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 third quarter 2026, we:

•provided$2.7 billion in liquidity and lending capacity to lenders serving rural America;

•achieved business volume growth across all operating segments, driving outstanding business volume to a record high and demonstrating the value of our products to lenders serving rural America;

•delivered net income of $64.2 million, contributing to a $37.5 million increase in retained earnings and a capital position $0.7 billion above the minimum regulatory requirement;

•acquired servicing rights associated with approximately $1.4 billion of Farm & Ranch loans, including loans we own and loans serviced for others, positively benefiting net interest income and non-interest income and contributing to business volume growth;

•maintained strong liquidity in our investment portfolio, averaging 260 days of liquidity, well above the regulatory requirement of a minimum of 90 days of liquidity; 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 decreased $4.0 million from the prior quarter primarily driven by a $3.7 million increase in provision expense, a $2.2 million decrease in net interest income ("NII"), and a $1.3 million increase in preferred stock dividends related to the issuance of Series I preferred stock in May 2026. These decreases to net income attributable to common stockholders were partially offset by a $1.5 million decrease in operating expenses and a $2.0 million increase in non-interest income, which includes $0.9 million in servicing fee income related to the acquisition of servicing rights during the third quarter of 2026.

Core earnings decreased $6.2 million from the prior quarter due to the same drivers of the decline in net income attributable to common stockholders. The greater decline in core earnings reflects the exclusion of $2.3 million of after-tax fair value gains recognized during the third quarter of 2026 that were included in net income attributable to common stockholders.

Net income attributable to common stockholders increased $6.2 million and core earnings increased $3.0 million year-over-year in the third quarter of 2026. The increase in net income attributable to common stockholders was primarily attributable to a $17.4 million increase in NII and a $3.9 million increase in non-interest income, while the increase in core earnings was primarily driven by a $16.1 million increase in net effective spread ("NES") and a $1.5 million increase in non-interest income. These increases were partially offset by a $4.8 million increase in operating expenses, a $3.7 million increase in provision expense, a $3.0 million increase in preferred stock dividends, and an 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 decreases of $2.2 million, or 8 basis points, and $3.6 million, or 10 basis points, in NII and NES, respectively, for the third quarter 2026 were primarily attributable to a nonrecurring event that favorably impacted interest income during the second quarter of 2026. Specifically, during the second quarter of 2026, we recorded$7.4 million, or 8 basis points, of previously unrecognized interest through resolution of a defaulted asset within our Corporate AgFinance segment. After accounting for the one-time benefit from the collection of interest in the prior quarter, NES declined 2 basis points sequentially which primarily reflects the impact of seasonally higher non-accruing loans in Farm & Ranch as well as business volume mix with higher AgVantage average balances during the quarter.

The year-over-year increases of $17.4 million in NII and $16.1 million in NES were both primarily driven by the effects of net volume growth across all portfolios. Yields were modestly lower year-over-year, with NII yield declining 2 basis points and NES yield declining 4 basis points, driven by portfolio mix, as growth in average interest-earning assets included a meaningful contribution from lower-yielding AgVantage Securities.

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 $38.5 billion as of September 30, 2026, a net increase of $1.3 billion from June 30, 2026 after taking into account all new business, maturities, sales, and paydowns on existing assets.The net increase reflected $2.7 billion of new volume during the quarter, approximately $0.3 billion of additional loans serviced for others through the acquisition of servicing rights, and $1.7 billion of scheduled maturities and repayments. The increase reflected growth across multiple lines of business and was led by Infrastructure Finance, where net outstanding business volume increased by approximately $0.9 billion during the quarter. The Renewable Energy segment represented the largest contributor to growth within Infrastructure Finance and was a significant driver of the overall increase in outstanding business volume. 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 totaled$48.3 million at September 30, 2026, an increase of $10.5 million from$37.8 million at December 31, 2025. The increase in allowance for losses is primarily due to a$20.8 million provision expense offset by$10.2 million in charge-offs, net of recoveries during the nine months ended September 30, 2026. The provision expense reflected new business volume growth across all segments, portfolio credit migration, and updated loss estimates associated with a single telecommunications credit within our Broadband Infrastructure segment. Net charge-offs during the period were primarily attributable to that single credit, which reflects our revised expectation that the full contractual unpaid principal balance will not be collected following the borrower filing for bankruptcy.

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 September 30, 2026 and December 31, 2025:

Table 3

Total substandard assets increased $226.9 million from December 31, 2025 to September 30, 2026 primarily driven by credit downgrades in both the Agricultural Finance and Infrastructure Finance lines of business. The amount of substandard assets as a percentage of the portfolio increased from 3.5% at December 31, 2025 to 4.6% at September 30, 2026 for Agricultural Finance Mortgage Loans and remained at 1.0% at both December 31, 2025 and September 30, 2026 for Infrastructure Finance.

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 September 30, 2026 and December 31, 2025:

Table 4

Across all of our lines of business, 90-day delinquency rates increased from fourth quarter 2025 to third quarter 2026, consistent with the seasonal increase in delinquencies typically observed in the third quarter due in part to the timing of semi-annual and quarterly payment due dates.

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