What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-09 compared with 2024-11-04 · 288 added, 608 removed, 1176 unchanged (43% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(in thousands)

Cash and cash equivalents $ 842,056 $ 888,707

Cash and cash equivalents (includes restricted cash of $ 16,346 and $ 16,190 , respectively)

$ 1,048,135 $ 1,024,007

Investment securities:

13 unchanged sentences

Total USDA Securities 2,377,341 2,371,352

Loans held for sale, at lower of cost or fair value 6,045 6,170

Loans held for investment, at amortized cost 11,636,815 11,183,408

22 unchanged sentences

Preferred stock:

Series C, par value $ 25 per share, 3,000,000 shares authorized, issued and outstanding as of December 31, 2023 (redemption value $ 75,000,000 )

Series D, par value $ 25 per share, 4,000,000 shares authorized, issued and outstanding

18 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended For the Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

For the Three Months Ended

March 31, 2025 March 31, 2024

(in thousands, except per share amounts)

11 unchanged sentences

(Losses)/gains on financial derivatives ( 2,636 ) 2,079

Losses on sale of mortgage loans

— — ( 1,147 ) —

Gains on sale of available-for-sale investment securities

Release of/(provision for) reserve for losses 170 45 188 ( 227 )

Release of reserve for losses

Other income 1,436 1,249

4 unchanged sentences

Regulatory fees 1,000 725

Real estate owned operating costs, net 196 — 196 —

Operating expenses 29,510 27,237

3 unchanged sentences

Preferred stock dividends ( 5,666 ) ( 6,791 )

Loss on retirement of preferred stock ( 1,619 ) — ( 1,619 ) —

Net income attributable to common stockholders $ 43,985 $ 46,955

5 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended For the Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

For the Three Months Ended

March 31, 2025 March 31, 2024

(in thousands)

2 unchanged sentences

Net unrealized gains on available-for-sale securities

21,762 39,952

Net changes in held-to-maturity securities ( 303 ) ( 634 )

1 unchanged sentence

( 8,371 ) 6,286

Other comprehensive income/(loss) before tax 8,338 ( 1,883 ) 47,583 18,993

Income tax (expense)/benefit related to other comprehensive income/(loss) ( 1,751 ) 395 ( 9,992 ) ( 3,989 )

Other comprehensive income/(loss) net of tax 6,587 ( 1,488 ) 37,591 15,004

Other comprehensive income before tax

13,088 45,604

Income tax expense related to other comprehensive income

( 2,749 ) ( 9,577 )

Other comprehensive income net of tax

10,339 36,027

Comprehensive income $ 59,990 $ 89,773

4 unchanged sentences

Preferred Stock Common Stock Paid-In Comprehensive Retained Total

Shares Amount Shares Amount Capital Income/(Loss) Earnings Equity

Shares Amount Shares Amount Capital Loss

Earnings Equity

(in thousands)

2 unchanged sentences

Other comprehensive income, net of tax — — — — — 10,339 — 10,339

— — — — — 36,027 — 36,027

Cash dividends:

6 unchanged sentences

Balance as of March 31, 2025 16,980 $ 411,149 10,933 $ 10,933 $ 134,500 $ ( 1,808 ) $ 970,872 $ 1,525,646

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

Net Income — — — — — — 49,828 49,828

Other comprehensive income, net of tax — — — — — 6,587 — 6,587

Cash dividends:

Preferred stock — — — — — — ( 5,897 ) ( 5,897 )

Common stock (cash dividend of $ 1.40 per share)

— — — — — — ( 15,238 ) ( 15,238 )

Redemption of Series C preferred stock ( 3,000 ) ( 73,382 ) — — — — — ( 73,382 )

Loss on retirement of preferred stock — — — — — — ( 1,619 ) ( 1,619 )

Issuance of Class C Common Stock — — 4 4 78 — — 82

Stock-based compensation cost — — — — 1,490 — — 1,490

Other stock-based award activity — — — — ( 486 ) — — ( 486 )

Balance as of September 30, 2024 16,980 $ 411,149 10,885 $ 10,885 $ 135,225 $ ( 2,554 ) $ 907,639 $ 1,462,344

Additional Other

Preferred Stock Common Stock Paid-In Comprehensive Retained Total

Shares Amount Shares Amount Capital Income/(Loss) Earnings Equity

(in thousands)

Balance as of December 31, 2023 19,980 $ 484,531 10,842 $ 10,842 $ 132,919 $ ( 40,145 ) $ 823,716 $ 1,411,863

Net Income — — — — — — 53,746 53,746

Other comprehensive loss, net of tax

— — — — — ( 9,019 ) — ( 9,019 )

Cash dividends:

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

Common stock (cash dividend of $ 1.10 per share)

— — — — — — ( 11,882 ) ( 11,882 )

Issuance of Class C Common Stock — — 19 19 51 — — 70

Stock-based compensation cost — — — — 2,254 — — 2,254

Other stock-based award activity — — — — ( 1,240 ) — — ( 1,240 )

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

Cash dividends:

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

Common stock (cash dividend of $ 1.10 per share)

— — — — — 36,027 — 36,027

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

Net Income — — — — — — 58,137 58,137

Other comprehensive loss, net of tax

— — — — — ( 1,488 ) — ( 1,488 )

Cash dividends:

5 unchanged sentences

Other stock-based award activity — — — — ( 2,890 ) — — ( 2,890 )

Balance as of September 30, 2023 19,980 $ 484,531 10,840 $ 10,840 $ 130,921 $ ( 35,839 ) $ 794,814 $ 1,385,267

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

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

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended

September 30, 2024 September 30, 2023

For the Three Months Ended

March 31, 2025 March 31, 2024

(in thousands)

4 unchanged sentences

Amortization of debt premiums, discounts, and issuance costs 18,053 11,586

Net change in fair value of trading securities, hedged items, and financial derivatives

Net change in fair value of trading securities, loans held for sale, hedged items, and financial derivatives

( 108,740 ) 123,519

Losses on sale of mortgage loans

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

Losses on sale of real estate owned

Total provision for/(release of) allowance for losses 1,583 ( 1,870 )

23 unchanged sentences

Proceeds from repayment of loans purchased as held for investment 629,185 461,071

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

Proceeds from sale of real estate owned

Net cash used in investing activities ( 345,878 ) ( 525,473 )

2 unchanged sentences

Proceeds from issuance of medium-term notes 3,355,631 1,774,926

Proceeds from issuance of debt securities of consolidated trusts

283,462 222,188

Payments to redeem discount notes ( 16,884,950 ) ( 12,695,146 )

3 unchanged sentences

Tax payments related to share-based awards ( 4,960 ) ( 2,863 )

Retirement of preferred stock

Dividends paid on common and preferred stock ( 22,018 ) ( 21,977 )

1 unchanged sentence

Net change in cash and cash equivalents 24,128 ( 143,602 )

Cash and cash equivalents at beginning of period 888,707 861,002

Cash and cash equivalents at end of period $ 842,056 $ 782,318

Cash, cash equivalents, and restricted cash at beginning of period

1,024,007 888,707

Cash, cash equivalents, and restricted cash at end of period

$ 1,048,135 $ 745,105

Non-cash activity:

Loans securitized as Farmer Mac Guaranteed Securities 26,023 15,936

Loans held for investment transferred to consolidated trusts 305,559 281,027

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

10 unchanged sentences

Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year.

Presented below are Farmer Mac's significant accounting policies that contain updated information for the three and nine months ended September 30, 2024.

Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended March 31, 2025.

Principles of Consolidation

4 unchanged sentences

Consolidation of Variable Interest Entities

As of September 30, 2024

As of March 31, 2025

Agricultural Finance Treasury Total

21 unchanged sentences

(1) Includes borrower remittances of $ 0.2 million.

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

The borrower remittances had not been passed through to third-party investors as of March 31, 2025.

