What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-05 compared with 2024-05-06 · 499 added, 179 removed, 1290 unchanged (34% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in thousands)

61 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

March 31, 2024 March 31, 2023

For the Three Months Ended For the Six Months Ended

June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023

(in thousands, except per share amounts)

6 unchanged sentences

Net interest income 87,340 78,677 173,708 157,735

Release of/(provision for) losses 1,801 ( 547 )

Net interest income after release of/(provision for) losses 88,169 78,511

Provision for losses ( 6,179 ) ( 1,073 ) ( 4,378 ) ( 1,620 )

Net interest income after provision for losses 81,161 77,604 169,330 156,115

Non-interest income/(expense):

Guarantee and commitment fees 3,797 3,489 7,714 7,422

Gains on financial derivatives 2,079 399

Release of/(provision for) reserve for losses

(Losses)/gains on financial derivatives ( 1,799 ) 1,693 280 2,092

Losses on sale of mortgage loans

( 1,147 ) — ( 1,147 ) —

Gains on sale of available-for-sale investment securities

1,052 — 1,052 —

(Provision for)/release of reserve for losses

( 51 ) ( 69 ) 18 ( 272 )

Other income 674 758 1,923 1,984

16 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended

March 31, 2024 March 31, 2023

For the Three Months Ended For the Six Months Ended

June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023

(in thousands)

1 unchanged sentence

Other comprehensive income/(loss):

Net unrealized gains on available-for-sale securities

Net unrealized (losses)/gains on available-for-sale securities

( 5,287 ) 23,334 34,665 23,992

Net changes in held-to-maturity securities 320 ( 321 ) ( 314 ) ( 1,103 )

Net unrealized gains/(losses) on cash flow hedges

Net unrealized (losses)/gains on cash flow hedges

( 1,392 ) 9,279 4,894 ( 2,013 )

Other comprehensive income/(loss) before tax

Other comprehensive (loss)/income before tax

( 6,359 ) 32,292 39,245 20,876

Income tax (expense)/benefit related to other comprehensive income/(loss)

Income tax benefit/(expense) related to other comprehensive (loss)/income

1,336 ( 6,781 ) ( 8,241 ) ( 4,384 )

Other comprehensive income/(loss) net of tax

Other comprehensive (loss)/income net of tax

( 5,023 ) 25,511 31,004 16,492

19 unchanged sentences

Balance as of March 31, 2024 19,980 $ 484,531 10,869 $ 10,869 $ 133,576 $ ( 4,118 ) $ 855,485 $ 1,480,343

Net Income — — — — — — 47,105 47,105

Other comprehensive loss, net of tax

— — — — — ( 5,023 ) — ( 5,023 )

Cash dividends:

Preferred stock — — — — — — ( 6,792 ) ( 6,792 )

Common stock (cash dividend of $ 1.40 per share)

— — — — — — ( 15,233 ) ( 15,233 )

Issuance of Class C Common Stock — — 12 12 67 — — 79

Stock-based compensation cost — — — — 1,555 — — 1,555

Other stock-based award activity — — — — ( 1,055 ) — — ( 1,055 )

Balance as of June 30, 2024 19,980 $ 484,531 10,881 $ 10,881 $ 134,143 $ ( 9,141 ) $ 880,565 $ 1,500,979

Balance as of December 31, 2022 19,980 $ 484,531 10,801 $ 10,801 $ 128,939 $ ( 50,843 ) $ 698,530 $ 1,271,958

10 unchanged sentences

Balance as of March 31, 2023 19,980 $ 484,531 10,820 $ 10,820 $ 130,004 $ ( 59,862 ) $ 726,892 $ 1,292,385

Net Income — — — — — — 47,212 47,212

Other comprehensive income, net of tax — — — — — 25,511 — 25,511

Cash dividends:

Preferred stock — — — — — — ( 6,791 ) ( 6,791 )

Common stock (cash dividend of $ 1.10 per share)

— — — — — — ( 11,921 ) ( 11,921 )

Issuance of Class C Common Stock — — 16 16 54 — — 70

Stock-based compensation cost — — — — 1,223 — — 1,223

Other stock-based award activity — — — — ( 1,134 ) — — ( 1,134 )

Balance as of June 30, 2023 19,980 $ 484,531 10,836 $ 10,836 $ 130,147 $ ( 34,351 ) $ 755,392 $ 1,346,555

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended

March 31, 2024 March 31, 2023

For the Six Months Ended

June 30, 2024 June 30, 2023

(in thousands)

6 unchanged sentences

141,556 69,056

Losses on sale of mortgage loans

Gains on the sale of available-for-sale investment securities

Total provision for/(release of) allowance for losses 4,360 1,892

22 unchanged sentences

Proceeds from repayment of loans purchased as held for investment 809,934 662,458

Proceeds from sale of available-for-sale investment securities

Proceeds from sale of loans previously classified as held for investment

Proceeds from sale of Farmer Mac Guaranteed Securities

Net cash used in investing activities ( 633,852 ) ( 282,430 )

3 unchanged sentences

Proceeds from issuance of debt securities of consolidated trusts

283,462 222,188

Payments to redeem discount notes ( 25,724,358 ) ( 21,840,244 )

36 unchanged sentences

Presented below are Farmer Mac's significant accounting policies that contain

updated information for the three months ended March 31, 2024.

updated information for the three and six months ended June 30, 2024.

Principles of Consolidation

4 unchanged sentences

Consolidation of Variable Interest Entities

As of March 31, 2024

As of June 30, 2024

Agricultural Finance Treasury Total

21 unchanged sentences

(1) Includes borrower remittances of $ 5.9 million.

The borrower remittances had not been passed through to third-party investors as of March 31, 2024.

The borrower remittances had not been passed through to third-party investors as of June 30, 2024.

(2) Includes $ 104.6 million in unamortized discount related to structured securitization transactions.

35 unchanged sentences

Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock unit awards.

The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2024 and 2023:

The following schedule reconciles basic and diluted EPS for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended

March 31, 2024 March 31, 2023

June 30, 2024 June 30, 2023

Income Weighted-Average Shares $ per

6 unchanged sentences

Diluted EPS $ 40,313 10,956 $ 3.68 $ 40,421 10,916 $ 3.70

(1) For the three months ended March 31, 2024 and 2023, SARs and restricted stock units of 49,371 and 62,709 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the three months ended March 31, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,282 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

(1) For the three months ended June 30, 2024 and 2023, SARs and restricted stock units of 43,263 and 34,500 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the three months ended June 30, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,282 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

For the Six Months Ended

June 30, 2024 June 30, 2023

Income Weighted-Average Shares $ per

(in thousands, except per share amounts)

Net income attributable to common stockholders $ 87,268 10,863 $ 8.04 $ 80,665 10,817 $ 7.46

Effect of dilutive securities (1)

SARs and restricted stock units

— 103 ( 0.08 ) — 100 ( 0.07 )

Diluted EPS $ 87,268 10,966 $ 7.96 $ 80,665 10,917 $ 7.39

(1) For the six months ended June 30, 2024 and 2023, SARs and restricted stock units of 46,317 and 48,605 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the six months ended June 30, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,282 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

(b) Comprehensive Income

Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2024 and 2023.

