- Outstanding Business Volume of
$28.5 Billion -
WASHINGTON, Nov. 4, 2024
/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 September 30, 2024.
"Farmer Mac delivered another solid quarter, demonstrating yet
again the benefits of our successful efforts to continue to
diversify our revenue streams, taking advantage of our strong
capital base and uninterrupted access to low-cost capital," said
President and Chief Executive Officer, Brad
Nordholm. "Growth across our loan portfolio into newer
lines of business and higher spread businesses continues to pay
dividends for us through changing market cycles. Proactive
management of our balance sheet remains a core focus, enhancing our
ability to accelerate opportunities to better serve American
agriculture and rural infrastructure markets and deliver value to
our stockholders."
Third Quarter 2024 Highlights
- Provided $2.0 billion in
liquidity and lending capacity to lenders serving rural
America
- Net interest income was $86.8
million, compared to $87.6
million in third quarter 2023
- Net effective spread1 improved $2.0 million from the prior-year period to
$85.4 million
- Net income attributable to common stockholders was $42.3 million
- Core earnings1 was $44.9
million, or $4.10 per diluted
common share
- Maintained strong capital position with total core capital of
$1.5 billion, exceeding statutory
requirement by 66% and a Tier 1 Capital Ratio of 14.2% as of
September 30, 2024
- As of September 30, 2024, Farmer
Mac had 309 days of liquidity
|
$ in thousands,
except per
share amounts
|
Quarter
Ended
|
|
September 30,
2024
|
June 30,
2024
|
September 30,
2023
|
Sequential %
Change
|
YOY %
Change
|
|
Net Change
in
Business
Volume
|
$(290,036)
|
$(88,891)
|
$914,959
|
N/A
|
N/A
|
|
Net Interest Income
(GAAP)
|
$86,791
|
$87,340
|
$87,643
|
(1) %
|
(1) %
|
|
Net Effective
Spread
(Non-GAAP)
|
$85,396
|
$83,596
|
$83,424
|
2 %
|
2 %
|
|
Diluted EPS
(GAAP)
|
$3.86
|
$3.68
|
$4.69
|
5 %
|
(18) %
|
|
Core EPS
(Non-GAAP)
|
$4.10
|
$3.63
|
$4.13
|
13 %
|
(1) %
|
Earnings Conference Call Information
The conference call to discuss Farmer Mac's third quarter 2024
financial results will be held beginning at 4:30 p.m. eastern time on Monday,
November 4, 2024, 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
third quarter 2024 is in Farmer Mac's
Quarterly Report on Form 10-Q for the quarter ended
September 30, 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.
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 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 "(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, 2023, filed February 23, 2024 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 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 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, 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, 2023, as filed
with the SEC on February 23, 2024.
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 for American agriculture and rural
infrastructure. As the nation's premier secondary market for
agricultural credit, we provide financial solutions to a broad
spectrum of customers supporting rural America, including
agricultural lenders, agribusinesses, and rural electric