(2) Includes $ 110.5 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 and nine months ended September 30, 2024 and 2023:

The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2025 and 2024:

For the Three Months Ended

September 30, 2024 September 30, 2023

Income Weighted-Average Shares $ per

(in thousands, except per share amounts)

Net income attributable to common stockholders $ 42,312 10,883 $ 3.89 $ 51,345 10,839 $ 4.74

Effect of dilutive securities (1)

SARs and restricted stock units

— 83 ( 0.03 ) — 99 ( 0.05 )

Diluted EPS $ 42,312 10,966 $ 3.86 $ 51,345 10,938 $ 4.69

(1) For the three months ended September 30, 2024 and 2023, SARs and restricted stock units of 15,465 and 16,761 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 September 30, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,469 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 Nine Months Ended

September 30, 2024 September 30, 2023

March 31, 2025 March 31, 2024

Income Weighted-Average Shares $ per

6 unchanged sentences

Diluted EPS $ 43,985 10,983 $ 4.01 $ 46,955 10,969 $ 4.28

(1) For the nine months ended September 30, 2024 and 2023, SARs and restricted stock units of 36,033 and 37,990 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the nine months ended September 30, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,407 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 March 31, 2025 and 2024, SARs and restricted stock units of 58,539 and 49,371 , 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, 2025 and 2024, contingent shares of unvested restricted stock units of 29,507 and 29,918 , 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 and nine months ended September 30, 2024 and 2023.

As of September 30, 2024 As of September 30, 2023

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2025 and 2024.

As of March 31, 2025 As of March 31, 2024

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

6 unchanged sentences

Ending Balance $ ( 20,384 ) $ ( 9,465 ) $ 28,041 $ ( 1,808 ) $ ( 36,886 ) $ ( 9,224 ) $ 41,992 $ ( 4,118 )

For the Nine Months Ended:

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

Other comprehensive income/(loss) before reclassifications 49,042 — 2,755 51,797 36,406 ( 25,199 ) 16,277 27,484

Amounts reclassified from AOCI ( 840 ) ( 598 ) ( 12,768 ) ( 14,206 ) ( 13 ) ( 577 ) ( 11,890 ) ( 12,480 )

Net comprehensive income/(loss) 48,202 ( 598 ) ( 10,013 ) 37,591 36,393 ( 25,776 ) 4,387 15,004

Ending Balance $ ( 20,245 ) $ ( 9,322 ) $ 27,013 $ ( 2,554 ) $ ( 79,168 ) $ ( 9,419 ) $ 52,748 $ ( 35,839 )

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 and nine months ended September 30, 2024 and 2023:

For the Three Months Ended

September 30, 2024 September 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 $ 26,354 $ 5,534 $ 20,820 $ 22,081 $ 4,638 $ 17,443

Less reclassification adjustments included in:

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

Other income (2)

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

Total $ 26,350 $ 5,533 $ 20,817 $ 22,076 $ 4,637 $ 17,439

Held-to-maturity securities:

Change in fair value (3)

$ — $ — $ — $ ( 31,898 ) $ ( 6,699 ) $ ( 25,199 )

Less reclassification adjustments included in:

Net interest income (4)

( 443 ) ( 93 ) ( 350 ) 373 79 294

Total $ ( 443 ) $ ( 93 ) $ ( 350 ) $ ( 31,525 ) $ ( 6,620 ) $ ( 24,905 )

Cash flow hedges

Unrealized (losses)/gains on cash flow hedges $ ( 12,232 ) $ ( 2,569 ) $ ( 9,663 ) $ 13,135 $ 2,759 $ 10,376

Less reclassification adjustments included in:

Net interest income (5)

( 5,337 ) ( 1,120 ) ( 4,217 ) ( 5,569 ) ( 1,171 ) ( 4,398 )

Total $ ( 17,569 ) $ ( 3,689 ) $ ( 13,880 ) $ 7,566 $ 1,588 $ 5,978

Other comprehensive income/(loss) $ 8,338 $ 1,751 $ 6,587 $ ( 1,883 ) $ ( 395 ) $ ( 1,488 )

(1) Represents realized 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) Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4) 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.

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

For the Nine Months Ended

September 30, 2024 September 30, 2023

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

March 31, 2025 March 31, 2024

Before Tax Provision (Benefit) After Tax Before Tax Provision

(in thousands)

4 unchanged sentences

Less reclassification adjustments included in:

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

( 1,052 ) ( 221 ) ( 831 ) — — —

Other income (1)

2 unchanged sentences

Held-to-maturity securities:

Change in fair value (3)

$ — $ — $ — $ ( 31,898 ) $ ( 6,699 ) $ ( 25,199 )

Less reclassification adjustments included in:

3 unchanged sentences

Cash flow hedges

Unrealized gains on cash flow hedges

Unrealized (losses)/gains on cash flow hedges

$ ( 4,546 ) $ ( 955 ) $ ( 3,591 ) $ 11,717 $ 2,461 $ 9,256

5 unchanged sentences

$ 13,088 $ 2,749 $ 10,339 $ 45,604 $ 9,577 $ 36,027

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

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

(3) Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

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

3 unchanged sentences

Recently Adopted Accounting Guidance

Standard Description Date of Adoption

Effect on Consolidated Financial Statements

ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

The amendments in this Update permit an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received.

January 1, 2024 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Effect on Consolidated Financial Statements

ASU 2023-07 , Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

The amendments in this Update require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss.

This Update also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss.

Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The amendments should be applied retrospectively.

Early adoption is permitted.

Farmer Mac does not expect the adoption of this Update to have a material impact on Farmer Mac's financial position, results of operations, or cash flows.

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

6 unchanged sentences

Farmer Mac is still assessing the impact of the new accounting standard but does not expect that adoption of the new guidance will have a material impact on Farmer Mac's financial position, results of operations, or cash flows.

(d) Reclassifications

Certain reclassifications of prior period information were made to conform to the current period presentation.

The reclassifications of prior period information were not material to the consolidated financial statements.

ASU 2024-03 , Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted.

INVESTMENT SECURITIES

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

As of September 30, 2024

Farmer Mac’s investment securities portfolio is comprised primarily of the following major security types, which is based on the Issuer and associated security characteristics:

• U.S Government guaranteed securities:

single-family and multi-family mortgage-backed securities issued by Government National Mortgage Association (Ginnie Mae) and pass-through securities issued by the Small Business Administration, which are guaranteed by the U.S.

Government Sponsored Enterprise (“GSE”) guaranteed securities:

single-family and multi-family mortgage-backed securities issued by Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac).

GSE securities are not guaranteed by the U.S.

Treasury Obligations:

sovereign debt issued by the United States of America.

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

Amount Outstanding Unamortized Premium/(Discount) Amortized

6 unchanged sentences

Floating rate Government/GSE guaranteed mortgage-backed securities 2,404,113 ( 1,174 ) 2,402,939 — 3,046 ( 13,888 ) 2,392,097

Fixed rate GSE guaranteed mortgage-backed securities 2,262,332 ( 59,093 ) 2,203,239 — 25,573 ( 85,054 ) 2,143,758

Floating rate U.S.

Treasuries — — — — — — —

Fixed rate Government/GSE guaranteed mortgage-backed securities

2,661,093 ( 65,956 ) 2,595,137 — 15,589 ( 106,814 ) 2,503,912

Fixed rate U.S.

5 unchanged sentences

Total held-to-maturity $ 9,125 $ — $ 9,125 $ — $ 309 $ — $ 9,434

(1) Amounts presented exclude $ 24.5 million of accrued interest receivable on investment securities as of September 30, 2024.

(1) Amounts presented exclude $ 27.1 million of accrued interest receivable on investment securities as of March 31, 2025.

(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 6.4 % as of September 30, 2024.