As of March 31, 2024 As of March 31, 2023

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and six months ended June 30, 2024 and 2023.

As of June 30, 2024 As of June 30, 2023

Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total

2 unchanged sentences

Beginning Balance $ ( 36,886 ) $ ( 9,224 ) $ 41,992 $ ( 4,118 ) $ ( 115,041 ) $ 15,739 $ 39,440 $ ( 59,862 )

Other comprehensive income/(loss) before reclassifications 31,565 — 9,256 40,821 525 — ( 5,452 ) ( 4,927 )

Other comprehensive (loss)/income before reclassifications

( 3,342 ) — 3,162 ( 180 ) 18,438 — 11,352 29,790

Amounts reclassified from AOCI ( 834 ) 252 ( 4,261 ) ( 4,843 ) ( 4 ) ( 253 ) ( 4,022 ) ( 4,279 )

Net comprehensive (loss)/income

( 4,176 ) 252 ( 1,099 ) ( 5,023 ) 18,434 ( 253 ) 7,330 25,511

Ending Balance $ ( 41,062 ) $ ( 8,972 ) $ 40,893 $ ( 9,141 ) $ ( 96,607 ) $ 15,486 $ 46,770 $ ( 34,351 )

For the Six Months Ended:

Beginning Balance $ ( 68,447 ) $ ( 8,724 ) $ 37,026 $ ( 40,145 ) $ ( 115,561 ) $ 16,357 $ 48,361 $ ( 50,843 )

Other comprehensive income before reclassifications

28,223 — 12,418 40,641 18,963 — 5,900 24,863

Amounts reclassified from AOCI ( 838 ) ( 248 ) ( 8,551 ) ( 9,637 ) ( 9 ) ( 871 ) ( 7,491 ) ( 8,371 )

Net comprehensive income/(loss) 27,385 ( 248 ) 3,867 31,004 18,954 ( 871 ) ( 1,591 ) 16,492

Ending Balance $ ( 41,062 ) $ ( 8,972 ) $ 40,893 $ ( 9,141 ) $ ( 96,607 ) $ 15,486 $ 46,770 $ ( 34,351 )

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2024 and 2023:

For the Three Months Ended

March 31, 2024 March 31, 2023

June 30, 2024 June 30, 2023

Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax

2 unchanged sentences

Available-for-sale-securities:

Unrealized holding (losses)/gains on available-for-sale securities

$ ( 4,231 ) $ ( 889 ) $ ( 3,342 ) $ 23,339 $ 4,901 $ 18,438

Less reclassification adjustments included in:

Gains on sale of available-for-sale investment securities (1)

( 1,052 ) ( 221 ) ( 831 ) — — —

Other income (2)

( 4 ) ( 1 ) ( 3 ) ( 5 ) ( 1 ) ( 4 )

Total $ ( 5,287 ) $ ( 1,111 ) $ ( 4,176 ) $ 23,334 $ 4,900 $ 18,434

Held-to-maturity securities:

Less reclassification adjustments included in:

Net interest income (3)

$ 320 $ 68 $ 252 $ ( 321 ) $ ( 68 ) $ ( 253 )

Total $ 320 $ 68 $ 252 $ ( 321 ) $ ( 68 ) $ ( 253 )

Cash flow hedges

Unrealized gains on cash flow hedges

$ 4,001 $ 839 $ 3,162 $ 14,370 $ 3,018 $ 11,352

Less reclassification adjustments included in:

Net interest income (4)

( 5,393 ) ( 1,132 ) ( 4,261 ) ( 5,091 ) ( 1,069 ) ( 4,022 )

Total $ ( 1,392 ) $ ( 293 ) $ ( 1,099 ) $ 9,279 $ 1,949 $ 7,330

Other comprehensive (loss)/income

$ ( 6,359 ) $ ( 1,336 ) $ ( 5,023 ) $ 32,292 $ 6,781 $ 25,511

(1) Represents unrealized gains and losses on sales of available-for-sale securities.

(2) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3) Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity.

The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value.

These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

(4) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

For the Six Months Ended

June 30, 2024 June 30, 2023

Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax

(in thousands)

Other comprehensive income:

Available-for-sale-securities:

Unrealized holding gains on available-for-sale securities

1 unchanged sentence

Less reclassification adjustments included in:

Gains on sale of available-for-sale investment securities (1)

( 1,052 ) ( 221 ) ( 831 ) — — —

Other income (2)

7 unchanged sentences

Cash flow hedges

Unrealized gains/(losses) on cash flow hedges

Unrealized gains on cash flow hedges

$ 15,719 $ 3,301 $ 12,418 $ 7,469 $ 1,569 $ 5,900

3 unchanged sentences

Total $ 4,894 $ 1,027 $ 3,867 $ ( 2,013 ) $ ( 422 ) $ ( 1,591 )

Other comprehensive income/(loss) $ 45,604 $ 9,577 $ 36,027 $ ( 11,416 ) $ ( 2,397 ) $ ( 9,019 )

Other comprehensive income

$ 39,245 $ 8,241 $ 31,004 $ 20,876 $ 4,384 $ 16,492

(1) Represents unrealized gains and losses on sales of available-for-sale securities.

(2) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

21 unchanged sentences

Early adoption is permitted.

Farmer Mac is still assessing the effect on our annual consolidated financial statement disclosures, however, adoption will not have a material impact on Farmer Mac's financial position, results of operations, or cash flows.

Farmer Mac is still assessing the effect on our annual consolidated financial statement disclosures, however, adoption is not expected to have a material impact on Farmer Mac's financial position, results of operations, or cash flows.

ASU 2023-09 , Income Taxes (Topic 740):

10 unchanged sentences

INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of March 31, 2024 and December 31, 2023:

As of March 31, 2024

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of June 30, 2024 and December 31, 2023:

As of June 30, 2024

Amount Outstanding Unamortized Premium/(Discount) Amortized

16 unchanged sentences

Total held-to-maturity $ 9,270 $ — $ 9,270 $ — $ 226 $ — $ 9,496

(1) Amounts presented exclude $ 22.2 million of accrued interest receivable on investment securities as of March 31, 2024.

(1) Amounts presented exclude $ 19.4 million of accrued interest receivable on investment securities as of June 30, 2024.

(2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses.

Amount excludes unrealized losses relating to non-credit factors.

(3) The held-to-maturity investment securities had a weighted average yield of 6.7 % as of March 31, 2024.

(3) The held-to-maturity investment securities had a weighted average yield of 6.4 % as of June 30, 2024.

As of December 31, 2023

21 unchanged sentences

(3) The held-to-maturity investment securities had a weighted average yield of 6.7 % as of December 31, 2023.

Farmer Mac did no t sell any securities from its available-for-sale investment portfolio during the three months ended March 31, 2024 and 2023.

As of March 31, 2024 and December 31, 2023, unrealized losses on available-for-sale investment securities were as follows:

As of March 31, 2024

During the three and six months ended June 30, 2024, Farmer Mac sold floating rate government/GSE guaranteed mortgage-backed securities for $ 115.2 million from its available-for-sale investment portfolio, resulting in a gain of $ 1.1 million.