cooperatives. 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
|
|
September 30,
2024
|
|
December 31,
2023
|
|
(in
thousands)
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
842,056
|
|
$
888,707
|
|
Investment
securities:
|
|
|
|
|
Available-for-sale, at
fair value (amortized cost of $5,941,321 and $5,060,135,
respectively)
|
5,877,936
|
|
4,918,931
|
|
Held-to-maturity, at
amortized cost
|
9,270
|
|
53,756
|
|
Other
investments
|
8,587
|
|
6,817
|
|
Total Investment
Securities
|
5,895,793
|
|
4,979,504
|
|
Farmer Mac Guaranteed
Securities:
|
|
|
|
|
Available-for-sale, at
fair value (amortized cost of $5,939,268 and $5,825,433,
respectively)
|
5,761,691
|
|
5,532,479
|
|
Held-to-maturity, at
amortized cost
|
2,961,071
|
|
4,213,069
|
|
Total Farmer Mac
Guaranteed Securities
|
8,722,762
|
|
9,745,548
|
|
USDA
Securities:
|
|
|
|
|
Trading, at fair
value
|
842
|
|
1,241
|
|
Held-to-maturity, at
amortized cost
|
2,343,873
|
|
2,354,171
|
|
Total USDA
Securities
|
2,344,715
|
|
2,355,412
|
|
Loans:
|
|
|
|
|
Loans held for
investment, at amortized cost
|
10,668,844
|
|
9,623,119
|
|
Loans held for
investment in consolidated trusts, at amortized cost
|
1,718,440
|
|
1,432,261
|
|
Allowance for
losses
|
(19,951)
|
|
(16,031)
|
|
Total loans, net of
allowance
|
12,367,333
|
|
11,039,349
|
|
Financial derivatives,
at fair value
|
49,197
|
|
37,478
|
|
Accrued interest
receivable (includes $14,781 and $16,764, respectively, related to
consolidated trusts)
|
253,102
|
|
287,128
|
|
Guarantee and
commitment fees receivable
|
46,077
|
|
49,832
|
|
Deferred tax asset,
net
|
—
|
|
8,470
|
|
Prepaid expenses and
other assets
|
94,186
|
|
132,954
|
|
Total
Assets
|
$
30,615,221
|
|
$
29,524,382
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
Liabilities:
|
|
|
|
|
Notes
payable
|
$
27,129,456
|
|
$
26,336,542
|
|
Debt securities of
consolidated trusts held by third parties
|
1,616,513
|
|
1,351,069
|
|
Financial derivatives,
at fair value
|
64,351
|
|
117,131
|
|
Accrued interest
payable (includes $8,236 and $9,407, respectively, related to
consolidated trusts)
|
214,644
|
|
181,841
|
|
Guarantee and
commitment obligation
|
43,939
|
|
47,563
|
|
Accounts payable and
accrued expenses
|
81,697
|
|
76,662
|
|
Deferred tax
liability, net
|
754
|
|
—
|
|
Reserve for
losses
|
1,523
|
|
1,711
|
|
Total
Liabilities
|
29,152,877
|
|
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, 9,354,301
shares and 9,310,872 shares
outstanding, respectively
|
9,354
|
|
9,311
|
|
Additional paid-in
capital
|
135,225
|
|
132,919
|
|
Accumulated other
comprehensive loss, net of tax
|
(2,554)
|
|
(40,145)
|
|
Retained
earnings
|
907,639
|
|
823,716
|
|
Total
Equity
|
1,462,344
|
|
1,411,863
|
|
Total Liabilities and
Equity
|
$
30,615,221
|
|
$
29,524,382
|
|
FEDERAL AGRICULTURAL
MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
(in thousands,
except per share amounts)
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
Investments and cash
equivalents
|
$
88,879
|
|
$
79,947
|
|
$
258,341
|
|
$
209,429
|
|
Farmer Mac Guaranteed
Securities and USDA Securities
|
156,602
|
|
161,351
|
|
489,478
|
|
442,649
|
|
Loans
|
162,247
|
|
140,513
|
|
459,932
|
|
388,837
|
|