(3) The held-to-maturity investment securities had a weighted average yield of 6.4 % as of March 31, 2025.

As of December 31, 2024

7 unchanged sentences

Floating rate Government/GSE guaranteed mortgage-backed securities 2,317,032 ( 841 ) 2,316,191 — 3,484 ( 13,950 ) 2,305,725

Fixed rate GSE guaranteed mortgage-backed securities 1,727,669 ( 46,788 ) 1,680,881 — 6,558 ( 117,824 ) 1,569,615

Floating rate U.S.

Treasuries 50,000 ( 17 ) 49,983 — — ( 15 ) 49,968

Fixed rate Government/GSE guaranteed mortgage-backed securities

2,544,136 ( 66,845 ) 2,477,291 — 3,426 ( 142,750 ) 2,337,967

Fixed rate U.S.

9 unchanged sentences

(3) The held-to-maturity investment securities had a weighted average yield of 6.4 % as of December 31, 2024.

Farmer Mac did not sell any securities from its available-for-sale investment securities during the three months ended September 30, 2024.

During the nine months ended September 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 nine months ended September 30, 2023.

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

As of September 30, 2024

Farmer Mac did no t sell any securities from its available-for-sale or held-to-maturity investment portfolios during the three months ended March 31, 2025 and 2024.

As of March 31, 2025 and December 31, 2024, unrealized losses on available-for-sale investment securities were as follows:

As of March 31, 2025

Available-for-Sale Securities

8 unchanged sentences

Fixed rate Government/GSE guaranteed mortgage-backed securities 487,530 ( 7,324 ) 971,658 ( 99,490 )

Floating rate U.S.

Treasuries — — — —

Fixed rate U.S.

13 unchanged sentences

Fixed rate Government/GSE guaranteed mortgage-backed securities 999,793 ( 17,682 ) 946,166 ( 125,068 )

Floating rate U.S.

Treasuries 49,969 ( 15 ) — —

Fixed rate U.S.

2 unchanged sentences

Number of securities in loss position 90 155

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 September 30, 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 March 31, 2025 and December 31, 2024, 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 September 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.

As of both March 31, 2025 and December 31, 2024, 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 September 30, 2024 that is, on average, approximately 95.5 % of their amortized cost basis.

Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2025 that is, on average, approximately 94.8 % 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 September 30, 2024 are set forth below.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2025 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 September 30, 2024

As of March 31, 2025

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 September 30, 2024 and December 31, 2023:

As of September 30, 2024

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

Unpaid Principal Balance Unamortized Premium/(Discount) Amortized

16 unchanged sentences

$ 645 $ 36 $ 681 $ — $ — $ ( 30 ) $ 651

(1) Amounts presented exclude $ 59.8 million, $ 51.6 million, and $ 20,090 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of September 30, 2024.

(1) Amounts presented exclude $ 59.3 million and $ 47.7 million of accrued interest receivable on available-for-sale and held-to-maturity securities, respectively, as of March 31, 2025.

(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 $ 8.9 million of an interest-only security with a notional amount of $ 222.1 million.

(4) The trading USDA securities had a weighted average yield of 5.48 % as of September 30, 2024.

(4) The trading USDA securities had a weighted average yield of 5.68 % as of March 31, 2025.

As of December 31, 2024

17 unchanged sentences

$ 814 $ 42 $ 856 $ — $ — $ ( 38 ) $ 818

(1) Amounts presented exclude $ 47.2 million, $ 67.4 million, and $ 42,000 of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2023.

(1) Amounts presented exclude $ 57.5 million and $ 59.8 million of accrued interest receivable on available-for-sale and held-to-maturity securities, respectively, as of December 31, 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.

2 unchanged sentences

(4) The trading USDA securities had a weighted average yield of 5.47 % as of December 31, 2024.

On July 1, 2023, Farmer Mac transferred $ 2.7 billion of AgVantage Securities from available-for-sale to held-to-maturity to reflect Farmer Mac's positive intent and ability to hold these securities until maturity or payoff.

Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment due to unrealized losses of $ 31.9 million.

The accumulated unrealized losses were recorded in accumulated other comprehensive income in the amount of $ 31.9 million.

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 September 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 September 30, 2024

As of March 31, 2025 and December 31, 2024, 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, 2025

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

29 unchanged sentences

Total available-for-sale $ 1,152,227 $ ( 12,889 ) $ 3,649,845 $ ( 314,587 )

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 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 March 31, 2025 and December 31, 2024, 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 58 and 68 available-for-sale securities as of September 30, 2024 and December 31, 2023, respectively.

There were 48 and 53 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2024 and December 31, 2023, respectively.

As of September 30, 2024 and December 31, 2023, 57 and 62 available-for-sale AgVantage securities had been in a loss position for more than 12 months, respectively.

As of September 30, 2024 and December 31, 2023, there were 16 and 22 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three and nine months ended September 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 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 September 30, 2024 are set forth below.

The unrealized losses from AgVantage securities were on 56 and 66 available-for-sale securities as of March 31, 2025 and December 31, 2024, respectively.

There were 37 and 45 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2025 and December 31, 2024, respectively.

As of March 31, 2025 and December 31, 2024, 51 and 54 available-for-sale AgVantage securities had been in a loss position for more than 12 months, respectively.

As of March 31, 2025 and December 31, 2024, there were 28 and 26 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three months ended March 31, 2025 and 2024, 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 September 30, 2024

As of March 31, 2025

Available-for-Sale Securities

7 unchanged sentences

(1) Amounts presented exclude $ 59.3 million of accrued interest receivable.

As of September 30, 2024

As of March 31, 2025

Held-to-Maturity Securities

15 unchanged sentences

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

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

funding costs.

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

All financial derivatives are recorded on the balance sheet at fair value as a freestanding asset or liability.

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 $ 19.5 million and $ 16.4 million of accrued interest receivable and $ 6.0 million and $ 6.5 million of accrued interest payable on uncleared swaps as of September 30, 2024 and December 31, 2023, respectively.

The table below includes accrued interest on cleared swaps, but excludes $ 27.6 million and $ 15.8 million of accrued interest receivable and $ 3.0 million and $ 4.9 million of accrued interest payable on uncleared swaps as of March 31, 2025 and December 31, 2024, 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 September 30, 2024

As of March 31, 2025

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 September 30, 2024, Farmer Mac expects to reclassify $ 9.5 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 September 30, 2024.

During the three and nine months ended September 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 nine months ended September 30, 2024 and 2023:

For the Three Months Ended September 30, 2024

As of March 31, 2025, Farmer Mac expects to reclassify $ 9.1 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, 2025.

During the three months ended March 31, 2025 and 2024, 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, 2025 and 2024:

For the Three Months Ended March 31, 2025

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

8 unchanged sentences

Income/(expense) related to interest settlements on fair value hedging relationships $ 20,646 $ 77,930 $ 31,354 $ ( 133,032 ) $ — $ ( 3,102 )

Gains/(losses) on fair value hedging relationships:

(Losses)/gains on fair value hedging relationships:

Recognized on derivatives $ ( 34,009 ) $ ( 82,485 ) $ ( 44,554 ) $ 75,600 $ — $ ( 85,448 )

Recognized on hedged items 33,978 82,017 44,981 ( 74,429 ) — 86,547

Gains/(losses) on fair value hedging relationships

(Losses)/gains on fair value hedging relationships

$ ( 31 ) $ ( 468 ) $ 427 $ 1,171 $ — $ 1,099

11 unchanged sentences

$ — $ — $ — $ — $ ( 2,636 ) $ ( 2,636 )

For the Three Months Ended September 30, 2023

For the Three Months Ended March 31, 2024

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

24 unchanged sentences

Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 2,079 $ 2,079

For the Nine Months Ended September 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 $ 258,341 $ 489,478 $ 459,932 $ ( 947,252 ) $ ( 1,654 ) $ 258,845

