FEDERAL AGRICULTURAL MORTGAGE CORP 10-Q

Item 1. Financial Statements FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited) As of September 30, 2025 December 31, 2024 (in thousands) Assets: Cash and cash equivalents (includes restricted cash of $ 16,579 and $ 16,190 , respectively) $ 901,023 $ 1,024,007 Investment securities: Available-for-sale, at fair value (amortized cost of $ 6,714,777 and $ 6,105,116 , respectively) 6,655,946 5,953,014 Held-to-maturity, at amortized cost 8,815 9,270 Other investments 14,343 11,017 Total Investment Securities 6,679,104 5,973,301 Farmer Mac Guaranteed Securities: Available-for-sale, at fair value (amortized cost of $ 6,042,789 and $ 5,835,658 , respectively) 5,854,098 5,514,546 Held-to-maturity, at amortized cost 1,692,601 2,717,688 Total Farmer Mac Guaranteed Securities 7,546,699 8,232,234 USDA Securities: Trading, at fair value 456 818 Held-to-maturity, at amortized cost 2,389,180 2,370,534 Total USDA Securities 2,389,636 2,371,352 Loans: Loans held for sale, at lower of cost or fair value — 6,170 Loans held for investment, at amortized cost 13,192,117 11,183,408 Loans held for investment in consolidated trusts, at amortized cost 2,205,213 2,038,283 Allowance for losses ( 35,340 ) ( 23,223 ) Total loans, net of allowance 15,361,990 13,204,638 Financial derivatives, at fair value 32,667 27,789 Accrued interest receivable (includes $ 22,373 and $ 28,563 , respectively, related to consolidated trusts) 284,786 310,592 Guarantee and commitment fees receivable 50,775 50,499 Deferred tax asset, net 3,225 1,544 Prepaid expenses and other assets 129,655 128,786 Total Assets $ 33,379,560 $ 31,324,742 Liabilities and Equity: Liabilities: Notes payable $ 29,196,780 $ 27,371,174 Debt securities of consolidated trusts held by third parties 2,089,042 1,929,628 Financial derivatives, at fair value 29,161 77,326 Accrued interest payable (includes $ 11,945 and $ 12,387 , respectively, related to consolidated trusts) 238,582 195,113 Guarantee and commitment obligation 48,426 48,326 Accounts payable and accrued expenses 88,910 212,527 Reserve for losses 1,576 1,622 Total Liabilities 31,692,477 29,835,716 Commitments and Contingencies (Note 6) Equity: Preferred stock: Series D, par value $ 25 per share, 4,000,000 shares authorized, issued and outstanding 96,659 96,659 Series E, par value $ 25 per share, 3,180,000 shares authorized, issued and outstanding 77,003 77,003 Series F, par value $ 25 per share, 4,800,000 shares authorized, issued and outstanding 116,160 116,160 Series G, par value $ 25 per share, 5,000,000 shares authorized, issued and outstanding 121,327 121,327 Series H, par value $ 25 per share, 4,000,000 shares authorized, issued and outstanding 96,889 — Common stock: Class A Voting, $ 1 par value, no maximum authorization, 1,030,780 shares outstanding 1,031 1,031 Class B Voting, $ 1 par value, no maximum authorization, 500,301 shares outstanding 500 500 Class C Non-Voting, $ 1 par value, no maximum authorization, 9,403,453 shares and 9,360,083 shares outstanding, respectively 9,403 9,360 Additional paid-in capital 137,602 135,894 Accumulated other comprehensive loss, net of tax ( 5,431 ) ( 12,147 ) Retained earnings 1,035,940 943,239 Total Equity 1,687,083 1,489,026 Total Liabilities and Equity $ 33,379,560 $ 31,324,742 The accompanying notes are an integral part of these consolidated financial statements. 3 FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the Three Months Ended For the Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 (in thousands, except per share amounts) Interest income: Investments and cash equivalents $ 93,398 $ 88,879 $ 265,691 $ 258,341 Farmer Mac Guaranteed Securities and USDA Securities 123,484 156,602 374,824 489,478 Loans 198,459 162,247 555,262 459,932 Total interest income 415,341 407,728 1,195,777 1,207,751 Total interest expense 316,864 320,937 909,564 947,252 Net interest income 98,477 86,791 286,213 260,499 Provision for losses ( 7,477 ) ( 3,428 ) ( 16,874 ) ( 7,806 ) Net interest income after provision for losses 91,000 83,363 269,339 252,693 Non-interest income/(expense): Guarantee and commitment fees 5,021 4,015 14,316 11,729 Losses on financial derivatives ( 1,062 ) ( 1,934 ) ( 3,618 ) ( 1,654 ) Losses on sale of mortgage loans — — — ( 1,147 ) Gains on sale of available-for-sale investment securities — — — 