Total interest
income
|
407,728
|
|
381,811
|
|
1,207,751
|
|
1,040,915
|
|
Total interest
expense
|
320,937
|
|
294,168
|
|
947,252
|
|
795,537
|
|
Net interest
income
|
86,791
|
|
87,643
|
|
260,499
|
|
245,378
|
|
(Provision
for)/release of losses
|
(3,428)
|
|
136
|
|
(7,806)
|
|
(1,484)
|
|
Net interest income
after (provision for)/release of losses
|
83,363
|
|
87,779
|
|
252,693
|
|
243,894
|
|
Non-interest
income/(expense):
|
|
|
|
|
|
|
|
|
Guarantee and
commitment fees
|
4,015
|
|
5,520
|
|
11,729
|
|
12,942
|
|
(Losses)/gains on
financial derivatives
|
(1,934)
|
|
2,671
|
|
(1,654)
|
|
4,763
|
|
Losses on sale of
mortgage loans
|
—
|
|
—
|
|
(1,147)
|
|
—
|
|
Gains on sale of
available-for-sale investment securities
|
—
|
|
—
|
|
1,052
|
|
—
|
|
Release of/(provision
for) reserve for losses
|
170
|
|
45
|
|
188
|
|
(227)
|
|
Other
income
|
1,418
|
|
1,269
|
|
3,341
|
|
3,253
|
|
Non-interest
income
|
3,669
|
|
9,505
|
|
13,509
|
|
20,731
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
15,237
|
|
14,103
|
|
48,334
|
|
43,391
|
|
General and
administrative
|
8,625
|
|
9,100
|
|
25,784
|
|
26,047
|
|
Regulatory
fees
|
725
|
|
831
|
|
2,175
|
|
2,497
|
|
Real estate owned
operating costs, net
|
196
|
|
—
|
|
196
|
|
—
|
|
Operating
expenses
|
24,783
|
|
24,034
|
|
76,489
|
|
71,935
|
|
Income before income
taxes
|
62,249
|
|
73,250
|
|
189,713
|
|
192,690
|
|
Income tax
expense
|
12,421
|
|
15,113
|
|
39,034
|
|
40,306
|
|
Net income
|
49,828
|
|
58,137
|
|
150,679
|
|
152,384
|
|
Preferred stock
dividends
|
(5,897)
|
|
(6,792)
|
|
(19,480)
|
|
(20,374)
|
|
Loss on retirement of
preferred stock
|
(1,619)
|
|
—
|
|
(1,619)
|
|
—
|
|
Net income
attributable to common stockholders
|
$
42,312
|
|
$
51,345
|
|
$
129,580
|
|
$
132,010
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
3.89
|
|
$
4.74
|
|
$
11.93
|
|
$
12.20
|
|
Diluted earnings per
common share
|
$
3.86
|
|
$
4.69
|
|
$
11.82
|
|
$
12.08
|
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
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
(in thousands, except per share amounts)
|
|
Net income attributable
to common stockholders
|
$
42,312
|
|
$
40,313
|
|
$
51,345
|
|
Less reconciling
items:
|
|
|
|
|
|
|
(Losses)/gains on
undesignated financial derivatives due to fair value
changes
|
(1,064)
|
|
(359)
|
|
2,921
|
|
Gains on hedging
activities due to fair value changes
|
205
|
|
2,604
|
|
3,210
|
|
Unrealized
gains/(losses) on trading assets
|
99
|
|
(87)
|
|
1,714
|
|
Net effects of
amortization of premiums/discounts and deferred gains
on assets consolidated at fair value
|
27
|
|
26
|
|
29
|
|
Net effects of
terminations or net settlements on financial derivatives
|
(503)
|
|
(1,505)
|
|
(79)
|
|
Issuance costs on the
retirement of preferred stock
|
(1,619)
|
|
—
|
|
—
|
|
Income tax effect
related to reconciling items
|
260
|
|
(143)
|
|
(1,638)
|
|
Sub-total
|
(2,595)
|
|
536
|
|
6,157
|
|
Core
earnings
|
$
44,907
|
|
$
39,777
|
|
$
45,188
|
|
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Net effective
spread(1)
|
$
85,396
|
|
$
83,596
|
|
$
83,424
|
|
Guarantee and
commitment fees(2)
|
4,997
|
|
5,256
|
|
4,828
|
|
Gain on sale of
investment securities (GAAP)
|
—
|
|
1,052