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

Recognized on derivatives 31,479 118,593 53,554 ( 229,642 ) — ( 26,016 )

Recognized on hedged items 31,734 158,869 50,847 ( 319,876 ) — ( 78,426 )

Premium/discount amortization recognized on hedged items 1,555 — — ( 2,156 ) — ( 601 )

Income/(expense) related to interest settlements on fair value hedging relationships $ 64,768 $ 277,462 $ 104,401 $ ( 551,674 ) $ — $ ( 105,043 )

Gains/(losses) on fair value hedging relationships:

Recognized on derivatives $ ( 29,549 ) $ ( 101,186 ) $ ( 37,096 ) $ 188,182 $ — $ 20,351

Recognized on hedged items 30,032 101,890 38,842 ( 185,304 ) — ( 14,540 )

Gains/(losses) on fair value hedging relationships

$ 483 $ 704 $ 1,746 $ 2,878 $ — $ 5,811

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 16,162 $ — $ 16,162

Recognized on hedged items — — — ( 24,023 ) — ( 24,023 )

Discount amortization recognized on hedged items — — — ( 42 ) — ( 42 )

Expense recognized on cash flow hedges $ — $ — $ — $ ( 7,903 ) $ — $ ( 7,903 )

Losses on financial derivatives not designated in hedging relationships:

Losses on interest rate swaps

$ — $ — $ — $ — $ ( 581 ) $ ( 581 )

Interest expense on interest rate swaps — — — — ( 1,379 ) ( 1,379 )

Treasury futures — — — — 306 306

Losses on financial derivatives not designated in hedge relationships

$ — $ — $ — $ — $ ( 1,654 ) $ ( 1,654 )

For the Nine Months Ended September 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

(in thousands)

Total amounts presented in the consolidated statement of operations:

$ 209,429 $ 442,649 $ 388,837 $ ( 795,537 ) $ 4,763 $ 250,141

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

Recognized on derivatives 24,952 104,023 46,625 ( 258,358 ) — ( 82,758 )

Recognized on hedged items 23,865 133,995 47,144 ( 243,053 ) — ( 38,049 )

Premium/discount amortization recognized on hedged items

1,399 — — ( 2,137 ) — ( 738 )

Income/(expense) related to interest settlements on fair value hedging relationships $ 50,216 $ 238,018 $ 93,769 $ ( 503,548 ) $ — $ ( 121,545 )

(Losses)/gains on fair value hedging relationships:

Recognized on derivatives $ 45,722 $ 117,267 $ 97,346 $ 50,916 $ — $ 311,251

Recognized on hedged items ( 46,485 ) ( 116,591 ) ( 97,827 ) ( 52,144 ) — ( 313,047 )

(Losses)/gains on fair value hedging relationships $ ( 763 ) $ 676 $ ( 481 ) $ ( 1,228 ) $ — $ ( 1,796 )

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 15,051 $ — $ 15,051

Recognized on hedged items — — — ( 23,325 ) — ( 23,325 )

Discount amortization recognized on hedged items — — — ( 41 ) — ( 41 )

Expense recognized on cash flow hedges $ — $ — $ — $ ( 8,315 ) $ — $ ( 8,315 )

Gains on financial derivatives not designated in hedge relationships:

Gains on interest rate swaps $ — $ — $ — $ — $ 5,263 $ 5,263

Interest expense on interest rate swaps — — — — ( 3,999 ) ( 3,999 )

Treasury futures — — — — 3,499 3,499

Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 4,763 $ 4,763

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 September 30, 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)

September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024

(in thousands)

Investment securities, Available-for-Sale, at fair value (1)

$ 1,633,772 $ 1,477,880 $ ( 83,159 ) $ ( 117,137 )

Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value (2)

5,586,662 5,478,484 ( 225,341 ) ( 307,358 )

Loans held for investment, at amortized cost 1,880,996 1,816,738 ( 327,463 ) ( 372,444 )

1 unchanged sentence

( 11,480,083 ) ( 11,899,049 ) 74,570 148,999

(1) Amortized cost of $ 1.7 billion and $ 1.6 billion as of March 31, 2025 and December 31, 2024, respectively.

(2) Amortized cost of $ 5.8 billion as of both March 31, 2025 and December 31, 2024.

(3) 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 September 30, 2024 and December 31, 2023:

September 30, 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 March 31, 2025 and December 31, 2024:

March 31, 2025

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

9 unchanged sentences

Total $ ( 64,272 ) $ 883 $ ( 63,389 ) $ 23,657 $ 10,583 $ 17,971 $ ( 11,178 )

(1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2) Cash collateral excludes $ 5.6 million of collateral posted and $ 10.2 million of collateral received related to counterparties not subject to master netting agreements.

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

As of September 30, 2024, Farmer Mac had additional net exposure of $ 217.4 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 1.9 million due to instances where a Farmer Mac's collateral from a counterparty exceeded the net derivative position.

As of March 31, 2025, Farmer Mac had additional net exposure of $ 212.1 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 8.1 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

December 31, 2024

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

Gross Amounts Not Offset in the Consolidated Balance Sheet

Netting Adjustments Financial instruments pledged Cash Collateral (2)

Net Amount (3)

Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet

Netting Adjustments Financial instruments pledged Cash Collateral Net Amount (1)

(in thousands)

5 unchanged sentences

Total $ ( 77,788 ) $ 462 $ ( 77,326 ) $ 22,061 $ — $ 44,299 $ ( 10,966 )

(1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2) Cash collateral excludes $ 15.2 million of collateral posted and $ 2.0 million of collateral received related to counterparties not subject to master netting agreements.

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

As of December 31, 2023, Farmer Mac had additional net exposure of $ 207.2 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position.

As of December 31, 2024, Farmer Mac had additional net exposure of $ 209.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 4.7 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets.

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 September 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 September 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 $ 25.4 billion notional amount of interest rate swaps outstanding as of September 30, 2024, $ 20.1 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 March 31, 2025 or December 31, 2024, 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, 2025 and December 31, 2024, 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 $ 24.0 billion notional amount of interest rate swaps outstanding as of March 31, 2025, $ 18.2 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME").

Of Farmer Mac's $ 24.9 billion notional amount of interest rate swaps outstanding as of December 31, 2024, $ 19.1 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 basis.

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

During the nine months ended September 30, 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.

As of March 31, 2025, Farmer Mac had $ 6.0 million of loans held for sale and $ 6.2 million as of December 31, 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 September 30, 2024 and December 31, 2023:

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

The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of March 31, 2025 and December 31, 2024:

As of March 31, 2025 As of December 31, 2024

Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total

4 unchanged sentences

Total Agricultural Finance loans 6,872,269 2,005,680 8,877,949 6,796,406 2,038,283 8,834,689

Rural Infrastructure Finance loans 4,383,355 — 4,383,355 3,534,763 — 3,534,763

Infrastructure Finance loans 5,108,990 — 5,108,990 4,774,483 — 4,774,483

Total unpaid principal balance (1)

6 unchanged sentences

Allowance for Losses

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

September 30, 2024 December 31, 2023

The following table is a summary, by asset type, of the allowance for losses as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

Allowance for Losses Allowance for Losses

4 unchanged sentences

Total Agricultural Finance loans

Rural Infrastructure Finance loans 9,350 9,147

11,369 10,511

Infrastructure Finance loans 13,687 12,712

Total $ 25,056 $ 23,223

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

September 30, 2024 September 30, 2023

Agricultural Finance loans Rural Infrastructure

The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2025 and 2024:

For the Three Months Ended

March 31, 2025 March 31, 2024

Agricultural Finance loans Infrastructure

Finance loans (3)

Agricultural Finance loans Rural Infrastructure

Agricultural Finance loans Infrastructure

Finance loans (3)

4 unchanged sentences

(in thousands)

For the Three Months Ended

Beginning Balance $ 5,132 $ 5,379 $ 10,511 $ 12,712 $ 3,936 $ 2,948 $ 6,884 $ 9,147

Provision for/(release of) losses

(Release of)/provision for losses

( 61 ) 836 775 975 599 ( 379 ) 220 ( 1,963 )

Charge-offs — — — — — — — —

Ending Balance $ 4,832 $ 5,769 $ 10,601 $ 9,350 $ 3,910 $ 3,678 $ 7,588 $ 9,026

For the Nine 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

— 83 83 — — — — —

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

Ending Balance $ 5,071 $ 6,298 $ 11,369 $ 13,687 $ 4,535 $ 2,569 $ 7,104 $ 7,184

(1) As of September 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 September 30, 2024 and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 1.1 million and $ 0.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

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

The $ 1.5 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the quarter ended September 30, 2024 was primarily attributable to new loan volume.