1,052 Release of reserve for losses 44 170 46 188 Other income 1,482 1,222 3,958 3,145 Non-interest income 5,485 3,473 14,702 13,313 Operating expenses: Compensation and employee benefits 17,743 15,237 53,126 48,334 General and administrative 11,052 8,625 32,669 25,784 Regulatory fees 1,000 725 3,000 2,175 Operating expenses 29,795 24,587 88,795 76,293 Income before income taxes 66,690 62,249 195,246 189,713 Income tax expense 11,687 12,421 35,755 39,034 Net income 55,003 49,828 159,491 150,679 Preferred stock dividends ( 6,303 ) ( 5,897 ) ( 17,636 ) ( 19,480 ) Loss on retirement of preferred stock — ( 1,619 ) — ( 1,619 ) Net income attributable to common stockholders $ 48,700 $ 42,312 $ 141,855 $ 129,580 Earnings per common share: Basic earnings per common share $ 4.45 $ 3.89 $ 12.99 $ 11.93 Diluted earnings per common share $ 4.44 $ 3.86 $ 12.93 $ 11.82 The accompanying notes are an integral part of these consolidated financial statements. 4 FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the Three Months Ended For the Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 (in thousands) Net income $ 55,003 $ 49,828 $ 159,491 $ 150,679 Other comprehensive income/(loss): Net unrealized gains on available-for-sale securities 18,874 26,350 25,789 61,015 Net changes in held-to-maturity securities ( 186 ) ( 443 ) ( 204 ) ( 757 ) Net unrealized losses on cash flow hedges ( 3,202 ) ( 17,569 ) ( 17,083 ) ( 12,675 ) Other comprehensive income before tax 15,486 8,338 8,502 47,583 Income tax expense related to other comprehensive income ( 3,252 ) ( 1,751 ) ( 1,786 ) ( 9,992 ) Other comprehensive income net of tax 12,234 6,587 6,716 37,591 Comprehensive income $ 67,237 $ 56,415 $ 166,207 $ 188,270 The accompanying notes are an integral part of these consolidated financial statements. 5 FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (unaudited) Accumulated 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, 2024 16,980 $ 411,149 10,891 $ 10,891 $ 135,894 $ ( 12,147 ) $ 943,239 $ 1,489,026 Net Income — — — — — — 49,651 49,651 Other comprehensive income, net of tax — — — — — 10,339 — 10,339 Cash dividends: Preferred stock — — — — — — ( 5,666 ) ( 5,666 ) Common stock (cash dividend of $ 1.50 per share) — — — — — — ( 16,352 ) ( 16,352 ) Issuance of Class C Common Stock — — 42 42 79 — — 121 Stock-based compensation cost — — — — 3,529 — — 3,529 Other stock-based award activity — — — — ( 5,002 ) — — ( 5,002 ) 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 Net Income — — — — — — 55,003 55,003 Other comprehensive income, net of tax — — — — — 12,234 — 12,234 Cash dividends: Preferred stock — — — — — — ( 6,303 ) ( 6,303 ) Common stock (cash dividend of $ 1.50 per share) — — — — — — ( 16,401 ) ( 16,401 ) Issuance of Series H Preferred Stock 4,000 96,889 — — — — — 96,889 Issuance of Class C Common Stock — — — — 65 — — 65 Stock-based compensation cost — — — — 1,360 — — 1,360 Other stock-based award activity — — — — ( 71 ) — — ( 71 ) Balance as of September 30, 2025 20,980 $ 508,038 10,934 $ 10,934 $ 137,602 $ ( 5,431 ) $ 1,035,940 $ 1,687,083 6 Accumulated 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 income, net of tax — — — — — 36,027 — 36,027 Cash dividends: Preferred stock — — — — — — ( 6,791 ) ( 6,791 ) Common stock (cash dividend of $ 1.40 per share) — — — — — — ( 15,186 ) ( 15,186 ) Issuance of Class C Common Stock — — 27 27 64 — — 91 Stock-based compensation cost — — — — 3,483 — — 3,483 Other stock-based award activity — — — — ( 2,890 ) — — ( 2,890 ) 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 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 The accompanying notes are an integral part of these consolidated financial statements. 