|
|
—
|
|
Loss on sale of
mortgage loan (GAAP)
|
—
|
|
(1,147)
|
|
—
|
|
Other(3)
|
1,133
|
|
481
|
|
1,056
|
|
Total
revenues
|
91,526
|
|
89,238
|
|
89,308
|
|
|
|
|
|
|
|
Credit related expense
(GAAP):
|
|
|
|
|
|
|
Provision for/(release
of) losses
|
3,258
|
|
6,230
|
|
(181)
|
|
REO operating
expenses
|
196
|
|
—
|
|
—
|
|
Total
credit related expense
|
3,454
|
|
6,230
|
|
(181)
|
|
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
|
|
Compensation and
employee benefits
|
15,237
|
|
14,840
|
|
14,103
|
|
General and
administrative
|
8,625
|
|
8,904
|
|
9,100
|
|
Regulatory
fees
|
725
|
|
725
|
|
831
|
|
Total
operating expenses
|
24,587
|
|
24,469
|
|
24,034
|
|
|
|
|
|
|
|
Net
earnings
|
63,485
|
|
58,539
|
|
65,455
|
|
Income tax
expense(4)
|
12,681
|
|
11,970
|
|
13,475
|
|
Preferred stock
dividends (GAAP)
|
5,897
|
|
6,792
|
|
6,792
|
|
Core
earnings
|
$
44,907
|
|
$
39,777
|
|
$
45,188
|
|
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
|
|
Basic
|
$
4.13
|
|
$
3.66
|
|
$
4.17
|
|
Diluted
|
$
4.10
|
|
$
3.63
|
|
$
4.13
|
|
(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 Nine Months
Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
(in thousands, except per share amounts)
|
|
Net income attributable
to common stockholders
|
$
129,580
|
|
$
132,010
|
|
Less reconciling
items:
|
|
|
|
|
Gains on undesignated
financial derivatives due to fair value changes
|
260
|
|
5,978
|
|
Gains/(losses) on
hedging activities due to fair value changes
|
5,811
|
|
(1,796)
|
|
Unrealized
(losses)/gains on trading assets
|
(2)
|
|
2,016
|
|
Net effects of
amortization of premiums/discounts and deferred gains on assets
consolidated
at fair value
|
84
|
|
87
|
|
Net effects of
terminations or net settlements on financial derivatives
|
(2,200)
|
|
1,027
|
|
Issuance costs on the
retirement of preferred stock
|
(1,619)
|
|
—
|
|
Income tax effect
related to reconciling items
|
(830)
|
|
(1,536)
|
|
Sub-total
|
1,504
|
|
5,776
|
|
Core
earnings
|
$
128,076
|
|
$
126,234
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
Revenues:
|
|
|
|
|
Net effective
spread(1)
|
$
252,036
|
|
$
242,429
|
|
Guarantee and
commitment fees(2)
|
15,235
|
|
14,063
|
|
Gain on sale of
investment securities (GAAP)
|
1,052
|
|
—
|
|
Loss on sale of
mortgage loan (GAAP)
|
(1,147)
|
|
—
|
|
Other(3)
|
2,691
|
|
2,532
|
|
Total
revenues
|
269,867
|
|
259,024
|
|
|
|
|
|
Credit related expense
(GAAP):
|
|
|
|
|
Provision for
losses
|
7,618
|
|
1,711
|
|
REO operating
expenses
|
196
|
|
—
|
|
Total
credit related expense
|
7,814
|
|
1,711
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
Compensation and
employee benefits
|
48,334
|
|
43,391
|
|
General and
administrative
|
25,784
|
|
26,047
|
|
Regulatory
fees
|
2,175
|
|
2,497
|
|
Total
operating expenses
|
76,293
|
|
71,935
|
|
|
|
|
|
Net
earnings
|
185,760
|
|
185,378
|
|
Income tax
expense(4)
|
38,204
|
|
38,770
|
|
Preferred stock
dividends (GAAP)
|
19,480
|
|
20,374
|
|
Core
earnings
|
$
128,076
|
|
$
126,234
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
Basic
|
$
11.79
|
|
$
11.66
|
|
Diluted
|
$
11.69
|
|
$
11.56
|
|
|
|
(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 Nine Months
Ended