These sales were done to rebalance the liquidity investment portfolio

given the lower level of business volume activity while demonstrating that the portfolio provides strong contingent liquidity.

Farmer Mac did no t sell any securities from its available-for-sale investment portfolio during the three and six months ended June 30, 2023.

As of June 30, 2024 and December 31, 2023, unrealized losses on available-for-sale investment securities were as follows:

As of June 30, 2024

Available-for-Sale Securities

8 unchanged sentences

Fixed rate Government/GSE guaranteed mortgage-backed securities 379,695 ( 2,425 ) 1,251,770 ( 139,140 )

Floating rate U.S.

Treasuries 49,990 ( 6 ) — —

Fixed rate U.S.

19 unchanged sentences

Number of securities in loss position 91 162

The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to March 31, 2024 and December 31, 2023, as applicable.

The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to June 30, 2024 and December 31, 2023, as applicable.

The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities.

As of both March 31, 2024 and December 31, 2023, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S.

As of both June 30, 2024 and December 31, 2023, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S.

government, a U.S.

government sponsored enterprise, or had credit ratings of at least "AA+."

Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2024 that is, on average, approximately 94.1 % of their amortized cost basis.

Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity, changes in credit spread, or changes in levels of interest rates.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2024 are set forth below.

Securities in unrealized loss positions for 12 months or longer have a fair value as of June 30, 2024 that is, on average, approximately 94.2 % of their amortized cost basis.

Farmer Mac believes that all of these

unrealized losses are recoverable within a reasonable period of time by way of maturity, changes in credit spread, or changes in levels of interest rates.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of June 30, 2024 are set forth below.

Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

As of March 31, 2024

As of June 30, 2024

Available-for-Sale Securities

7 unchanged sentences

FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2024 and December 31, 2023:

As of March 31, 2024

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of June 30, 2024 and December 31, 2023:

As of June 30, 2024

Unpaid Principal Balance Unamortized Premium/(Discount) Amortized

16 unchanged sentences

$ 1,032 $ 52 $ 1,084 $ — $ — $ ( 58 ) $ 1,026

(1) Amounts presented exclude $ 57.9 million, $ 59.4 million, and $ 27,610 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of March 31, 2024.

(1) Amounts presented exclude $ 53.6 million, $ 55.0 million, and $ 28,690 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of June 30, 2024.

(2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses.

1 unchanged sentence

(3) Fair value includes $ 9.3 million of an interest-only security with a notional amount of $ 232.4 million.

(4) The trading USDA securities had a weighted average yield of 5.58 % as of March 31, 2024.

(4) The trading USDA securities had a weighted average yield of 5.57 % as of June 30, 2024.

As of December 31, 2023

26 unchanged sentences

Both the cost basis adjustment and accumulated unrealized depreciation will be amortized as an adjustment to the yield on the held-to-maturity AgVantage Securities over the remaining term of the transferred securities.

As of March 31, 2024 and December 31, 2023, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

As of March 31, 2024

As of June 30, 2024 and December 31, 2023, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

As of June 30, 2024

Held-to-Maturity and Available-for-Sale Securities

29 unchanged sentences

Total available-for-sale $ 508,182 $ ( 5,716 ) $ 4,043,431 $ ( 303,695 )

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to March 31, 2024 and December 31, 2023, as applicable.

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to June 30, 2024 and December 31, 2023, as applicable.

The credit exposure related to Farmer Mac's USDA Securities in the Agricultural Finance line of business is covered by the full faith and credit guarantee of the United States of America.

The unrealized losses from AgVantage securities were on 73 and 68 available-for-sale securities as of March 31, 2024 and December 31, 2023, respectively.

There were 63 and 53 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024 and December 31, 2023, 60 and 62 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months.

As of March 31, 2024 and December 31, 2023, there were 19 and 22 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three three months ended March 31, 2024 and 2023 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading Securities and, therefore, Farmer Mac realized no gains or losses.

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2024 are set forth below.

The unrealized losses from AgVantage securities were on 71 and 68 available-for-sale securities as of June 30, 2024 and December 31, 2023, respectively.

There were 54 and 53 held-to-maturity AgVantage securities with an unrealized loss as of June 30, 2024 and December 31, 2023, respectively.

As of both June 30, 2024 and December 31, 2023, 62 available-for-sale AgVantage securities had been in a loss position for more than 12 months.

As of June 30, 2024 and December 31, 2023, there were 19 and 22 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three and six months ended June 30, 2024 and 2023 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading Securities and, therefore, Farmer Mac realized no gains or losses.

The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets.

As of March 31, 2024

As of June 30, 2024

Available-for-Sale Securities

7 unchanged sentences

(1) Amounts presented exclude $ 53.6 million of accrued interest receivable.

As of March 31, 2024

As of June 30, 2024

Held-to-Maturity Securities

18 unchanged sentences

Treasury securities.

Farmer Mac aims to achieve a duration-matched hedge ratio between the hedged item and the hedge instrument.

Farmer Mac aims to achieve a duration-matched hedge ratio between the hedged item and the hedge

Gains or losses generated by these hedge transactions are expected to offset changes in funding costs.

2 unchanged sentences

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements.

The table below includes accrued interest on cleared swaps, but excludes $ 17.6 million and $ 16.4 million of accrued interest receivable and $ 6.2 million and $ 6.5 million of accrued interest payable on uncleared swaps as of March 31, 2024 and December 31, 2023, respectively.

The table below includes accrued interest on cleared swaps, but excludes $ 17.8 million and $ 16.4 million of accrued interest receivable and $ 5.8 million and $ 6.5 million of accrued interest payable on uncleared swaps as of June 30, 2024 and December 31, 2023, respectively.

The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the consolidated balance sheets.

As of March 31, 2024

As of June 30, 2024

Fair Value Weighted-

49 unchanged sentences

(1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

As of March 31, 2024, Farmer Mac expects to reclassify $ 14.5 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges.

This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after March 31, 2024.

During the three months ended March 31, 2024 and 2023, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it was probable that the originally forecasted transactions would occur.

The following tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three months ended March 31, 2024 and 2023:

For the Three Months Ended March 31, 2024

As of June 30, 2024, Farmer Mac expects to reclassify $ 14.3 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges.

This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after June 30, 2024.

During the three and six months ended June 30, 2024 and 2023, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it was probable that the originally forecasted transactions would occur.

