AgriBusiness Financial Results

Farmer Mac Reports Solid Q3 2024 with Loan Growth

The Farmer Mac announced positive financial results for Q3 of 2024, highlighting strong performance across its loan portfolio.
Photo by Julian Schöll on Unsplash

Key Takeaways:

  • Farmer Mac provided $2 billion in liquidity and lending capacity for rural America in Q3 2024.
  • Net income attributable to common stockholders reached $42.3 million, with core earnings of $44.9 million ($4.10 per diluted common share).
  • The company maintained a strong capital position with total core capital of $1.5 billion, exceeding statutory requirements by 66%.
  • Farmer Mac’s net effective spread increased by $2.0 million year-over-year, despite a slight decline in net interest income.

Growth in Loan Portfolio and Diversified Revenue Streams

The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) announced positive financial results for the third quarter of 2024, highlighting strong performance across its loan portfolio and a focus on diversifying revenue streams. Farmer Mac, a key provider of secondary market financing for U.S. agriculture and rural infrastructure, provided $2 billion in liquidity and lending capacity to lenders serving rural communities, showcasing its continued commitment to supporting rural America.

“Farmer Mac delivered another solid quarter, demonstrating yet again the benefits of our successful efforts to diversify our revenue streams,” said Brad Nordholm, President and CEO of Farmer Mac. “Our proactive balance sheet management and ability to leverage our strong capital base allow us to support American agriculture and rural infrastructure through changing market cycles, delivering value to our stockholders.”

Financial Highlights and Key Metrics

Revenue and Earnings Performance

For the quarter, Farmer Mac reported net income attributable to common stockholders of $42.3 million. Core earnings—a non-GAAP measure providing insight into ongoing business performance—came in at $44.9 million, translating to $4.10 per diluted common share. Net interest income reached $86.8 million, a slight 1% decrease compared to Q3 2023, while net effective spread—a key measure of profitability in Farmer Mac’s lending operations—increased by $2 million year-over-year to $85.4 million.

Despite a modest sequential decline in business volume, Farmer Mac demonstrated resilience through higher spread businesses and strategic expansion into new loan portfolios, which offset impacts from shifting market dynamics.

Capital and Liquidity Position

The company ended the quarter with a solid capital foundation, reporting $1.5 billion in total core capital—66% above the statutory minimum. The company’s Tier 1 Capital Ratio stood at a robust 14.2%, underscoring its strong financial health. With 309 days of liquidity as of September 30, 2024, Farmer Mac is well-positioned to maintain operational flexibility and support ongoing growth.

Focus on Rural Investment and Balance Sheet Strategy

Farmer Mac’s efforts to grow into higher spread businesses, along with its focus on new loan lines, reflect the company’s proactive strategy to navigate market shifts while supporting rural American communities. Nordholm noted that these efforts “continue to pay dividends for us through changing market cycles,” emphasizing the value of a diversified revenue model in maintaining stability amid economic variability.

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