Federal Agricultural Mortgage Corporation (Farmer Mac) reported its financial results for the first quarter of 2025, revealing a net income attributable to common stockholders of $43.985 million, a decrease from $46.955 million in the same period last year. The company's core earnings for the quarter were $45.966 million, up from $43.392 million in the prior year. The decline in net income was primarily attributed to a $5.5 million decrease in the fair value of financial derivatives and a $2.6 million decrease in federal income tax benefits, partially offset by a reduction in the provision for credit losses.
Total assets increased to $31.804 billion as of March 31, 2025, up from $31.325 billion at the end of 2024. This growth was driven by a rise in loans and investment securities, which reached $13.624 billion and $6.252 billion, respectively. The company’s liabilities also rose, with notes payable increasing to $27.975 billion, reflecting the need for funding to support new loan volumes. Farmer Mac's total equity grew to $1.526 billion, bolstered by retained earnings.
In terms of operational metrics, Farmer Mac's outstanding business volume reached $29.755 billion, a slight increase from $29.523 billion at the end of 2024. The company reported a net increase in its Infrastructure Finance segment, which saw a growth of over $1.5 billion, driven by strong demand for renewable energy projects and broadband infrastructure. Conversely, the Agricultural Finance segment experienced a decrease of $0.5 billion, primarily due to maturities of AgVantage securities.
Farmer Mac's credit quality indicators showed a rise in 90-day delinquencies, which increased to $160 million, representing 1.29% of the Agricultural Finance mortgage loan portfolio. This uptick was attributed to increased delinquencies in permanent plantings and crops, particularly in the Southwest region. Despite this, Farmer Mac maintains that its portfolio is adequately collateralized, and the overall credit risk remains manageable.
Looking ahead, Farmer Mac anticipates continued growth in its business volume, supported by its diverse product offerings and the ongoing demand for financing in the agricultural and infrastructure sectors. The company is focused on enhancing its servicing capabilities and investing in technology to improve operational efficiency, positioning itself to capitalize on future opportunities in the market.
About FEDERAL AGRICULTURAL MORTGAGE CORP
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