The following tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and six months ended June 30, 2024 and 2023:

For the Three Months Ended June 30, 2024

Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives

Net Interest Income Non-Interest Income Total

Interest Income Investments and Cash Equivalents Interest Income Farmer Mac Guaranteed Securities and USDA Securities Interest Income Loans Total Interest Expense Losses on financial derivatives

(in thousands)

Total amounts presented in the consolidated statement of operations $ 84,538 $ 166,063 $ 153,105 $ ( 316,366 ) $ ( 1,799 ) $ 85,541

Income/(expense) related to interest settlements on fair value hedging relationships:

Recognized on derivatives 10,408 39,134 17,827 ( 76,659 ) — ( 9,290 )

Recognized on hedged items 10,309 52,651 16,705 ( 107,290 ) — ( 27,625 )

Premium/discount amortization recognized on hedged items 487 — — ( 721 ) — ( 234 )

Income/(expense) related to interest settlements on fair value hedging relationships $ 21,204 $ 91,785 $ 34,532 $ ( 184,670 ) $ — $ ( 37,149 )

Gains/(losses) on fair value hedging relationships:

Recognized on derivatives $ 3,460 $ 6,926 $ 13,188 $ 30,872 $ — $ 54,446

Recognized on hedged items ( 3,361 ) ( 6,508 ) ( 12,112 ) ( 29,861 ) — ( 51,842 )

Gains/(losses) on fair value hedging relationships

$ 99 $ 418 $ 1,076 $ 1,011 $ — $ 2,604

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 5,393 $ — $ 5,393

Recognized on hedged items — — — ( 8,014 ) — ( 8,014 )

Discount amortization recognized on hedged items — — — ( 14 ) — ( 14 )

Expense recognized on cash flow hedges $ — $ — $ — $ ( 2,635 ) $ — $ ( 2,635 )

Losses on financial derivatives not designated in hedging relationships:

Losses on interest rate swaps

$ — $ — $ — $ — $ ( 26 ) $ ( 26 )

Interest expense on interest rate swaps — — — — ( 486 ) ( 486 )

Treasury futures — — — — ( 1,287 ) ( 1,287 )

Losses on financial derivatives not designated in hedge relationships

$ — $ — $ — $ — $ ( 1,799 ) $ ( 1,799 )

For the Three Months Ended June 30, 2023

Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives

Net Interest Income Non-Interest Income Total

Interest Income Investments and Cash Equivalents Interest Income Farmer Mac Guaranteed Securities and USDA Securities Interest Income Loans Total Interest Expense Gains on financial derivatives

1 unchanged sentence

Total amounts presented in the consolidated statement of operations:

$ 69,779 $ 144,761 $ 129,292 $ ( 265,155 ) $ 1,693 $ 80,370

Income/(expense) related to interest settlements on fair value hedging relationships:

2 unchanged sentences

Premium/discount amortization recognized on hedged items

508 — — ( 713 ) — ( 205 )

Income/(expense) related to interest settlements on fair value hedging relationships $ 16,858 $ 80,721 $ 31,602 $ ( 169,493 ) $ — $ ( 40,312 )

(Losses)/gains on fair value hedging relationships:

Recognized on derivatives $ 30,824 $ 100,862 $ 46,762 $ ( 81,098 ) $ — $ 97,350

Recognized on hedged items ( 31,969 ) ( 101,921 ) ( 49,381 ) 81,020 — ( 102,251 )

(Losses)/gains on fair value hedging relationships $ ( 1,145 ) $ ( 1,059 ) $ ( 2,619 ) $ ( 78 ) $ — $ ( 4,901 )

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 5,091 $ — $ 5,091

Recognized on hedged items — — — ( 7,848 ) — ( 7,848 )

Discount amortization recognized on hedged items — — — ( 14 ) — ( 14 )

Expense recognized on cash flow hedges $ — $ — $ — $ ( 2,771 ) $ — $ ( 2,771 )

Gains on financial derivatives not designated in hedge relationships:

Gains on interest rate swaps $ — $ — $ — $ — $ 2,458 $ 2,458

Interest expense on interest rate swaps — — — — ( 1,568 ) ( 1,568 )

Treasury futures — — — — 803 803

Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 1,693 $ 1,693

For the Six Months Ended June 30, 2024

Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives

Net Interest Income Non-Interest Income Total

Interest Income Investments and Cash Equivalents Interest Income Farmer Mac Guaranteed Securities and USDA Securities Interest Income Loans Total Interest Expense Gains on financial derivatives

(in thousands)

Total amounts presented in the consolidated statement of operations $ 169,462 $ 332,876 $ 297,685 $ ( 626,315 ) $ 280 $ 173,988

Income/(expense) related to interest settlements on fair value hedging relationships:

Recognized on derivatives 20,705 79,467 35,676 ( 160,210 ) — ( 24,362 )

Recognized on hedged items 20,257 104,356 33,302 ( 213,723 ) — ( 55,808 )

Premium/discount amortization recognized on hedged items 933 — — ( 1,468 ) — ( 535 )

Income/(expense) related to interest settlements on fair value hedging relationships $ 41,895 $ 183,823 $ 68,978 $ ( 375,401 ) $ — $ ( 80,705 )

Gains/(losses) on fair value hedging relationships:

13 unchanged sentences

Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 280 $ 280

For the Three Months Ended March 31, 2023

For the Six Months Ended June 30, 2023

Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives

10 unchanged sentences

Income/(expense) related to interest settlements on fair value hedging relationships $ 30,636 $ 151,602 $ 59,989 $ ( 318,626 ) $ — $ ( 76,399 )

Gains/(losses) on fair value hedging relationships:

(Losses)/gains on fair value hedging relationships:

Recognized on derivatives $ 3,671 $ 7,070 $ ( 9,919 ) $ 41,441 $ — $ 42,263

Recognized on hedged items ( 4,541 ) ( 8,625 ) 7,576 ( 41,679 ) — ( 47,269 )

Gains/(losses) on fair value hedging relationships

$ 275 $ ( 497 ) $ 276 $ ( 159 ) $ — $ ( 105 )

(Losses)/gains on fair value hedging relationships $ ( 870 ) $ ( 1,555 ) $ ( 2,343 ) $ ( 238 ) $ — $ ( 5,006 )

Expense related to interest settlements on cash flow hedging relationships:

8 unchanged sentences

Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 2,092 $ 2,092

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2024 and December 31, 2023:

Hedged Items in Fair Value Relationship

Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)

March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023

(in thousands)

5 unchanged sentences

(1) Carrying amount represents amortized cost.

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of March 31, 2024 and December 31, 2023:

March 31, 2024

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of June 30, 2024 and December 31, 2023:

June 30, 2024

Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1)

12 unchanged sentences

(3) Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount.

As of March 31, 2024, Farmer Mac had additional net exposure of $ 197.9 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position.

As of June 30, 2024, Farmer Mac had additional net exposure of $ 176.8 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position.

December 31, 2023

16 unchanged sentences

Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets.

If Farmer Mac had breached certain provisions of the derivative contracts as of March 31, 2024 or December 31, 2023, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral.

As of March 31, 2024 and December 31, 2023, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.

Of Farmer Mac's $ 26.1 billion notional amount of interest rate swaps outstanding as of March 31, 2024, $ 20.8 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME").

If Farmer Mac had breached certain provisions of the derivative contracts as of June 30, 2024 or December 31, 2023, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral.

As of June 30, 2024 and December 31, 2023, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.

Of Farmer Mac's $ 25.6 billion notional amount of interest rate swaps outstanding as of June 30, 2024, $ 20.3 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME").

Of Farmer Mac's $ 25.8 billion notional amount of interest rate swaps outstanding as of December 31, 2023, $ 20.5 billion were cleared through the CME.

2 unchanged sentences

Loans held for sale are reported at the lower of cost or fair value determined on a pooled

As of both March 31, 2024 and December 31, 2023, Farmer Mac had no loans held for sale.

