Farmer Mac hits record $38.5B business volume in Q3
Farmer Mac acquired servicing rights associated with approximately $1.4 billion of Farm & Ranch loans, including loans it owns and loans serviced for others.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Federal Agricultural Mortgage Corporation (AGM) reported third-quarter 2026 results, including record outstanding business volume of $38.5 billion, up 24% year over year. Net interest income rose 18% to $115.9 million, while net effective spread, a non-GAAP measure, increased 16% to $113.9 million. Revenue was $122.7 million, up 17% year over year; net income attributable to common stockholders was $54.9 million, or $5.03 per diluted share.
Core earnings, a non-GAAP measure that excludes fair-value fluctuations and certain specified infrequent or unusual transactions, were $52.6 million, up 6% year over year; diluted core EPS rose 7% to $4.82. Net interest income and net effective spread declined quarter over quarter, primarily because a nonrecurring event had favorably affected second-quarter interest income. Core earnings were down $6.2 million quarter over quarter, and diluted core EPS declined 11%. As of September 30, 2026, total core capital was $1.9 billion and the Tier 1 Capital Ratio was 12.9%. Farmer Mac provided $2.7 billion in liquidity and lending capacity to lenders serving rural America.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 17% year over year to $122.7 million.
- Moderate pointCore earnings rose 6% year over year to $52.6 million.
Negative
- Moderate pointCore diluted EPS declined 11% quarter over quarter to $4.82.
Filing Explained
As of September thirtieth, twenty twenty-six, Farmer Mac reported liquidity above its regulatory minimum.
The earnings presentation reports
As of
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Outstanding business volume: $38.5 billion
Net interest income: $115.9 million
Net effective spread: $113.9 million
+5 more
8 metrics
Outstanding business volume
$38.5 billion
Third quarter 2026; up 24% year over year
Net interest income
$115.9 million
Third quarter 2026; up 18% year over year
Net effective spread
$113.9 million
Third quarter 2026; up 16% year over year; non-GAAP measure
Revenue
$122.7 million
Third quarter 2026; up 17% year over year
Net income attributable to common stockholders
$54.9 million
Third quarter 2026; increased $6.2 million year over year
Core earnings
$52.6 million
Third quarter 2026; up 6% year over year; non-GAAP measure
Diluted core EPS
$4.82
Third quarter 2026; up 7% year over year
Tier 1 Capital Ratio
12.9%
As of September 30, 2026
Key Terms
Net effective spread, Core earnings, AgVantage Securities, Substandard assets, +1 more
5 terms
Net effective spread financial
"Net effective spread is a non-GAAP measure"
Net effective spread measures the true cost of buying or selling a stock after accounting for any rebates, fees, and price improvements; it compares the execution price to a fair reference price and shows the net amount investors give up to complete a trade. Think of it like the final price you pay for an online purchase after discounts and delivery charges—useful because smaller net spreads mean cheaper, more efficient trading and better liquidity.
Core earnings financial
"core earnings exclude the effects of fair value fluctuations"
Core earnings are the profit a business generates from its normal, ongoing operations after removing one-time gains or losses and unusual accounting adjustments; think of it as the recurring paycheck a household can expect each month rather than a one-off inheritance or sale. Investors care because it highlights the company’s sustainable cash-making ability and makes performance easier to compare across periods and with other firms.
AgVantage Securities financial
"AgVantage Securities"
Substandard assets financial
"Substandard assets have a well-defined weakness or weaknesses"
nonaccrual status financial
"Farm & Ranch loans on nonaccrual status"
Nonaccrual status is when a lender stops recording interest income on a loan because payments are late or the borrower’s ability to pay is in serious doubt. For investors this is a red flag: it signals deteriorating loan quality, can reduce reported earnings and may require the lender to set aside more reserves, much like marking a damaged product off the books until its value is clear.
Earnings Snapshot
Revenue: $122.7 million
Quarter ended September 30, 2026
Revenue
$122.7 million
+17% year over year
Net interest income
$115.9 million
+18% year over year
Net income attributable to common stockholders
$54.9 million
Increased $6.2 million year over year
Core earnings
$52.6 million
+6% year over year
Diluted EPS
$5.03
+13% year over year
Diluted core EPS
$4.82
+7% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did AGM report in Q3 2026?
AGM reported revenue of $122.7 million for the third quarter of 2026, up 17% year over year. The presentation identifies revenue as a component of core earnings.
What were AGM's earnings in Q3 2026?
Net income attributable to common stockholders was $54.9 million, while non-GAAP core earnings were $52.6 million. Diluted GAAP EPS was $5.03 and diluted core EPS was $4.82.
Which AGM business line grew fastest in Q3 2026?
Renewable Energy business volume grew 57% year over year in the third quarter of 2026; Broadband Infrastructure grew 56%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 5, 2026
(Exact name of registrant as specified in its charter)
Federally chartered instrumentality of the United States | ||||||||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code (202 ) 872-7700
No change
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026, the Federal Agricultural Mortgage Corporation (“Farmer Mac”) issued a press release to announce (1) its financial results for the quarterly period ended September 30, 2026 and (2) a conference call to discuss those results. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.1 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.
The information furnished in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (“Securities Act”), except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
On November 5, 2026, Farmer Mac posted an investor slide presentation entitled "Earnings Presentation Third Quarter 2026" to its website at www.farmermac.com under the tab “Invest in Rural America — Equity Investors.” Farmer Mac expects to use the Third Quarter 2026 Presentation in connection with future presentations to analysts and investors. The slide presentation is attached as Exhibit 99.2 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.2 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.
The information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated November 5, 2026
99.2 Earnings Presentation Third Quarter 2026
104 Cover Page Inline Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document included as Exhibit 101
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION
By: /s/ Geraldine I. Hayhurst
Name: Geraldine I. Hayhurst
Title: Executive Vice President – Chief Legal Officer
Dated: November 5, 2026
Farmer Mac Reports Third Quarter 2026 Results
- Outstanding Business Volume of $38.5 billion -
WASHINGTON, D.C., November 5, 2026 — The Federal Agricultural Mortgage Corporation ("Farmer Mac"; NYSE: AGM and AGM.A) today announced its results for the fiscal quarter ended September 30, 2026.
Third Quarter 2026 Highlights
•Record outstanding business volume of $38.5 billion, reflecting 24% growth year-over-year
•Provided $2.7 billion in liquidity and lending capacity to lenders serving rural America
•Net interest income grew 18% year-over-year to $115.9 million
•Net effective spread1 increased 16% from the prior-year period to $113.9 million
•Net income attributable to common stockholders was $54.9 million, or $5.03 per diluted share
•Strong core earnings1 of $52.6 million, or $4.82 per diluted share, reflecting 6% and 7% growth year-over-year, respectively
•Total core capital of $1.9 billion and a Tier 1 Capital Ratio of 12.9% as of September 30, 2026
•Acquired servicing rights associated with approximately $1.4 billion of Farm & Ranch loans, including loans we own and loans serviced for others
"Farmer Mac delivered record third quarter results, with outstanding business volume and year-to-date revenue and core earnings reaching new all-time highs," said Zachary Carpenter, President and Chief Executive Officer. "We achieved these results in a market environment characterized by greater uncertainty and increasingly challenging conditions. Farmer Mac’s ability to successfully navigate these market dynamics while continuing to serve as a reliable source of secondary market liquidity reflects our mission focus, the strength of our team, and our market position."
$ in millions, except per share amounts | Quarter Ended | ||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | QoQ % Change2 | YoY % Change2 | |||||||||||||
| Outstanding Business Volume | $38,476 | $37,197 | $31,119 | 3% | 24% | ||||||||||||
| Net Interest Income (GAAP) | $116 | $118 | $98 | (2)% | 18% | ||||||||||||
| Net Effective Spread (Non-GAAP) | $114 | $117 | $98 | (3)% | 16% | ||||||||||||
| Diluted EPS (GAAP) | $5.03 | $5.41 | $4.44 | (7)% | 13% | ||||||||||||
| Diluted Core EPS (Non-GAAP) | $4.82 | $5.40 | $4.52 | (11)% | 7% | ||||||||||||
1Non-GAAP (Generally Accepted Accounting Principles) Measure
2Percentage changes may not compute directly as shown due to rounding of amounts presented above
1
"Our diversified portfolios, strong capital position, and disciplined approach to underwriting and risk management allow us to reliably support rural America through market and economic cycles," Mr. Carpenter continued. "While we remain mindful of the evolving conditions in the U.S. agricultural markets and the significant investment needs to support infrastructure in rural communities, we are confident in the durability of our business model and are well positioned to continue advancing our mission while delivering high-quality earnings and long-term value for our shareholders."
