Farmer Mac Closes $313.5 Million Securitization of Agricultural Mortgage-Backed Securities (AMBS)

Rhea-AI Summary

Farmer Mac (NYSE: AGM) completed a $313.5 million agricultural mortgage-backed securitization (FARM Series 2025-2) on Dec. 3, 2025, pooling 343 agricultural mortgage loans with an aggregate principal balance of approximately $313.5 million.

The deal includes a $290.0 million senior tranche guaranteed by Farmer Mac and a $23.5 million unguaranteed subordinate tranche. The senior offering was structured into three guaranteed classes — A, A-1, and A-2 — to provide differing principal repayment cashflows and broaden investor options. Bank-led syndicate and law firms served as bookrunners and counsel.

Positive

• $313.5M securitization completed
• 343 loans in pooled mortgage portfolio
• $290.0M senior tranche guaranteed by Farmer Mac
• Senior tranche split into A, A-1, A-2 classes to widen investor options

Negative

• $23.5M unguaranteed subordinate tranche remains exposed to losses

News Market Reaction

-0.58%

1 alert

-0.58% News Effect

On the day this news was published, AGM declined 0.58%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Securitization size: $313.5 million Loan count: 343 loans Senior tranche: $290.0 million +3 more

6 metrics

Securitization size $313.5 million Agricultural mortgage-backed securitization (FARM Series 2025-2)

Loan count 343 loans Number of agricultural mortgage loans in securitized pool

Senior tranche $290.0 million Farmer Mac–guaranteed senior tranche in securitization

Subordinate tranche $23.5 million Unguaranteed subordinate tranche in securitization

Outstanding principal $313.5 million Aggregate principal balance of loans in mortgage pool

AMBS securitizations 7th transaction Seventh agricultural mortgage-backed securitization completed by Farmer Mac

Market Reality Check

Price: $171.22 Vol: Volume 77,474 is below th...

normal vol

$171.22 Last Close

Volume Volume 77,474 is below the 89,099 20-day average, indicating muted trading interest. normal

Technical Trading modestly above 200-day MA of 181.68, suggesting a pre-existing upward bias.

Peers on Argus

AGM gained 1.82% alongside peers like ENVA (+10.68%), SEZL (+2.64%), LU (+2.27%)...

AGM gained 1.82% alongside peers like ENVA (+10.68%), SEZL (+2.64%), LU (+2.27%), WU (+1.59%), and BFH (+0.49%), indicating a supportive sector backdrop for this positive securitization news.

Historical Context

5 past events · Latest: Dec 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 08	CFO appointment	Positive	+3.5%	New EVP–CFO and Treasurer with extensive capital markets background appointed.
Dec 03	AMBS securitization	Positive	-0.6%	Completed <b>$313.5M</b> agricultural mortgage-backed securitization with senior and subordinate tranches.
Nov 05	Dividend declaration	Positive	-4.7%	Declared <b>$1.50</b> per-share common dividend and dividends on five preferred series.
Nov 03	Earnings results	Positive	-0.3%	Reported record net effective spread and core earnings for Q3 2025.
Oct 20	Earnings preview	Neutral	+1.5%	Announced date and time for Q3 2025 earnings release and conference call.

Pattern Detected

Recent history shows multiple instances where fundamentally positive announcements (earnings strength, dividends, securitizations) were followed by flat or negative next-day moves, suggesting a tendency for the stock to underreact or fade good news.

Recent Company History

Over the last few months, Farmer Mac reported record third quarter 2025 results with $31.1 billion in outstanding business volume and record core earnings of $49.6 million, yet the stock reaction was slightly negative. A quarterly dividend of $1.50 per common share and subsequent securitization of $313.5 million in agricultural mortgage loans also saw muted to negative price responses. Leadership changes, including the appointment of a new CFO, drew a more positive reaction, highlighting mixed market responses to otherwise constructive corporate developments.

Market Pulse Summary

This announcement highlights Farmer Mac’s continued use of securitizations, exemplified by a $313.5 ...

Analysis

This announcement highlights Farmer Mac’s continued use of securitizations, exemplified by a $313.5 million agricultural mortgage-backed transaction pooling 343 loans into senior and subordinate tranches. It reinforces the company’s role in recycling capital for rural credit while adding structural sophistication via multiple guaranteed classes. In context of recent record core earnings and ongoing dividend payments, investors may watch future securitization volumes, loan performance, and any related regulatory disclosures to assess the platform’s growth and risk transfer effectiveness.

Key Terms

securitization, agricultural mortgage-backed securities, tranche, senior tranche, +4 more

8 terms

securitization financial

"announced today that it has completed a $313.5 million securitization of agricultural"

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

agricultural mortgage-backed securities financial

"securitization of agricultural mortgage loans...support a vibrant and liquid AMBS market"

A financial product made by bundling many farm and agricultural property loans into one package and selling shares of the income stream to investors, so each investor receives portions of the loan repayments and interest. It matters because it lets investors earn regular income tied to the agricultural real estate market—similar to owning slices of many farm mortgages at once—but carries risks from interest rates, loan defaults, commodity prices and weather that can affect repayment.

tranche financial

"This deal included a $290.0 million senior tranche guaranteed by Farmer Mac and a $23.5"

A tranche is one slice of a larger financing or investment that is released, sold, or paid out in separate parts rather than all at once. Investors care because each slice can carry different risk, return and timing—like buying pieces of a cake where some slices are richer or come later—so the specific tranche you hold affects when you get paid and how much you might gain or lose.

senior tranche financial

"This deal included a $290.0 million senior tranche guaranteed by Farmer Mac"

A senior tranche is the part of a loan or investment that gets paid back first if there’s a loss or when payments are made. It’s like being in the front seat on a roller coaster—you're the first to receive your share, which makes it safer but usually offers lower returns. This matters because it shows which investors are more protected in case things go wrong.

subordinate tranche financial

"and a $23.5 million unguaranteed subordinate tranche."

