Finance:
|
|
|
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
4,952,272
|
|
$
5,150,750
|
|
Loans held in
consolidated trusts:
|
|
|
|
|
|
|
|
Beneficial interests
owned by third-party investors
(Pass-Through)(1)
|
|
On-balance
sheet
|
|
877,063
|
|
914,918
|
|
Beneficial interests
owned by third-party investors
(Structured)(1)
|
|
On-balance
sheet
|
|
571,117
|
|
296,658
|
|
IO-FMGS(2)
|
|
On-balance
sheet
|
|
9,748
|
|
10,622
|
|
USDA
Securities
|
|
On-balance
sheet
|
|
2,343,286
|
|
2,407,302
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
5,460,000
|
|
5,605,000
|
|
LTSPCs and unfunded
commitments
|
|
Off-balance
sheet
|
|
2,835,020
|
|
2,822,309
|
|
Other Farmer Mac
Guaranteed Securities(3)
|
|
Off-balance
sheet
|
|
481,397
|
|
500,953
|
|
Loans serviced for
others
|
|
Off-balance
sheet
|
|
586,600
|
|
20,280
|
|
Total Farm &
Ranch
|
|
|
|
$
18,116,503
|
|
$
17,728,792
|
|
Corporate
AgFinance:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
1,187,903
|
|
$
1,166,253
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
368,123
|
|
359,600
|
|
Unfunded
commitments
|
|
Off-balance
sheet
|
|
124,730
|
|
77,654
|
|
Total Corporate
AgFinance
|
|
|
|
$
1,680,756
|
|
$
1,603,507
|
|
Total Agricultural
Finance
|
|
|
|
$
19,797,259
|
|
$
19,332,299
|
|
Rural Infrastructure
Finance:
|
|
|
|
|
|
|
|
Rural
Utilities:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
2,995,470
|
|
$
2,801,696
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
3,141,514
|
|
3,044,156
|
|
LTSPCs and unfunded
commitments
|
|
Off-balance
sheet
|
|
473,810
|
|
512,592
|
|
Other Farmer Mac
Guaranteed Securities(3)
|
|
Off-balance
sheet
|
|
1,098
|
|
1,169
|
|
Total Rural
Utilities
|
|
|
|
$
6,611,892
|
|
$
6,359,613
|
|
Renewable
Energy:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
311,297
|
|
$
219,570
|
|
Unfunded
commitments
|
|
Off-balance
sheet
|
|
16,604
|
|
10,600
|
|
Total Renewable
Energy
|
|
|
|
$
327,901
|
|
$
230,170
|
|
Total Rural
Infrastructure Finance
|
|
|
|
$
6,939,793
|
|
$
6,589,783
|
|
Total
|
|
|
|
$
26,737,052
|
|
$
25,922,082
|
|
|
|
(1)
|
A 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(1)
|
|
Agricultural
Finance
|
|
Rural Infrastructure
Finance
|
|
Treasury
|
|
|
|
|
|
Farm &
Ranch
|
|
Corporate
AgFinance
|
|
Rural
Utilities
|
|
Renewable
Energy
|
|
Funding
|
|
Investments
|
|
Net Effective
Spread
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
(dollars in
thousands)
|
|
For the quarter
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2023(2)
|
$
34,388
|
|
1.03 %
|
|
$ 7,444
|
|
1.92 %
|
|
$ 5,808
|
|
0.38 %
|
|
$ 1,100
|
|
1.47 %
|
|
$
32,498
|
|
0.48 %
|
|
$