Third Quarter 2026 Income Statement Highlights
•Net interest income and net effective spread increased $17.4 million and $16.1 million year-over-year, respectively. Net interest income and net effective spread decreased $2.2 million and $3.6 million quarter-over-quarter, respectively, which was primarily driven by a nonrecurring event that favorably impacted interest income during the second quarter of 2026.
•Credit provisions primarily related to new volume growth, updated loss estimates associated with a single telecommunications credit in the Broadband Infrastructure segment, and portfolio credit migration trends.
•Net income attributable to common stockholders increased $6.2 million year-over-year and decreased $4.0 million quarter-over-quarter.
•Core earnings increased $3.0 million year-over-year and decreased $6.2 million quarter-over-quarter to $52.6 million.
•Core return on equity was 16% in the third quarter, reflecting strong margins and efficient deployment of capital.
| $ in millions | Quarter Ended September 30, 2026 | ||||||||||||||||
% of Outstanding Business Volume | Segment | Business Volume | Net Effective Spread | YoY Volume Growth | |||||||||||||
Agricultural Finance | 63% | Farm & Ranch | $22,286 | 0.94% | 22% | ||||||||||||
Corporate AgFinance | $2,144 | 2.38% | 13% | ||||||||||||||
Infrastructure Finance | 37% | Power & Utilities | $8,431 | 0.35% | 14% | ||||||||||||
Renewable Energy | $3,594 | 1.63% | 57% | ||||||||||||||
Broadband Infrastructure | $2,021 | 2.32% | 56% | ||||||||||||||
Third Quarter 2026 Portfolio Highlights
•Broad-based, net portfolio growth of $1.3 billion reflective of strong customer demand across all segments.
•Farm & Ranch portfolio grew by $297.8 million, primarily due to the acquisition of servicing rights related to approximately $280 million of loans owned by third-parties.
•Corporate AgFinance portfolio grew modestly by $61.0 million due primarily to loan purchase activity.
•Power & Utilities business volume increased $164.6 million, as rural electric providers invest in system upgrades and grid modernization to meet growing electrification demand.
•Strong business volume in Renewable Energy drove net growth of $586.4 million, reflecting continued investment in new renewable generation capacity.
•Broadband Infrastructure business volume grew $168.8 million, reflecting the continued secular growth in telecommunications, data connectivity, and digital infrastructure investment.
2
Earnings Conference Call Information
The conference call to discuss Farmer Mac's third quarter 2026 financial results will be held beginning at 4:30 p.m. eastern time on Thursday, November 5, 2026, and can be accessed by telephone or live webcast as follows:
Telephone (Domestic): (888) 880-3330
Telephone (International): (646) 357-8766
Webcast: https://www.farmermac.com/equity-investors
When dialing in to the call, please ask for the "Farmer Mac Earnings Conference Call." The call can be heard live and will also be available for replay on Farmer Mac’s website for one week following the conclusion of the call.
Use of Non-Generally Accepted Accounting Principles (GAAP) Measures
Farmer Mac uses "non-GAAP measures" in our analysis of financial information. Non-GAAP measures represent measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: (1) "core earnings," (2) "core earnings per common share," and (3) "net effective spread," in both dollars and percentage yield. In Farmer Mac's view, these non-GAAP measures are useful alternative measures in understanding our economic performance, transaction economics, and business trends. Farmer Mac's non-GAAP financial measures may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.
Core Earnings and Core Earnings Per Common Share
The main difference between core earnings and core earnings per common share, which are non-GAAP measures, and net income attributable to common stockholders and earnings per common share, which are GAAP measures, is that those non-GAAP measures exclude the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Additionally, these two non-GAAP measures exclude specified infrequent or unusual transactions that Farmer Mac believes are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business.
Net Effective Spread
Farmer Mac uses net effective spread to measure the net spread earned between interest-earning assets and the related net funding costs, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.
Net effective spread excludes the following:
•Interest income and interest expense associated with single-class consolidated trusts with beneficial interests owned by third parties and for which we guarantee all classes of securities issued ("single-class consolidated trusts") and reclassifies that activity to guarantee and commitment fees in determining our core earnings. This reclassification reflects our view that the net interest income earned on single-class consolidated trusts is effectively a guarantee fee.
3
•Fair value changes of financial derivatives and corresponding financial assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on our financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.
•The amortization of premiums and discounts on assets consolidated at fair value.
Net effective spread includes the following:
•Income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). For undesignated financial derivatives, we record the income or expense related to the accrual of the contractual amounts due in "Gains/(losses) on financial derivatives" on the Consolidated Statements of Operations below.
•The net effects of terminations or net settlements on undesignated financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other government-sponsored enterprises and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that we receive upon the inception of certain swaps. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the Consolidated Statements of Operations in the period in which they occur. For net effective spread, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.
For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per common share, and net interest income and net interest yield to net effective spread, see "Reconciliations" below.
Forward-Looking Statements
Management's expectations for our future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause our actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release, including uncertainties about:
•the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;
•legislative, regulatory, or current or future political developments that could affect us, our sources of business, or agricultural or infrastructure industries;
•fluctuations in the fair value of assets held by us and our subsidiaries;
•the level of lender interest in our products and the secondary market provided by us;
•the general rate of growth in agricultural mortgage and infrastructure indebtedness;
•the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or infrastructure lending, borrower repayment capacity, or collateral values, including inflation, fluctuations in interest rates, changes in U.S. trade policies (including tariffs and trade restrictions), fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices;
•the degree to which we are exposed to interest rate risk resulting from fluctuations in our borrowing costs relative to market indices;
4
•developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises;
•the effects of the Federal Reserve’s efforts to achieve monetary policy normalization to respond to inflation and employment levels; and
•other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, or fluctuations in agricultural real estate values.
Other risk factors are discussed in "Risk Factors" in Part I, Item 1A in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 19, 2026. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. The forward-looking statements contained in this release represent management's expectations as of the date of this release. Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements included in this release to reflect new information or any future events or circumstances, except as otherwise required by applicable law. The information in this release is not necessarily indicative of future results.
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. The secondary market served by Farmer Mac 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.
