FEDERAL AGRICULTURAL MORTGAGE CORP

We are driven by our mission to increase the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure. Our secondary market provides liquidity to the nation's agricultural and rural 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 & 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. We also provide investment opportunities through our debt issuances to entities, such as states, counties, municipalities, pension funds, banks, public trust funds, and credit unions, that may diversify their investment portfolios and provide possibilities to earn a competitive return on their investment dollars.

During second quarter 2026, we:

•provided $4.0 billion in liquidity and lending capacity to lenders serving rural America;

•maintained strong liquidity in our investment portfolio, averaging 282 days of liquidity during 2026, well above the regulatory requirement of a minimum of 90 days of liquidity;

•issued $100 million of 6.875% non-cumulative perpetual Series I preferred stock;

•delivered record net income, contributing to a $41.5 million increase in retained earnings and a capital position $0.7 billion above the minimum regulatory requirement; and

•maintained uninterrupted access to the debt capital markets.

The discussion below of our financial information includes "non-GAAP measures," which are measures of financial performance not presented in accordance with generally accepted accounting principles in the United States ("GAAP"). For more information about the non-GAAP measures we use, see MD&A—Use of Non-GAAP Measures.

Net Income and Core Earnings

The following table presents our net income attributable to common stockholders and core earnings for the periods presented. Core earnings is a non-GAAP measure that differs from net income attributable to common stockholders by excluding the effects of fair value fluctuations and specified infrequent or unusual transactions.

Table 1

Net income attributable to common stockholders and core earnings each increased $7.0 million from the prior quarter. The increase in net income attributable to common stockholders was primarily driven by a $16.7 million increase in net interest income ("NII"), while the increase in core earnings was primarily driven by a $15.4 million increase in net effective spread ("NES"). These increases were partially offset by a $2.8 million increase in operating expenses, a $2.7 million increase in the provision for credit losses, and a $2.6 million increase in income tax expense during thesecond quarter of 2026.

Net income attributable to common stockholders increased $9.7 million and core earnings increased $11.4 million year-over-year in thesecond quarter of 2026. The increase in net income attributable to common stockholders was primarily attributable to a $21.3 million increase in NII, while the increase in core earnings was primarily driven by a $23.5 million increase in NES. These increases were partially offset by a $6.7 million increase in operating expenses and a $4.3 million increase in income tax expense.

For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see MD&A—Results of Operations. For more information about our non-GAAP measures, see MD&A—Use of Non-GAAP Measures.

Net Interest Income and Net Effective Spread

The following table shows our NII and NES in both dollars and percentage yield or spread for the periods presented. We use NES, a non-GAAP measure, as an alternative to NII because management believes it is a useful metric that reflects the economics of the net spread between all the assets we own and all related funding, including any associated derivatives, some of which may not be included in NII.

Table 2

The sequential increase of $16.7 million and $15.4 million in NII and NES, respectively, for the second quarter 2026 was primarily attributable to the effects ofnet volume growth, led by the Farm & Ranch and Renewable Energy portfolios, and collection of$7.4 million of previously unrecognized interest through resolution of a defaulted asset within our Corporate AgFinance segment. The recognition of this income was a nonrecurring event that favorably impacted net interest income during thesecond quarter 2026.

The year-over-year increase of $21.3 million in NII and $23.5 million in NES were both primarily driven by the effects of net volume growth, led by the Farm & Ranch and Renewable Energy portfolios, and the impact of the $7.4 million collection of default interest recognized in second quarter 2026.

See MD&A—Use of Non-GAAP Measures for more information about our use of NES as a financial measure and Table 9 in MD&A—Results of Operations—Net Interest Income for a reconciliation of NII to NES.

Business Volume

Our outstanding business volume was $37.2 billion as of June 30, 2026, a net increase of $2.4 billion from March 31, 2026 after taking into account all new business, maturities, sales, and paydowns on existing assets. The net increase was due to new volume during the quarter totaling $4.0 billion, partially offset by scheduled maturities and repayments of $1.6 billion. The net new volume includes increases of $1.8 billion in the Agricultural Finance and $0.6 billion in the Infrastructure Finance lines of business. For more information about our business volume, see MD&A—Results of Operations—Business Volume.

Credit Quality

Throughout this MD&A, credit quality and credit risk disclosures make references to "Agricultural Finance Mortgage Loans" which include on‑balance sheet agricultural mortgage loans and off‑balance sheet exposures, consisting of LTSPCs, unfunded commitments, and Farmer Mac Guaranteed Securities and references to "Infrastructure Finance Loans" include on-balance sheet infrastructure finance loans and off-balance sheet LTSPCs and unfunded commitments.

Our allowance for losses increased $9.4 million from December 31, 2025 to June 30, 2026, primarily due to an $11.4 million provision expense offset by $2.0 million in charge-offs, net of recoveries during the six months ended June 30, 2026. The increase in our allowance for losses was primarily attributable to new volume growth across all of our segments and portfolio credit migration.

For more information about our allowance for losses, see Note 4—Loans to the consolidated financial statements and MD&A—Results of Operations.

The following table presents Agricultural Finance mortgage loans and Infrastructure Finance loans classified as substandard, in dollars and as a percentage of the respective portfolio as of June 30, 2026 and December 31, 2025:

Table 3

Total substandard assets increased $65.5 million from December 31, 2025 to June 30, 2026, with the amount of substandard assets as a percentage of the portfolio increasing from 3.5% at December 31, 2025 to 3.9% at June 30, 2026 for Agricultural Finance loans and decreasing from 1.0% at December 31, 2025 to 0.6% at June 30, 2026 for Infrastructure Finance. The increase in substandard assets for Agricultural Finance loans was primarily driven by credit downgrades while the decrease in substandard assets for Infrastructure Finance was related to a credit upgrade in the Renewable Energy segment.

The following table presents 90-day delinquency rates for our Agricultural Finance mortgage loans and Infrastructure Finance loans, in dollars and as a percentage of total outstanding business volume as of June 30, 2026 and December 31, 2025:

Table 4

Across all of our lines of business, 90-day delinquency rates decreased modestly in second quarter 2026 as compared to fourth quarter 2025.

For more details on credit risk management and credit quality indicators, see MD&A—Risk Management—Credit Risk—Loans and Guarantees.