As of both June 30, 2024 and December 31, 2023, Farmer Mac had no loans held for sale.

During second quarter 2024, Farmer Mac sold a portion of a Corporate AgFinance agricultural storage and processing loan at a loss of $ 1.1 million to reduce the overall exposure to the borrower.

Farmer Mac sold

$ 7.0 million of the overall $ 14.4 million loan leaving a remaining exposure of $ 7.4 million as of June 30, 2024.

Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance.

The segments are characterized by similarities in risk attributes and the manner in which Farmer Mac monitors and assesses credit risk.

The following table includes loans held for investment and displays the composition of the loan balances as of March 31, 2024 and December 31, 2023:

As of March 31, 2024 As of December 31, 2023

The following table includes loans held for investment and displays the composition of the loan balances as of June 30, 2024 and December 31, 2023:

As of June 30, 2024 As of December 31, 2023

Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total

13 unchanged sentences

Allowance for Losses

The following table is a summary, by asset type, of the allowance for losses as of March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The following table is a summary, by asset type, of the allowance for losses as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Allowance for Losses Allowance for Losses

6 unchanged sentences

Total $ 16,500 $ 16,031

The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2024 and 2023:

For the Three Months Ended

March 31, 2024 March 31, 2023

The following is a summary of the changes in the allowance for losses for the three and six months ended June 30, 2024 and 2023:

June 30, 2024 June 30, 2023

Agricultural Finance loans Rural Infrastructure

7 unchanged sentences

(in thousands)

For the Three Months Ended

Beginning Balance $ 4,535 $ 2,569 $ 7,104 $ 7,184 $ 3,933 $ 7,039 $ 10,972 $ 4,701

Provision for losses

242 5,387 5,629 626 2 328 330 745

Charge-offs ( 101 ) ( 3,942 ) ( 4,043 ) — — — — —

Ending Balance $ 4,676 $ 4,014 $ 8,690 $ 7,810 $ 3,935 $ 7,367 $ 11,302 $ 5,446

For the Six Months Ended

Beginning Balance $ 3,936 $ 2,948 $ 6,884 $ 9,147 $ 4,044 $ 2,731 $ 6,775 $ 8,314

Provision for/(release of) losses

2 unchanged sentences

Ending Balance $ 4,676 $ 4,014 $ 8,690 $ 7,810 $ 3,935 $ 7,367 $ 11,302 $ 5,446

(1) As of March 31, 2024 and 2023, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 1.4 million and $ 1.1 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2) As of March 31, 2024 and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 0.0 million and $ 4.6 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3) As of both March 31, 2024 and 2023, the allowance for losses for Rural Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $ 2.0 million net release from the allowance for the Rural Infrastructure Finance portfolio during the quarter ended March 31, 2024 was primarily attributable to a single telecommunications loan that completed a restructuring, which resulted in an improved collateral position and a paydown of approximately 15 % of its previously unpaid principal balance.

The $ 0.2 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended March 31, 2024 was primarily attributable to increased loan volume.

Although substandard Agricultural Finance loans increased $ 73.0 million from December 31, 2023, there was not a significant provision for loss associated with that increase because of the net realizable value of those loans.

(1) As of June 30, 2024 and 2023, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 1.2 million and $ 1.1 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2) As of June 30, 2024 and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 0.0 million and $ 4.6 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3) As of both June 30, 2024 and 2023, the allowance for losses for Rural Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $ 0.6 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the quarter ended June 30, 2024 was primarily attributable to renewable energy loans that extended their pre-construction phase, which has higher expected loss assumptions than their operating phase.

The $ 5.6 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended June 30, 2024 was primarily attributable to a permanent planting loan that is in bankruptcy and of which $ 3.9 million was deemed uncollectible.

Accordingly, a charge-off in the amount of $ 3.9 million was recorded in connection with that loan.

The remaining provision during the quarter was attributable to increased loan volume.

The $ 1.3 million net release from the allowance for the Rural Infrastructure Finance portfolio during the six months ended June 30, 2024 was primarily attributable to a single telecommunications loan that completed a restructuring during first quarter, which resulted in an improved collateral position and a paydown of approximately 15 % of its previously unpaid principal balance.

The $ 5.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the six months ended June 30, 2024 was primarily attributable to the permanent planting loan mentioned above and increased loan volume.

The $ 0.7 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the

quarter ended June 30, 2023 was primarily attributable to increased telecommunications loan volume.

$ 0.3 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the

quarter ended June 30, 2023 was primarily attributable to increased storage and processing loan volume.

The $ 2.9 million net release from the allowance for the Rural Infrastructure Finance portfolio during the

quarter ended March 31, 2023 was primarily attributable to an updated estimate of expected losses based

on newly available industry data.

The $ 4.2 million net provision to the allowance for the Agricultural

Finance mortgage loan portfolio during the quarter ended March 31, 2023 was primarily attributable to

declining valuation of a single agricultural storage and processing loan, due to its ongoing bankruptcy

proceedings and an updated estimate of expected losses based on additional availability of industry data.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2024 and December 31, 2023:

As of March 31, 2024

six months ended June 30, 2023 was primarily attributable to an updated estimate of expected losses based

on newly available loss-given-default industry data.

The $ 4.5 million net provision to the allowance for

the Agricultural Finance mortgage loan portfolio during the six months ended June 30, 2023 was primarily

attributable to declining valuation of a single agricultural storage and processing loan, due to its ongoing

bankruptcy proceedings, and an updated estimate of expected losses based on additional availability of

loss-given-default industry data.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of June 30, 2024 and December 31, 2023:

As of June 30, 2024

Current 30-59 Days 60-89 Days 90 Days and Greater (2)

11 unchanged sentences

(4) Includes $ 26.2 million of nonaccrual loans for which there was no associated allowance.

During the three months ended March 31, 2024, Farmer Mac received $ 0.6 million in interest on nonaccrual loans.

During the three and six months ended June 30, 2024, Farmer Mac received $ 1.2 million and $ 1.7 million, in interest on nonaccrual loans, respectively.