594
|
|
0.04 %
|
|
$
81,832
|
|
1.20 %
|
|
March 31,
2023
|
32,465
|
|
0.97 %
|
|
7,148
|
|
1.94 %
|
|
5,507
|
|
0.36 %
|
|
858
|
|
1.53 %
|
|
31,738
|
|
0.47 %
|
|
(543)
|
|
(0.04) %
|
|
77,173
|
|
1.15 %
|
|
December 31,
2022
|
32,770
|
|
0.98 %
|
|
7,471
|
|
1.94 %
|
|
4,960
|
|
0.34 %
|
|
935
|
|
1.76 %
|
|
27,656
|
|
0.42 %
|
|
(2,689)
|
|
(0.19) %
|
|
71,103
|
|
1.07 %
|
|
September 30,
2022
|
33,343
|
|
1.04 %
|
|
7,600
|
|
1.99 %
|
|
4,220
|
|
0.30 %
|
|
705
|
|
1.97 %
|
|
22,564
|
|
0.36 %
|
|
(2,791)
|
|
(0.21) %
|
|
65,641
|
|
1.03 %
|
|
June 30,
2022
|
32,590
|
|
1.05 %
|
|
6,929
|
|
1.87 %
|
|
3,733
|
|
0.27 %
|
|
468
|
|
1.78 %
|
|
18,508
|
|
0.30 %
|
|
(1,282)
|
|
(0.10) %
|
|
60,946
|
|
0.99 %
|
|
March 31,
2022
|
30,354
|
|
1.02 %
|
|
7,209
|
|
1.96 %
|
|
3,159
|
|
0.23 %
|
|
375
|
|
1.69 %
|
|
16,738
|
|
0.28 %
|
|
4
|
|
— %
|
|
57,839
|
|
0.97 %
|
|
December 31,
2021
|
28,998
|
|
0.99 %
|
|
6,321
|
|
1.84 %
|
|
2,521
|
|
0.19 %
|
|
356
|
|
1.53 %
|
|
15,979
|
|
0.28 %
|
|
158
|
|
0.01 %
|
|
54,333
|
|
0.94 %
|
|
September 30,
2021
|
28,914
|
|
1.06 %
|
|
7,163
|
|
1.80 %
|
|
2,067
|
|
0.16 %
|
|
236
|
|
1.09 %
|
|
17,386
|
|
0.31 %
|
|
159
|
|
0.01 %
|
|
55,925
|
|
0.99 %
|
|
June 30,
2021
|
29,163
|
|
1.06 %
|
|
6,676
|
|
1.65 %
|
|
1,759
|
|
0.14 %
|
|
378
|
|
1.80 %
|
|
18,449
|
|
0.33 %
|
|
126
|
|
0.01 %
|
|
56,551
|
|
1.01 %
|
|
|
|
(1)
|
Farmer Mac excludes the
Corporate segment in the presentation above because the segment
does not have any interest-earning assets.
|
|
(2)
|
See above for a
reconciliation of GAAP net interest income by line of business to
net effective spread by line of business for the three months ended
June 30, 2023.
|
|
|
The following table presents quarterly core earnings reconciled
to net income attributable to common stockholders:
|
Core Earnings by
Quarter Ended
|
|
June
2023
|
|
March
2023
|
|
December
2022
|
|
September
2022
|
|
June
2022
|
|
March
2022
|
|
December
2021
|
|
September
2021
|
|
June
2021
|
|
|
|
|
|
(in
thousands)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread
|
$
81,832
|
|
$
77,173
|
|
$
71,103
|
|
$
65,641
|
|
$
60,946
|
|
$
57,839
|
|
$
54,333
|
|
$
55,925
|
|
$
56,551
|
|
Guarantee and
commitment fees
|
4,581
|
|
4,654
|
|
4,677
|
|
4,201
|
|
4,709
|
|
4,557
|
|
4,637
|
|
4,322
|
|
4,334
|
|
Gains on sale of
mortgage loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,539
|
|
—
|
|
—
|
|
Other
|
409
|
|
1,067
|
|
390
|
|
473
|
|
307
|
|
514
|
|
241
|
|
687
|
|
301
|
|
Total
revenues
|
86,822
|
|
82,894
|
|
76,170
|
|
70,315
|
|
65,962
|
|
62,910
|
|
65,750
|
|
60,934
|
|
61,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