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
(in thousands,
except per share amounts)
|
|
GAAP - Basic
EPS
|
$
3.89
|
|
$
3.71
|
|
$
4.74
|
|
$
11.93
|
|
$
12.20
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
(Losses)/gains on
undesignated financial derivatives due to fair value
changes
|
(0.09)
|
|
(0.03)
|
|
0.27
|
|
0.02
|
|
0.55
|
|
Gains/(losses) on
hedging activities due to fair value changes
|
0.02
|
|
0.24
|
|
0.30
|
|
0.54
|
|
(0.17)
|
|
Unrealized
gains/(losses) on trading securities
|
0.01
|
|
(0.01)
|
|
0.16
|
|
—
|
|
0.19
|
|
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)
|
|
(0.14)
|
|
(0.01)
|
|
(0.20)
|
|
0.10
|
|
Issuance costs on the
retirement of preferred stock
|
(0.15)
|
|
—
|
|
—
|
|
(0.15)
|
|
—
|
|
Income tax effect
related to reconciling items
|
0.02
|
|
(0.01)
|
|
(0.15)
|
|
(0.08)
|
|
(0.14)
|
|
Sub-total
|
(0.24)
|
|
0.05
|
|
0.57
|
|
0.14
|
|
0.54
|
|
Core Earnings - Basic
EPS
|
$
4.13
|
|
$
3.66
|
|
$
4.17
|
|
$
11.79
|
|
$
11.66
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and Core Earnings)
|
10,883
|
|
10,879
|
|
10,839
|
|
10,869
|
|
10,825
|
|
Reconciliation of GAAP
Diluted Earnings Per Share to Core Earnings Diluted Earnings Per
Share
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
(in thousands,
except per share amounts)
|
|
GAAP - Diluted
EPS
|
$
3.86
|
|
$
3.68
|
|
$
4.69
|
|
$
11.82
|
|
$
12.08
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
(Losses)/gains on
undesignated financial derivatives due to fair value
changes
|
(0.09)
|
|
(0.03)
|
|
0.27
|
|
0.02
|
|
0.54
|
|
Gains/(losses) on
hedging activities due to fair value changes
|
0.02
|
|
0.24
|
|
0.29
|
|
0.53
|
|
(0.16)
|
|
Unrealized
gains/(losses) on trading securities
|
0.01
|
|
(0.01)
|
|
0.16
|
|
—
|
|
0.18
|
|
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)
|
|
(0.14)
|
|
(0.01)
|
|
(0.20)
|
|
0.09
|
|
Issuance costs on the
retirement of preferred stock
|
(0.15)
|
|
—
|
|
—
|
|
(0.15)
|
|
—
|
|
Income tax effect
related to reconciling items
|
0.02
|
|
(0.01)
|
|
(0.15)
|
|
(0.08)
|
|
(0.14)
|
|
Sub-total
|
(0.24)
|
|
0.05
|
|
0.56
|
|
0.13
|
|
0.52
|
|
Core Earnings - Diluted
EPS
|
$
4.10
|
|
$
3.63
|
|
$
4.13
|
|
$
11.69
|
|
$
11.56
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and Core Earnings)
|
10,966
|
|
10,956
|
|
10,938
|
|
10,968
|
|
10,924
|
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 Nine Months
Ended
|
|
September 30,
2024
|
|
June 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
(dollars in
thousands)
|
|
Net interest
income/yield
|
$
86,791
|
|
1.15 %
|
|
$
87,340
|
|
1.15 %
|
|
$
87,643
|
|
1.22 %
|
|
$
260,499
|
|
1.15 %
|
|
$
245,378
|
|
1.16 %
|
|
Net effects of
consolidated trusts
|
(1,065)
|
|
0.02 %
|
|
(1,371)
|
|
0.02 %
|
|
(1,024)
|
|
0.02 %
|
|
(3,488)
|
|
0.02 %
|
|
(3,123)
|
|
0.02 %
|
|
Expense related to
undesignated financial derivatives
|
(858)
|
|
(0.01) %
|
|
(486)
|
|
(0.01) %
|
|
(805)
|
|
(0.01) %
|
|
(1,379)
|
|
(0.01) %
|
|
(3,999)
|
|
(0.02) %
|
|
Amortization of
premiums/discounts on assets consolidated at fair value
|
(24)
|
|
— %
|
|
(21)
|
|
— %
|
|
(24)
|
|
— %
|
|
(72)
|
|
— %
|
|
(71)
|
|
— %
|
|
Amortization of losses
due to terminations or net settlements on financial