The $ 1.9 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2024 was primarily attributable to risk rating downgrades.

The $ 0.2 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the nine months ended September 30, 2024 was primarily attributable to new loan volume.

The $ 7.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended September 30, 2024 was primarily attributable to two permanent planting borrower relationships and other risk rating downgrades.

The $ 3.6 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the quarter ended September 30, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the quarter.

The $ 3.7 million net release from the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2023 was primarily attributable to the full payoff of a single collateral dependent storage and processing loan.

The $ 0.7 million net provision to the allowance for the Rural Infrastructure Finance portfolio during the nine months ended September 30, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the most recent quarter.

The $ 0.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended

September 30, 2023 was primarily attributable to increased loan volume and certain risk rating downgrades.

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

As of September 30, 2024

(1) As of March 31, 2025 and 2024, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 0.7 million and $ 1.4 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2) As of March 31, 2025 and 2024, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 1.0 million and $ 0.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3) As of both March 31, 2025 and 2024, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $ 1.0 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended March 31, 2025 was primarily attributable to new loan volume within the Renewable Energy and Power & Utilities segments.

The $ 0.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended March 31, 2025 was primarily attributable to new loan volume.

The $ 2.0 million net release from the allowance for the 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.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

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

5 unchanged sentences

Total Agricultural Finance loans 8,641,615 22,498 7,031 10,096 39,625 196,709 8,877,949

Rural Infrastructure Finance loans 4,383,355 — — — — — 4,383,355

Infrastructure Finance loans 5,108,990 — — — — — 5,108,990

Total $ 13,750,605 $ 22,498 $ 7,031 $ 10,096 $ 39,625 $ 196,709 $ 13,986,939

3 unchanged sentences

(4) Includes $ 36.4 million of nonaccrual loans for which there was no associated allowance.

During the three and nine months ended September 30, 2024, Farmer Mac received $ 2.4 million and $ 4.1 million, in interest on nonaccrual loans, respectively.

During the three months ended March 31, 2025, Farmer Mac received $ 1.3 million in interest on nonaccrual loans.

As of December 31, 2024

6 unchanged sentences

Total Agricultural Finance loans 8,635,669 16,478 7,268 6,359 30,105 168,915 8,834,689

Rural Infrastructure Finance loans 3,534,763 — — — — — 3,534,763

Infrastructure Finance loans 4,774,483 — — — — — 4,774,483

Total $ 13,410,152 $ 16,478 $ 7,268 $ 6,359 $ 30,105 $ 168,915 $ 13,609,172

5 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 September 30, 2024 and December 31, 2023, by year of origination:

As of September 30, 2024

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of March 31, 2025 and December 31, 2024, by year of origination:

As of March 31, 2025

Year of Origination:

9 unchanged sentences

Total $ 339,383 $ 1,140,170 $ 570,180 $ 1,081,287 $ 1,587,729 $ 2,370,774 $ 417,224 $ 7,506,747

For the Three Months Ended September 30, 2024:

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

For the Nine Months Ended September 30, 2024:

For the Three Months Ended March 31, 2025:

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

2 unchanged sentences

(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 September 30, 2024

As of March 31, 2025

Year of Origination:

9 unchanged sentences

Total $ 49,143 $ 208,911 $ 182,090 $ 71,847 $ 235,891 $ 335,480 $ 287,840 $ 1,371,202

For the Three Months Ended September 30, 2024:

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

For the Nine Months Ended September 30, 2024:

For the Three Months Ended March 31, 2025:

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

2 unchanged sentences

(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 September 30, 2024

As of March 31, 2025

Year of Origination:

1 unchanged sentence

(in thousands)

Rural Infrastructure Finance loans (1) :

Infrastructure Finance loans (1) :

Internally Assigned Risk Rating:

5 unchanged sentences

Total $ 295,563 $ 1,172,130 $ 533,148 $ 640,751 $ 175,924 $ 1,761,509 $ 529,965 $ 5,108,990

For the Three Months Ended September 30, 2024:

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

For the Nine Months Ended September 30, 2024:

For the Three Months Ended March 31, 2025:

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

14 unchanged sentences

Total $ 1,134,818 $ 588,639 $ 1,165,169 $ 1,626,242 $ 1,087,730 $ 1,403,027 $ 447,390 $ 7,453,015

For the Three Months Ended September 30, 2023:

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

For the Nine Months Ended September 30, 2023:

For the Three Months Ended March 31, 2024:

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

14 unchanged sentences

Total $ 210,807 $ 197,237 $ 72,512 $ 250,050 $ 169,860 $ 194,833 $ 286,375 $ 1,381,674

For the Three Months Ended September 30, 2023:

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

For the Nine Months Ended September 30, 2023:

For the Three Months Ended March 31, 2024:

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

6 unchanged sentences

(in thousands)

Rural Infrastructure Finance loans (1) :

Infrastructure Finance loans (1) :

Internally Assigned Risk Rating:

5 unchanged sentences

Total $ 1,158,427 $ 534,499 $ 642,402 $ 174,232 $ 574,135 $ 1,229,626 $ 461,162 $ 4,774,483

For the Three Months Ended September 30, 2023:

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

For the Nine Months Ended September 30, 2023:

For the Three Months Ended March 31, 2024:

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

3 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 September 30, 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 March 31, 2025 and December 31, 2024, 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 September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

(in thousands)

3 unchanged sentences

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors.

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

For the Nine Months Ended

September 30, 2024 September 30, 2023

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

For the Three Months Ended

March 31, 2025 March 31, 2024

(in thousands)

Proceeds from new securitizations $ 343,654 $ 222,188

Guarantee fees received $ 404 $ 449

1 unchanged sentence

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 September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

(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 September 30, 2024 As of December 31, 2023

As of March 31, 2025 As of December 31, 2024

(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 September 30, 2024 and December 31, 2023:

September 30, 2024 December 31, 2023

The following table is a summary, by asset type, of the reserve for losses as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

Reserve for Losses Reserve for Losses

1 unchanged sentence

Agricultural Finance $ 1,335 $ 1,431

Rural Infrastructure Finance 207 240

Infrastructure Finance

Total $ 1,521 $ 1,623

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

For the Three Months Ended For the Nine Months Ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

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

The following is a summary of the net changes in the reserve for losses for the three month period ended March 31, 2025 and 2024:

For the Three Months Ended

March 31, 2025 March 31, 2024

Reserve for Losses Reserve for Losses

(in thousands)

4 unchanged sentences

Ending Balance $ 1,335 $ 1,407

Rural Infrastructure Finance

Infrastructure Finance

Beginning Balance $ 192 $ 240

(Release of)/provision for losses

( 44 ) 14 ( 33 ) ( 366 )

Ending Balance $ 186 $ 235

The release from the reserve for losses in the Agricultural Finance LTSPC portfolio recorded during the nine months ended September 30, 2024 was primarily due to a decrease in LTSPC volume.

