Nov 5, 2026, 4:09 PM ETFinancial Services

Farmer Mac — Third Quarter 2026 Earnings Summary

AGMFEDERAL AGRICULTURAL MORTGAGE CORP

Financial Performance

Outstanding business volume reached a record $38.5 billion, representing 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, reflecting 6% and 7% growth year-over-year, respectively.
Core return on equity was 16% in the third quarter.
Total core capital was $1.9 billion with a Tier 1 Capital Ratio of 12.9% as of September 30, 2026.
Net income attributable to common stockholders increased $6.2 million year-over-year but decreased $4.0 million quarter-over-quarter.
Core earnings decreased $6.2 million quarter-over-quarter to $52.6 million.
Credit provisions increased, primarily related to new volume growth, updated loss estimates for a single telecommunications credit in the Broadband Infrastructure segment, and portfolio credit migration trends.

Management expressed confidence in the durability of the business model and its ability to deliver high-quality earnings and long-term shareholder value.
The company remains mindful of evolving conditions in U.S. agricultural markets and significant investment needs to support rural infrastructure.
Forward-looking statements highlight potential risks including legislative, regulatory, or political developments; fluctuations in asset fair values; and economic conditions such as inflation, interest rate changes, and commodity price volatility.

Agricultural Finance (63% of volume):
- Farm & Ranch business volume grew 22% year-over-year to $22.3 billion, driven by a $297.8 million net portfolio growth, including the acquisition of servicing rights for approximately $280 million of third-party loans.
- Corporate AgFinance business volume grew 13% year-over-year to $2.1 billion, with a modest $61.0 million net portfolio growth due to loan purchase activity.
Infrastructure Finance (37% of volume):
- Power & Utilities business volume increased 14% year-over-year to $8.4 billion, driven by $164.6 million in growth as rural electric providers invest in system upgrades and grid modernization.
- Renewable Energy business volume grew 57% year-over-year to $3.6 billion, contributing $586.4 million to net growth due to continued investment in new renewable generation capacity.
- Broadband Infrastructure business volume grew 56% year-over-year to $2.0 billion, adding $168.8 million in growth 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 owned and loans serviced for others.

The company operates in a market environment characterized by greater uncertainty and increasingly challenging conditions.
Strong business volume was observed across all segments, reflecting robust customer demand.
The company continues to serve as a reliable source of secondary market liquidity for rural America.

Risks include availability and terms of debt and equity financing, legislative and regulatory changes, and fluctuations in fair value of assets.
Economic risks include inflation, interest rate fluctuations, changes in U.S. trade policies, export demand volatility, supply chain disruptions, input cost increases, labor availability, and commodity price volatility.
Interest rate risk exposure exists regarding borrowing costs relative to market indices.
Potential impacts from severe weather, flooding, drought, and fluctuations in agricultural real estate values.
Credit risk related to borrower repayment capacity and collateral values.

Zachary Carpenter, President and CEO, stated the company delivered record third-quarter results with year-to-date revenue and core earnings reaching new all-time highs.
Management highlighted the company's ability to navigate market dynamics while maintaining its mission focus, team strength, and market position.
The tone was confident regarding the durability of the business model and the company's positioning to advance its mission while delivering value.
Management emphasized diversified portfolios, a strong capital position, and a disciplined approach to underwriting and risk management.

Farmer Mac provided $2.7 billion in liquidity and lending capacity to lenders serving rural America during the quarter.
The company reported a nonrecurring event that favorably impacted interest income during the second quarter of 2026, contributing to quarter-over-quarter declines in net interest income and net effective spread.
The company utilizes non-GAAP measures including core earnings, core earnings per share, and net effective spread to analyze financial performance, excluding fair value fluctuations and specified infrequent transactions.
An earnings conference call was held on November 5, 2026, to discuss the results.
The company holds Series D through I preferred stock outstanding.