CONTACT: Eric Estey, Investor Relations
Lisa Meyer, Media Inquiries
(202) 872-7700
* * * *
5
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
| As of | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents (includes restricted cash of $17,881 and $24,475, respectively) | $ | 991,445 | $ | 931,067 | |||||||
| Investment securities: | |||||||||||
Available-for-sale, at fair value (amortized cost of $15,557,363 and $13,813,551, respectively) | 14,885,573 | 13,580,285 | |||||||||
| Held-to-maturity, at amortized cost | 4,475,876 | 3,954,223 | |||||||||
| Other investments | 19,442 | 15,871 | |||||||||
| Total Investment Securities | 19,380,891 | 17,550,379 | |||||||||
| Loans: | |||||||||||
| Loans held for investment, at amortized cost | 16,689,890 | 13,877,051 | |||||||||
| Loans held for investment in consolidated trusts, at amortized cost | 2,225,946 | 2,482,010 | |||||||||
| Allowance for losses | (48,325) | (37,785) | |||||||||
| Total loans, net of allowance | 18,867,511 | 16,321,276 | |||||||||
| Financial derivatives, at fair value | 19,912 | 44,875 | |||||||||
| Accrued interest receivable (includes $26,284 and $40,945, respectively, related to consolidated trusts) | 350,365 | 357,155 | |||||||||
| Guarantee and commitment fees receivable | 56,272 | 57,214 | |||||||||
| Deferred tax asset, net | 22,689 | 173 | |||||||||
| Prepaid expenses and other assets | 332,301 | 108,018 | |||||||||
| Total Assets | $ | 40,021,386 | $ | 35,370,157 | |||||||
| Liabilities and Equity: | |||||||||||
| Liabilities: | |||||||||||
| Notes payable | $ | 35,416,101 | $ | 30,822,570 | |||||||
| Debt securities of consolidated trusts held by third parties | 2,115,699 | 2,365,435 | |||||||||
| Financial derivatives, at fair value | 219,897 | 21,618 | |||||||||
| Accrued interest payable (includes $13,154 and $15,795, respectively, related to consolidated trusts) | 295,314 | 233,714 | |||||||||
| Guarantee and commitment obligation | 54,439 | 54,770 | |||||||||
| Other liabilities | 77,291 | 153,101 | |||||||||
| Total Liabilities | 38,178,741 | 33,651,208 | |||||||||
| Commitments and Contingencies | |||||||||||
| Equity: | |||||||||||
| Preferred stock: | |||||||||||
| Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,659 | 96,659 | |||||||||
Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding | 77,003 | 77,003 | |||||||||
| Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding | 116,160 | 116,160 | |||||||||
| Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding | 121,327 | 121,327 | |||||||||
Series H, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,844 | 96,844 | |||||||||
Series I, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,764 | — | |||||||||
| Common stock: | |||||||||||
| Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding | 1,031 | 1,031 | |||||||||
| Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding | 500 | 500 | |||||||||
Class C Non-Voting, $1 par value, no maximum authorization, 9,325,873 shares and 9,325,556 shares outstanding, respectively | 9,326 | 9,326 | |||||||||
| Additional paid-in capital | 141,562 | 139,370 | |||||||||
Accumulated other comprehensive (loss)/income, net of tax | (68,266) | 13,382 | |||||||||
| Retained earnings | 1,153,735 | 1,047,347 | |||||||||
| Total Equity | 1,842,645 | 1,718,949 | |||||||||
| Total Liabilities and Equity | $ | 40,021,386 | $ | 35,370,157 | |||||||
6
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | ||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Investment securities and cash equivalents | $ | 229,611 | $ | 216,882 | $ | 648,242 | $ | 640,515 | |||||||||||||||
| Loans | 242,881 | 198,459 | 690,471 | 555,262 | |||||||||||||||||||
| Total interest income | 472,492 | 415,341 | 1,338,713 | 1,195,777 | |||||||||||||||||||
| Total interest expense | 356,568 | 316,864 | 1,003,318 | 909,564 | |||||||||||||||||||
| Net interest income | 115,924 | 98,477 | 335,395 | 286,213 | |||||||||||||||||||
| Provision for losses | (11,069) | (7,433) | (23,265) | (16,828) | |||||||||||||||||||
| Net interest income after provision for losses | 104,855 | 91,044 | 312,130 | 269,385 | |||||||||||||||||||
| Non-interest income/(expense): | |||||||||||||||||||||||
| Guarantee and commitment fees | 6,123 | 5,021 | 18,039 | 14,316 | |||||||||||||||||||
Gains/(losses) on financial derivatives | 1,515 | (1,062) | 2,879 | (3,618) | |||||||||||||||||||
| Other income | 1,692 | 1,482 | 3,949 | 3,958 | |||||||||||||||||||
| Non-interest income | 9,330 | 5,441 | 24,867 | 14,656 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Compensation and employee benefits | 20,617 | 17,743 | 65,580 | 53,126 | |||||||||||||||||||
| General and administrative | 13,150 | 11,052 | 36,003 | 32,669 | |||||||||||||||||||
| Regulatory fees | 863 | 1,000 | 2,588 | 3,000 | |||||||||||||||||||
| Operating expenses | 34,630 | 29,795 | 104,171 | 88,795 | |||||||||||||||||||
| Income before income taxes | 79,555 | 66,690 | 232,826 | 195,246 | |||||||||||||||||||
| Income tax expense | 15,344 | 11,687 | 42,541 | 35,755 | |||||||||||||||||||
| Net income | 64,211 | 55,003 | 190,285 | 159,491 | |||||||||||||||||||
| Preferred stock dividends | (9,335) | (6,303) | (24,700) | (17,636) | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 54,876 | $ | 48,700 | $ | 165,585 | $ | 141,855 | |||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||
| Basic earnings per common share | $ | 5.06 | $ | 4.45 | $ | 15.26 | $ | 12.99 | |||||||||||||||
| Diluted earnings per common share | $ | 5.03 | $ | 4.44 | $ | 15.18 | $ | 12.93 | |||||||||||||||
7
Reconciliations
Reconciliations of Farmer Mac's net income attributable to common stockholders and basic and diluted GAAP earnings per common share ("EPS") to core earnings and basic and diluted core earnings per common share ("Core EPS") are presented in the following tables along with information about the composition of core earnings for the periods indicated. Basic EPS is based on the daily weighted-average number of shares of common stock outstanding. Diluted EPS is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights and unvested restricted stock unit awards.
| Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings | |||||||||||||||||
| For the Three Months Ended | |||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| Net income attributable to common stockholders | $ | 54,876 | $ | 58,877 | $ | 48,700 | |||||||||||
| Less reconciling items: | |||||||||||||||||
| Gains on undesignated financial derivatives due to fair value changes | 1,908 | 184 | 882 | ||||||||||||||
| Gains/(losses) on hedging activities due to fair value changes | 2,250 | 889 | (137) | ||||||||||||||
| Unrealized (losses)/gains on trading securities | (97) | 59 | (4) | ||||||||||||||
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1) | 26 | 26 | 26 | ||||||||||||||
| Net effects of terminations or net settlements on financial derivatives | (1,182) | (1,017) | (1,934) | ||||||||||||||
| Income tax effect related to reconciling items | (610) | (30) | 245 | ||||||||||||||
| Sub-total | 2,295 | 111 | (922) | ||||||||||||||
| Core earnings | $ | 52,581 | $ | 58,766 | $ | 49,622 | |||||||||||
| Composition of Core Earnings: | |||||||||||||||||
| Revenues: | |||||||||||||||||
Net effective spread(2) | $ | 113,886 | $ | 117,438 | $ | 97,769 | |||||||||||
Guarantee and commitment fees(3) | 6,998 | 7,044 | 6,132 | ||||||||||||||
Other(4) | 1,849 | 742 | 1,185 | ||||||||||||||
| Total revenues | 122,733 | 125,224 | 105,086 | ||||||||||||||
| Credit related expense/(income) (GAAP): | |||||||||||||||||
| Provision for losses | 11,069 | 7,369 | 7,433 | ||||||||||||||
| Other credit related expense/(income) | 385 | — | — | ||||||||||||||
| Total credit related expense/(income) | 11,454 | 7,369 | 7,433 | ||||||||||||||
| Operating expenses (GAAP): | |||||||||||||||||
| Compensation and employee benefits | 20,617 | 23,706 | 17,743 | ||||||||||||||
| General and administrative | 13,150 | 11,591 | 11,052 | ||||||||||||||
| Regulatory fees | 863 | 862 | 1,000 | ||||||||||||||
| Total operating expenses | 34,630 | 36,159 | 29,795 | ||||||||||||||
| Net earnings | 76,649 | 81,696 | 67,858 | ||||||||||||||
Income tax expense(5) | 14,733 | 14,856 | 11,933 | ||||||||||||||
| Preferred stock dividends (GAAP) | 9,335 | 8,074 | 6,303 | ||||||||||||||
| Core earnings | $ | 52,581 | $ | 58,766 | $ | 49,622 | |||||||||||
| Core earnings per share: | |||||||||||||||||
| Basic | $ | 4.84 | $ | 5.42 | $ | 4.54 | |||||||||||
| Diluted | $ | 4.82 | $ | 5.40 | $ | 4.52 | |||||||||||
8
(1)Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.
(2)Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.
(3)Includes net interest income of $0.8 million and $1.1 million for the three months ended September 30, 2026 and 2025, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.
(4)Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(5)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.
| Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings | |||||||||||
| For the Nine Months Ended | |||||||||||
| September 30, 2026 | September 30, 2025 | ||||||||||
| (in thousands, except per share amounts) | |||||||||||
| Net income attributable to common stockholders | $ | 165,585 | $ | 141,855 | |||||||
| Less reconciling items: | |||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 1,413 | (2,330) | |||||||||
| Gains on hedging activities due to fair value changes | 3,501 | 3,671 | |||||||||
| Unrealized gains/(losses) on trading securities | 15 | (60) | |||||||||
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1) | 96 | 79 | |||||||||
| Net effects of terminations or net settlements on financial derivatives | (1,864) | (2,749) | |||||||||
| Income tax effect related to reconciling items | (664) | 291 | |||||||||
| Sub-total | 2,497 | (1,098) | |||||||||
| Core earnings | $ | 163,088 | $ | 142,953 | |||||||
| Composition of Core Earnings: | |||||||||||
| Revenues: | |||||||||||
Net effective spread(2) | $ | 333,323 | $ | 281,652 | |||||||
Guarantee and commitment fees(3) | 20,757 | 17,494 | |||||||||
Other(4) | 3,776 | 3,242 | |||||||||
| Total revenues | 357,856 | 302,388 | |||||||||
| Credit related expense (GAAP): | |||||||||||
| Provision for losses | 23,265 | 16,828 | |||||||||
| Other credit related expense/(income) | 755 | 129 | |||||||||
| Total credit related expense | 24,020 | 16,957 | |||||||||
| Operating expenses (GAAP): | |||||||||||
| Compensation and employee benefits | 65,580 | 53,126 | |||||||||
| General and administrative | 36,003 | 32,669 | |||||||||
| Regulatory fees | 2,588 | 3,000 | |||||||||
| Total operating expenses | 104,171 | 88,795 | |||||||||
| Net earnings | 229,665 | 196,636 | |||||||||
Income tax expense(5) | 41,877 | 36,047 | |||||||||
| Preferred stock dividends (GAAP) | 24,700 | 17,636 | |||||||||
| Core earnings | $ | 163,088 | $ | 142,953 | |||||||
| Core EPS: | |||||||||||
| Basic | $ | 15.03 | $ | 13.09 | |||||||
| Diluted | $ | 14.96 | $ | 13.03 | |||||||
(1)Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.
