Key Takeaways:
- Farmer Mac achieved record net effective spread and core earnings in the third quarter of 2025.
- Net interest income increased 13% year-over-year to $98.5 million.
- Net income attributable to common stockholders was $48.7 million, with record core earnings of $49.6 million.
- Total business volume surpassed $31 billion, supported by strong portfolio diversification.
- The company maintains a solid capital position, exceeding statutory requirements by 75%.
Farmer Mac Announces Strong Third Quarter 2025 Results
The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) announced its financial results for the fiscal quarter ended September 30, 2025, reporting another record-setting period driven by broad portfolio growth and disciplined capital management.
Net interest income grew 13% year-over-year to $98.5 million, while net effective spread, a key non-GAAP measure, rose 14% to $97.8 million. Net income attributable to common stockholders was $48.7 million, and core earnings reached a record $49.6 million, or $4.52 per diluted share, representing 10% growth over the same period in 2024.
Chief Executive Officer Brad Nordholm said, “We delivered strong business volume growth, surpassing $31 billion for the quarter, building on the momentum established in our record first half of the year. Our strengthened capital position further supports our balanced approach to invest in growth, maintain financial resilience, and deliver returns.”
Farmer Mac Expands Liquidity and Lending Capacity
In the third quarter of 2025, Farmer Mac provided $2.5 billion in liquidity and lending capacity to lenders across rural America. The company’s diversified portfolio by commodity and geography continued to support stable financial performance, even amid shifting market dynamics.
Farmer Mac also issued $100 million of Tier 1 capital through the public offering of 6.500% Series H non-cumulative preferred stock. As of September 30, 2025, the company’s total core capital reached $1.7 billion, exceeding its statutory requirement by 75%, and its Tier 1 Capital Ratio stood at 13.9%. Farmer Mac reported 317 days of available liquidity at quarter-end.
Record Core Earnings and Strong Balance Sheet
Farmer Mac’s record core earnings of $49.6 million were driven by continued growth in interest-earning assets and efficient funding strategies. The company’s core measures—excluding fair value fluctuations and infrequent transactions—reflect its underlying economic performance and are central to its financial planning.
Sequentially, net interest income increased by 2% from the prior quarter, while diluted GAAP earnings per share remained steady at $4.44. The combination of steady profitability and capital efficiency underscored Farmer Mac’s ability to manage growth while maintaining balance sheet resilience.
Financial Outlook and Strategic Position
Farmer Mac reaffirmed its focus on supporting the agricultural and rural infrastructure sectors through secondary market financing. With a total business volume exceeding $31 billion, the company continues to play a pivotal role in enhancing access to credit for rural lenders.
Nordholm emphasized that Farmer Mac’s approach remains “balanced and forward-looking,” noting that investments in capital strength and risk management position the company for sustained growth. Farmer Mac’s management highlighted confidence in portfolio health, citing diversified exposure across commodities and geographies.
Read the full financial report here.
1 Comment