7 FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the Nine Months Ended September 30, 2025 September 30, 2024 (in thousands) Cash flows from operating activities: Net income $ 159,491 $ 150,679 Adjustments to reconcile net income to net cash provided by operating activities: Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities ( 16,580 ) ( 19,100 ) Net amortization of debt premiums, discounts, and issuance costs 7,777 29,661 Net change in fair value of trading securities, loans held for sale, hedged items, and financial derivatives ( 192,971 ) ( 62,797 ) (Gains)/losses on sale of mortgage loans ( 9 ) 1,147 Gains on the sale of available-for-sale investment securities — ( 1,052 ) Losses on sale of real estate owned 69 — Total provision for/(release of) allowance for losses 16,828 7,618 Excess tax benefits related to stock-based awards ( 624 ) 447 Deferred income taxes ( 3,466 ) ( 768 ) Stock-based compensation expense 6,634 6,528 Purchases of loans held for sale ( 7,770 ) — Proceeds from sale of loans held for sale 7,779 — Proceeds from repayment of loans purchased as held for sale 38,991 28,302 Net change in: Interest receivable 16,271 27,320 Guarantee and commitment fees receivable ( 176 ) 131 Other assets 25,193 50,121 Accrued interest payable 43,469 32,803 Custodial deposit liability ( 138,856 ) ( 18,085 ) Other liabilities 14,602 12,160 Net cash (used in)/provided by operating activities ( 23,348 ) 245,115 Cash flows from investing activities: Purchases of equipment and leasehold improvements — ( 5,272 ) Purchases of available-for-sale and held-to-maturity investment securities ( 1,415,336 ) ( 1,971,974 ) Purchases of other investment securities ( 3,326 ) ( 1,770 ) Purchases of Farmer Mac Guaranteed Securities and USDA Securities ( 1,021,065 ) ( 1,522,510 ) Purchases of loans held for investment ( 3,750,840 ) ( 2,580,492 ) Purchases of defaulted loans ( 2,544 ) ( 317 ) Proceeds from repayment of available-for-sale and held-to-maturity investment securities 815,370 1,049,268 Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities 1,819,693 2,669,746 Proceeds from repayment of loans purchased as held for investment 1,640,603 1,282,579 Proceeds from sale of real estate owned 725 — Proceeds from sale of available-for-sale investment securities — 115,247 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 ( 1,910,675 ) ( 899,528 ) Cash flows from financing activities: Proceeds from issuance of discount notes 56,282,365 42,829,487 Proceeds from issuance of medium-term notes 10,019,083 5,721,174 Proceeds from issuance of debt securities of consolidated trusts 286,511 283,462 Payments to redeem discount notes ( 56,746,196 ) ( 42,371,640 ) Payments to redeem medium-term notes ( 7,870,320 ) ( 5,593,883 ) Payments to third parties on debt securities of consolidated trusts ( 186,257 ) ( 115,609 ) Proceeds from common stock issuance 225 209 Proceeds from preferred stock issuance, net of stock issuance costs 96,889 — Tax payments related to share-based awards ( 5,108 ) ( 4,388 ) Retirement of preferred stock — ( 75,000 ) Dividends paid on common and preferred stock ( 66,153 ) ( 66,050 ) Net cash provided by financing activities 1,811,039 607,762 Net change in cash and cash equivalents ( 122,984 ) ( 46,651 ) 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 $ 901,023 $ 842,056 Non-cash activity: 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. 8 FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2024 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2024 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2024 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 21, 2025. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries: (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, 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. 9 Table 1.1 Variable Interest Entities As of September 30, 2025 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 2,205,213 $ — $ 2,205,213 Debt securities of consolidated trusts held by third parties (1)(2) 2,089,042 — 2,089,042 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 79,302 — 79,302 Maximum exposure to loss (3) 79,027 — 79,027 Investment securities: Carrying value (4) — 4,769,276 4,769,276 Maximum exposure to loss (3)(4) — 4,959,042 4,959,042 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3)(5)(6) 392,358 — 392,358 (1) Includes borrower remittances of $ 1.4 million. The borrower remittances had not been passed through to third-party investors as of September 30, 2025. (2) Includes $ 117.5 million in unamortized discount related to structured securitization transactions. (3) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4) Includes auction-rate certificates, government-sponsored enterprise ("GSE") guaranteed mortgage-backed securities, and other mission related investments. (5) The Agricultural Finance amount relates to unconsolidated trusts where Farmer Mac is not the primary beneficiary, either due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause. (6) Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the Consolidated Balance Sheets, which was $ 5.1 million as of September 30, 2025. The weighted average remaining maturity of the loans underlying the guarantee was 20.9 years as of September 30, 2025. 