#USA #Washington #Farmer Mac #Financial Growth #Q2 2025

Farmer Mac Reports Impressive Financial Results

On August 7, 2025, The Federal Agricultural Mortgage Corporation, widely known as Farmer Mac (NYSE: AGM and AGM.A), showcased its impressive performance for the second quarter of 2025. For the first time in its history, the corporation surpassed a remarkable milestone with total business volume exceeding $30 billion. This significant achievement is a testament to the organization's commitment to enhancing the accessibility of financing for American agriculture and rural infrastructure, ultimately contributing to economic vitality in rural communities across the nation.

Record Growth across Core Metrics

Farmer Mac experienced a year-over-year growth of 19% in core earnings and a 12% hike in net effective spread, underscoring the financial strength and operational efficiency. President and CEO Brad Nordholm expressed his excitement about the company's performance, emphasizing the diverse nature of the total portfolio, which spans various commodities and geographical areas. This diversification is seen as a vital factor in ensuring the robustness of Farmer Mac's operations throughout different economic cycles.

Financial Highlights

The financial highlights for the quarter ended June 30, 2025, include:

• - A record $2.1 billion was provided in liquidity and lending capacity to rural lenders.
• - Net interest income rose by 11%, tallying $96.8 million, attributing to effective interest rate management and strategic lending initiatives.
• - The net effective spread achieved an all-time high of $93.9 million, a 12% increase from the same period in 2024.
• - Net income for common stockholders showed a significant increase of 22% reaching $49.2 million.
• - Core earnings were reported at $47.4 million or $4.32 per diluted common share, reflecting a solid 19% growth year-over-year.
• - The capital position remained robust, with a total core capital of $1.6 billion, comfortably exceeding statutory requirements by 63%, and a Tier 1 Capital Ratio of 13.6%.

Strategic Initiatives for Continued Success

Farmer Mac's strategy to provide essential liquidity to American agriculture has positioned it as a leader in the secondary market for agricultural mortgages. In the second quarter alone, the company has delivered significant support to rural lenders, showcasing its unwavering commitment to facilitate sustainable growth and development in rural areas.

Looking ahead, the organization is set to maintain its trajectory of growth by focusing on strategic priorities and continuing to evolve with the changing landscape of the agricultural economy. The extension of a robust share repurchase program worth $50 million further attests to Farmer Mac's strong market confidence and a commitment to returning value to its shareholders.

The conference call for discussing these financial results further will occur on August 7, 2025, providing stakeholders and investors with insights into the numbers and the outlook for the second half of the fiscal year. Farmer Mac's consistent adaptability and focused mission underlie a positive outlook for continued revenue growth and the ongoing provision of vital liquidity to rural America.

Conclusion

In summary, Farmer Mac's outstanding performance in the second quarter of 2025 reveals its vital role in supporting American agriculture and enhancing the financial stability of rural communities. With strategic growth initiatives and a balanced portfolio, the organization is well-equipped to navigate both current and future economic challenges, ensuring that it remains a cornerstone of effective agricultural financing in the United States.