Farmer Mac — Third Quarter 2026 Earnings Summary

Financial Performance:

• Outstanding business volume reached a record $38.5 billion, reflecting 24% year-over-year growth.
• Net interest income increased 18% year-over-year to $115.9 million.
• Net effective spread (non-GAAP) increased 16% year-over-year to $113.9 million.
• Net income attributable to common stockholders was $54.9 million, or $5.03 per diluted share.
• Core earnings (non-GAAP) were $52.6 million, or $4.82 per diluted share, representing 6% growth in dollars and 7% growth per share year-over-year.
• Core return on equity was 16% for the quarter.
• Total core capital was $1.9 billion with a Tier 1 Capital Ratio of 12.9% as of September 30, 2026.
• Cash and cash equivalents were $991.4 million as of September 30, 2026, compared to $931.1 million as of December 31, 2025.
• Total assets were $40.0 billion as of September 30, 2026, compared to $35.4 billion as of December 31, 2025.
• Notes payable increased to $35.4 billion as of September 30, 2026, from $30.8 billion as of December 31, 2025.
• Provision for losses was $11.1 million for the quarter, primarily related to new volume growth, updated loss estimates for a single telecommunications credit in the Broadband Infrastructure segment, and portfolio credit migration trends.

Business Segments and Product Lines:

• Agricultural Finance (63% of volume):
  • Farm & Ranch business volume grew 22% year-over-year to $22.3 billion; 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 business volume grew 13% year-over-year to $2.1 billion; portfolio grew modestly by $61.0 million due to loan purchase activity.
• Infrastructure Finance (37% of volume):
  • Power & Utilities business volume increased 14% year-over-year to $8.4 billion; net growth of $164.6 million driven by rural electric providers investing in system upgrades and grid modernization.
  • Renewable Energy business volume grew 57% year-over-year to $3.6 billion; net growth of $586.4 million reflecting continued investment in new renewable generation capacity.
  • Broadband Infrastructure business volume grew 56% year-over-year to $2.0 billion; net growth of $168.8 million reflecting secular growth in telecommunications and digital infrastructure investment.
• Farmer Mac acquired servicing rights associated with approximately $1.4 billion of Farm & Ranch loans, including loans it owns and loans serviced for others.

Management Commentary and Tone:

• CEO Zachary Carpenter stated the company delivered record third-quarter results with outstanding business volume and year-to-date revenue and core earnings reaching new all-time highs.
• Management noted achieving these results in a market environment characterized by greater uncertainty and increasingly challenging conditions.
• Carpenter emphasized the company's ability to navigate market dynamics while serving as a reliable source of secondary market liquidity, citing mission focus, team strength, and market position.
• Management expressed confidence in the durability of the business model and its position to continue advancing its mission while delivering high-quality earnings and long-term shareholder value.
• The tone highlighted strong margins, efficient capital deployment, and a diversified portfolio supporting rural America through economic cycles.

Other Key Points:

• The company provided $2.7 billion in liquidity and lending capacity to lenders serving rural America during the quarter.
• Net effective spread decreased 3% quarter-over-quarter to $113.9 million, primarily driven by a nonrecurring event that favorably impacted interest income during the second quarter of 2026.
• Net income attributable to common stockholders decreased $4.0 million quarter-over-quarter.
• Core earnings decreased $6.2 million quarter-over-quarter.
• The conference call to discuss results was held on November 5, 2026, at 4:30 p.m. eastern time.