As of December 31, 2023

14 unchanged sentences

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of March 31, 2024 and December 31, 2023, by year of origination:

As of March 31, 2024

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of June 30, 2024 and December 31, 2023, by year of origination:

As of June 30, 2024

Year of Origination:

9 unchanged sentences

Total $ 522,902 $ 606,871 $ 1,182,714 $ 1,646,281 $ 1,115,215 $ 1,432,288 $ 393,903 $ 6,900,174

For the Three Months Ended March 31, 2024:

For the Three Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ 101 $ — $ — $ — $ 101

For the Six Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ 101 $ — $ — $ — $ 101

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

1 unchanged sentence

(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

As of March 31, 2024

As of June 30, 2024

Year of Origination:

9 unchanged sentences

Total $ 72,344 $ 203,158 $ 84,080 $ 260,615 $ 172,029 $ 224,691 $ 269,250 $ 1,286,167

For the Three Months Ended March 31, 2024:

For the Three Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ 3,942 $ 3,942

For the Six Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ 3,942 $ 3,942

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

1 unchanged sentence

(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

As of March 31, 2024

As of June 30, 2024

Year of Origination:

9 unchanged sentences

Total $ 441,378 $ 547,120 $ 684,571 $ 188,592 $ 570,283 $ 1,272,743 $ 274,551 $ 3,979,238

For the Three Months Ended March 31, 2024:

For the Three Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

13 unchanged sentences

Total $ 604,837 $ 1,207,742 $ 1,691,901 $ 1,149,903 $ 357,646 $ 1,148,725 $ 404,957 $ 6,565,711

For the Three Months Ended March 31, 2023:

For the Three Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

13 unchanged sentences

Total $ 207,279 $ 112,444 $ 277,400 $ 173,980 $ 119,685 $ 112,947 $ 255,988 $ 1,259,723

For the Three Months Ended March 31, 2023:

For the Three Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

13 unchanged sentences

Total $ 618,946 $ 720,522 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,534,763

For the Three Months Ended March 31, 2023:

For the Three Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

2 unchanged sentences

GUARANTEES AND COMMITMENTS

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of June 30, 2024 and December 31, 2023, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities

As of March 31, 2024 As of December 31, 2023

As of June 30, 2024 As of December 31, 2023

(in thousands)

4 unchanged sentences

The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

For the Three Months Ended

March 31, 2024 March 31, 2023

For the Six Months Ended

June 30, 2024 June 30, 2023

(in thousands)

3 unchanged sentences

The following table presents the liability and the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities:

As of March 31, 2024 As of December 31, 2023

As of June 30, 2024 As of December 31, 2023

(dollars in thousands)

5 unchanged sentences

The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs:

As of March 31, 2024 As of December 31, 2023

As of June 30, 2024 As of December 31, 2023

(dollars in thousands)

5 unchanged sentences

Reserve for Losses - LTSPCs and Farmer Mac Guaranteed Securities

The following table is a summary, by asset type, of the reserve for losses as of March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023

The following table is a summary, by asset type, of the reserve for losses as of June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023

Reserve for Losses Reserve for Losses

3 unchanged sentences

Total $ 1,694 $ 1,711

The following is a summary of the changes in the reserve for losses for the three month period ended March 31, 2024 and 2023:

For the Three Months Ended

March 31, 2024 March 31, 2023

Reserve for Losses Reserve for Losses

The following is a summary of the changes in the reserve for losses for the three and six month periods ended June 30, 2024 and 2023:

For the Three Months Ended For the Six Months Ended

June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023

Reserve for Losses Reserve for Losses Reserve for Losses Reserve for Losses

(in thousands)

2 unchanged sentences

(Release of)/provision for losses

36 75 ( 28 ) 652

Ending Balance $ 1,443 $ 1,471 $ 1,443 $ 1,471

4 unchanged sentences

Ending Balance $ 251 $ 234 $ 251 $ 234

The release from the reserve for losses in the Rural Infrastructure Finance LTSPC portfolio recorded

during first quarter 2023 was primarily due to an updated estimate of expected losses based on additional

available industry data.

The provision to the reserve for losses in the Agricultural Finance LTSPC

portfolio recorded during first quarter 2023 was primarily due to an updated estimate of expected losses

based on additional available industry data.

The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023:

As of March 31, 2024

The provision for the reserve for losses in the Agricultural Finance LTSPC portfolio recorded during the

six months ended June 30, 2023 was primarily due to an updated estimate of expected losses based on

additional available loss-given-default industry data.

The release from the reserve for losses in the Rural

Infrastructure Finance LTSPC portfolio recorded during the six months ended June 30, 2023 was

primarily due to an updated estimate of expected losses based on additional available loss-given-default

industry data.

As of June 30, 2024

Current 30-59 Days 60-89 Days 90 Days and Greater (1)

18 unchanged sentences

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and 2023, by year of origination:

As of March 31, 2024

As of June 30, 2024

Year of Origination:

9 unchanged sentences

Total $ 9,001 $ 158,446 $ 233,703 $ 494,450 $ 518,122 $ 1,408,407 $ 400,924 $ 3,223,053

For the Three Months Ended March 31, 2024:

For the Three Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

(2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

As of March 31, 2024

As of June 30, 2024

Year of Origination:

9 unchanged sentences

Total $ — $ — $ — $ — $ — $ 368,801 $ 228,892 $ 597,693

For the Three Months Ended March 31, 2024:

For the Three Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2024:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

12 unchanged sentences

Total $ 169,429 $ 246,512 $ 517,862 $ 535,398 $ 266,882 $ 1,256,770 $ 404,991 $ 3,397,844

For the Three Months Ended March 31, 2023:

For the Three Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

12 unchanged sentences

Total $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013

For the Three Months Ended March 31, 2023:

For the Three Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

For the Six Months Ended June 30, 2023:

Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —

(1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

3 unchanged sentences

Discount notes generally have original maturities of 1 year or less, whereas medium-term notes generally have maturities of 0.5 years to 25.0 years.

The following tables set forth information related to Farmer Mac's borrowings as of March 31, 2024 and December 31, 2023:

March 31, 2024

Outstanding as of March 31

The following tables set forth information related to Farmer Mac's borrowings as of June 30, 2024 and December 31, 2023:

June 30, 2024

Outstanding as of June 30

Average Outstanding During the Quarter

37 unchanged sentences

Total $ 26,336,542

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the three months ended March 31, 2024 and 2023 was $ 1.9 billion and $ 0.9 billion, respectively.

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the six months ended June 30, 2024 and 2023 was $ 2.3 billion and $ 1.0 billion, respectively.

Callable medium-term notes give Farmer Mac the option to redeem the debt at par value on a specified call date or at any time on or after a specified call date.

The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2024 as of March 31, 2024:

Debt Callable in 2024 as of March 31, 2024, by Maturity

The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2024 as of June 30, 2024:

Debt Callable in 2024 as of June 30, 2024, by Maturity

Amount Weighted-Average Rate

6 unchanged sentences

Total $ 5,677,221 2.71 %

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2024, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of June 30, 2024, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:

Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding

9 unchanged sentences

Total principal net of discounts $ 26,818,717 3.53 %

During the the three months ended March 31, 2024 and 2023, Farmer Mac called $ 354.5 million and $ 0.0 million of callable medium-term notes, respectively.

During the six months ended June 30, 2024 and 2023, Farmer Mac called $ 454.5 million and $ 0.0 million of callable medium-term notes, respectively.

Authority to Borrow from the U.S.

4 unchanged sentences

Any debt obligations issued by Farmer Mac under this authority would bear interest at a rate determined by the U.S.

Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of the obligations from Farmer Mac.

obligations from Farmer Mac.

The charter requires Farmer Mac to repurchase any of its debt obligations held by the U.S.

Treasury within a reasonable time.

As of March 31, 2024, Farmer Mac had not used this borrowing authority.

As of June 30, 2024, Farmer Mac had not used this borrowing authority.

Gains on Repurchases of Outstanding Debt

No outstanding debt repurchases were made in the three months ended March 31, 2024 and 2023.

During first quarter 2024, Farmer Mac paid a quarterly dividend of $ 1.40 per share on all classes of its common stock.