The release from the reserve for losses in the Rural Infrastructure Finance LTSPC portfolio recorded during the nine months ended September 30, 2024 was primarily due to a decrease in LTSPC volume.

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 September 30, 2024 and December 31, 2023:

As of September 30, 2024

The release from the reserve for losses during first quarter 2025 for both Agricultural Finance and Infrastructure Finance was primarily due to ratings upgrades.

The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Infrastructure Finance loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

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

3 unchanged sentences

$ 3,493,817 $ 9,785 $ 3,386 $ 4,540 $ 17,711 $ 3,511,528

Rural Infrastructure Finance:

Infrastructure Finance:

865,926 — — — — 865,926

7 unchanged sentences

$ 3,524,406 $ 1,421 $ 1,358 $ 7,603 $ 10,382 $ 3,534,788

Rural Infrastructure Finance:

Infrastructure Finance:

732,731 — — — — 732,731

2 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 September 30, 2024 and December 31, 2023, by year of origination:

As of September 30, 2024

The following tables present credit quality indicators related to Agricultural Finance and Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2025 and December 31, 2024, by year of origination:

As of March 31, 2025

Year of Origination:

9 unchanged sentences

Total $ 18,183 $ 86,202 $ 171,538 $ 263,317 $ 573,750 $ 1,912,507 $ 486,031 $ 3,511,528

For the Three Months Ended September 30, 2024:

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

For the Nine Months Ended September 30, 2024:

For the Three Months Ended March 31, 2025:

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

1 unchanged sentence

(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 September 30, 2024

As of March 31, 2025

Year of Origination:

1 unchanged sentence

(in thousands)

Rural Infrastructure Finance:

Infrastructure Finance:

Internally Assigned Risk Rating:

5 unchanged sentences

Total $ — $ — $ — $ — $ — $ 347,889 $ 518,037 $ 865,926

For the Three Months Ended September 30, 2024:

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

For the Nine Months Ended September 30, 2024:

For the Three Months Ended March 31, 2025:

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

13 unchanged sentences

Total $ 70,757 $ 169,609 $ 273,717 $ 580,836 $ 594,297 $ 1,379,249 $ 466,323 $ 3,534,788

For the Three Months Ended September 30, 2023:

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

For the Nine Months Ended September 30, 2023:

For the Three Months Ended March 31, 2024:

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

5 unchanged sentences

(in thousands)

Rural Infrastructure Finance:

Infrastructure Finance:

Internally Assigned Risk Rating:

5 unchanged sentences

Total $ — $ — $ — $ — $ — $ 355,848 $ 376,883 $ 732,731

For the Three Months Ended September 30, 2023:

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

For the Nine Months Ended September 30, 2023:

For the Three Months Ended March 31, 2024:

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

4 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 September 30, 2024 and December 31, 2023:

September 30, 2024

Outstanding as of September 30

The following tables set forth information related to Farmer Mac's borrowings as of March 31, 2025 and December 31, 2024:

March 31, 2025

Outstanding as of March 31

Average Outstanding During the Quarter

37 unchanged sentences

Total $ 27,371,174

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the nine months ended September 30, 2024 and 2023 was $ 2.3 billion and $ 1.5 billion, respectively.

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the three months ended March 31, 2025 and 2024 was $ 2.1 billion and $ 1.9 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 September 30, 2024:

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

The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2025 as of March 31, 2025:

Debt Callable in 2025 as of March 31, 2025, by Maturity

Amount Weighted-Average Rate

6 unchanged sentences

Total $ 5,090,266 2.60 %

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 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 March 31, 2025, 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 $ 28,049,766 3.55 %

During the nine months ended September 30, 2024 and 2023, Farmer Mac called $ 1.2 billion and $ 111.0 million of callable medium-term notes, respectively.

During the three months ended March 31, 2025 and 2024, Farmer Mac called $ 488.5 million and $ 354.5 million of callable medium-term notes, respectively.

Authority to Borrow from the U.S.

8 unchanged sentences

Treasury within a reasonable time.

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

As of March 31, 2025, Farmer Mac had not used this borrowing authority.

Gains on Repurchases of Outstanding Debt

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

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

No outstanding debt repurchases were made in the three months ended March 31, 2025 and 2024.

During first quarter 2025, Farmer Mac paid a quarterly dividend of $ 1.50 per share on all classes of its common stock.

For each quarter in 2024, Farmer Mac paid a quarterly dividend of $ 1.40 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.

On March 10, 2021, Farmer Mac's board of directors reinstated the share repurchase program on its previous terms and extended the expiration date of the program to March 2023.

In February 2025, Farmer Mac's board of directors renewed the share repurchase program on its previous terms (with a remaining authorization of up to $ 9.8 million in stock repurchases) and extended the expiration date of the program to February 2027.

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 September 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 recognized $ 1.6 million of loss on retirement of preferred stock in third quarter 2024, which was related to deferred issuance costs.

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 September 30, 2024 and December 31, 2023, the minimum capital requirement was greater than the risk-based capital requirement.

As of both March 31, 2025 and December 31, 2024, 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 September 30, 2024, Farmer Mac's minimum capital requirement was $ 885.0 million and its core capital level was $ 1.5 billion, which was $ 579.9 million above the minimum capital requirement as of that date.

As of March 31, 2025, Farmer Mac's minimum capital requirement was $ 926.7 million and its core capital level was $ 1.5 billion, which was $ 600.8 million above the minimum capital requirement as of that date.

As of December 31, 2024, Farmer Mac's minimum capital requirement was $ 917.6 million and its core capital level was $ 1.5 billion, which was $ 583.5 million above the minimum capital requirement as of that date.

2 unchanged sentences

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 September 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 September 30, 2024

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, 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, 2025

Level 1 Level 2 Level 3 (1)

5 unchanged sentences

Fixed rate GSE guaranteed mortgage-backed securities — 2,503,912 — 2,503,912

Floating rate U.S.

Treasuries — — — —

Fixed rate U.S.

9 unchanged sentences

Total USDA Securities — — 651 651

Loans held for sale, at lower of cost or fair value — 6,045 — 6,045

— 6,045 — 6,045

Financial derivatives 1 27,866 — 27,867

12 unchanged sentences

Fixed rate GSE guaranteed mortgage-backed securities — 2,337,967 — 2,337,967

Floating rate U.S.

Treasuries 49,968 — — 49,968

Fixed rate U.S.

9 unchanged sentences

Total USDA Securities — — 818 818

Loans held for sale, at lower of cost or fair value — 6,160 — 6,160

— 6,160 — 6,160

Financial derivatives 47 27,742 — 27,789

4 unchanged sentences

(1) Level 3 assets represent 18 % of total assets and 48 % 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 September 30, 2024 or December 31, 2023.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2025 or December 31, 2024.

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 and nine months ended September 30, 2024 and 2023, there were no transfers within the fair value hierarchy.

During the three months ended March 31, 2025 and 2024, 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 and nine months ended September 30, 2024 and 2023.

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

There were no liabilities measured at fair value using significant unobservable inputs during the three months ended March 31, 2025 and 2024.