derivatives
|
757
|
|
0.01 %
|
|
738
|
|
0.01 %
|
|
844
|
|
0.01 %
|
|
2,287
|
|
0.01 %
|
|
2,448
|
|
0.01 %
|
|
Fair value changes on
fair value hedge relationships
|
(205)
|
|
(0.01) %
|
|
(2,604)
|
|
(0.03) %
|
|
(3,210)
|
|
(0.04) %
|
|
(5,811)
|
|
(0.02) %
|
|
1,796
|
|
0.01 %
|
|
Net effective
spread
|
$
85,396
|
|
1.16 %
|
|
$
83,596
|
|
1.14 %
|
|
$
83,424
|
|
1.20 %
|
|
$
252,036
|
|
1.15 %
|
|
$
242,429
|
|
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 September 30, 2024:
|
Core Earnings by
Business Segment
|
|
For the Three Months
Ended September 30, 2024
|
|
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
|
$ 36,816
|
|
$ 6,397
|
|
$ 7,608
|
|
$ 3,810
|
|
$
31,217
|
|
$
943
|
|
$
—
|
|
$
—
|
|
$
86,791
|
|
Less: reconciling
adjustments(1)(2)(3)
|
(1,061)
|
|
—
|
|
(29)
|
|
—
|
|
(305)
|
|
—
|
|
—
|
|
1,395
|
|
—
|
|
Net effective
spread
|
35,755
|
|
6,397
|
|
7,579
|
|
3,810
|
|
30,912
|
|
943
|
|
—
|
|
1,395
|
|
—
|
|
Guarantee and
commitment fees
|
4,304
|
|
168
|
|
338
|
|
187
|
|
—
|
|
—
|
|
—
|
|
(982)
|
|
4,015
|
|
Gain on sale of
investment securities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Loss on sale of
mortgage loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other
income/(expense)(3)
|
1,091
|
|
40
|
|
—
|
|
—
|
|
—
|
|
10
|
|
(8)
|
|
(1,649)
|
|
(516)
|
|
Total
revenues
|
41,150
|
|
6,605
|
|
7,917
|
|
3,997
|
|
30,912
|
|
953
|
|
(8)
|
|
(1,236)
|
|
90,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
losses
|
(116)
|
|
(1,779)
|
|
(1,195)
|
|
(337)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
(3,428)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Release of reserve for
losses
|
126
|
|
—
|
|
44
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
170
|
|
Operating
expenses
|
(196)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(24,587)
|
|
—
|
|
(24,783)
|
|
Total non-interest
expense
|
(70)
|
|
—
|
|
44
|
|
—
|
|
—
|
|
—
|
|
(24,587)
|
|
—
|
|
(24,613)
|
|
Core earnings before
income taxes
|
40,964
|
|
4,826
|
|
6,766
|
|
3,660
|
|
30,912
|
|
952
|
|
(24,595)
|
|
(1,236)
|
(4)
|
62,249
|
|
Income tax
(expense)/benefit
|
(8,602)
|
|
(1,013)
|
|
(1,421)
|
|
(768)
|
|
(6,492)
|
|
(201)
|
|
5,816
|
|
260
|
|
(12,421)
|
|
Core earnings before
preferred stock dividends
|
32,362
|
|
3,813
|
|
5,345
|
|
2,892
|
|
24,420
|
|
751
|
|
(18,779)
|
|
(976)
|
(4)
|
49,828
|
|
Preferred stock
dividends
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,897)
|
|
—
|
|
(5,897)
|
|
Loss on retirement of
preferred stock
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,619)
|
|
(1,619)
|
|
Segment core
earnings/(losses)
|
$ 32,362
|
|
$ 3,813
|
|
$ 5,345
|
|
$ 2,892
|
|
$
24,420
|
|
$
751
|
|
$ (24,676)
|
|
$
(2,595)
|
(4)
|
$
42,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$
14,562,142
|
|
$
1,662,687
|
|
$
6,952,605
|
|
$
985,435
|
|
$
—
|
|
$ 6,389,160
|
|
$
63,192
|
|
$
—
|
|
$ 30,615,221
|
|
Total on- and
off-balance sheet program assets at principal balance
|
$
18,090,374
|
|
$
1,842,780
|
|
$
7,440,141
|
|
$
1,095,008
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$ 28,468,303
|
|
|
|
(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 "(Losses)/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 September 30,