For each quarter in 2023, Farmer Mac paid a quarterly dividend of $ 1.10 per share on all

classes of its common stock.

No outstanding debt repurchases were made in the three months ended June 30, 2024 and 2023.

During first and second quarter 2024, Farmer Mac paid a quarterly dividend of $ 1.40 per share on all classes of its common stock.

For each quarter in 2023, Farmer Mac paid a quarterly dividend of $ 1.10 per share on all classes of its common stock.

Except for the period from March 16, 2020 to March 10, 2021, Farmer Mac has had a common stock repurchase program in place since third quarter 2015.

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Farmer Mac has no t repurchased any shares of its Class C non-voting common stock since the repurchase program was reinstated in March 2021.

As of March 31, 2024, Farmer Mac had repurchased approximately 673,000 shares of Class C non-voting common stock at a cost of approximately $ 19.8 million under the share repurchase program since 2015.

As of June 30, 2024, Farmer Mac had repurchased approximately 673,000 shares of Class C non-voting common stock at a cost of approximately $ 19.8 million under the share repurchase program since 2015.

Preferred Stock

On July 18, 2024, Farmer Mac redeemed all outstanding shares of its 6.000 % Fixed-to-Floating Rate Non-Cumulative Series C Preferred Stock, plus any declared and unpaid dividends through and including the redemption date.

As a result of this redemption, Farmer Mac will recognize $ 1.6 million of deferred issuance costs in third quarter 2024, which will be presented as "Loss on retirement of preferred stock" on the consolidated statements of operations.

Capital Requirements

Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement.

As of both March 31, 2024 and December 31, 2023, the minimum capital requirement was greater than the risk-based capital requirement.

As of both June 30, 2024 and December 31, 2023, the minimum capital requirement was greater than the risk-based capital requirement.

Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements.

As of March 31, 2024, Farmer Mac's minimum capital requirement was $ 872.3 million and its core capital level was $ 1.5 billion, which was $ 612.1 million above the minimum capital requirement as of that date.

As of December 31, 2023, Farmer Mac's minimum capital requirement was $ 862.6 million and its core capital level was $ 1.5 billion, which was $ 589.4 million above the minimum capital requirement as of that date.

As of June 30, 2024, Farmer Mac's minimum capital requirement was $ 883.7 million and its core capital level was $ 1.5 billion, which was $ 626.4 million above the minimum capital requirement as of that date.

As of December 31, 2023, Farmer Mac's minimum capital requirement was $ 862.6 million and its

core capital level was $ 1.5 billion, which was $ 589.4 million above the minimum capital requirement as of that date.

In accordance with a rule of the Farm Credit Administration ("FCA") on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds.

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Fair Value Classification and Transfers

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Assets and Liabilities Measured at Fair Value as of March 31, 2024

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Assets and Liabilities Measured at Fair Value as of June 30, 2024

Level 1 Level 2 Level 3 (1)

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(1) Level 3 assets represent 19 % of total assets and 52 % of financial instruments measured at fair value.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2024 or December 31, 2023.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of June 30, 2024 or December 31, 2023.

Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period.

During the three months ended March 31, 2024 and 2023, there were no transfers within the fair value hierarchy.

During the three and six months ended June 30, 2024 and 2023, there were no transfers within the fair value hierarchy.

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value.

Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period.

There were no liabilities measured at fair value using significant unobservable inputs during the three months ended March 31, 2024 and 2023.

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2024

There were no liabilities measured at fair value using significant unobservable inputs during the three and six months ended June 30, 2024 and 2023.

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended June 30, 2024

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized losses included

unrealized (losses)/gains included

Unrealized gains/(losses)

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Total Assets at fair value $ 5,492,768 $ 225,000 $ ( 281,132 ) $ 30 $ ( 6,546 ) $ ( 4,906 ) $ 5,425,214

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2023

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended June 30, 2023

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains included

Unrealized (losses)/gains

unrealized losses included

in Income Unrealized gains

included in Other

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Total Assets at fair value $ 8,250,460 $ 852,000 $ ( 1,258,093 ) $ 9 $ ( 101,929 ) $ 27,679 $ 7,770,126

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2024 and December 31, 2023:

As of March 31, 2024

Level 3 Assets and Liabilities Measured at Fair Value for the Six Months Ended June 30, 2024

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

Unrealized gains/(losses)

included in Other

Comprehensive

Income Ending Balance

(in thousands)

Investment Securities:

Available-for-sale:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,082 $ — $ — $ 2 $ — $ 394 $ 19,478

Total available-for-sale 19,082 — — 2 — 394 19,478

Farmer Mac Guaranteed Securities:

Available-for-sale:

5,522,712 275,000 ( 344,788 ) 56 ( 87,155 ) 24,016 5,389,841

Farmer Mac Guaranteed Securities 9,767 — ( 348 ) — — ( 109 ) 9,310

Total available-for-sale 5,532,479 275,000 ( 345,136 ) 56 ( 87,155 ) 23,907 5,399,151

USDA Securities:

Trading 1,241 — ( 216 ) — 1 — 1,026

Total USDA Securities 1,241 — ( 216 ) — 1 — 1,026

Guarantee and commitment obligations:

Guarantee Asset 5,831 — ( 170 ) — ( 102 ) — 5,559

Total Guarantee and commitment obligations 5,831 — ( 170 ) — ( 102 ) — 5,559

Total Assets at fair value $ 5,558,633 $ 275,000 $ ( 345,522 ) $ 58 $ ( 87,256 ) $ 24,301 $ 5,425,214

Level 3 Assets and Liabilities Measured at Fair Value for the Six Months Ended June 30, 2023

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

Unrealized gains

included in Other

Comprehensive

Ending Balance

(in thousands)

Investment Securities:

Available-for-sale:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,027 $ — $ — $ 5 $ — $ — $ 19,032

Total available-for-sale 19,027 — — 5 — — 19,032

Farmer Mac Guaranteed Securities:

Available-for-sale:

AgVantage 7,599,379 1,539,650 ( 1,398,799 ) 40 ( 8,530 ) 6,070 7,737,810

Farmer Mac Guaranteed

Securities 7,847 — ( 874 ) — — 632 7,605

Total available-for-sale 7,607,226 1,539,650 ( 1,399,673 ) 40 ( 8,530 ) 6,702 7,745,415

USDA Securities:

Trading 1,767 — ( 435 ) — 16 — 1,348

Total USDA Securities 1,767 — ( 435 ) — 16 — 1,348

Guarantee and commitment obligations:

Guarantee Asset 4,467 — ( 422 ) — 286 — 4,331

Total Guarantee and commitment obligations 4,467 — ( 422 ) — 286 — 4,331

Total Assets at fair value $ 7,632,487 $ 1,539,650 $ ( 1,400,530 ) $ 45 $ ( 8,228 ) $ 6,702 $ 7,770,126

As of June 30, 2024

Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average)

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Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2024 and December 31, 2023:

As of March 31, 2024 As of December 31, 2023

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of June 30, 2024 and December 31, 2023:

As of June 30, 2024 As of December 31, 2023

Fair Value Carrying

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Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3.

Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model.

Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent,

estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model.

Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.

