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Item 1. Financial Statements

2025-08-07 compared with 2025-05-09 · 525 added, 214 removed, 1250 unchanged (37% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in thousands)

36 unchanged sentences

Accounts payable and accrued expenses 136,906 212,527

Deferred tax liability, net 2,402 —

Reserve for losses 1,620 1,622

22 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

March 31, 2025 March 31, 2024

For the Three Months Ended For the Six Months Ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

(in thousands, except per share amounts)

6 unchanged sentences

Net interest income 96,797 87,340 187,736 173,708

(Provision for)/release of losses ( 1,684 ) 1,801

Net interest income after (provision for)/release of losses 89,255 88,169

Provision for losses ( 7,713 ) ( 6,179 ) ( 9,397 ) ( 4,378 )

Net interest income after provision for losses 89,084 81,161 178,339 169,330

Non-interest income/(expense):

Guarantee and commitment fees 4,816 3,797 9,295 7,714

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

Release of reserve for losses

Gains/(losses) on financial derivatives 80 ( 1,799 ) ( 2,556 ) 280

Losses on sale of mortgage loans

— ( 1,147 ) — ( 1,147 )

Gains on sale of available-for-sale investment securities

— 1,052 — 1,052

(Provision for)/release of reserve for losses

( 99 ) ( 51 ) 2 18

Other income 1,040 674 2,476 1,923

16 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended

March 31, 2025 March 31, 2024

For the Three Months Ended For the Six Months Ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

(in thousands)

1 unchanged sentence

Other comprehensive income/(loss):

Net unrealized gains on available-for-sale securities

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

( 14,847 ) ( 5,287 ) 6,915 34,665

2 unchanged sentences

( 5,510 ) ( 1,392 ) ( 13,881 ) 4,894

Other comprehensive income before tax

Other comprehensive (loss)/income before tax

( 20,072 ) ( 6,359 ) ( 6,984 ) 39,245

Income tax expense related to other comprehensive income

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

4,215 1,336 1,466 ( 8,241 )

Other comprehensive income net of tax

Other comprehensive (loss)/income net of tax

( 15,857 ) ( 5,023 ) ( 5,518 ) 31,004

5 unchanged sentences

Preferred Stock Common Stock Paid-In Comprehensive Retained Total

Shares Amount Shares Amount Capital Loss

Earnings Equity

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

(in thousands)

10 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 — — — — — — 54,837 54,837

Other comprehensive loss, net of tax

— — — — — ( 15,857 ) — ( 15,857 )

Cash dividends:

Preferred stock — — — — — — ( 5,667 ) ( 5,667 )

Common stock (cash dividend of $ 1.50 per share)

— — — — — — ( 16,401 ) ( 16,401 )

Issuance of Class C Common Stock — — 1 1 80 — — 81

Stock-based compensation cost — — — — 1,745 — — 1,745

Other stock-based award activity — — — — ( 77 ) — — ( 77 )

Balance as of June 30, 2025 16,980 $ 411,149 10,934 $ 10,934 $ 136,248 $ ( 17,665 ) $ 1,003,641 $ 1,544,307

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

10 unchanged sentences

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

Net Income — — — — — — 47,105 47,105

Other comprehensive loss, net of tax — — — — — ( 5,023 ) — ( 5,023 )

Cash dividends:

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

Common stock (cash dividend of $ 1.40 per share)

— — — — — — ( 15,233 ) ( 15,233 )

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

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

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

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

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

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended

March 31, 2025 March 31, 2024

For the Six Months Ended

June 30, 2025 June 30, 2024

(in thousands)

3 unchanged sentences

Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities ( 11,195 ) ( 13,257 )

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

Net amortization of debt premiums, discounts, and issuance costs

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

( 152,332 ) 141,556

Losses on sale of mortgage loans — 1,147

Gains on the sale of available-for-sale investment securities — ( 1,052 )

Losses on sale of real estate owned

3 unchanged sentences

Stock-based compensation expense 5,274 5,038

Purchases of loans held for sale

Proceeds from repayment of loans purchased as held for sale 22,583 13,564

6 unchanged sentences

Other liabilities 5,598 ( 6,658 )

Net cash provided by operating activities ( 49,819 ) 233,335

Net cash (used in)/provided by operating activities

( 97,541 ) 289,466

Cash flows from investing activities:

11 unchanged sentences

Proceeds from sale of real estate owned

Proceeds from sale of available-for-sale investment securities — 102,955

Proceeds from sale of loans previously classified as held for investment 6,045 5,775

Proceeds from sale of Farmer Mac Guaranteed Securities — 60,192

Net cash used in investing activities ( 1,382,439 ) ( 633,852 )

2 unchanged sentences

Proceeds from issuance of medium-term notes 6,586,755 3,293,703

Proceeds from issuance of debt securities of consolidated trusts 286,511 283,462

Payments to redeem discount notes ( 36,563,148 ) ( 25,724,358 )

12 unchanged sentences

Loans securitized as Farmer Mac Guaranteed Securities 41,156 85,114

Loans held for investment transferred to consolidated trusts

299,270 305,559

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 months ended March 31, 2025.

Principles of Consolidation

1 unchanged sentence

(1) Farmer Mac Mortgage Securities Corporation, whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities;

and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Securities included in the Agricultural Finance line of business.

and (2) Farmer Mac II LLC, which operated substantially all of the business related to the USDA Securities included in the Agricultural Finance line of business from 2010 through 2023 and continues to hold a "run-off" portfolio of USDA Securities.