(2)Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.
9
(3)Includes net interest income of $2.7 million and $3.1 million for the nine months ended September 30, 2026 and 2025, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.
(4)Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(5)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.
| Reconciliation of GAAP Basic EPS to Core Earnings - Basic EPS | |||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||||||||
| GAAP - Basic EPS | $ | 5.06 | $ | 5.43 | $ | 4.45 | $ | 15.26 | $ | 12.99 | |||||||||||||||||||
| Less reconciling items: | |||||||||||||||||||||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.18 | 0.02 | 0.08 | 0.13 | (0.21) | ||||||||||||||||||||||||
| Gains/(losses) on hedging activities due to fair value changes | 0.21 | 0.07 | (0.01) | 0.32 | 0.33 | ||||||||||||||||||||||||
| Unrealized (losses)/gains on trading securities | (0.01) | 0.01 | — | — | (0.01) | ||||||||||||||||||||||||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | — | — | 0.01 | 0.01 | ||||||||||||||||||||||||
| Net effects of terminations or net settlements on financial derivatives | (0.10) | (0.09) | (0.18) | (0.17) | (0.25) | ||||||||||||||||||||||||
| Income tax effect related to reconciling items | (0.06) | — | 0.02 | (0.06) | 0.03 | ||||||||||||||||||||||||
| Sub-total | 0.22 | 0.01 | (0.09) | 0.23 | (0.10) | ||||||||||||||||||||||||
| Core Earnings - Basic EPS | $ | 4.84 | $ | 5.42 | $ | 4.54 | $ | 15.03 | $ | 13.09 | |||||||||||||||||||
| Shares used in per share calculation (GAAP and Core Earnings) | 10,853 | 10,849 | 10,934 | 10,849 | 10,921 | ||||||||||||||||||||||||
| Reconciliation of GAAP Diluted EPS to Core Earnings - Diluted EPS | |||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||||||||||||||
| GAAP - Diluted EPS | $ | 5.03 | $ | 5.41 | $ | 4.44 | $ | 15.18 | $ | 12.93 | |||||||||||||||||||
| Less reconciling items: | |||||||||||||||||||||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.17 | 0.02 | 0.08 | 0.13 | (0.21) | ||||||||||||||||||||||||
| Gains/(losses) on hedging activities due to fair value changes | 0.21 | 0.07 | (0.01) | 0.32 | 0.33 | ||||||||||||||||||||||||
| Unrealized (losses)/gains on trading securities | (0.01) | 0.01 | — | — | (0.01) | ||||||||||||||||||||||||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | — | — | 0.01 | 0.01 | ||||||||||||||||||||||||
| Net effects of terminations or net settlements on financial derivatives | (0.10) | (0.09) | (0.17) | (0.17) | (0.25) | ||||||||||||||||||||||||
| Income tax effect related to reconciling items | (0.06) | — | 0.02 | (0.07) | 0.03 | ||||||||||||||||||||||||
| Sub-total | 0.21 | 0.01 | (0.08) | 0.22 | (0.10) | ||||||||||||||||||||||||
| Core Earnings - Diluted EPS | $ | 4.82 | $ | 5.40 | $ | 4.52 | $ | 14.96 | $ | 13.03 | |||||||||||||||||||
| Shares used in per share calculation (GAAP and Core Earnings) | 10,909 | 10,882 | 10,972 | 10,905 | 10,973 | ||||||||||||||||||||||||
10
The following table presents a reconciliation of GAAP net interest income and net yield to net effective spread for the periods indicated:
| Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 115,924 | 1.16 | % | $ | 118,075 | 1.24 | % | $ | 98,477 | 1.18 | % | $ | 335,395 | 1.18 | % | $ | 286,213 | 1.17 | % | |||||||||||||||||||||||||||||||||||||||
| Net effects of consolidated trusts | (779) | 0.01 | % | (1,023) | 0.02 | % | (1,102) | 0.02 | % | (2,732) | 0.01 | % | (3,100) | 0.02 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Expense related to undesignated financial derivatives | 315 | — | % | 556 | — | % | (707) | (0.01) | % | 1,840 | 0.01 | % | (597) | — | % | ||||||||||||||||||||||||||||||||||||||||||||
| Amortization of premiums/discounts on assets consolidated at fair value | (24) | — | % | (24) | — | % | (23) | — | % | (89) | — | % | (69) | — | % | ||||||||||||||||||||||||||||||||||||||||||||
| Amortization of losses due to terminations or net settlements on financial derivatives | 700 | 0.01 | % | 743 | 0.01 | % | 987 | 0.01 | % | 2,410 | 0.01 | % | 2,876 | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Fair value changes on fair value hedge relationships | (2,250) | (0.02) | % | (889) | (0.01) | % | 137 | — | % | (3,501) | (0.02) | % | (3,671) | (0.01) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Net effective spread | $ | 113,886 | 1.16 | % | $ | 117,438 | 1.26 | % | $ | 97,769 | 1.20 | % | $ | 333,323 | 1.19 | % | $ | 281,652 | 1.19 | % | |||||||||||||||||||||||||||||||||||||||
11
The following table presents core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended September 30, 2026:
| Core Earnings by Business Segment | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| Agricultural Finance | Infrastructure Finance | Treasury | |||||||||||||||||||||||||||||||||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Total | ||||||||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 198,694 | $ | 28,469 | $ | 79,943 | $ | 19,735 | $ | 39,124 | $ | 20,481 | $ | 86,046 | $ | 472,492 | |||||||||||||||||||||||||||||||
Interest (expense)/benefit(1) | (158,086) | (17,541) | (73,053) | (12,588) | (28,010) | 17,807 | (85,097) | (356,568) | |||||||||||||||||||||||||||||||||||||||
Less: reconciling adjustments(2)(3) | (778) | — | (25) | — | — | (1,235) | — | (2,038) | |||||||||||||||||||||||||||||||||||||||
| Net effective spread | 39,830 | 10,928 | 6,865 | 7,147 | 11,114 | 37,053 | 949 | 113,886 | |||||||||||||||||||||||||||||||||||||||
Guarantee and commitment fees(3) | 4,782 | 252 | 195 | 1,088 | 681 | — | — | 6,998 | |||||||||||||||||||||||||||||||||||||||
Other income/(expense) | 1,520 | 44 | — | — | (100) | — | — | 1,464 | |||||||||||||||||||||||||||||||||||||||
| Provision for losses | (430) | (1,385) | (219) | (7,027) | (2,008) | — | — | (11,069) | |||||||||||||||||||||||||||||||||||||||
Operating expenses(1) | (7,838) | (2,487) | (1,228) | (1,813) | (2,084) | (2,888) | (993) | (19,331) | |||||||||||||||||||||||||||||||||||||||
Income tax (expense)/benefit | (7,951) | (1,544) | (1,179) | 128 | (1,597) | (7,175) | 9 | (19,309) | |||||||||||||||||||||||||||||||||||||||
Segment core earnings | $ | 29,913 | $ | 5,808 | $ | 4,434 | $ | (477) | $ | 6,006 | $ | 26,990 | $ | (35) | $ | 72,639 | |||||||||||||||||||||||||||||||
Reconciliation to net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net effects of derivatives and trading securities | $ | 2,879 | |||||||||||||||||||||||||||||||||||||||||||||
Unallocated (expenses)/income | (15,272) | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect related to reconciling items | 3,965 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 64,211 | |||||||||||||||||||||||||||||||||||||||||||||
Total Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Total on- and off-balance sheet segment assets at principal balance | $ | 22,285,578 | $ | 2,143,737 | $ | 8,431,244 | $ | 2,020,729 | $ | 3,594,450 | $ | — | $ | — | $ | 38,475,738 | |||||||||||||||||||||||||||||||
Off-balance sheet assets under management | (6,525,042) | ||||||||||||||||||||||||||||||||||||||||||||||
Unallocated assets | 8,070,690 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets on the Consolidated Balance Sheets | $ | 40,021,386 | |||||||||||||||||||||||||||||||||||||||||||||
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Executive Officer who is Farmer Mac's Chief Operating Decision Maker.
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
12
Supplemental Information
The following table sets forth information about outstanding volume in each of Farmer Mac's lines of business as of the dates indicated:
| Outstanding Business Volume | ||||||||||||||
As of September 30, 2026 | As of December 31, 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Agricultural Finance: | ||||||||||||||
| Farm & Ranch: | ||||||||||||||
Loans and other securities | $ | 9,546,418 | $ | 8,492,788 | ||||||||||
AgVantage Securities | 5,670,000 | 4,270,000 | ||||||||||||
| USDA Securities | 2,557,882 | 2,443,432 | ||||||||||||
Unfunded commitments & guarantees | 3,879,886 | 3,977,136 | ||||||||||||
| Loans serviced for others | 631,392 | 381,560 | ||||||||||||
| Total Farm & Ranch | $ | 22,285,578 | $ | 19,564,916 | ||||||||||
| Corporate AgFinance: | ||||||||||||||
| Loans and other securities | $ | 1,526,246 | $ | 1,460,691 | ||||||||||
AgVantage Securities | 326,802 | 190,977 | ||||||||||||
| Unfunded commitments & guarantees | 290,689 | 298,868 | ||||||||||||
| Total Corporate AgFinance | $ | 2,143,737 | $ | 1,950,536 | ||||||||||
| Total Agricultural Finance | $ | 24,429,315 | $ | 21,515,452 | ||||||||||
| Infrastructure Finance: | ||||||||||||||
| Power & Utilities: | ||||||||||||||
| Loans and other securities | $ | 4,234,230 | $ | 3,548,523 | ||||||||||
AgVantage Securities | 3,863,702 | 3,967,154 | ||||||||||||
| Unfunded commitments & guarantees | 333,312 | 344,945 | ||||||||||||
Total Power & Utilities | $ | 8,431,244 | $ | 7,860,622 | ||||||||||
| Broadband Infrastructure: | ||||||||||||||
| Loans and other securities | $ | 1,282,466 | $ | 1,009,890 | ||||||||||
| Unfunded commitments & guarantees | 738,263 | 522,316 | ||||||||||||
| Total Broadband Infrastructure | $ | 2,020,729 | $ | 1,532,206 | ||||||||||
| Renewable Energy: | ||||||||||||||
| Loans and other securities | $ | 2,942,950 | $ | 2,202,668 | ||||||||||
| Unfunded commitments & guarantees | 651,500 | 240,621 | ||||||||||||
| Total Renewable Energy | $ | 3,594,450 | $ | 2,443,289 | ||||||||||
Total Infrastructure Finance | $ | 14,046,423 | $ | 11,836,117 | ||||||||||
| Total | $ | 38,475,738 | $ | 33,351,569 | ||||||||||
13
The following table presents the quarterly net effective spread by segment:
| Net Effective Spread | |||||||||||||||||||||||||||||||||||||||||||||||
| Agricultural Finance | Infrastructure Finance | Treasury | |||||||||||||||||||||||||||||||||||||||||||||
| Farm & Ranch | Corporate AgFinance | Power & Utilities | Broadband Infrastructure | Renewable Energy | Funding | Investments | Net Effective Spread | ||||||||||||||||||||||||||||||||||||||||
| Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | Dollars Yield | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| For the quarter ended: | |||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | $ | 39,830 | $ | 10,928 | $ | 6,865 | $ | 7,147 | $ | 11,114 | $ | 37,053 | $ | 949 | $ | 113,886 | |||||||||||||||||||||||||||||||
| 0.94 | % | 2.38 | % | 0.35 | % | 2.32 | % | 1.63 | % | 0.38 | % | 0.04 | % | 1.16 | % | ||||||||||||||||||||||||||||||||
| June 30, 2026 | 40,063 | 16,769 | 6,962 | 6,578 | 10,773 | 35,229 | 1,064 | 117,438 | |||||||||||||||||||||||||||||||||||||||
| 1.01 | % | 3.76 | % | 0.36 | % | 2.30 | % | 1.72 | % | 0.38 | % | 0.05 | % | 1.26 | % | ||||||||||||||||||||||||||||||||
| March 31, 2026 | 37,673 | 8,939 | 6,491 | 5,828 | 9,079 | 32,647 | 1,342 | 101,999 | |||||||||||||||||||||||||||||||||||||||
| 1.03 | % | 2.05 | % | 0.35 | % | 2.27 | % | 1.59 | % | 0.37 | % | 0.07 | % | 1.16 | % | ||||||||||||||||||||||||||||||||
| December 31, 2025 | 36,180 | 8,601 | 6,159 | 5,610 | 8,995 | 33,694 | 2,150 | 101,389 | |||||||||||||||||||||||||||||||||||||||
| 1.06 | % | 2.07 | % | 0.34 | % | 2.42 | % | 1.74 | % | 0.41 | % | 0.11 | % | 1.22 | % | ||||||||||||||||||||||||||||||||
| September 30, 2025 | 34,840 | 9,047 | 5,910 | 4,379 | 7,730 | 34,777 | 1,086 | 97,769 | |||||||||||||||||||||||||||||||||||||||
| 1.04 | % | 2.16 | % | 0.34 | % | 2.30 | % | 1.75 | % | 0.43 | % | 0.05 | % | 1.20 | % | ||||||||||||||||||||||||||||||||
| June 30, 2025 | 35,710 | 8,609 | 5,636 | 3,932 | 6,227 | 31,668 | 2,111 | 93,893 | |||||||||||||||||||||||||||||||||||||||
| 1.07 | % | 2.07 | % | 0.33 | % | 2.24 | % | 1.68 | % | 0.40 | % | 0.11 | % | 1.19 | % | ||||||||||||||||||||||||||||||||
| March 31, 2025 | 33,885 | 8,640 | 5,329 | 3,566 | 5,112 | 31,604 | 1,854 | 89,990 | |||||||||||||||||||||||||||||||||||||||
| 1.01 | % | 2.09 | % | 0.32 | % | 2.27 | % | 1.55 | % | 0.41 | % | 0.10 | % | 1.17 | % | ||||||||||||||||||||||||||||||||
| December 31, 2024 | 32,556 | 7,891 | 5,059 | 3,414 | 4,859 | 31,242 | 2,507 | 87,528 | |||||||||||||||||||||||||||||||||||||||
| 0.96 | % | 1.95 | % | 0.32 | % | 2.34 | % | 1.76 | % | 0.42 | % | 0.15 | % | 1.16 | % | ||||||||||||||||||||||||||||||||
| September 30, 2024 | 35,755 | 6,397 | 4,785 | 2,794 | 3,810 | 30,912 | 943 | 85,396 | |||||||||||||||||||||||||||||||||||||||
| 1.05 | % | 1.56 | % | 0.30 | % | 2.21 | % | 1.78 | % | 0.42 | % | 0.05 | % | 1.16 | % | ||||||||||||||||||||||||||||||||
14
The following table presents quarterly core earnings reconciled to net income attributable to common stockholders (in thousands):
| Core Earnings by Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 2026 | June 2026 | March 2026 | December 2025 | September 2025 | June 2025 | March 2025 | December 2024 | September 2024 | |||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net effective spread | $ | 113,886 | $ | 117,438 | $ | 101,999 | $ | 101,389 | $ | 97,769 | $ | 93,893 | $ | 89,990 | $ | 87,528 | $ | 85,396 | |||||||||||||||||||||||||||||||||||
| Guarantee and commitment fees | 6,998 | 7,044 | 6,715 | 6,298 | 6,132 | 5,874 | 5,488 | 5,086 | 4,997 | ||||||||||||||||||||||||||||||||||||||||||||
| Other | 1,849 | 742 | 1,185 | 224 | 1,185 | 742 | 1,315 | (491) | 1,133 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenues | 122,733 | 125,224 | 109,899 | 107,911 | 105,086 | 100,509 | 96,793 | 92,123 | 91,526 | ||||||||||||||||||||||||||||||||||||||||||||
| Credit related expense/(income): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for/(release of) losses | 11,069 | 7,369 | 4,827 | 16,085 | 7,433 | 7,812 | 1,583 | 3,872 | 3,258 | ||||||||||||||||||||||||||||||||||||||||||||
Other credit related expense/(income) | 385 | — | 370 | 1,168 | — | 61 | 68 | — | 196 | ||||||||||||||||||||||||||||||||||||||||||||
| Total credit related expense/(income) | 11,454 | 7,369 | 5,197 | 17,253 | 7,433 | 7,873 | 1,651 | 3,872 | 3,454 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Compensation and employee benefits | 20,617 | 23,706 | 21,257 | 18,199 | 17,743 | 17,631 | 17,752 | 15,641 | 15,237 | ||||||||||||||||||||||||||||||||||||||||||||
| General and administrative | 13,150 | 11,591 | 11,262 | 11,944 | 11,052 | 10,859 | 10,758 | 12,452 | 8,625 | ||||||||||||||||||||||||||||||||||||||||||||
| Regulatory fees | 863 | 862 | 863 | 863 | 1,000 | 1,000 | 1,000 | 1,000 | 725 | ||||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 34,630 | 36,159 | 33,382 | 31,006 | 29,795 | 29,490 | 29,510 | 29,093 | 24,587 | ||||||||||||||||||||||||||||||||||||||||||||
| Net earnings | 76,649 | 81,696 | 71,320 | 59,652 | 67,858 | 63,146 | 65,632 | 59,158 | 63,485 | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 14,733 | 14,856 | 12,288 | 12,370 | 11,933 | 10,114 | 14,000 | 9,938 | 12,681 | ||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | 9,335 | 8,074 | 7,291 | 7,286 | 6,303 | 5,667 | 5,666 | 5,666 | 5,897 | ||||||||||||||||||||||||||||||||||||||||||||
| Core earnings | $ | 52,581 | $ | 58,766 | $ | 51,741 | $ | 39,996 | $ | 49,622 | $ | 47,365 | $ | 45,966 | $ | 43,554 | $ | 44,907 | |||||||||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gains/(losses) on undesignated financial derivatives due to fair value changes | $ | 1,908 | $ | 184 | $ | (679) | $ | 447 | $ | 882 | $ | (639) | $ | (2,573) | $ | 3,084 | $ | (1,064) | |||||||||||||||||||||||||||||||||||
Gains/(losses) on hedging activities due to fair value changes | 2,250 | 889 | 362 | 3,107 | (137) | 2,709 | 1,099 | 5,737 | 205 | ||||||||||||||||||||||||||||||||||||||||||||
| Unrealized (losses)/gains on trading securities | (97) | 59 | 53 | (66) | (4) | (65) | 9 | (83) | 99 | ||||||||||||||||||||||||||||||||||||||||||||
| Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 26 | 26 | 44 | 24 | 26 | 25 | 28 | (39) | 27 | ||||||||||||||||||||||||||||||||||||||||||||
| Net effects of terminations or net settlements on financial derivatives | (1,182) | (1,017) | 335 | (2,699) | (1,934) | 255 | (1,070) | 534 | (503) | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance costs on the retirement of preferred stock | — | — | — | — | — | — | — | — | (1,619) | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax effect related to reconciling items | (610) | (30) | (24) | (171) | 245 | (480) | 526 | (1,939) | 260 | ||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common stockholders | $ | 54,876 | $ | 58,877 | $ | 51,832 | $ | 40,638 | $ | 48,700 | $ | 49,170 | $ | 43,985 | $ | 50,848 | $ | 42,312 | |||||||||||||||||||||||||||||||||||
15
EARNINGS PRESENTATION Third Quarter 2026
Forward-Looking Statements This Presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Farmer Mac's plans, objectives, expectations, beliefs, intentions, future financial results, business prospects, and business developments, and may be identified by words such as "may," "believe," "consider," "should," "could," "continue" or similar expressions. Forward-looking statements are based on Farmer Mac's current expectations and assumptions and are subject to significant risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements. These factors include, among others, financing availability and costs; legislative, regulatory, or political developments; market, economic, and interest-rate conditions; lender demand for Farmer Mac's products and programs; developments affecting the agricultural and infrastructure industries; borrower repayment capacity; commodity price volatility; trade policies; severe weather events; and developments in financial markets. Additional information regarding factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements is contained in Farmer Mac's filings with the Securities and Exchange Commission ("SEC"), including the Risk Factors sections of Farmer Mac's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other SEC filings, which are available at www.sec.gov and www.farmermac.com. All forward-looking statements are based on information available to Farmer Mac as of the date of this Presentation. Farmer Mac undertakes 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. NO OFFER OR SOLICITATION OF SECURITIES This Presentation is subject to the Legal Disclaimer accompanying this Presentation. Any investment decision regarding a Farmer Mac security should be made solely on the basis of the applicable offering documents. Copyright © 2026 Federal Agricultural Mortgage Corporation. All rights reserved.
This Presentation includes certain non-GAAP financial measures, including core earnings, core earnings per share, and net effective spread. Farmer Mac uses these measures to evaluate its economic performance, transaction economics, business trends, and financial results. Management believes these measures provide useful supplemental information to investors and other users of financial information regarding Farmer Mac's operating performance. These non-GAAP financial measures should not be considered in isolation from, as a substitute for, or as more important than the corresponding financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). In addition, non-GAAP financial measures used by Farmer Mac may not be comparable to similarly titled measures reported by other companies. Core earnings and core earnings per share differ from GAAP net income attributable to common stockholders and earnings per common share primarily because they exclude the effects of fair value fluctuations and certain specified infrequent or unusual transactions that management believes are not indicative of ongoing operating performance. Net effective spread differs from GAAP net interest income and net interest yield primarily due to adjustments related to consolidated trusts, derivatives, hedge accounting, and other specified items. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Appendix to this Presentation. Additional information regarding these measures is available in Farmer Mac's SEC filings. Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures
KEY HIGHLIGHTS
Key Third Quarter 2026 Highlights 5 Accelerated Business Volume Growth • 24% year-over-year growth to $38.5 billion • Broad-based growth across business operating segments Strong Revenue Growth • Revenue increased 17% year-over-year to $122.7 million • 98% of total revenue is recurring net effective spread (NES) and fees Strong Core Earnings • Core earnings of $52.6 million reflects 6% year-over-year growth • Operating efficiency ratio remains below 30% strategic target Robust Capital Position • $1.9 billion of capital exceeds minimum capital requirements by 62% • Tier 1 capital ratio of 12.9% Strong Shareholder Returns • 16% return on equity • $17 million in dividends returned to common shareholders STRONG AND ROBUST THIRD QUARTER 2026 RESULTS
OUTSTANDING BUSINESS VOLUME
SUPPORTING GROWING LIQUIDITY NEEDS ACROSS A DYNAMIC RURAL ECONOMY 7 Net effective spread is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. $31.1 $33.4 $34.8 $37.2 $38.5 1.20% 1.22% 1.16% 1.26% 1.16% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $0.0 $4.0 $8.0 $12.0 $16.0 $20.0 $24.0 $28.0 $32.0 $36.0 $40.0 3Q25 4Q25 1Q26 2Q26 3Q26 N ES (% ) Bu si ne ss V ol um e ($ in b illi on s) Farm & Ranch Corporate AgFinance Power & Utilities Renewable Energy Broadband Infrastructure NES
QUARTERLY VOLUME GROWTH: AGRICULTURAL FINANCE 8 Net effective spread is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. $18.2 $19.6 $20.2 $22.0 $22.3 1.04% 1.06% 1.03% 1.01% 0.94% 0.80% 1.00% 1.20% 1.40% 1.60% $0.0 $7.0 $14.0 $21.0 $28.0 3Q25 4Q25 1Q26 2Q26 3Q26 N ES (% ) Bu si ne ss V ol um e ($ in b illi on s) FARM & RANCH Loans & other securities AgVantage NES $1.9 $2.0 $2.1 $2.1 $2.1 2.16% 2.07% 2.05% 3.76% 2.38% 0.00% 2.50% 5.00% 7.50% 10.00% $0.0 $0.6 $1.2 $1.8 $2.4 3Q25 4Q25 1Q26 2Q26 3Q26 N ES (% ) Bu si ne ss V ol um e ($ in b illi on s) CORPORATE AGFINANCE Loans & other securities AgVantage NES Farm & Ranch portfolio grew by $0.3 billion during the third quarter of 2026 • The Farm & Ranch portfolio increased during the quarter, primarily reflecting an acquisition of field servicing rights related to approximately $280 million of loans owned by third-parties. • NES percentage sequential decrease due to seasonal increase of Farm & Ranch loans on nonaccrual status after the July payment cycle and portfolio mix from growth in tighter spread AgVantage balances. Corporate AgFinance loan purchase portfolio grew modestly • NES percentage increased year-over-year but decreased sequentially. The sequential decline was due to a one-time benefit that favorably impacted NES in the second quarter. Excluding the one-time benefit, NES percentage would have increased 28 basis points.
QUARTERLY VOLUME GROWTH: INFRASTRUCTURE FINANCE 9 Net effective spread is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. $1.3 $1.5 $1.7 $1.9 $2.0 2.30% 2.42% 2.27% 2.30% 2.32% 1.75% 2.00% 2.25% 2.50% 2.75% $0.0 $0.5 $1.0 $1.5 $2.0 3Q25 4Q25 1Q26 2Q26 3Q26 N ES (% ) Bu si ne ss V ol um e ($ in b illi on s) BROADBAND INFRASTRUCTURE Loans & Other Securities NES $7.4 $7.9 $8.0 $8.3 $8.4 0.34% 0.34% 0.35% 0.36% 0.35% 0.00% 0.25% 0.50% 0.75% 1.00% $0.0 $3.0 $6.0 $9.0 $12.0 3Q25 4Q25 1Q26 2Q26 3Q26 N ES (% ) Bu si ne ss V ol um e ($ in b illi on s) POWER & UTILITIES Loans & Other Securities AgVantage NES $2.3 $2.4 $2.9 $3.0 $3.6 1.75% 1.74% 1.59% 1.72% 1.63% 1.40% 1.55% 1.70% 1.85% 2.00% $0.0 $1.0 $2.0 $3.0 $4.0 3Q25 4Q25 1Q26 2Q26 3Q26 N ES (% ) Bu si ne ss V ol um e ($ in b illi on s) RENEWABLE ENERGY Loans & other securities NES Infrastructure Finance grew $0.9 billion in the third quarter of 2026, with Renewable Energy contributing approximately $0.6 billion of net growth • All three segments contributed growth, reflecting strong demand for liquidity to support data connectivity infrastructure, rural energy generation and transmission upgrades, and renewable energy development. • Renewable Energy was the primary driver of business volume growth reflecting sustained increases in investment in new generation capacity to meet growing electricity demand.
FINANCIAL HIGHLIGHTS
Revenue of $122.7 million driven by strong NES of $113.9 million • Year-over-year NES was primarily supported by business volume growth across all product lines and segments. • Excluding a non-recurring benefit recognized in the prior quarter, revenue increased $4.9 million sequentially, driven by higher NES from business volume growth across all products lines and segments. Core earnings of $52.6 million, or $4.82 per diluted common share • Core earnings per diluted share grew 7%, year-over-year, due to sustained volume growth and an adjusted operating efficiency ratio* of 27.5%. • Core earnings increase year-over-year driven primarily by volume growth and increased revenues. Core return on common equity of 16.3% • Core return on common equity year-over-year decline driven by growth in common equity. FINANCIAL RESULTS HIGH-QUALITY, CONSISTENT REVENUE AND EARNINGS 3Q2026 RESULTS 11 *Adjusted operating efficiency is the summation of compensation & benefits and general & administrative divided by total revenue. Total revenue is defined as a component of core earnings. Core earnings is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. $105 $108 $110 $125 $123 $50 $40 $52 $59 $53 17.0% 13.4% 17.1% 18.9% 16.3% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 32.0% $25 $40 $55 $70 $85 $100 $115 $130 3Q25 4Q25 1Q26 2Q26 3Q26 C ore R eturn on C om m on Equity (% ) $ in m illi on s Revenue Core Earnings Core Return on Common Equity
BALANCE SHEET SUMMARY 12Table may not sum to total due to rounding. $ in billions (except per share amounts) 3Q26 2Q26 Quarter-over-Quarter Variance 3Q25 Year-over-Year Variance $ % $ % Cash and Cash Equivalents $1.0 $1.0 $0.0 0.0% $0.9 $0.1 11.1% Investment Securities $19.4 $19.4 $0.0 0.0% $16.6 $2.8 16.9% Loans $18.9 $18.2 $0.7 3.8% $15.4 $3.5 22.7% Other $0.8 $0.6 $0.2 33.3% $0.5 $0.3 60.0% Total Assets $40.0 $39.3 $0.7 1.8% $33.4 $6.6 19.8% Notes Payable and Debt Securities $37.5 $36.9 $0.6 1.6% $31.3 $6.2 19.8% Other $0.6 $0.5 $0.1 20.0% $0.4 $0.2 50.0% Total Liabilities $38.2 $37.4 $0.8 2.1% $31.7 $6.5 20.5% Total Equity $1.8 $1.9 ($0.1) (5.3%) $1.7 $0.1 5.9% Book Value per Share $120.31 $116.86 $3.45 2.9% $108.33 $11.98 11.1% Tier 1 Capital Ratio 12.9% 13.2% N/A (0.3%) 13.9% N/A (1.0%)
Contributing to our NES growth is our effective asset liability management and funding execution Proactive funding strategies are a strategic lever to drive NES performance supporting profitability Deliberate balance sheet structure designed to be minimally sensitive to interest rate changes 13 FUNDING LEVELS AND INTEREST RATE SENSITIVITY Net effective spread is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. -1.0% -0.4% 0.0% -1.3% 0.4% 0.3% 2.4% 2.9% 2.4% 1.3% -5% -3% -1% 1% 3% 5% 3Q26 2Q26 1Q26 4Q25 3Q25 Up 100 Basis Points Down 100 Basis Points NES SPREAD SENSITIVITIES TO +/- 100 BASIS POINT SHOCKS 6 33 0 10 20 30 40 50 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 5- Ye ar B ul le t S pr ea d to 5 -Y ea r U S Tr ea su ry N ot e Yi el ds (in b as is p oi nt s) FARMER MAC’S FUNDING ADVANTAGE Farmer Mac Spreads AAA Spreads For example, issued 5-year bullets at 6 bps over UST (as of September 30, 2026)
OPERATING EXPENSES DISCIPLINED OPERATING EFFICIENCY 14 *Adjusted operating efficiency is the summation of compensation & benefits and general & administrative divided by total revenue. Total revenue is defined as a component of core earnings. $29 $30 $33 $35 $34 27.4% 27.9% 29.6% 28.2% 27.5% 10.0% 20.0% 30.0% 40.0% 50.0% $0 $9 $18 $27 $36 3Q25 4Q25 1Q26 2Q26 3Q26 Adjusted O perating Efficiency (% ) $ in m illi on s Compensation & Benefits General & Administrative Adjusted Operating Efficiency Long-Term Operating Efficiency Target Operating expenses, excluding regulatory fees, decreased (4%) quarter-over-quarter and increased 17% year-over-year • Decreased quarter-over-quarter compensation & benefits expense primarily reflects bonus accruals returning to more typical levels following a prior quarter true-up. • Higher year-over-year compensation & benefits expense was driven by increased headcount, higher bonus accruals associated with strong financial performance, and the timing of compensation expense recognition within 2026. • Higher year-over-year general & administrative expenses to support increased business development activity along with investments in operational and technology platforms. Continue to manage expenses within a long-term adjusted operating efficiency* target of 30%
90-day delinquencies increase reflects seasonally elevated levels related to July 1 Farm & Ranch payment cycle Substandard assets growth in Agricultural Finance was diversified by commodity and mostly concentrated in the Northwest and Southwest. Substandard assets growth in Infrastructure Finance was driven by a single credit in the Broadband Infrastructure segment SUBSTANDARD ASSETS* LOAN PORTFOLIO CREDIT QUALITY 15 *Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. $596 $570 $651 $635 $797 4.0% 3.5% 4.1% 3.9% 4.6% 1.0% 1.0% 0.7% 0.6% 1.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% $0 $150 $300 $450 $600 $750 $900 3Q25 4Q25 1Q26 2Q26 3Q26 % of Loan Portfolio $ in m illi on s Agricultural Finance Infrastructure Finance AgFI % of Loan Portfolio Infr. % of Loan Portfolio $178 $133 $180 $139 $206 0.57% 0.40% 0.52% 0.37% 0.54% 0.20% 0.70% 1.20% 1.70% 2.20% $90 $120 $150 $180 $210 3Q25 4Q25 1Q26 2Q26 3Q26 90-D ay D elinquency R ate (% ) $ in m illi on s 90-Day Delinquency ($) 90-Day Delinquency Rate (%) PORTFOLIO 90-DAY DELINQUENCIES
