Federal Agricultural Mortgage Corporation (Farmer Mac) reported its financial results for the third quarter of 2025, revealing a net income attributable to common stockholders of $48.7 million, an increase from $42.3 million in the same period last year. For the nine months ended September 30, 2025, net income rose to $141.9 million, compared to $129.6 million in 2024. The company’s net interest income for the quarter was $98.5 million, up from $86.8 million a year earlier, driven by a $3.6 million increase from new business volume and a $3.2 million decrease in funding costs. The net effective spread also improved to $97.8 million, reflecting a year-over-year increase of $12.4 million.
Farmer Mac's total assets increased by 7% to $33.4 billion as of September 30, 2025, compared to $31.3 billion at the end of 2024. This growth was primarily attributed to a rise in loan volume, which reached $15.4 billion, an 18% increase from $13.2 billion at the end of the previous year. The company’s investment securities also saw a significant rise, totaling $6.7 billion, up 12% from $6.0 billion. However, the Farmer Mac Guaranteed Securities decreased by 8% to $7.5 billion, reflecting a strategic shift in the company’s asset management.
In terms of operational developments, Farmer Mac issued 4.0 million shares of 6.500% non-cumulative perpetual Series H preferred stock, raising $96.9 million in equity. The company also revised its share repurchase program, increasing the authorized amount from $9.8 million to $50 million, with an expiration date extended to August 2027. As of the end of the third quarter, Farmer Mac maintained a strong capital position, with core capital of $1.7 billion, exceeding the minimum capital requirement by $723.4 million.
The company reported a total of 90-day delinquencies of $177.8 million, representing 1.35% of its Agricultural Finance mortgage loan portfolio, which is above the historical average of approximately 1%. The increase in delinquencies was primarily driven by credit downgrades in crops and permanent plantings. Despite this, Farmer Mac believes its portfolio is adequately collateralized and is positioned to manage potential credit losses effectively.
Looking ahead, Farmer Mac anticipates continued growth in its business volume, particularly in the Infrastructure Finance sector, driven by strong demand for renewable energy and broadband infrastructure projects. The company is focused on expanding its servicing capabilities and investing in technology to enhance operational efficiency. However, it remains vigilant regarding external factors such as interest rate fluctuations, trade policies, and agricultural market conditions that could impact its performance.
About FEDERAL AGRICULTURAL MORTGAGE CORP
Farmer Mac is a federally chartered government-sponsored enterprise providing a secondary market for agricultural and rural infrastructure loans. It purchases, guarantees, and securitizes loans and securities, supporting lenders and expanding access to rural financing. Its core activities include loan servicing, issuing guarantee and debt securities, and fostering liquidity in agricultural and infrastructure markets across the U.S.
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