The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.

Consolidation of Variable Interest Entities

As of March 31, 2025

As of June 30, 2025

Agricultural Finance Treasury Total

21 unchanged sentences

(1) Includes borrower remittances of $ 3.1 million.

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

The borrower remittances had not been passed through to third-party investors as of June 30, 2025.

(2) Includes $ 120.4 million in unamortized discount related to structured securitization transactions.

35 unchanged sentences

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

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

The following schedule reconciles basic and diluted EPS for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended

March 31, 2025 March 31, 2024

June 30, 2025 June 30, 2024

Income Weighted-Average Shares $ per

6 unchanged sentences

Diluted EPS $ 49,170 10,963 $ 4.48 $ 40,313 10,956 $ 3.68

(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.

(1) For the three months ended June 30, 2025 and 2024, SARs and restricted stock units of 76,166 and 43,263 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the three months ended June 30, 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.

For the Six Months Ended

June 30, 2025 June 30, 2024

Income Weighted-Average Shares $ per

(in thousands, except per share amounts)

Net income attributable to common stockholders $ 93,155 10,915 $ 8.53 $ 87,268 10,863 $ 8.04

Effect of dilutive securities (1)

SARs and restricted stock units

— 58 ( 0.04 ) — 103 ( 0.08 )

Diluted EPS $ 93,155 10,973 $ 8.49 $ 87,268 10,966 $ 7.96

(1) For the six months ended June 30, 2025 and 2024, SARs and restricted stock units of 67,353 and 46,317 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the six months ended June 30, 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 months ended March 31, 2025 and 2024.

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

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and six months ended June 30, 2025 and 2024.

As of June 30, 2025 As of June 30, 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

2 unchanged sentences

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

Other comprehensive (loss)/income before reclassifications

( 11,727 ) — ( 1,394 ) ( 13,121 ) ( 3,342 ) — 3,162 ( 180 )

Amounts reclassified from AOCI ( 2 ) 225 ( 2,959 ) ( 2,736 ) ( 834 ) 252 ( 4,261 ) ( 4,843 )

Net comprehensive (loss)/income

( 11,729 ) 225 ( 4,353 ) ( 15,857 ) ( 4,176 ) 252 ( 1,099 ) ( 5,023 )

Ending Balance $ ( 32,113 ) $ ( 9,240 ) $ 23,688 $ ( 17,665 ) $ ( 41,062 ) $ ( 8,972 ) $ 40,893 $ ( 9,141 )

For the Six Months Ended :

Beginning Balance $ ( 37,575 ) $ ( 9,226 ) $ 34,654 $ ( 12,147 ) $ ( 68,447 ) $ ( 8,724 ) $ 37,026 $ ( 40,145 )

Other comprehensive income/(loss) before reclassifications 5,467 — ( 4,985 ) 482 28,223 — 12,418 40,641

2 unchanged sentences

Ending Balance $ ( 32,113 ) $ ( 9,240 ) $ 23,688 $ ( 17,665 ) $ ( 41,062 ) $ ( 8,972 ) $ 40,893 $ ( 9,141 )

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2025 and 2024:

For the Three Months Ended

March 31, 2025 March 31, 2024

June 30, 2025 June 30, 2024

Before Tax Provision (Benefit) After Tax Before Tax Provision

2 unchanged sentences

Available-for-sale-securities:

Unrealized holding gains on available-for-sale securities

Unrealized holding losses on available-for-sale securities

$ ( 14,844 ) $ ( 3,117 ) $ ( 11,727 ) $ ( 4,231 ) $ ( 889 ) $ ( 3,342 )

Less reclassification adjustments included in:

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

— — — ( 1,052 ) ( 221 ) ( 831 )

Other income (2)

13 unchanged sentences

Total $ ( 5,510 ) $ ( 1,157 ) $ ( 4,353 ) $ ( 1,392 ) $ ( 293 ) $ ( 1,099 )

Other comprehensive loss

$ ( 20,072 ) $ ( 4,215 ) $ ( 15,857 ) $ ( 6,359 ) $ ( 1,336 ) $ ( 5,023 )

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

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

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

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

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

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

For the Six Months Ended

June 30, 2025 June 30, 2024

Before Tax Provision (Benefit) After Tax Before Tax Provision

(in thousands)

Other comprehensive income:

Available-for-sale-securities:

Unrealized holding gains on available-for-sale securities

$ 6,921 $ 1,454 $ 5,467 $ 35,726 $ 7,503 $ 28,223

Less reclassification adjustments included in:

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

— — — ( 1,052 ) ( 221 ) ( 831 )

Other income (2)

( 6 ) ( 1 ) ( 5 ) ( 9 ) ( 2 ) ( 7 )

Total $ 6,915 $ 1,453 $ 5,462 $ 34,665 $ 7,280 $ 27,385

Held-to-maturity securities:

Less reclassification adjustments included in:

Net interest income (3)

$ ( 18 ) $ ( 4 ) $ ( 14 ) $ ( 314 ) $ ( 66 ) $ ( 248 )

Total $ ( 18 ) $ ( 4 ) $ ( 14 ) $ ( 314 ) $ ( 66 ) $ ( 248 )

Cash flow hedges

Unrealized (losses)/gains on cash flow hedges

$ ( 6,310 ) $ ( 1,325 ) $ ( 4,985 ) $ 15,719 $ 3,301 $ 12,418

Less reclassification adjustments included in:

Net interest income (4)

( 7,571 ) ( 1,590 ) ( 5,981 ) ( 10,825 ) ( 2,274 ) ( 8,551 )

Total $ ( 13,881 ) $ ( 2,915 ) $ ( 10,966 ) $ 4,894 $ 1,027 $ 3,867

Other comprehensive (loss)/income

$ ( 6,984 ) $ ( 1,466 ) $ ( 5,518 ) $ 39,245 $ 8,241 $ 31,004

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

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

29 unchanged sentences

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

The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of June 30, 2025 and December 31, 2024:

As of June 30, 2025

Amount Outstanding Unamortized Premium/(Discount) Amortized

15 unchanged sentences

Total held-to-maturity $ 8,970 $ — $ 8,970 $ — $ 366 $ — $ 9,336

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

(1) Amounts presented exclude $ 26.3 million of accrued interest receivable on investment securities as of June 30, 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 March 31, 2025.

(3) The held-to-maturity investment securities had a weighted average yield of 6.4 % as of June 30, 2025.

As of December 31, 2024

20 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 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

Farmer Mac did no t sell any securities from its available-for-sale or held-to-maturity investment portfolios during the three and six months ended June 30, 2025.

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

These sales were done to rebalance the liquidity investment portfolio given the lower level of business volume activity while demonstrating that the portfolio provides strong contingent liquidity.

As of June 30, 2025 and December 31, 2024, unrealized losses on available-for-sale investment securities were as follows:

As of June 30, 2025

Available-for-Sale Securities

27 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 March 31, 2025 and December 31, 2024, as applicable.

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

As of both June 30, 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 March 31, 2025 that is, on average, approximately 94.8 % of their amortized cost basis.

Securities in unrealized loss positions for 12 months or longer have a fair value as of June 30, 2025 that is, on average, approximately 95.1 % of their amortized cost basis.

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

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

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

As of March 31, 2025

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of June 30, 2025 and December 31, 2024:

As of June 30, 2025

Unpaid Principal Balance Unamortized Premium/(Discount) Amortized

3 unchanged sentences

(in thousands)

Available-for-sale:

AgVantage $ 5,934,100 $ — $ 5,934,100 $ ( 192 ) $ 23,599 $ ( 234,617 ) $ 5,722,890

Farmer Mac Guaranteed Securities (3)

— 8,369 8,369 — 244 — 8,613

Total available-for-sale $ 5,934,100 $ 8,369 $ 5,942,469 $ ( 192 ) $ 23,843 $ ( 234,617 ) $ 5,731,503

Held-to-maturity:

4 unchanged sentences

Total held-to-maturity $ 4,545,781 $ ( 7,979 ) $ 4,537,802 $ ( 169 ) $ 15,567 $ ( 224,848 ) $ 4,328,352

Available-for-sale:

AgVantage $ 5,851,094 $ — $ 5,851,094 $ ( 186 ) $ 16,400 $ ( 252,796 ) $ 5,614,512

Farmer Mac Guaranteed Securities (3)

— 8,536 8,536 — 336 — 8,872

Total available-for-sale $ 5,851,094 $ 8,536 $ 5,859,630 $ ( 186 ) $ 16,736 $ ( 252,796 ) $ 5,623,384

USDA Securities (4)

$ 552 $ 33 $ 585 $ — $ — $ ( 25 ) $ 560

(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) Amounts presented exclude $ 63.9 million and $ 46.6 million of accrued interest receivable on available-for-sale and held-to-maturity securities, respectively, as of June 30, 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) Fair value includes $ 8.6 million of an interest-only security with a notional amount of $ 214.2 million.

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

(4) The trading USDA securities had a weighted average yield of 5.63 % as of June 30, 2025.

As of December 31, 2024

4 unchanged sentences

(in thousands)

Available-for-sale:

AgVantage $ 5,826,948 $ — $ 5,826,948 $ ( 236 ) $ 6,295 $ ( 327,476 ) $ 5,505,531

Farmer Mac Guaranteed Securities (3)

— 8,710 8,710 — 305 — 9,015

Total available-for-sale $ 5,826,948 $ 8,710 $ 5,835,658 $ ( 236 ) $ 6,600 $ ( 327,476 ) $ 5,514,546

Held-to-maturity:

4 unchanged sentences

Total held-to-maturity $ 5,096,101 $ ( 7,701 ) $ 5,088,400 $ ( 178 ) $ 6,404 $ ( 281,002 ) $ 4,813,624

Available-for-sale:

AgVantage $ 5,826,948 $ — $ 5,826,948 $ ( 236 ) $ 6,295 $ ( 327,476 ) $ 5,505,531

Farmer Mac Guaranteed Securities (3)

— 8,710 8,710 — 305 — 9,015

Total available-for-sale $ 5,826,948 $ 8,710 $ 5,835,658 $ ( 236 ) $ 6,600 $ ( 327,476 ) $ 5,514,546

USDA Securities (4)

1 unchanged sentence

(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) 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.

1 unchanged sentence

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

As of June 30, 2025 and December 31, 2024, unrealized losses on available-for-sale and held-to-maturity on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

As of June 30, 2025

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

Unrealized loss position for

4 unchanged sentences

(in thousands)

Available-for-sale:

AgVantage $ 720,505 $ ( 755 ) $ 3,442,744 $ ( 233,862 )

Total available-for-sale $ 720,505 $ ( 755 ) $ 3,442,744 $ ( 233,862 )

Held-to-maturity:

3 unchanged sentences

Total held-to-maturity $ 828,677 $ ( 5,203 ) $ 2,589,540 $ ( 219,645 )

Available-for-sale:

AgVantage $ 428,719 $ ( 1,375 ) $ 3,442,179 $ ( 251,421 )

Total available-for-sale $ 428,719 $ ( 1,375 ) $ 3,442,179 $ ( 251,421 )

As of December 31, 2024

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

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

Unrealized loss position for

4 unchanged sentences

(in thousands)

Available-for-sale:

AgVantage $ 1,152,227 $ ( 12,889 ) $ 3,649,845 $ ( 314,587 )

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

Held-to-maturity:

3 unchanged sentences

Total held-to-maturity $ 1,038,050 $ ( 4,019 ) $ 3,295,229 $ ( 276,983 )

Available-for-sale:

AgVantage $ 1,152,227 $ ( 12,889 ) $ 3,649,845 $ ( 314,587 )

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 March 31, 2025 and December 31, 2024, as applicable.

The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to June 30, 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 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 amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2025 are set forth below.

The unrealized losses from AgVantage securities were on 56 and 66 available-for-sale securities as of June 30, 2025 and December 31, 2024, respectively.

There were 33 and 45 held-to-maturity AgVantage securities with an unrealized loss as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, 50 and 54 available-for-sale AgVantage securities had been in a loss position for more than 12 months, respectively.

As of June 30, 2025 and December 31, 2024, there were 19 and 26 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three and six months ended June 30, 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 March 31, 2025

As of June 30, 2025

Available-for-Sale Securities

7 unchanged sentences

(1) Amounts presented exclude $ 63.9 million of accrued interest receivable.

As of March 31, 2025

As of June 30, 2025

Held-to-Maturity Securities

18 unchanged sentences

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

The table below includes accrued interest on cleared swaps, but excludes $ 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 table below includes accrued interest on cleared swaps, but excludes $ 21.9 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 June 30, 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 March 31, 2025

As of June 30, 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 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

As of June 30, 2025, Farmer Mac expects to reclassify $ 8.4 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges.

This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after June 30, 2025.

The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended June 30, 2025

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

$ 88,985 $ 124,998 $ 185,039 $ ( 302,225 ) $ 80 $ 96,877

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

Recognized on derivatives 7,261 21,746 12,499 ( 27,776 ) — 13,730

Recognized on hedged items 14,101 56,672 19,633 ( 100,215 ) — ( 9,809 )

Premium/discount amortization recognized on hedged items 796 — — ( 723 ) — 73

Income/(expense) related to interest settlements on fair value hedging relationships $ 22,158 $ 78,418 $ 32,132 $ ( 128,714 ) $ — $ 3,994

Gains/(losses) on fair value hedging relationships:

Recognized on derivatives $ ( 19,260 ) $ ( 37,476 ) $ ( 8,027 ) $ 42,233 $ — $ ( 22,530 )

Recognized on hedged items 19,271 37,769 8,860 ( 40,661 ) — 25,239

Gains/(losses) on fair value hedging relationships

$ 11 $ 293 $ 833 $ 1,572 $ — $ 2,709

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 3,746 $ — $ 3,746

Recognized on hedged items — — — ( 6,108 ) — ( 6,108 )

Discount amortization recognized on hedged items — — — ( 38 ) — ( 38 )

Expense recognized on cash flow hedges $ — $ — $ — $ ( 2,400 ) $ — $ ( 2,400 )

Gains on financial derivatives not designated in hedging relationships:

Losses on interest rate swaps

$ — $ — $ — $ — $ ( 834 ) $ ( 834 )

Interest expense on interest rate swaps — — — — ( 208 ) ( 208 )

Treasury futures — — — — 1,122 1,122

Gains on financial derivatives not designated in hedge relationships

$ — $ — $ — $ — $ 80 $ 80

For the Three Months Ended June 30, 2024

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

Net Interest Income Non-Interest Income Total

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

1 unchanged sentence

Total amounts presented in the Consolidated Statement of Operations:

$ 84,538 $ 166,063 $ 153,105 $ ( 316,366 ) $ ( 1,799 ) $ 85,541

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

2 unchanged sentences

Premium/discount amortization recognized on hedged items

487 — — ( 721 ) — ( 234 )

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

Gains/(losses) on fair value hedging relationships:

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

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

Gains/(losses) on fair value hedging relationships $ 99 $ 418 $ 1,076 $ 1,011 $ — $ 2,604

Expense related to interest settlements on cash flow hedging relationships:

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

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

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

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

Losses on financial derivatives not designated in hedge relationships:

Losses on interest rate swaps $ — $ — $ — $ — $ ( 26 ) $ ( 26 )

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

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

Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ ( 1,799 ) $ ( 1,799 )

For the Six Months Ended June 30, 2025

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

$ 172,293 $ 251,340 $ 356,803 $ ( 592,700 ) $ ( 2,556 ) $ 185,180

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

Recognized on derivatives 14,346 43,805 24,883 ( 56,270 ) — 26,764

Recognized on hedged items 27,231 112,543 38,601 ( 204,093 ) — ( 25,718 )

Premium/discount amortization recognized on hedged items 1,227 — — ( 1,383 ) — ( 156 )

Income/(expense) related to interest settlements on fair value hedging relationships $ 42,804 $ 156,348 $ 63,484 $ ( 261,746 ) $ — $ 890

(Losses)/gains on fair value hedging relationships:

15 unchanged sentences

$ — $ — $ — $ — $ ( 2,556 ) $ ( 2,556 )

For the Three Months Ended March 31, 2024

For the Six Months Ended June 30, 2024

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

24 unchanged sentences

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

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2025 and December 31, 2024:

Hedged Items in Fair Value Relationship

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

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

June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024

(in thousands)

6 unchanged sentences

( 11,204,119 ) ( 11,899,049 ) 33,909 148,999

(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.

(1) Amortized cost of $ 1.8 billion and $ 1.6 billion as of June 30, 2025 and December 31, 2024, respectively.

(2) Amortized cost of $ 5.9 billion and $ 5.8 billion as of June 30, 2025 and December 31, 2024, respectively.

(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 March 31, 2025 and December 31, 2024:

March 31, 2025

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of June 30, 2025 and December 31, 2024:

June 30, 2025

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

10 unchanged sentences

(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 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.

As of June 30, 2025, Farmer Mac had additional net exposure of $ 214.5 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 14.0 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

December 31, 2024

12 unchanged sentences

Any investment securities posted as collateral are included in the investment securities balances on the Consolidated Balance Sheets.

If Farmer Mac had breached certain provisions of the derivative contracts as of March 31, 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").

If Farmer Mac had breached certain provisions of the derivative contracts as of June 30, 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 June 30, 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 $ 24.1 billion notional amount of interest rate swaps outstanding as of June 30, 2025, $ 18.4 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 March 31, 2025, Farmer Mac had $ 6.0 million of loans held for sale and $ 6.2 million as of December 31, 2024.

As of June 30, 2025, Farmer Mac had $ 7.8 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 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

The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of June 30, 2025 and December 31, 2024:

As of June 30, 2025 As of December 31, 2024

Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total

13 unchanged sentences

Allowance for Losses

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

March 31, 2025 December 31, 2024

The following table is a summary, by asset type, of the allowance for losses as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

Allowance for Losses Allowance for Losses

7 unchanged sentences

Total $ 29,956 $ 23,223

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

The following is a summary of the changes in the allowance for losses for the three and six months ended June 30, 2025 and 2024:

June 30, 2025 June 30, 2024

Agricultural Finance loans Infrastructure

7 unchanged sentences

(in thousands)

For the Three Months Ended

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

(Release of)/provision for losses

Provision for losses

4,404 605 5,009 2,691 242 5,387 5,629 626

Charge-offs ( 2,840 ) — ( 2,840 ) — ( 101 ) ( 3,942 ) ( 4,043 ) —

— 40 40 — — — — —

Ending Balance $ 6,635 $ 6,943 $ 13,578 $ 16,378 $ 4,676 $ 4,014 $ 8,690 $ 7,810

(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.

For the Six 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

4,343 1,441 5,784 3,666 841 5,008 5,849 ( 1,337 )

Charge-offs ( 2,840 ) — ( 2,840 ) — ( 101 ) ( 3,942 ) ( 4,043 ) —

— 123 123 — — — — —

Ending Balance $ 6,635 $ 6,943 $ 13,578 $ 16,378 $ 4,676 $ 4,014 $ 8,690 $ 7,810

(1) As of June 30, 2025 and 2024, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 1.7 million and $ 1.2 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2) As of June 30, 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 June 30, 2025 and 2024, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $ 5.0 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended June 30, 2025 was primarily attributable to two individual Farm & Ranch borrowers, one with a permanent planting loan and the other a crop loan.

During second quarter 2025, we recorded a charge-off of $ 2.8 million related to these two specific borrower relationships to reflect the amount of each loan that we deemed uncollectible.

The remaining net provision was related to credit downgrades and declining economic forecast factors.

The $ 2.7 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended June 30, 2025 was primarily attributable to two borrowers that were downgraded, one within Renewable Energy and one within Broadband Infrastructure, as well as new volume growth in those operating segments.

The $ 5.8 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the six months ended June 30, 2025 was primarily attributable to the factors noted above, along with new volume growth.

The $ 3.7 million net provision to the allowance for the Infrastructure Finance portfolio during the six months ended June 30, 2025 was primarily attributable to new volume growth and the two downgrades noted above.

The $ 0.6 million net provision to the allowance for the Infrastructure Finance portfolio during the

quarter ended June 30, 2024 was primarily attributable to renewable energy loans that extended their preconstruction phase, which has higher expected loss assumptions than their operating phase.

$ 5.6 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the

quarter ended June 30, 2024 was primarily attributable to a permanent planting loan that is in bankruptcy

and of which $ 3.9 million was deemed uncollectible.

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

The remaining provision during the quarter was

attributable to increased loan volume.

The $ 1.3 million net release from the allowance for the 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

six months ended June 30, 2024 was primarily attributable to a single telecommunications loan that

completed a restructuring during first quarter, which resulted in an improved collateral position and a

paydown of approximately 15 % of its previously unpaid principal balance.

The $ 5.8 million net provision

to the allowance for the Agricultural Finance mortgage loan portfolio during the six months ended

June 30, 2024 was primarily attributable to the permanent planting loan mentioned above and increased

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of June 30, 2025 and December 31, 2024:

As of June 30, 2025

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

7 unchanged sentences

Total $ 14,618,663 $ 19,491 $ 18,763 $ 4,694 $ 42,948 $ 179,497 $ 14,841,108

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

(2) Includes loans in consolidated trusts with beneficial interests owned by third parties (single-class) that are 90 days or more past due.

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.

(2) Primarily consists of loans in consolidated trusts with beneficial interests owned by third parties (single-class) that are 90 days or more past due.

(3) Includes loans that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

(4) Includes $ 19.6 million of nonaccrual loans for which there was no associated allowance.

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

During the three and six months ended June 30, 2025, Farmer Mac received $ 1.7 million and $ 3.1 million in interest on nonaccrual loans, respectively.

As of December 31, 2024

8 unchanged sentences

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

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

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on the recorded investment of the loan.

(2) Includes loans in consolidated trusts with beneficial interests owned (single-class) by third parties that are 90 days or more past due.

(3) Primarily consists of loans that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

(4) Includes $ 41.5 million of nonaccrual loans for which there was no associated allowance.

1 unchanged sentence

Credit Quality Indicators

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

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of June 30, 2025 and December 31, 2024, by year of origination:

As of June 30, 2025

Year of Origination:

9 unchanged sentences

Total $ 869,192 $ 1,123,125 $ 555,724 $ 1,063,474 $ 1,570,366 $ 2,298,657 $ 425,318 $ 7,905,856

For the Three Months Ended March 31, 2025:

For the Three Months Ended June 30, 2025:

Current period charge-offs $ — $ — $ — $ — $ — $ 1,165 $ 1,675 $ 2,840

For the Six Months Ended June 30, 2025:

Current period charge-offs $ — $ — $ — $ — $ — $ 1,165 $ 1,675 $ 2,840

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

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

(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

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

As of March 31, 2025

As of June 30, 2025

Year of Origination:

9 unchanged sentences

Total $ 164,169 $ 199,033 $ 153,281 $ 63,928 $ 207,466 $ 334,147 $ 328,572 $ 1,450,596

For the Three Months Ended March 31, 2025:

For the Three Months Ended June 30, 2025:

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

For the Six Months Ended June 30, 2025:

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

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

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

(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

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

As of March 31, 2025

As of June 30, 2025

Year of Origination:

9 unchanged sentences

Total $ 587,381 $ 1,256,486 $ 603,926 $ 637,172 $ 181,651 $ 1,730,271 $ 487,769 $ 5,484,656

For the Three Months Ended March 31, 2025:

For the Three Months Ended June 30, 2025:

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

For the Six Months Ended June 30, 2025:

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

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

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

(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

(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.

11 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 March 31, 2024:

For the Three Months Ended June 30, 2024:

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

For the Six Months Ended June 30, 2024:

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

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

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

(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

(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.

11 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 March 31, 2024:

For the Three Months Ended June 30, 2024:

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

For the Six Months Ended June 30, 2024:

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

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

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

(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

(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.

11 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 March 31, 2024:

For the Three Months Ended June 30, 2024:

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

For the Six Months Ended June 30, 2024:

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

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

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

(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

(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.

GUARANTEES AND COMMITMENTS

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of March 31, 2025 and December 31, 2024, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of June 30, 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 March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

(in thousands)

4 unchanged sentences

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

For the Six Months Ended

June 30, 2025 June 30, 2024

(in thousands)

Proceeds from new securitizations $ 286,511 $ 343,654

Guarantee fees received 790 857

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 March 31, 2025 As of December 31, 2024

As of June 30, 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 March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

(dollars in thousands)

3 unchanged sentences

Weighted-average remaining maturity 14.5 years 14.5 years

(1) Relates to LTSPCs issued or modified on or after January 1, 2003.

Reserve for Losses - LTSPCs and Farmer Mac Guaranteed Securities

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

March 31, 2025 December 31, 2024

The following table is a summary, by asset type, of the reserve for losses as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

Reserve for Losses Reserve for Losses

3 unchanged sentences

Total $ 1,620 $ 1,623

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

The following is a summary of the net changes in the reserve for losses for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended For the Six Months Ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

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

(in thousands)

1 unchanged sentence

Beginning Balance $ 1,335 $ 1,407 $ 1,431 $ 1,471

(Release of)/provision for losses

Provision for/(release of) losses

97 36 1 ( 28 )

2 unchanged sentences

Beginning Balance $ 186 $ 235 $ 192 $ 240

(Release of)/provision for losses

Provision for/(release of) losses

2 16 ( 4 ) 11

Ending Balance $ 188 $ 251 $ 188 $ 251

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

The net provision to the reserve for losses during the three and six months ended June 30, 2025 for both Agricultural Finance and Infrastructure Finance was primarily due to declining economic forecast factors.