2024
|
|
As of December 31,
2023
|
|
|
|
|
(in thousands)
|
|
Agricultural
Finance:
|
|
|
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
5,253,260
|
|
$
5,133,450
|
|
Loans
held in consolidated trusts:
|
|
|
|
|
|
|
|
Beneficial interests owned by third-party investors
(single-class)(1)
|
|
On-balance
sheet
|
|
879,727
|
|
870,912
|
|
Beneficial interests owned by third-party investors
(structured)(1)
|
|
On-balance
sheet
|
|
838,713
|
|
561,349
|
|
IO-FMGS(2)
|
|
On-balance
sheet
|
|
8,886
|
|
9,409
|
|
USDA
Securities
|
|
On-balance
sheet
|
|
2,373,473
|
|
2,368,872
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
4,975,000
|
|
5,835,000
|
|
LTSPCs
and unfunded loan commitments
|
|
Off-balance
sheet
|
|
2,767,320
|
|
2,999,943
|
|
Other
Farmer Mac Guaranteed Securities(3)
|
|
Off-balance
sheet
|
|
430,628
|
|
452,602
|
|
Loans
serviced for others
|
|
Off-balance
sheet
|
|
563,367
|
|
577,264
|
|
Total Farm &
Ranch
|
|
|
|
$
18,090,374
|
|
$
18,808,801
|
|
Corporate
AgFinance:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
1,297,563
|
|
$
1,259,723
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
354,876
|
|
288,879
|
|
Unfunded
loan commitments
|
|
Off-balance
sheet
|
|
190,341
|
|
145,377
|
|
Total Corporate
AgFinance
|
|
|
|
$
1,842,780
|
|
$
1,693,979
|
|
Total Agricultural
Finance
|
|
|
|
$
19,933,154
|
|
$
20,502,780
|
|
Rural Infrastructure
Finance:
|
|
|
|
|
|
|
|
Rural
Utilities:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
3,395,123
|
|
$
3,094,477
|
|
AgVantage
Securities(1)
|
|
On-balance
sheet
|
|
3,540,631
|
|
3,898,468
|
|
LTSPCs
and unfunded loan commitments
|
|
Off-balance
sheet
|
|
504,387
|
|
487,778
|
|
Total Rural
Utilities
|
|
|
|
$
7,440,141
|
|
$
7,480,723
|
|
Renewable
Energy:
|
|
|
|
|
|
|
|
Loans
|
|
On-balance
sheet
|
|
$
988,232
|
|
$
440,286
|
|
Unfunded
loan commitments
|
|
Off-balance
sheet
|
|
106,776
|
|
47,235
|
|
Total Renewable
Energy
|
|
|
|
$
1,095,008
|
|
$
487,521
|
|
Total Rural
Infrastructure Finance
|
|
|
|
$
8,535,149
|
|
$
7,968,244
|
|
Total
|
|
|
|
$
28,468,303
|
|
$
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(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2024(2)
|
$
35,755
|
|
1.05 %
|
|
$ 6,397
|
|
1.56 %
|
|
$ 7,579
|
|
0.44 %
|
|
$ 3,810
|
|
1.78 %
|
|
$
30,912
|
|
0.42 %
|
|
$
943
|
|
0.05 %
|
|
$
85,396
|
|
1.16 %
|
|
June 30,
2024
|
34,156
|
|
0.98 %
|
|
7,866
|
|
1.91 %
|
|
7,646
|
|
0.44 %
|
|
2,999
|
|
1.86 %
|
|
30,268
|
|
0.41 %
|
|
661
|
|
0.04 %
|
|
83,596
|
|
1.14 %
|
|
March 31,
2024
|
32,843
|
|
0.95 %
|
|
7,971
|
|
2.05 %
|
|
7,232
|
|
0.42 %
|
|
2,049
|
|
1.75 %
|
|
32,474
|
|
0.45 %
|
|
475
|
|
0.03 %
|
|
83,044
|
|
1.14 %
|
|
December 31,
2023
|
33,329
|
|
0.98 %
|
|
8,382
|
|
2.06 %
|
|
7,342
|
|
0.43 %
|
|
1,540
|
|
1.69 %
|
|
33,361
|
|
0.47 %
|
|
597
|
|
0.04 %
|
|
84,551
|
|
1.19 %
|
|
September 30,
2023
|
32,718
|
|
0.97 %
|
|
8,250
|
|
2.05 %
|
|
6,362
|
|
0.39 %
|
|
1,150
|
|
1.46 %
|
|
34,412
|
|
0.49 %
|
|
532
|
|
0.04 %
|
|
83,424
|
|
1.20 %
|
|
June 30,
2023
|
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 %
|
|
|
|
(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
September 30, 2024.