expense/(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for/(release
of) losses
|
1,142
|
|
750
|
|
1,945
|
|
450
|
|
(1,535)
|
|
(54)
|
|
(1,428)
|
|
255
|
|
(983)
|
|
REO operating
expenses
|
—
|
|
—
|
|
819
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total
credit related expense/(income)
|
1,142
|
|
750
|
|
2,764
|
|
450
|
|
(1,535)
|
|
(54)
|
|
(1,428)
|
|
255
|
|
(983)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
13,937
|
|
15,351
|
|
12,105
|
|
11,648
|
|
11,715
|
|
13,298
|
|
11,246
|
|
10,027
|
|
9,779
|
|
General and
administrative
|
9,420
|
|
7,527
|
|
8,055
|
|
6,919
|
|
7,520
|
|
7,278
|
|
8,492
|
|
6,330
|
|
6,349
|
|
Regulatory
fees
|
831
|
|
835
|
|
832
|
|
812
|
|
813
|
|
812
|
|
812
|
|
750
|
|
750
|
|
Total
operating expenses
|
24,188
|
|
23,713
|
|
20,992
|
|
19,379
|
|
20,048
|
|
21,388
|
|
20,550
|
|
17,107
|
|
16,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
61,492
|
|
58,431
|
|
52,414
|
|
50,486
|
|
47,449
|
|
41,576
|
|
46,628
|
|
43,572
|
|
45,291
|
|
Income tax
expense
|
12,539
|
|
12,756
|
|
11,210
|
|
10,303
|
|
9,909
|
|
9,024
|
|
9,809
|
|
9,152
|
|
9,463
|
|
Preferred stock
dividends
|
6,791
|
|
6,791
|
|
6,791
|
|
6,791
|
|
6,792
|
|
6,791
|
|
6,792
|
|
6,774
|
|
5,842
|
|
Core
earnings
|
$
42,162
|
|
$
38,884
|
|
$
34,413
|
|
$
33,392
|
|
$
30,748
|
|
$
25,761
|
|
$
30,027
|
|
$
27,646
|
|
$
29,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated
financial derivatives due to fair value
changes
|
$
2,141
|
|
$
916
|
|
$ 1,596
|
|
$ 6,441
|
|
$
2,846
|
|
$
2,612
|
|
$
(1,242)
|
|
$ (405)
|
|
$
(3,020)
|
|
(Losses)/gains on
hedging activities
due to fair value changes
|
(4,901)
|
|
(105)
|
|
(148)
|
|
(624)
|
|
428
|
|
5,687
|
|
(2,079)
|
|
1,818
|
|
(5,866)
|
|
Unrealized
(losses)/gains on trading
assets
|
(57)
|
|
359
|
|
31
|
|
(757)
|
|
(285)
|
|
94
|
|
(76)
|
|
36
|
|
(61)
|
|
Net effects of
amortization of
premiums/discounts and deferred gains
on assets consolidated at fair value
|
29
|
|
29
|
|
57
|
|
24
|
|
(62)
|
|
20
|
|
71
|
|
23
|
|
20
|
|
Net effects of
terminations or net
settlements on financial derivatives
|
583
|
|
523
|
|
1,268
|
|
(3,522)
|
|
2,536
|
|
15,512
|
|
(429)
|
|
(351)
|
|
109
|
|
Income tax effect
related to reconciling
items
|
464
|
|
(362)
|
|
(590)
|
|
(327)
|
|
(1,148)
|
|
(5,024)
|
|
789
|
|
(236)
|
|
1,852
|
|
Net
income attributable to common
stockholders
|
$
40,421
|
|
$
40,244
|
|
$
36,627
|
|
$
34,627
|
|
$
35,063
|
|
$
44,662
|
|
$
27,061
|
|
$
28,531
|
|
$
23,020
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/farmer-mac-reports-second-quarter-2023-results-301893888.html
SOURCE Farmer Mac