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2025

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

Unrealized gains/(losses)

unrealized gains included

Unrealized (losses)/gains

included in Other

18 unchanged sentences

Total Assets at fair value $ 5,540,222 $ 300,000 $ ( 276,289 ) $ 50 $ 82,075 $ 2,627 $ 5,648,685

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

in Income 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 $ 19,032 $ — $ — $ 1 $ — $ — $ — $ 19,033

Total available-for-sale 19,032 — — 1 — — — 19,033

Farmer Mac Guaranteed Securities:

Available-for-sale:

AgVantage 7,737,810 100,000 ( 6,875 ) 133 ( 107,917 ) 9,653 ( 2,684,096 ) 5,048,708

Farmer Mac Guaranteed

Securities 7,605 — ( 169 ) — — 2,553 — 9,989

Total available-for-sale 7,745,415 100,000 ( 7,044 ) 133 ( 107,917 ) 12,206 ( 2,684,096 ) 5,058,697

USDA Securities:

Trading 1,348 — ( 44 ) — ( 2 ) — — 1,302

Total USDA Securities 1,348 — ( 44 ) — ( 2 ) — — 1,302

Guarantee and commitment obligations:

Guarantee Asset 4,331 — ( 84 ) — 1,716 — — 5,963

Total Guarantee and commitment obligations 4,331 — ( 84 ) — 1,716 — — 5,963

Total Assets at fair value $ 7,770,126 $ 100,000 $ ( 7,172 ) $ 134 $ ( 106,203 ) $ 12,206 $ ( 2,684,096 ) $ 5,084,995

(1) Includes $ 2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

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

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

Unrealized gains/(losses)

unrealized losses included

in Income Unrealized gains/(losses)

included in Other

8 unchanged sentences

Available-for-sale:

5,522,712 675,000 ( 560,643 ) 100 102,036 13,180 5,752,385

Farmer Mac Guaranteed Securities 9,767 — ( 523 ) — — 62 9,306

Total available-for-sale 5,532,479 675,000 ( 561,166 ) 100 102,036 13,242 5,761,691

USDA Securities:

Trading 1,241 — ( 414 ) — 15 — 842

Total USDA Securities 1,241 — ( 414 ) — 15 — 842

Guarantee and commitment obligations:

Guarantee Asset 5,831 — ( 256 ) — ( 19 ) — 5,556

Total Guarantee and commitment obligations 5,831 — ( 256 ) — ( 19 ) — 5,556

Total Assets at fair value $ 5,558,633 $ 675,000 $ ( 561,836 ) $ 102 $ 102,032 $ 13,636 $ 5,787,567

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

in Income 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 $ — $ — $ 6 $ — $ — $ — $ 19,033

Total available-for-sale 19,027 — — 6 — — — 19,033

Farmer Mac Guaranteed Securities:

Available-for-sale:

AgVantage 5,522,712 50,000 ( 63,955 ) 27 ( 80,694 ) 29,107 5,457,197

9 unchanged sentences

Total Assets at fair value $ 5,558,633 $ 50,000 $ ( 64,391 ) $ 28 $ ( 80,708 ) $ 29,206 $ 5,492,768

(1) Includes $ 2.7 billion of AgVantage Securities transferred from available-for-sale to held-to-maturity on July 1, 2023.

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 September 30, 2024 and December 31, 2023:

As of September 30, 2024

As of March 31, 2025

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

26 unchanged sentences

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 September 30, 2024 and December 31, 2023:

As of September 30, 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 March 31, 2025 and December 31, 2024:

As of March 31, 2025 As of December 31, 2024

Fair Value Carrying

29 unchanged sentences

BUSINESS SEGMENT REPORTING

Farmer Mac has seven reportable segments:

Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments.

The Farm & Ranch segment includes the financial results of the USDA Securities portfolio, Farm & Ranch loans, and AgVantage securities secured by Farm & Ranch loans.

The Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production.

The Power & Utilities segment includes loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans.

The Broadband Infrastructure segment includes loans to rural fiber, cable/broadband, tower, wireless, local exchange carrier, and data center projects.

The Renewable Energy segment includes rural electric solar, wind, and gas projects.

The Funding segment includes the financial results of Farmer Mac's debt issuance, hedging, asset/liability management, and capital allocation strategies.

Farmer Mac allocates interest expense to each of the other segments using a funds transfer pricing process.

That process also allocates the benefits and costs from Farmer Mac's funding and hedging strategies to the Funding segment.

The Investments segment includes the financial results of Farmer Mac's investment portfolio, which is held for liquidity purposes.

Interest expense is allocated to the Investments segment using the same funds transfer pricing process that is used to allocate interest expense to the other segments.

The following table presents Farmer Mac's seven segments:

Agricultural Finance Rural Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Corporate

The financial information presented below reflects the accounts of Farmer Mac and its subsidiaries on a consolidated basis.

Accordingly, the core earnings for Farmer Mac's segments would differ from any stand-alone financial statements of Farmer Mac's subsidiaries.

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 and nine months ended September 30, 2024 and 2023.

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments

The President and Chief Executive Officer serves as the Chief Operating Decision Maker ("CODM").

The CODM reviews segment core earnings to make decisions about allocating resources and to assess the financial performance of the segments.

The main difference between core earnings and net income is the exclusion of the effects of fair value fluctuations.

These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected.

Another difference is that core earnings excludes specified infrequent or unusual transactions that are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business.

The CODM also looks at changes in the segments' on- and off-balance sheet unpaid paid principal balances to assess the performance of the segments.

The following tables present segment core earnings and assets for the three months ended March 31, 2025 and 2024.

Core Earnings by Business Segment

For the Three Months Ended September 30, 2024

Agricultural Finance Rural Infrastructure Treasury Corporate

Farm & Ranch Corporate AgFinance Rural

Renewable Energy Funding Investments Reconciling

Adjustments Consolidated Net Income

For the Three Months Ended March 31, 2025

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Broadband Infrastructure

Renewable Energy Funding Investments Total

(in thousands)

Net interest income $ 36,816 $ 6,397 $ 7,608 $ 3,810 $ 31,217 $ 943 $ — $ — $ 86,791

Interest income

$ 149,681 $ 25,122 $ 64,995 $ 10,833 $ 20,315 $ 32,978 $ 77,490 $ 381,414

Interest expense (1)

( 114,789 ) ( 16,482 ) ( 59,638 ) ( 7,267 ) ( 15,203 ) ( 1,460 ) ( 75,636 ) ( 290,475 )

reconciling adjustments (2)(3)

2 unchanged sentences

Guarantee and commitment fees (3)

Gain on sale of investment securities

4,551 197 221 336 183 — — 5,488

Loss on sale of mortgage loan

— — — — — — — — —

Other income/(expense)

1,222 — — — — — 22 1,244

Total revenues 41,150 6,605 7,917 3,997 30,912 953 ( 8 ) ( 1,236 ) 90,290

Provision for of losses

( 116 ) ( 1,779 ) ( 1,195 ) ( 337 ) — ( 1 ) — — ( 3,428 )

Release of reserve for losses

Release of/(provision for) losses

193 ( 828 ) ( 77 ) 229 ( 1,100 ) — — ( 1,583 )

Operating expenses (1)

Total non-interest expense ( 70 ) — 44 — — — ( 24,587 ) — ( 24,613 )

Core earnings before income taxes 40,964 4,826 6,766 3,660 30,912 952 ( 24,595 ) ( 1,236 ) (4)

( 6,595 ) ( 2,133 ) ( 1,123 ) ( 1,052 ) ( 1,708 ) ( 2,800 ) ( 823 ) ( 16,234 )

Income tax (expense)/benefit ( 6,982 ) ( 1,235 ) ( 913 ) ( 647 ) ( 522 ) ( 6,049 ) ( 221 ) ( 16,569 )

Core earnings before preferred stock dividends 32,362 3,813 5,345 2,892 24,420 751 ( 18,779 ) ( 976 ) (4)

Preferred stock dividends — — — — — — ( 5,897 ) — ( 5,897 )

Loss on retirement of preferred stock — — — — — — — ( 1,619 ) ( 1,619 )

Segment core earnings/(losses) $ 32,362 $ 3,813 $ 5,345 $ 2,892 $ 24,420 $ 751 $ ( 24,676 ) $ ( 2,595 ) (4)

Segment core earnings

$ 26,274 $ 4,641 $ 3,437 $ 2,432 $ 1,965 $ 22,755 $ 832 $ 62,336

Reconciliation to net income:

Net effects of derivatives and trading securities

Unallocated (expenses)/income

Income tax effect related to reconciling items 3,095

Total Assets:

Total on- and off-balance sheet program assets at principal balance $ 18,090,374 $ 1,842,780 $ 7,440,141 $ 1,095,008 $ — $ — $ — $ — $ 28,468,303

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

(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 "(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:

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 Three Months Ended September 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 $ 33,735 $ 8,250 $ 6,393 $ 1,150 $ 37,642 $ 473 $ — $ — $ 87,643

reconciling adjustments (1)(2)(3)

Total on- and off-balance sheet segment assets at principal balance

$ 18,094,515 $ 1,889,363 $ 7,187,966 $ 974,835 $ 1,608,664 $ — $ — $ 29,755,343

Net effective spread 32,718 8,250 6,362 1,150 34,412 532 — 4,219 —

Guarantee and commitment fees 4,447 78 279 24 — — — 692 5,520

Other income/(expense) (3)

Off-balance sheet assets under management

( 5,071,733 )

Total revenues 37,972 8,328 6,641 1,174 34,415 538 240 7,795 97,103

Release of/(provision

for) losses 13 3,694 ( 3,504 ) ( 66 ) — ( 1 ) — — 136

Release of/(provision

for) reserve for losses 58 — ( 13 ) — — — — — 45

Operating expenses — — — — — ( 24,034 ) — ( 24,034 )

Total non-interest expense 58 — ( 13 ) — — — ( 24,034 ) — ( 23,989 )

Core earnings before income taxes 38,043 12,022 3,124 1,108 34,415 537 ( 23,794 ) 7,795 (4)

Income tax (expense)/benefit ( 7,989 ) ( 2,525 ) ( 656 ) ( 233 ) ( 7,226 ) ( 113 ) 5,267 ( 1,638 ) ( 15,113 )

Core earnings before preferred stock dividends 30,054 9,497 2,468 875 27,189 424 ( 18,527 ) 6,157 (4)

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

Segment core earnings/(losses) $ 30,054 $ 9,497 $ 2,468 $ 875 $ 27,189 $ 424 $ ( 25,319 ) $ 6,157 (4)

Total Assets $ 14,660,371 $ 1,619,664 $ 6,648,693 $ 320,572 $ — $ 4,866,969 $ 195,112 $ — $ 28,311,381

Total on- and off-balance sheet program assets at principal balance $ 18,461,835 $ 1,741,306 $ 7,118,295 $ 330,575 $ — $ — $ — $ — $ 27,652,011

Unallocated assets

Total assets on the consolidated balance sheets

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

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

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;

and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.

(3) 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.

(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 Nine Months Ended September 30, 2024

Agricultural Finance Rural Infrastructure Treasury Corporate

Farm & Ranch Corporate AgFinance Rural

Renewable Energy Funding Investments Reconciling

Adjustments Consolidated Net Income

For the Three Months Ended March 31, 2024

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Utilities Broadband Infrastructure Renewable Energy Funding Investments Total

(in thousands)

Net interest income $ 106,227 $ 22,234 $ 22,545 $ 8,858 $ 98,556 $ 2,079 $ — $ — $ 260,499

Interest income

$ 152,204 $ 24,888 $ 66,306 $ 8,695 $ 8,149 $ 60,239 $ 75,836 $ 396,317

Interest expense (1)

( 118,315 ) ( 16,917 ) ( 61,383 ) ( 6,353 ) ( 6,100 ) ( 25,520 ) ( 75,361 ) ( 309,949 )

reconciling adjustments (2)(3)

2 unchanged sentences

Guarantee and commitment fees (3)

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

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

4,484 87 256 93 62 — — 4,982

Other income/(expense)

995 12 — — — — 4 1,011

Total revenues 118,757 21,516 23,445 9,323 93,654 3,152 20 3,953 273,820

(Provision for)/release of losses

( 497 ) 378 174 2,836 ( 1,022 ) — 1 1,870

Release of reserve for losses

154 — 34 — — — — — 188

Operating expenses (1)

Total non-interest expense ( 42 ) — 34 — — — ( 76,293 ) — ( 76,301 )

Core earnings before income taxes 117,827 14,761 25,803 6,835 93,654 3,153 ( 76,273 ) 3,953 (4)

( 6,129 ) ( 1,850 ) ( 1,131 ) ( 827 ) ( 1,068 ) ( 2,564 ) ( 729 ) ( 14,298 )

Income tax (expense)/benefit ( 6,656 ) ( 1,386 ) ( 880 ) ( 933 ) ( 4 ) ( 6,281 ) 52 ( 16,088 )

Core earnings before preferred stock dividends 93,084 11,662 20,384 5,400 73,988 2,489 ( 59,451 ) 3,123 (4)

Preferred stock dividends — — — — — — ( 19,480 ) — ( 19,480 )

Loss on retirement of preferred stock — — — — — — — ( 1,619 ) ( 1,619 )

Segment core earnings/(losses) $ 93,084 $ 11,662 $ 20,384 $ 5,400 $ 73,988 $ 2,489 $ ( 78,931 ) $ 1,504 (4)

Segment core earnings

$ 25,040 $ 5,212 $ 3,309 $ 3,511 $ 17 $ 23,629 $ ( 197 ) $ 60,521

Reconciliation to net income:

Net effects of derivatives and trading securities $ 4,479

Unallocated (expense)/income

Income tax effect related to reconciling items 1,588

Total Assets:

Total on- and off-balance sheet program assets at principal balance $ 18,090,374 $ 1,842,780 $ 7,440,141 $ 1,095,008 $ — $ — $ — $ — $ 28,468,303

(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 Nine Months Ended September 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 $ 102,671 $ 22,842 $ 17,772 $ 3,108 $ 98,588 $ 397 $ — $ — $ 245,378

reconciling adjustments (1)(2)(3)

Total on- and off-balance sheet segment assets at principal balance

$ 18,900,906 $ 1,766,294 $ 6,970,538 $ 467,185 $ 742,307 $ — $ — $ 28,847,230

Net effective spread 99,571 22,842 17,677 3,108 98,648 583 — 2,949 —

Guarantee and commitment fees 12,960 193 841 69 — — — ( 1,121 ) 12,942

Other income/(expense) (3)

Off-balance sheet assets under management

( 4,637,247 )

Total revenues 114,747 23,047 18,518 3,177 98,651 600 284 7,312 266,336

Release of/(provision for) losses 136 ( 934 ) ( 652 ) ( 38 ) — 4 — — ( 1,484 )

(Provision for)/release of reserve for losses ( 594 ) — 367 — — — — — ( 227 )

Operating expenses — — — — — — ( 71,935 ) — ( 71,935 )

Total non-interest expense ( 594 ) — 367 — — — ( 71,935 ) — ( 72,162 )

Core earnings before income taxes 114,289 22,113 18,233 3,139 98,651 604 ( 71,651 ) 7,312 (4)

Income tax (expense)/benefit ( 24,001 ) ( 4,644 ) ( 3,829 ) ( 659 ) ( 20,716 ) ( 127 ) 15,206 ( 1,536 ) ( 40,306 )

Core earnings before preferred stock dividends 90,288 17,469 14,404 2,480 77,935 477 ( 56,445 ) 5,776 (4)

Preferred stock dividends — — — — — — ( 20,374 ) — ( 20,374 )

Segment core earnings/(losses) $ 90,288 $ 17,469 $ 14,404 $ 2,480 $ 77,935 $ 477 $ ( 76,819 ) $ 5,776 (4)

Total Assets $ 14,660,371 $ 1,619,664 $ 6,648,693 $ 320,572 $ — $ 4,866,969 $ 195,112 $ — $ 28,311,381

Total on- and off-balance sheet program assets at principal balance $ 18,461,835 $ 1,741,306 $ 7,118,295 $ 330,575 $ — $ — $ — $ — $ 27,652,011

Unallocated assets

Total assets on the consolidated balance sheets

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

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

and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.

(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.

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