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Overview of Farmer Mac's 2024 Results

The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, provided a comprehensive look at its fiscal performance for 2024, highlighting a notable growth trajectory. This report, delivered on February 21, 2025, revealed that Farmer Mac not only achieved an impressive $29.5 billion in business volume but also declared a substantial 7% increase in dividends, reflecting its commitment to enhancing shareholder value.

Key Financial Highlights

Farmer Mac's financial metrics for the year ended December 31, 2024, show solid growth compared to the previous year. Here are some of the most important highlights:

• - Net Interest Income: Experienced an 8% increase year-over-year, reaching $353.9 million. This growth underscores the company's robust earning power.
• - Net Effective Spread: Increased by 4% to $339.6 million, illustrating an effective management of interest income compared to corresponding expenses during the year.
• - Net Income: Traveler Mac reported $180.4 million in net income attributable to common stockholders, up from $172.8 million in 2023.
• - Core Earnings: Totaled $171.6 million, or $15.64 per diluted common share, showcasing steady profitability.
• - Total Core Capital: Increased to $1.5 billion alongside a strong Tier 1 Capital Ratio of 14.2%, indicating a solid equity position and financial stability.
• - Liquidity: As of December 31, 2024, Farmer Mac maintained 264 days of liquidity, ensuring operational flexibility and resilience to market fluctuations.

Dividend Announcement

Reflecting its strong performance and financial health, Farmer Mac's Board of Directors declared a quarterly dividend increase to $1.50 per share, marking the fourteenth consecutive annual increase. The dividend will be payable to shareholders by March 31, 2025, solidifying a tradition of returning value to its investors. This decision is fueled by the corporation's ongoing profitability and overall robust capital position.

Strategic Vision

Brad Nordholm, President and CEO, expressed optimism about Farmer Mac’s trajectory. He remarked, "We believe we are well-positioned to deliver on our multiyear strategy as we head into 2025 with good momentum, strong liquidity, and capital levels." This sentiment reflects the company's commitment to supporting rural America economically through accessible financing for agricultural and infrastructure development.

Looking Forward

As Farmer Mac steps into 2025, the outlook remains positive. With a diversified business model, effective risk management practices, and a dedicated team, the corporation aims to bolster its impact in rural financing. Nordholm's remarks emphasize a focus on fulfilling the organization's mission innovatively and profitably, creating a conducive environment for families, businesses, and communities in rural America.

In summary, Farmer Mac’s 2024 results underline resilience and growth, positioning the company strategically within the agriculture financing sector for future advancements.