10 Variable Interest Entities As of December 31, 2024 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 2,038,283 $ — $ 2,038,283 Debt securities of consolidated trusts held by third parties (1)(2) 1,929,628 — 1,929,628 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 59,317 — 59,317 Maximum exposure to loss (3) 58,985 — 58,985 Investment securities: Carrying value (4) — 4,212,258 4,212,258 Maximum exposure to loss (3)(4) — 4,547,397 4,547,397 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3)(5)(6) 426,310 — 426,310 (1) Includes borrower remittances of $ 4.7 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2024. (2) Includes $ 113.2 million in unamortized discount related to a structured securitization transaction. (3) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4) Includes auction-rate certificates, government-sponsored enterprise ("GSE") guaranteed mortgage-backed securities, and other mission related investments. (5) The Agricultural Finance amount relates to unconsolidated trusts where Farmer Mac is not the primary beneficiary, either due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause. (6) Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the Consolidated Balance Sheets, which was $ 5.6 million as of December 31, 2024. The weighted average remaining maturity of the loans underlying the guarantee was 21.2 years as of December 31, 2024. 11 (a) Earnings Per Common Share Basic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding. 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, 2025 and 2024: Table 1.2 For the Three Months Ended September 30, 2025 September 30, 2024 Net Income Weighted-Average Shares $ per Share Net Income Weighted-Average Shares $ per Share (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 48,700 10,934 $ 4.45 $ 42,312 10,883 $ 3.89 Effect of dilutive securities (1) SARs and restricted stock units — 38 ( 0.01 ) — 83 ( 0.03 ) Diluted EPS $ 48,700 10,972 $ 4.44 $ 42,312 10,966 $ 3.86 (1) For the three months ended September 30, 2025 and 2024, SARs and restricted stock units of 27,160 and 15,465 , 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, 2025 and 2024, contingent shares of unvested restricted stock units of 27,580 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 Nine Months Ended September 30, 2025 September 30, 2024 Net Income Weighted-Average Shares $ per Share Net Income Weighted-Average Shares $ per Share (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 141,855 10,921 $ 12.99 $ 129,580 10,869 $ 11.93 Effect of dilutive securities (1) SARs and restricted stock units — 52 ( 0.06 ) — 99 ( 0.11 ) Diluted EPS $ 141,855 10,973 $ 12.93 $ 129,580 10,968 $ 11.82 (1) For the nine months ended September 30, 2025 and 2024, SARs and restricted stock units of 53,955 and 36,033 , 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, 2025 and 2024, contingent shares of unvested restricted stock units of 28,865 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. 12 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, 2025 and 2024. Table 1.3 As of September 30, 2025 As of September 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 (in thousands) For the Three Months Ended: Beginning Balance $ ( 32,113 ) $ ( 9,240 ) $ 23,688 $ ( 17,665 ) $ ( 41,062 ) $ ( 8,972 ) $ 40,893 $ ( 9,141 ) Other comprehensive income/(loss) before reclassifications 14,912 — 309 15,221 20,820 — ( 9,663 ) 11,157 Amounts reclassified from AOCI ( 2 ) ( 147 ) ( 2,838 ) ( 2,987 ) ( 3 ) ( 350 ) ( 4,217 ) ( 4,570 ) Net comprehensive income/(loss) 14,910 ( 147 ) ( 2,529 ) 12,234 20,817 ( 350 ) ( 13,880 ) 6,587 Ending Balance $ ( 17,203 ) $ ( 9,387 ) $ 21,159 $ ( 5,431 ) $ ( 20,245 ) $ ( 9,322 ) $ 27,013 $ ( 2,554 ) For the Nine 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 20,379 — ( 4,676 ) 15,703 49,042 — 2,755 51,797 Amounts reclassified from AOCI ( 7 ) ( 161 ) ( 8,819 ) ( 8,987 ) ( 840 ) ( 598 ) ( 12,768 ) ( 14,206 ) Net comprehensive income/(loss) 20,372 ( 161 ) ( 13,495 ) 6,716 48,202 ( 598 ) ( 10,013 ) 37,591 Ending Balance $ ( 17,203 ) $ ( 9,387 ) $ 21,159 $ ( 5,431 ) $ ( 20,245 ) $ ( 9,322 ) $ 27,013 $ ( 2,554 ) 13 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, 2025 and 2024: Table 1.4 For the Three Months Ended September 30, 2025 September 30, 2024 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 $ 18,876 $ 3,964 $ 14,912 $ 26,354 $ 5,534 $ 20,820 Less reclassification adjustments included in: Other income (1) ( 2 ) — ( 2 ) ( 4 ) ( 1 ) ( 3 ) Total $ 18,874 $ 3,964 $ 14,910 $ 26,350 $ 5,533 $ 20,817 Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (2) $ ( 186 ) $ ( 39 ) $ ( 147 ) $ ( 443 ) $ ( 93 ) $ ( 350 ) Total $ ( 186 ) $ ( 39 ) $ ( 147 ) $ ( 443 ) $ ( 93 ) $ ( 350 ) Cash flow hedges Unrealized gains/(losses) on cash flow hedges $ 391 $ 82 $ 309 $ ( 12,232 ) $ ( 2,569 ) $ ( 9,663 ) Less reclassification adjustments included in: Net interest income (3) ( 3,593 ) ( 755 ) ( 2,838 ) ( 5,337 ) ( 1,120 ) ( 4,217 ) Total $ ( 3,202 ) $ ( 673 ) $ ( 2,529 ) $ ( 17,569 ) $ ( 3,689 ) $ ( 13,880 ) Other comprehensive income $ 15,486 $ 3,252 $ 12,234 $ 8,338 $ 1,751 $ 6,587 (1) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (2) Represents amortization of unrealized gain/loss reported in AOCI prior to the reclassification of certain securities from available-for-sale to held-to-maturity, which occurred at fair value. The unrealized gain/loss will be amortized over the securities' remaining life with no impact on future net income. (3) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. 14 For the Nine Months Ended September 30, 2025 September 30, 2024 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 $ 25,797 $ 5,418 $ 20,379 $ 62,079 $ 13,037 $ 49,042 Less reclassification adjustments included in: Gains on sale of available-for-sale investment securities (1) — — — ( 1,052 ) ( 221 ) ( 831 ) Other income (2) ( 8 ) ( 1 ) ( 7 ) ( 12 ) ( 3 ) ( 9 ) Total $ 25,789 $ 5,417 $ 20,372 $ 61,015 $ 12,813 $ 48,202 Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (3) $ ( 204 ) $ ( 43 ) $ ( 161 ) $ ( 757 ) $ ( 159 ) $ ( 598 ) Total $ ( 204 ) $ ( 43 ) $ ( 161 ) $ ( 757 ) $ ( 159 ) $ ( 598 ) Cash flow hedges Unrealized (losses)/gains on cash flow hedges $ ( 5,920 ) $ ( 1,244 ) $ ( 4,676 ) $ 3,488 $ 733 $ 2,755 Less reclassification adjustments included in: Net interest income (4) ( 11,163 ) ( 2,344 ) ( 8,819 ) ( 16,163 ) ( 3,395 ) ( 12,768 ) Total $ ( 17,083 ) $ ( 3,588 ) $ ( 13,495 ) $ ( 12,675 ) $ ( 2,662 ) $ ( 10,013 ) Other comprehensive income $ 8,502 $ 1,786 $ 6,716 $ 47,583 $ 9,992 $ 37,591 (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) Represents amortization of unrealized gain/loss reported in AOCI prior to the reclassification of certain securities from available-for-sale to held-to-maturity, which occurred at fair value. The unrealized gain/loss will be amortized over the securities' remaining life with no impact on future net income. (4) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. 15 (c) New Accounting Standards Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Effect on Consolidated Financial Statements ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures The Update provides guidance on improvements to annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additionally, public entities must provide a separate disclosure for any reconciling item that meets a quantitative threshold. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The amendments should be applied on either a prospective or retrospective basis. Early adoption is permitted. 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. 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. 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. ASU 2025-06 , Intangibles - Goodwill and Other - Internal-use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software The Update amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. It removes all references to "development stages" and establishes new criteria to be met for the entity to begin capitalizing software costs. New guidance is then given for how to evaluate whether the probable-to-complete recognition threshold has been met. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. 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. 