|
The following table presents quarterly core earnings reconciled
to net income attributable to common stockholders:
|
Core Earnings by
Quarter Ended
|
|
September
2024
|
|
June
2024
|
|
March
2024
|
|
December
2023
|
|
September
2023
|
|
June
2023
|
|
March
2023
|
|
December
2022
|
|
September
2022
|
|
(in
thousands)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread
|
$
85,396
|
|
$
83,596
|
|
$
83,044
|
|
$
84,551
|
|
$
83,424
|
|
$
81,832
|
|
$
77,173
|
|
$
71,103
|
|
$
65,641
|
|
Guarantee and
commitment fees
|
4,997
|
|
5,256
|
|
4,982
|
|
4,865
|
|
4,828
|
|
4,581
|
|
4,654
|
|
4,677
|
|
4,201
|
|
Gain on sale of
investment securities
|
—
|
|
1,052
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Loss on sale of
mortgage loan
|
—
|
|
(1,147)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other
|
1,133
|
|
481
|
|
1,077
|
|
767
|
|
1,056
|
|
409
|
|
1,067
|
|
390
|
|
473
|
|
Total
revenues
|
91,526
|
|
89,238
|
|
89,103
|
|
90,183
|
|
89,308
|
|
86,822
|
|
82,894
|
|
76,170
|
|
70,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
expense/(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for/(release
of) losses
|
3,258
|
|
6,230
|
|
(1,870)
|
|
(575)
|
|
(181)
|
|
1,142
|
|
750
|
|
1,945
|
|
450
|
|
REO operating
expenses
|
196
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
819
|
|
—
|
|
Total
credit related expense/(income)
|
3,454
|
|
6,230
|
|
(1,870)
|
|
(575)
|
|
(181)
|
|
1,142
|
|
750
|
|
2,764
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
15,237
|
|
14,840
|
|
18,257
|
|
15,523
|
|
14,103
|
|
13,937
|
|
15,351
|
|
12,105
|
|
11,648
|
|
General and
administrative
|
8,625
|
|
8,904
|
|
8,255
|
|
8,916
|
|
9,100
|
|
9,420
|
|
7,527
|
|
8,055
|
|
6,919
|
|
Regulatory
fees
|
725
|
|
725
|
|
725
|
|
725
|
|
831
|
|
831
|
|
835
|
|
832
|
|
812
|
|
Total
operating expenses
|
24,587
|
|
24,469
|
|
27,237
|
|
25,164
|
|
24,034
|
|
24,188
|
|
23,713
|
|
20,992
|
|
19,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
63,485
|
|
58,539
|
|
63,736
|
|
65,594
|
|
65,455
|
|
61,492
|
|
58,431
|
|
52,414
|
|
50,486
|
|
Income tax
expense
|
12,681
|
|
11,970
|
|
13,553
|
|
13,881
|
|
13,475
|
|
12,539
|
|
12,756
|
|
11,210
|
|
10,303
|
|
Preferred stock
dividends
|
5,897
|
|
6,792
|
|
6,791
|
|
6,791
|
|
6,792
|
|
6,791
|
|
6,791
|
|
6,791
|
|
6,791
|
|
Core
earnings
|
$
44,907
|
|
$
39,777
|
|
$
43,392
|
|
$
44,922
|
|
$
45,188
|
|
$
42,162
|
|
$
38,884
|
|
$
34,413
|
|
$
33,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses)/gains on
undesignated financial derivatives due to fair value
changes
|
$
(1,064)
|
|
$ (359)
|
|
$
1,683
|
|
$ (836)
|
|
$ 2,921
|
|
$
2,141
|
|
$ 916
|
|
$ 1,596
|
|
$ 6,441
|
|
Gains/(losses) on
hedging activities due to fair value changes
|
205
|
|
2,604
|
|
3,002
|
|
(3,598)
|
|
3,210
|
|
(4,901)
|
|
(105)
|
|
(148)
|
|
(624)
|
|
Unrealized
gains/(losses) on trading assets
|
99
|
|
(87)
|
|
(14)
|
|
(37)
|
|
1,714
|
|
(57)
|
|
359
|
|
31
|
|
(757)
|
|
Net effects of
amortization of premiums/discounts and deferred gains on
assets consolidated at fair value
|
27
|
|
26
|
|
31
|
|
88
|
|
29
|
|
29
|
|
29
|
|
57
|
|
24
|
|
Net effects of
terminations or net settlements on financial derivatives
|
(503)
|
|
(1,505)
|
|
(192)
|
|
(800)
|
|
(79)
|
|
583
|
|
523
|
|
1,268
|
|
(3,522)
|
|
Issuance costs on the
retirement of preferred stock
|
(1,619)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Income tax effect
related to reconciling items
|
260
|
|
(143)
|
|
(947)
|
|
1,089
|
|
(1,638)
|
|
464
|
|
(362)
|
|
(590)
|
|
(327)
|
|
Net income
attributable to common stockholders
|
$
42,312
|
|
$
40,313
|
|
$
46,955
|
|
$
40,828
|
|
$
51,345
|
|
$
40,421
|
|
$
40,244
|
|
$
36,627
|
|
$
34,627
|
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SOURCE Farmer Mac