FEDERAL AGRICULTURAL MORTGAGE CORP

For the period ended Jun 30, 2026. Filed Jul 30, 2026.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Jul 30, 2026

AGM$181.57+0.8%Stored close · as of Nov 9, 2026

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Contents

Item 2. Results of Operations

Reconciliations of net income attributable to common stockholders and EPS to core earnings and Core EPS are presented in the following tables along with information about the composition of core earnings:

Table 5

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Three Months Ended
	June 30, 2026	June 30, 2025
(in thousands, except per share amounts)
Net income attributable to common stockholders	$58,877	$49,170
Less reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes (see Table 11)	184	(639)
Gains on hedging activities due to fair value changes	889	2,709
Unrealized gains/(losses) on trading securities	59	(65)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1)	26	25
Net effects of terminations or net settlements on financial derivatives	(1,017)	255
Income tax effect related to reconciling items	(30)	(480)
Sub-total	111	1,805
Core earnings	$58,766	$47,365
Composition of Core Earnings:
Revenues:
Net effective spread(2)	$117,438	$93,893
Guarantee and commitment fees(3)	7,044	5,874
Other(4)	742	742
Total revenues	125,224	100,509
Credit related expense (GAAP):
Provision for losses	7,017	7,713
Other credit related expense/(income)	352	160
Total credit related expense	7,369	7,873
Operating expenses (GAAP):
Compensation and employee benefits	23,706	17,631
General and administrative	11,591	10,859
Regulatory fees	862	1,000
Total operating expenses	36,159	29,490
Net earnings	81,696	63,146
Income tax expense(5)	14,856	10,114
Preferred stock dividends (GAAP)	8,074	5,667
Core earnings	$58,766	$47,365
Core EPS:
Basic	$5.42	$4.33
Diluted	$5.40	$4.32
Weighted-average shares:
Basic	10,849	10,933
Diluted	10,882	10,963

(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)NES is a non-GAAP measure. See MD&A—Use of Non-GAAP Measures—Net Effective Spread for more information and Table 9 for a reconciliation of NII to NES.

(3)Includes NII of $1.0 million and $1.0 million for the three months ended June 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 Six Months Ended
	June 30, 2026	June 30, 2025
(in thousands, except per share amounts)
Net income attributable to common stockholders	$110,709	$93,155
Less reconciling items:
Losses on undesignated financial derivatives due to fair value changes (see Table 11)	(495)	(3,212)
Gains on hedging activities due to fair value changes	1,251	3,808
Unrealized gains/(losses) on trading securities	112	(56)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value(1)	70	53
Net effects of terminations or net settlements on financial derivatives	(682)	(815)
Income tax effect related to reconciling items	(54)	46
Sub-total	202	(176)
Core earnings	$110,507	$93,331
Composition of Core Earnings:
Revenues:
Net effective spread(2)	$219,437	$183,883
Guarantee and commitment fees(3)	13,759	11,362
Other(4)	1,927	2,057
Total revenues	235,123	197,302
Credit related expense (GAAP):
Provision for losses	11,325	9,397
Other credit related expense/(income)	1,241	127
Total credit related expense	12,566	9,524
Operating expenses (GAAP):
Compensation and employee benefits	44,963	35,383
General and administrative	22,853	21,617
Regulatory fees	1,725	2,000
Total operating expenses	69,541	59,000
Net earnings	153,016	128,778
Income tax expense(5)	27,144	24,114
Preferred stock dividends (GAAP)	15,365	11,333
Core earnings	$110,507	$93,331
Core EPS:
Basic	$10.19	$8.55
Diluted	$10.14	$8.51
Weighted-average shares:
Basic	10,847	10,915
Diluted	10,902	10,973

(2)NES is a non-GAAP measure. See MD&A—Use of Non-GAAP Measures—Net Effective Spread for more information and Table 9 for a reconciliation of NII to NES.

(3)Includes NII of $2.0 million and $2.0 million for the six months ended June 30, 2026 and 2025, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.

(5)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

Table 6

Reconciliation of GAAP Basic EPS to Core Earnings - Basic EPS
	For the Three Months Ended		For the Six Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
(in thousands, except per share amounts)
GAAP - Basic EPS	$5.43	$4.50	$10.21	$8.53
Less reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes (see Table 11)	0.02	(0.06)	(0.05)	(0.29)
Gains on hedging activities due to fair value changes	0.07	0.25	0.12	0.35
Unrealized gains/(losses) on trading securities	0.01	(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	(0.09)	0.03	(0.06)	(0.08)
Income tax effect related to reconciling items	—	(0.04)	(0.01)	—
Sub-total	0.01	0.17	0.02	(0.02)
Core Earnings - Basic EPS	$5.42	$4.33	$10.19	$8.55
Shares used in per share calculation (GAAP and Core Earnings)	10,849	10,933	10,847	10,915

Reconciliation of GAAP Diluted EPS to Core Earnings - Diluted EPS
	For the Three Months Ended		For the Six Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
(in thousands, except per share amounts)
GAAP - Diluted EPS	$5.41	$4.48	$10.15	$8.49
Less reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes (see Table 11)	0.02	(0.06)	(0.05)	(0.29)
Gains on hedging activities due to fair value changes	0.07	0.25	0.11	0.35
Unrealized gains/(losses) on trading securities	0.01	(0.01)	0.01	(0.01)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—	—	0.01	—
Net effects of terminations or net settlements on financial derivatives	(0.09)	0.02	(0.06)	(0.07)
Income tax effect related to reconciling items	—	(0.04)	(0.01)	—
Sub-total	0.01	0.16	0.01	(0.02)
Core Earnings - Diluted EPS	$5.40	$4.32	$10.14	$8.51
Shares used in per share calculation (GAAP and Core Earnings)	10,882	10,963	10,902	10,973

The following sections provide more detail about specific components of our results of operations.

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