As of June 30, 2025

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

18 unchanged sentences

Credit Quality Indicators

The following tables present credit quality indicators related to Agricultural Finance and 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

The following tables present credit quality indicators related to Agricultural Finance and Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of June 30, 2025 and December 31, 2024, by year of origination:

As of June 30, 2025

Year of Origination:

9 unchanged sentences

Total $ 36,634 $ 87,943 $ 169,964 $ 267,236 $ 570,045 $ 1,880,137 $ 468,067 $ 3,480,026

For the Three Months Ended March 31, 2025:

For the Three Months Ended June 30, 2025:

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

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

For the Six Months Ended June 30, 2025:

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

(1) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

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

As of March 31, 2025

As of June 30, 2025

Year of Origination:

9 unchanged sentences

Total $ — $ — $ — $ — $ — $ 342,546 $ 811,780 $ 1,154,326

For the Three Months Ended March 31, 2025:

For the Three Months Ended June 30, 2025:

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

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

For the Six Months Ended June 30, 2025:

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

(1) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

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

11 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 March 31, 2024:

For the Three Months Ended June 30, 2024:

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

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

For the Six Months Ended June 30, 2024:

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

(1) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

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

11 unchanged sentences

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

For the Three Months Ended March 31, 2024:

For the Three Months Ended June 30, 2024:

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

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

For the Six Months Ended June 30, 2024:

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

(1) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

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

1 unchanged sentence

Farmer Mac's borrowings consist of discount notes and medium-term notes, both of which are unsecured general obligations of Farmer Mac.

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

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

March 31, 2025

Outstanding as of March 31

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

The following tables set forth information related to Farmer Mac's borrowings as of June 30, 2025 and December 31, 2024:

June 30, 2025

Outstanding as of June 30

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 three months ended March 31, 2025 and 2024 was $ 2.1 billion and $ 1.9 billion, respectively.

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the six months ended June 30, 2025 and 2024 was $ 2.1 billion and $ 2.3 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 2025 as of March 31, 2025:

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

The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2025 as of June 30, 2025:

Debt Callable in 2025 as of June 30, 2025, by Maturity

Amount Weighted-Average Rate

6 unchanged sentences

Total $ 4,602,386 2.35 %

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:

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of June 30, 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 $ 28,877,240 3.58 %

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.

During the six months ended June 30, 2025 and 2024, Farmer Mac called $ 1.2 billion and $ 0.5 billion of callable medium-term notes, respectively.

Authority to Borrow from the U.S.

8 unchanged sentences

Treasury within a reasonable time.

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 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.

As of June 30, 2025, Farmer Mac had not used this borrowing authority.

During first and second 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.

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.

Capital Requirements

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

As of both March 31, 2025 and December 31, 2024, the minimum capital requirement was greater than the risk-based capital requirement.

As of both June 30, 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 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 June 30, 2025, Farmer Mac's minimum capital requirement was $ 959.9 million and its core capital level was $ 1.6 billion, which was $ 602.1 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 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

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of June 30, 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 June 30, 2025

Level 1 Level 2 Level 3 (1)

16 unchanged sentences

Total USDA Securities — — 560 560

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

— 6,045 — 6,045

Financial derivatives — 30,650 — 30,650

31 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 March 31, 2025 or December 31, 2024.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of June 30, 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 months ended March 31, 2025 and 2024, there were no transfers within the fair value hierarchy.

During the three and six months ended June 30, 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 months ended March 31, 2025 and 2024.

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

There were no liabilities measured at fair value using significant unobservable inputs during the three and six months ended June 30, 2025 and 2024.

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended June 30, 2025

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains included

Unrealized (losses)/gains

unrealized gains/(losses) included

Unrealized gains/(losses)

included in Other

18 unchanged sentences

Total Assets at fair value $ 5,648,685 $ 100,000 $ ( 17,341 ) $ ( 6 ) $ 37,746 $ ( 12,405 ) $ 5,756,679

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

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized losses included

unrealized (losses)/gains included

in Income Unrealized gains/(losses)

10 unchanged sentences

AgVantage 5,457,197 225,000 ( 280,833 ) 29 ( 6,460 ) ( 5,092 ) 5,389,841

Farmer Mac Guaranteed

Securities 9,767 — ( 177 ) — — ( 99 ) 9,491

Farmer Mac Guaranteed Securities 9,491 — ( 171 ) — — ( 10 ) 9,310

Total available-for-sale 5,466,688 225,000 ( 281,004 ) 29 ( 6,460 ) ( 5,102 ) 5,399,151

6 unchanged sentences

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

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2025 and December 31, 2024:

As of March 31, 2025

Level 3 Assets and Liabilities Measured at Fair Value for the Six Months Ended June 30, 2025

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains/(losses) included

Unrealized losses

included in Other

Comprehensive

Ending Balance

(in thousands)

Investment Securities:

Available-for-sale:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,476 $ — $ — $ ( 1 ) $ — $ — $ 19,475

Total available-for-sale 19,476 — — ( 1 ) — — 19,475

Farmer Mac Guaranteed Securities:

Available-for-sale:

5,505,531 400,000 ( 292,849 ) 45 119,878 ( 9,715 ) 5,722,890

Farmer Mac Guaranteed Securities 9,015 — ( 340 ) — — ( 62 ) 8,613

Total available-for-sale 5,514,546 400,000 ( 293,189 ) 45 119,878 ( 9,777 ) 5,731,503

USDA Securities:

Trading 818 — ( 271 ) — 13 — 560

Total USDA Securities 818 — ( 271 ) — 13 — 560

Guarantee and commitment obligations:

Guarantee Asset 5,382 — ( 171 ) — ( 70 ) — 5,141

Total Guarantee and commitment obligations 5,382 — ( 171 ) — ( 70 ) — 5,141

Total Assets at fair value $ 5,540,222 $ 400,000 $ ( 293,631 ) $ 44 $ 119,821 $ ( 9,777 ) $ 5,756,679

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

in Income Unrealized gains/(losses)

included in Other

Comprehensive

Income Ending Balance

(in thousands)

Investment Securities:

Available-for-sale:

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

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

Farmer Mac Guaranteed Securities:

Available-for-sale:

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

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

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

USDA Securities:

Trading 1,241 — ( 216 ) — 1 — 1,026

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

Guarantee and commitment obligations:

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

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

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

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

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

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of June 30, 2025 and December 31, 2024:

As of June 30, 2025 As of December 31, 2024

Fair Value Carrying

50 unchanged sentences

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.