A subordinate tranche is a slice of a pooled debt or securities deal that gets paid after higher-priority slices, so it bears losses first if borrowers default. Think of it like the last roommate to get rent money—more likely to lose payments but typically offered a higher interest rate to compensate. Investors watch tranche position because it determines potential return, volatility, and how vulnerable the investment is in downturns.

forward-looking statements regulatory

"This release contains "forward-looking statements" within the meaning of the"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

regulation fd regulatory

"The company disclosed this transaction under a Regulation FD item and attached"

Regulation FD is a rule that prevents company insiders, like executives, from sharing important information with some people before others get it. It matters because it helps ensure all investors have equal access to key news, making the stock market fairer and reducing chances of insider trading.

secondary market financial

"the nation's secondary market provider that increases the accessibility of financing"

The secondary market is where investors buy and sell financial assets, such as stocks or bonds, after they have been initially issued. It functions like a marketplace where ownership changes hands, allowing investors to cash out or acquire investments more easily. This market provides liquidity, making it easier for people to turn their investments into cash or find new opportunities.

AI-generated analysis. Not financial advice.

WASHINGTON, Dec. 3, 2025 /PRNewswire/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure, announced today that it has completed a $313.5 million securitization of agricultural mortgage loans.

"The successful completion of our seventh agricultural mortgage-backed securitization demonstrates our commitment to grow our securitization platform and support a vibrant and liquid AMBS market that is central to our core mission to improve credit accessibility in rural America," said Chief Executive Officer, Brad Nordholm. "This transaction reflects the strength of Farmer Mac's portfolio, as agricultural assets continue to generate significant institutional investor demand despite the volatile macroeconomic climate."

The mortgage pool for FARM Series 2025-2 consists of 343 agricultural mortgage loans with an aggregate outstanding principal balance of approximately $313.5 million. The loans in the pool were underwritten to Farmer Mac's industry-leading standards. This deal included a $290.0 million senior tranche guaranteed by Farmer Mac and a $23.5 million unguaranteed subordinate tranche. The senior tranche reflects an enhanced sophistication of the securitization by offering notes in three classes, A, A-1, and A-2, each of which are guaranteed by Farmer Mac. These three guaranteed classes provide for differing principal repayment cashflows, which provided more investment options and drove new investor demand.

"We are very pleased with the tremendous support we've seen for this program and look forward to exploring other credit risk transfer opportunities to grow our platform while continuing to deliver high-quality opportunities for our investors," said President and Chief Operating Officer, Zack Carpenter. "We anticipate introducing a new product in the market next year that will support the strong investor demand for agricultural assets, while also remaining in alignment with our mission fulfillment."

BofA Securities, Inc. and J.P. Morgan Securities LLC acted as joint bookrunners along with Raymond James & Associates, Inc., CastleOak Securities, L.P., and Seaport Global Securities LLC, as selling group members. Dechert LLP served as legal advisor to Farmer Mac. Morgan, Lewis & Bockius LLP served as legal advisor to BofA Securities, Inc., J.P. Morgan Securities LLC, Raymond James & Associates, Inc., CastleOak Securities, L.P., and Seaport Global Securities LLC.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of management of Farmer Mac and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. 

More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in Farmer Mac's filings from time to time with the Securities and Exchange Commission (the "SEC"), including in Farmer Mac's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, as well as Farmer Mac's other filings with the SEC (including Current Reports on Form 8-K) available at the SEC's website (www.sec.gov). These reports are also available on Farmer Mac's website (www.farmermac.com). All forward-looking statements are based on information available to Farmer Mac on the date hereof, and Farmer Mac assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Farmer Mac

Farmer Mac is driven by its mission to increase the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure. Our secondary market provides liquidity to our nation's agricultural and infrastructure businesses, supporting a vibrant and strong rural America. We offer a wide range of solutions to help meet financial institutions' growth, liquidity, risk management, and capital relief needs across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy. We are uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and prosperity in America's rural and agricultural communities. Additional information about Farmer Mac is available on our website at www.farmermac.com.

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SOURCE Farmer Mac

FAQ

What did Farmer Mac (AGM) announce on Dec. 3, 2025 about AMBS?

Farmer Mac closed a $313.5 million agricultural mortgage-backed securitization titled FARM Series 2025-2.

How many loans and what size were included in Farmer Mac's FARM Series 2025-2?

The pool contained 343 agricultural mortgage loans with an aggregate outstanding principal of about $313.5 million.

What tranches did Farmer Mac (AGM) issue in the Dec. 3, 2025 securitization?

The deal included a $290.0M senior tranche guaranteed by Farmer Mac and a $23.5M unguaranteed subordinate tranche.

Why did Farmer Mac offer three guaranteed classes in the senior tranche (AGM)?

The senior tranche was split into classes A, A-1, and A-2 to provide differing principal repayment cashflows and expand investor choices.

Who acted as bookrunners and legal counsel on Farmer Mac's $313.5M AMBS deal?

BofA Securities and J.P. Morgan acted as joint bookrunners with several selling group members; Dechert LLP advised Farmer Mac and Morgan Lewis advised the banks.

Does Farmer Mac expect more AMBS products after the Dec. 3, 2025 transaction?

Yes; management stated they anticipate introducing a new product next year to meet investor demand while aligning with their mission.