Credit provision for losses was primarily related to new volume growth, portfolio credit migration and updated loss estimates associated with a single credit in the Broadband Infrastructure segment Net charge-offs were primarily attributable to the single Broadband Infrastructure credit 16 CREDIT EXPENSES REFLECT ASSET-LEVEL RISKS *Represents the allowance for losses for all on-balance sheet loans. $7.4 $16.1 $4.8 $7.4 $11.1 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 3Q25 4Q25 1Q26 2Q26 3Q26 $ in m illi on s PROVISION FOR LOSSES $35.3 $37.8 $39.9 $47.2 $48.3 14% 16% 15% 20% 17% 0% 10% 20% 30% 40% 50% 60% $0 $10 $20 $30 $40 $50 $60 3Q25 4Q25 1Q26 2Q26 3Q26 % Allow ance of N onaccrual Assets $ in m illi on s ALLOWANCE FOR LOSSES* Allowance for Losses % Allowance of Nonaccrual Assets $2.2 $13.6 $2.2 ($0.2) $8.3 -$5 -$3 -$1 $1 $3 $5 $7 $9 $11 $13 $15 3Q25 4Q25 1Q26 2Q26 3Q26 $ in m illi on s NET CHARGE-OFFS & RECOVERIES
Capital levels remain well in excess of regulatory thresholds • Exceeds statutory minimum requirements by 62%. Capital allocation commitment: reinvest, optimize, return • Book value growth driven by reinvested earnings. • Quarterly earnings net of dividends funded approximately $1 billion of new business volume growth during the quarter. • $17 million returned to common shareholders through dividends. • $30 million remaining under existing share repurchase program. CAPITAL STRONG CAPITAL BASE SUPPORTING OUR GROWTH 17 $108.33 $110.30 $112.83 $116.86 $120.31 $100 $105 $110 $115 $120 $125 3Q25 4Q25 1Q26 2Q26 3Q26 BOOK VALUE PER SHARE $1,693 $1,706 $1,732 $1,873 $1,911 13.9% 13.3% 13.0% 13.2% 12.9% 5.0% 9.0% 13.0% 17.0% 21.0% 25.0% $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 3Q25 4Q25 1Q26 2Q26 3Q26 Tier 1 C apital R atio (% )C ap ita l ( $ in m illi on s) Core Capital Tier 1 Capital Ratio
Ensures continuity of operations in the event of temporary disruption in debt capital markets • Comprised of cash and high-quality investment securities. • Minimal market volatility exposure. • Days of liquidity exceed regulatory minimum requirement by 168 days as of September 30, 2026. LIQUIDITY PORTFOLIO & DAYS OF LIQUIDITY LIQUIDITY PORTFOLIO 18 LIQUIDITY PORTFOLIO COMPOSITION* *As of September 30, 2026. Cash includes cash equivalents. Investment Securities includes U.S. Treasury securities, investment securities guaranteed by U.S. government agencies and GSEs, and asset-backed securities backed primarily by U.S. government-guaranteed loans. Cash 12% Investment Securities 88% $8.3 Billion $7.5 $7.8 $7.9 $8.2 $8.3 317 277 296 264 258 100 200 300 400 500 $0.0 $2.5 $5.0 $7.5 $10.0 3Q25 4Q25 1Q26 2Q26 3Q26 D ays of Liquidity $ in b illi on s Total Liquidity Days of Liquidity
APPENDIX
QUARTERLY NON-GAAP PERFORMANCE 20 Core earnings and net effective spread are non-GAAP measures. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. Table may not sum to total due to rounding. $ in millions except EPS 3Q26 2Q26 1Q26 4Q25 3Q25 Net Effective Spread $113.9 $117.4 $102.0 $101.4 $97.8 Guarantee Fees $7.0 $7.0 $6.7 $6.3 $6.1 Other Income $1.8 $0.7 $1.2 $0.2 $1.2 Total Revenue $122.7 $125.2 $109.9 $107.9 $105.1 Compensation & Benefits $20.6 $23.7 $21.3 $18.2 $17.7 General & Administrative $13.2 $11.6 $11.3 $11.9 $11.1 Regulatory Fees $0.9 $0.9 $0.9 $0.9 $1.0 Total Operating Expense $34.6 $36.2 $33.4 $31.0 $29.8 Adjusted Efficiency Ratio 27.5% 28.2% 29.6% 27.9% 27.4% Provision/(release) for losses $11.1 $7.4 $4.8 $16.1 $7.4 Other credit-related expense $0.4 $0.0 $0.4 $1.2 $0.0 Total Credit Expense $11.5 $7.4 $5.2 $17.3 $7.4 Total Expense $46.1 $43.6 $38.6 $48.3 $37.2 Net Earnings $76.6 $81.7 $71.3 $59.7 $67.9 Taxes $14.7 $14.9 $12.3 $12.4 $11.9 Tax Rate 19% 18% 17% 21% 18% Preferred Stock Dividends $9.3 $8.1 $7.3 $7.3 $6.3 Core Earnings $52.6 $58.8 $51.7 $40.0 $49.6 Diluted EPS $4.82 $5.40 $4.74 $3.66 $4.52
RECONCILIATION OF NET INCOME TO CORE EARNINGS 21 Core earnings is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. $ in millions Core Earnings by Period Ended 3Q26* 2Q26 1Q26 4Q25 3Q25 Net income attributable to common stockholders $54.9 $58.9 $51.8 $40.6 $48.7 Less reconciling items: (Losses)/gains on undesignated financial derivatives due to fair value changes 1.9 0.2 (0.7) 0.4 0.9 Gains/(losses) on hedging activities due to fair value changes 2.3 0.9 0.4 3.1 (0.1) Unrealized (losses)/gains on trading securities (0.1) 0.1 0.1 (0.1) (0.0) Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value 0.0 0.0 0.0 0.0 0.0 Net effects of terminations or net settlements on financial derivatives (1.2) (1.0) 0.3 (2.7) (1.9) Issuance costs on retirement of preferred stock — — — — — Income tax effect related to reconciling items (0.6) 0.0 (0.0) (0.2) 0.2 Sub-total 2.3 0.1 0.1 0.5 (0.9) Core earnings $52.6 $58.8 $51.7 $40.0 $49.6 *As of September 30, 2026. Table may not sum to total due to rounding.
RECONCILIATION OF NET INTEREST INCOME TO NET EFFECTIVE SPREAD 22 Net effective spread is a non-GAAP measure. For more information about the use of non-GAAP measures, please refer to the "Use of Non-Generally Accepted Accounting Principles (GAAP) Financial Measures" slide within this presentation. *As of September 30, 2026. Table may not sum to total due to rounding. 3Q26* 2Q26 1Q26 4Q25 3Q25 $ in millions Dollars Yield Dollars Yield Dollars Yield Dollars Yield Dollars Yield Net interest income/yield $115.9 1.16% $118.1 1.24% $101.4 1.13% $104.5 1.23% $98.5 1.18% Net effects of consolidated trusts (0.8) 0.01% (1.0) 0.02% (1.0) 0.02% (1.0) 0.02% (1.1) 0.02% Expense related to undesignated financial derivatives 0.3 0.00% 0.6 0.00% 1.0 0.01% 0.2 0.00% (0.7) (0.01%) Amortization of premiums/discounts on assets consolidated at fair value (0.0) 0.00% (0.0) 0.00% (0.0) 0.00% (0.0) 0.00% (0.0) 0.00% Amortization of losses due to terminations or net settlements on financial derivatives 0.7 0.01% 0.7 0.01% 1.0 0.01% 0.8 0.01% 1.0 0.01% Fair value changes on fair value hedge relationships (2.3) (0.02%) (0.9) (0.01%) (0.4) (0.01%) (3.1) (0.04%) 0.1 0.00% Net effective spread $113.9 1.16% $117.4 1.26% $102.0 1.16% $101.4 1.22% $97.8 1.20%
Contact Investor Relations: Eric Estey Director – Capital Markets Phone: 202.872.7700 Email: eestey@farmermac.com