BUSINESS SEGMENT REPORTING

The following table presents the alignment of the Farmer Mac's seven segments:

The following table presents Farmer Mac's seven segments:

Agricultural Finance Rural Infrastructure Finance Treasury

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These differences would be due to various factors, including the exclusion of unrealized gains and losses related to fair value changes of trading assets and financial derivatives, as well as the allocation of certain expenses such as operating expenses, dividends and interest expense related to the issuance of capital and the issuance of indebtedness managed at the corporate level.

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three months ended March 31, 2024 and 2023.

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three and six months ended June 30, 2024 and 2023.

Core Earnings by Business Segment

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Agricultural Finance Rural Infrastructure Treasury Corporate

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Guarantee and commitment fees 4,612 127 301 216 — — — ( 1,459 ) 3,797

Gain on sale of investment securities

— — — — — 1,052 — — 1,052

Loss on sale of mortgage loan

— ( 1,147 ) — — — — — — ( 1,147 )

Other income (3)

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( 211 ) ( 5,354 ) 502 ( 1,117 ) — 1 — — ( 6,179 )

Release of reserve for losses

Provision for reserve for losses

( 36 ) — ( 15 ) — — — — — ( 51 )

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(2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

(3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4) Net adjustments to reconcile to the corresponding income measures:

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Core Earnings by Business Segment

For the Three Months Ended March 31, 2023

For the Three Months Ended June 30, 2023

Agricultural Finance Rural Infrastructure Treasury Corporate

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Total revenues 38,951 7,518 6,089 1,117 32,498 605 44 ( 2,205 ) 84,617

(Provision for)/release of losses

( 5 ) ( 327 ) ( 632 ) ( 110 ) — 1 — — ( 1,073 )

(Provision for)/release of reserve for losses ( 75 ) — 6 — — — — — ( 69 )

Operating expenses — — — — — — ( 24,188 ) — ( 24,188 )

Total non-interest expense ( 75 ) — 6 — — — ( 24,188 ) — ( 24,257 )

Core earnings before income taxes 38,871 7,191 5,463 1,007 32,498 606 ( 24,144 ) ( 2,205 ) (4)

Income tax (expense)/benefit ( 8,163 ) ( 1,510 ) ( 1,147 ) ( 211 ) ( 6,825 ) ( 127 ) 5,444 464 ( 12,075 )

Core earnings before preferred stock dividends 30,708 5,681 4,316 796 25,673 479 ( 18,700 ) ( 1,741 ) (4)

Preferred stock dividends — — — — — — ( 6,791 ) — ( 6,791 )

Segment core earnings/(losses) $ 30,708 $ 5,681 $ 4,316 $ 796 $ 25,673 $ 479 $ ( 25,491 ) $ ( 1,741 ) (4)

Total Assets $ 14,456,296 $ 1,584,841 $ 6,169,811 $ 314,538 $ — $ 4,959,243 $ 174,836 $ — $ 27,659,565

Total on- and off-balance sheet program assets at principal balance $ 18,116,503 $ 1,680,756 $ 6,611,892 $ 327,901 $ — $ — $ — $ — $ 26,737,052

(1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(4) Net adjustments to reconcile to the corresponding income measures:

core earnings before income taxes reconciled to income before income taxes;

core earnings before preferred stock dividends reconciled to net income;

and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment

For the Six Months Ended June 30, 2024

Agricultural Finance Rural Infrastructure Treasury Corporate

Farm & Ranch Corporate AgFinance Rural

Renewable Energy Funding Investments Reconciling

Adjustments Consolidated Net Income

(in thousands)

Net interest income $ 69,411 $ 15,837 $ 14,937 $ 5,048 $ 67,339 $ 1,136 $ — $ — $ 173,708

reconciling adjustments (1)(2)(3)

( 2,412 ) — ( 60 ) — ( 4,596 ) — — 7,068 —

Net effective spread 66,999 15,837 14,877 5,048 62,743 1,136 — 7,068 —

Guarantee and commitment fees 9,096 214 650 278 — — — ( 2,524 ) 7,714

Gain on sale of investment securities — — — — — 1,052 — — 1,052

Loss on sale of mortgage loan — ( 1,147 ) — — — — — — ( 1,147 )

Other income (3)

1,512 7 — — — 11 28 645 2,203

Total revenues 77,607 14,911 15,527 5,326 62,743 2,199 28 5,189 183,530

(Provision for)/release of losses

( 772 ) ( 4,976 ) 3,519 ( 2,151 ) — 2 — — ( 4,378 )

Release of/(provision for) reserve for losses

28 — ( 10 ) — — — — — 18

Operating expenses — — — — — — ( 51,706 ) — ( 51,706 )

Total non-interest expense 28 — ( 10 ) — — — ( 51,706 ) — ( 51,688 )

Core earnings before income taxes 76,863 9,935 19,036 3,175 62,743 2,201 ( 51,678 ) 5,189 (4)

Income tax (expense)/benefit ( 16,141 ) ( 2,086 ) ( 3,998 ) ( 667 ) ( 13,174 ) ( 463 ) 11,006 ( 1,090 ) ( 26,613 )

Core earnings before preferred stock dividends 60,722 7,849 15,038 2,508 49,569 1,738 ( 40,672 ) 4,099 (4)

Preferred stock dividends — — — — — — ( 13,583 ) — ( 13,583 )

Segment core earnings/(losses) $ 60,722 $ 7,849 $ 15,038 $ 2,508 $ 49,569 $ 1,738 $ ( 54,255 ) $ 4,099 (4)

Total Assets $ 14,962,357 $ 1,660,154 $ 7,135,581 $ 736,936 $ — $ 5,560,800 $ 138,486 $ — $ 30,194,314

Total on- and off-balance sheet program assets at principal balance $ 18,504,501 $ 1,816,893 $ 7,561,473 $ 875,472 $ — $ — $ — $ — $ 28,758,339

(1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

(4) Net adjustments to reconcile to the corresponding income measures:

core earnings before income taxes reconciled to income before income taxes;

core earnings before preferred stock dividends reconciled to net income;

and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment

For the Six Months Ended June 30, 2023

Agricultural Finance Rural Infrastructure Treasury Corporate

Farm & Ranch Corporate AgFinance Rural

Renewable Energy Funding Investments Reconciling

Adjustments Consolidated Net Income

(in thousands)

Net interest income $ 68,936 $ 14,592 $ 11,379 $ 1,958 $ 60,946 $ ( 76 ) $ — $ — $ 157,735

reconciling adjustments (1)(2)(3)

( 2,083 ) — ( 64 ) — 3,290 127 — ( 1,270 ) —

Net effective spread 66,853 14,592 11,315 1,958 64,236 51 — ( 1,270 ) —

Guarantee and commitment fees 8,513 115 562 45 — — — ( 1,813 ) 7,422

Other income/(expense) (3)

1,409 12 — — — 11 44 2,600 4,076

Total revenues 76,775 14,719 11,877 2,003 64,236 62 44 ( 483 ) 169,233

Release of/(provision for) losses 123 ( 4,628 ) 2,852 28 — 5 — — ( 1,620 )

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(4) Net adjustments to reconcile to the corresponding income measures:

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements