WASHINGTON, Feb. 19, 2026 /PRNewswire/ -- The Federal Agricultural Mortgage Corporation ((Farmer Mac, NYSE:AGM), the nation's secondary market provider that increases the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure, today announced its results for the fiscal quarter and year ended December 31, 2025.
"Farmer Mac delivered another strong year in 2025, highlighted by record net effective spread and outstanding business volumes, and our tenth consecutive year of record annual core earnings results," said Chief Executive Officer, Brad Nordholm. "While a few borrower‑specific credit events affected Core Earnings, particularly in the fourth quarter, these were isolated in nature and do not change the positive trajectory of our underlying performance. With a resilient business model, disciplined balance‑sheet and risk management, and a highly talented and capable management team, we are well‑positioned for the future and confident in our ability to continue delivering meaningful value to rural America and our shareholders."
Full Year 2025 and Recent Highlights
Record outstanding business volume growth of $3.8 billion, reflecting 13% growth year-over-year
Provided $10.5 billion in liquidity and lending capacity to lenders serving rural America
Net interest income grew 10% year-over-year to $390.7 million
Net effective spread1 increased 13% from the prior-year period to a record $383.0 million
Net income attributable to common stockholders of $182.5 million, or $16.62 per diluted share
Record core earnings1 of $182.9 million, or $16.66 per diluted share, reflecting 7% growth year-over-year
Total core capital of $1.7 billion and a Tier 1 Capital Ratio of 13.3% as of December 31, 2025
On February 18, 2026, Farmer Mac's Board of Directors raised the quarterly common stock dividend by 7% to $1.60 per share, the fifteenth consecutive annual increase
$ in thousands, except per share amounts
Quarter Ended
Year Ended
December 31, 2025
December 31, 2024
YoY %Change
December 31, 2025
December 31, 2024
%Change
Net Change in
Business Volume
$2,232,407
$1,054,727
N/A
$3,828,539
$1,052,006
N/A
Net Interest Income (GAAP)
$104,521
$93,368
12 %
$390,734
$353,867
10 %
Net Effective Spread
(Non-GAAP)
$101,389
$87,528
16 %
$383,041
$339,564
13 %
Diluted EPS (GAAP)
$3.71
$4.63
(20) %
$16.62
$16.44
1 %
Diluted Core EPS (Non-GAAP)
$3.66
$3.97
(8) %
$16.66
$15.64
7 %
_____________________
1 Non-GAAP Measure
Dividends
On February 18, 2026, Farmer Mac's Board of Directors declared a quarterly dividend of $1.60 per share on all three classes of common stock, Class A voting common stock (NYSE:AGM), Class B voting common stock (not listed on any exchange), and Class C non-voting common stock (NYSE:AGM). This quarterly dividend, which represents an increase of 7% in Farmer Mac's quarterly dividend rate on a year-over-year basis, will be payable on March 31, 2026 to holders of record of common stock as of March 16, 2026. This is the fifteenth consecutive year that Farmer Mac has increased its quarterly common stock dividend, and this increase is supported by Farmer Mac's previous and expected earnings growth and overall capital position.
Farmer Mac's Board of Directors also declared a dividend on each of Farmer Mac's five classes of preferred stock. The quarterly dividend of $0.35625 per share of 5.700% Non-Cumulative Preferred Stock, Series D (NYSE:AGM), $0.359375 per share of 5.750% Non-Cumulative Preferred Stock, Series E (NYSE:AGM), $0.328125 per share of 5.250% Non-Cumulative Preferred Stock, Series F (NYSE:AGM), $0.3046875 per share of 4.875% Non-Cumulative Preferred Stock, Series G (AGM.PR.G), and $0.40625 per share of 6.500% Non-Cumulative Preferred Stock, Series H (AGM.PR.H), is for the period from but not including January 17, 2026 to and including April 17, 2026. The preferred dividends will be payable on April 17, 2026 to holders of record as of April 1, 2026.
Earnings Conference Call Information
The conference call to discuss Farmer Mac's fourth quarter and full year 2025 financial results will be held beginning at 4:30 p.m. eastern time on Thursday, February 19, 2026, and can be accessed by telephone or live webcast as follows:
Telephone (Domestic): (888) 880-3330Telephone (International): (646) 357-8766Webcast: https://www.farmermac.com/investors/events-presentations/
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.
More complete information about Farmer Mac's performance for 2025 is in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, filed today with the SEC.
Use of Non-GAAP Measures
We use "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, we use 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 or spread. In our view, these non-GAAP measures are useful alternative measures in understanding our economic performance, transaction economics, and business trends. Our non-GAAP financial measures may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Our 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 Share
The main difference between core earnings and core earnings per common share ("Core EPS"), which are non-GAAP measures, and net income attributable to common stockholders and earnings per common share ("EPS"), 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 our 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 we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of our core business.
Net Effective Spread
We use Net Effective Spread ("NES") 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.
NES 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 guarantees 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.
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.
NES 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 "(Losses)/gains on financial derivatives" on the Consolidated Statements of Operations.
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 ("GSEs") 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 NES, 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.
More information about Farmer Mac's use of non-GAAP measures is available in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations" in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, filed today with the SEC. 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 share, and net interest income and net interest yield to net effective spread, see "Reconciliations" below.