The following tables present segment core earnings and assets for the three and six months ended June 30, 2025 and 2024.

Core Earnings by Business Segment

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Agricultural Finance Infrastructure Finance Treasury

14 unchanged sentences

313 345 — — 8 — 14 680

Release of/(provision for) losses

(Provision for)/release of losses

( 4,494 ) ( 614 ) ( 73 ) ( 666 ) ( 1,964 ) — ( 1 ) ( 7,812 )

17 unchanged sentences

(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;

the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) 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.

1 unchanged sentence

Core Earnings by Business Segment

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Agricultural Finance Infrastructure Finance Treasury

33 unchanged sentences

(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.

(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.

Core Earnings by Business Segment

For the Six Months Ended June 30, 2025

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Broadband Infrastructure

Renewable Energy Funding Investments Total

(in thousands)

Interest income

$ 301,899 $ 50,606 $ 132,442 $ 22,992 $ 43,809 $ 68,597 $ 160,091 $ 780,436

Interest expense (1)

( 230,313 ) ( 33,357 ) ( 121,424 ) ( 15,494 ) ( 32,470 ) ( 3,380 ) ( 156,262 ) ( 592,700 )

reconciling adjustments (2)(3)

( 1,991 ) — ( 53 ) — — ( 1,945 ) 136 ( 3,853 )

Net effective spread 69,595 17,249 10,965 7,498 11,339 63,272 3,965 183,883

Guarantee and commitment fees (3)

9,102 421 436 900 503 — — 11,362

Other income/(expense)

1,535 345 — — 8 — 36 1,924

(Provision for)/release of losses

( 4,301 ) ( 1,442 ) ( 150 ) ( 437 ) ( 3,064 ) — ( 1 ) ( 9,395 )

Operating expenses (1)

( 13,615 ) ( 4,511 ) ( 2,279 ) ( 2,326 ) ( 3,268 ) ( 5,803 ) ( 1,711 ) ( 33,513 )

Income tax (expense)/benefit ( 13,083 ) ( 2,535 ) ( 1,883 ) ( 1,184 ) ( 1,159 ) ( 12,069 ) ( 481 ) ( 32,394 )

Segment core earnings

$ 49,233 $ 9,527 $ 7,089 $ 4,451 $ 4,359 $ 45,400 $ 1,808 $ 121,867

Reconciliation to net income:

Net effects of derivatives and trading securities

Unallocated (expenses)/income

Income tax effect related to reconciling items 8,326

Total Assets:

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

$ 18,217,905 $ 1,953,523 $ 7,300,354 $ 1,174,441 $ 1,941,036 $ — $ — $ 30,587,259

Off-balance sheet assets under management

( 5,257,348 )

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.

Core Earnings by Business Segment

For the Six Months Ended June 30, 2024

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Utilities Broadband Infrastructure Renewable Energy Funding Investments Total

(in thousands)

Interest income

$ 309,521 $ 50,924 $ 133,681 $ 17,423 $ 19,749 $ 117,084 $ 151,641 $ 800,023

Interest expense (1)

( 240,110 ) ( 35,087 ) ( 123,479 ) ( 12,688 ) ( 14,701 ) ( 49,745 ) ( 150,505 ) ( 626,315 )

reconciling adjustments (2)(3)

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

Net effective spread 66,999 15,837 10,142 4,735 5,048 62,743 1,136 166,640

Guarantee and commitment fees (3)

9,096 214 501 149 278 — — 10,238

Other income/(expense)

1,512 ( 1,140 ) — — — — 1,063 1,435

(Provision for)/release of losses

( 744 ) ( 4,976 ) 290 3,207 ( 2,139 ) — 2 ( 4,360 )

Operating expenses (1)

( 11,995 ) ( 3,755 ) ( 2,147 ) ( 1,720 ) ( 2,254 ) ( 4,882 ) ( 1,383 ) ( 28,136 )

Income tax (expense)/benefit ( 13,623 ) ( 1,298 ) ( 1,846 ) ( 1,338 ) ( 196 ) ( 12,151 ) ( 172 ) ( 30,624 )

Segment core earnings

$ 51,245 $ 4,882 $ 6,940 $ 5,033 $ 737 $ 45,710 $ 646 $ 115,193

Reconciliation to net income:

Net effects of derivatives and trading securities $ 5,132

Unallocated (expense)/income

Income tax effect related to reconciling items 4,011

Total Assets:

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

$ 18,504,501 $ 1,816,893 $ 7,008,275 $ 553,198 $ 875,472 $ — $ — $ 28,758,339

Off-balance sheet assets under management

( 4,569,607 )

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.

During both the three and six months ended June 30, 2025, Farmer Mac purchased $ 35.6 million in renewable energy investment tax credits at prices of approximately $ 0.91 per $1.00 of credit.

All of the tax credits purchased are with projects that have been placed into service.

As a result of these purchases, Farmer Mac recognized a tax benefit of $ 3.2 million for both the three and six months ended June 30, 2025.

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