Forward-Looking Statements
Management's expectations for Farmer Mac's 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 Farmer Mac, its sources of business, or agricultural or infrastructure industries;
fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;
the level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;
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 Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indices;
developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving GSEs, including Farmer Mac;
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 today with the SEC. 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 vitalliquidity 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.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of
December 31, 2025
December 31, 2024
(in thousands)
Assets:
Cash and cash equivalents (includes restricted cash of $24,475 and $16,190, respectively)
$ 931,067
$ 1,024,007
Investment securities:
Available-for-sale, at fair value (amortized cost of $13,813,551 and $11,940,774, respectively)
13,580,285
11,467,560
Held-to-maturity, at amortized cost
3,954,223
5,097,492
Other investments
15,871
11,835
Total Investment Securities
17,550,379
16,576,887
Loans:
Loans held for sale, at lower of cost or fair value
—
6,170
Loans held for investment, at amortized cost
13,877,051
11,183,408
Loans held for investment in consolidated trusts, at amortized cost
2,482,010
2,038,283
Allowance for losses
(37,785)
(23,223)
Total loans, net of allowance
16,321,276
13,204,638
Financial derivatives, at fair value
44,875
27,789
Accrued interest receivable (includes $40,945 and $28,563, respectively, related to consolidated trusts)
357,155
310,592
Guarantee and commitment fees receivable
57,214
50,499
Deferred tax asset, net
173
1,544
Prepaid expenses and other assets
108,018
128,786
Total Assets
$ 35,370,157
$ 31,324,742
Liabilities and Equity:
Liabilities:
Notes payable
$ 30,822,570
$ 27,371,174
Debt securities of consolidated trusts held by third parties
2,365,435
1,929,628
Financial derivatives, at fair value
21,618
77,326
Accrued interest payable (includes $15,795 and $12,387, respectively, related to consolidated trusts)
233,714
195,113
Guarantee and commitment obligation
54,770
48,326
Other liabilities
153,101
214,149
Total Liabilities
33,651,208
29,835,716
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
—
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, 9,325,556 shares and 9,360,083 shares outstanding, respectively
9,326
9,360
Additional paid-in capital
139,370
135,894
Accumulated other comprehensive income/(loss), net of tax
13,382
(12,147)
Retained earnings
1,047,347
943,239
Total Equity
1,718,949
1,489,026
Total Liabilities and Equity
$ 35,370,157
$ 31,324,742
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
For the Year Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
(in thousands, except per share amounts)
Interest income:
Investment securities and cash equivalents
$ 205,926
$ 226,510
$ 846,441
$ 974,329
Loans
210,544
169,255
765,806
629,187
Total interest income
416,470
395,765
1,612,247
1,603,516
Total interest expense
311,949
302,397
1,221,513
1,249,649
Net interest income
104,521
93,368
390,734
353,867
Provision for losses
(15,986)
(3,773)
(32,860)
(11,579)
Net interest income after provision for losses
88,535
89,595
357,874
342,288
Non-interest income/(expense):
Guarantee and commitment fees
5,259
4,009
19,575
15,738
(Losses)/gains on financial derivatives
(1,502)
4,290
(5,120)
2,636
Other income
(821)
(411)
3,183
2,827
Non-interest income
2,936
7,888
17,638
21,201
Operating expenses:
Compensation and employee benefits
18,199
15,641
71,325
63,975
General and administrative
11,944
12,452
44,613
38,236
Regulatory fees
863
1,000
3,863
3,175
Operating expenses
31,006
29,093
119,801
105,386
Income before income taxes
60,465
68,390
255,711
258,103
Income tax expense
12,541
11,876
48,296
50,910
Net income
47,924
56,514
207,415
207,193
Preferred stock dividends
(7,286)
(5,666)
(24,922)
(25,146)
Loss on retirement of preferred stock
—
—
—
(1,619)
Net income attributable to common stockholders
$ 40,638
$ 50,848
$ 182,493
$ 180,428
Earnings per common share:
Basic earnings per common share
$ 3.73
$ 4.67
$ 16.73
$ 16.59
Diluted earnings per common share
$ 3.71
$ 4.63
$ 16.62
$ 16.44
Reconciliations
Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings for the periods indicated:
Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
For the Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
(in thousands, except per share amounts)
Net income attributable to common stockholders
$ 40,638
$ 48,700
$ 50,848
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes
447
882
3,084
Gains/(losses) on hedging activities due to fair value changes
3,107
(137)
5,737
Unrealized losses on trading assets
(66)
(4)
(83)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1)
24
26
(39)
Net effects of terminations or net settlements on financial derivatives
(2,699)
(1,934)
534
Issuance costs on the retirement of preferred stock
—
—
—
Income tax effect related to reconciling items
(171)
245
(1,939)
Sub-total
642
(922)
7,294
Core earnings
$ 39,996
$ 49,622
$ 43,554
Composition of Core Earnings:
Revenues:
Net effective spread(2)
$ 101,389
$ 97,769
$ 87,528
Guarantee and commitment fees(3)
6,298
6,132
5,086
Other(4)
224
1,185
(491)
Total revenues
107,911
105,086
92,123
Credit related expense/(income) (GAAP):
Provision for losses
15,986
7,477
3,773
Other credit related expense/(income)
1,267
(44)
99
Total credit related expense/(income)
17,253
7,433
3,872
Operating expenses (GAAP):
Compensation and employee benefits
18,199
17,743
15,641
General and administrative
11,944
11,052
12,452
Regulatory fees
863
1,000
1,000
Total operating expenses
31,006
29,795
29,093
Net earnings
59,652
67,858
59,158
Income tax expense(5)
12,370
11,933
9,938
Preferred stock dividends (GAAP)
7,286
6,303
5,666
Core earnings
$ 39,996