16 2. INVESTMENT SECURITIES 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; • 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. government; • 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 September 30, 2025 and December 31, 2024: Table 2.1 As of September 30, 2025 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ ( 21 ) $ — $ ( 197 ) $ 19,482 Floating rate Government/GSE guaranteed mortgage-backed securities 2,326,063 ( 1,423 ) 2,324,640 — 1,669 ( 12,459 ) 2,313,850 Fixed rate Government/GSE guaranteed mortgage-backed securities 2,967,739 ( 68,095 ) 2,899,644 — 28,975 ( 82,498 ) 2,846,121 Fixed rate U.S. Treasuries 1,477,292 ( 6,499 ) 1,470,793 — 6,028 ( 328 ) 1,476,493 Total available-for-sale 6,790,794 ( 76,017 ) 6,714,777 ( 21 ) 36,672 ( 95,482 ) 6,655,946 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 8,815 — 8,815 — 286 — 9,101 Total held-to-maturity $ 8,815 $ — $ 8,815 $ — $ 286 $ — $ 9,101 (1) Amounts presented exclude $ 30.9 million of accrued interest receivable on investment securities as of September 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 September 30, 2025. 17 As of December 31, 2024 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ ( 27 ) $ — $ ( 197 ) $ 19,476 Floating rate Government/GSE guaranteed mortgage-backed securities 2,317,032 ( 841 ) 2,316,191 — 3,484 ( 13,950 ) 2,305,725 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. Treasuries 1,302,677 ( 10,743 ) 1,291,934 — 2,604 ( 4,692 ) 1,289,846 Total available-for-sale 6,183,545 ( 78,429 ) 6,105,116 ( 27 ) 9,514 ( 161,589 ) 5,953,014 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 9,270 — 9,270 — 270 — 9,540 Total held-to-maturity $ 9,270 $ — $ 9,270 $ — $ 270 $ — $ 9,540 (1) Amounts presented exclude $ 22.3 million of accrued interest receivable on investment securities as of December 31, 2024. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the Consolidated Statement of Operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The held-to-maturity investment securities had a weighted average yield of 6.4 % 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 and nine months ended September 30, 2025. 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. As of September 30, 2025 and December 31, 2024, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of September 30, 2025 Available-for-Sale Securities Unrealized loss position for less than 12 months Unrealized loss position for more than 12 months Fair Value Unrealized Loss Fair Value Unrealized Loss (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 19,482 $ ( 197 ) Floating rate Government/GSE guaranteed mortgage-backed securities 543,325 ( 1,394 ) 998,973 ( 11,065 ) Fixed rate Government/GSE guaranteed mortgage-backed securities 155,569 ( 3,392 ) 998,254 ( 79,106 ) Fixed rate U.S. Treasuries 35,047 ( 8 ) 243,217 ( 320 ) Total $ 733,941 $ ( 4,794 ) $ 2,259,926 $ ( 90,688 ) Number of securities in loss position 61 164 18 As of December 31, 2024 Available-for-Sale Securities Unrealized loss position for less than 12 months Unrealized loss position for more than 12 months Fair Value Unrealized Loss Fair Value Unrealized Loss (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 19,476 $ ( 197 ) Floating rate Government/GSE guaranteed mortgage-backed securities 269,862 ( 420 ) 1,025,360 ( 13,530 ) Fixed rate Government/GSE guaranteed mortgage-backed securities 999,793 ( 17,682 ) 946,166 ( 125,068 ) Fixed rate U.S. Treasuries 590,307 ( 4,375 ) 58,523 ( 317 ) Total $ 1,859,962 $ ( 22,477 ) $ 2,049,525 $ ( 139,112 ) 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, 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, 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 GSE, or had credit ratings of at least "AAA." Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2025 that is, on average, approximately 96.1 % 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 September 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. Table 2.3 As of September 30, 2025 Available-for-Sale Securities Amortized Cost Fair Value Weighted- Average Yield (dollars in thousands) Due within one year $ 876,565 $ 877,887 4.05 % Due after one year through five years 2,267,630 2,272,750 4.14 % Due after five years through ten years 2,540,002 2,481,095 3.80 % Due after ten years 1,030,580 1,024,214 4.79 % Total $ 6,714,777 $ 6,655,946 4.10 % 19 3. 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, 2025 and December 31, 2024: Table 3.1 As of September 30, 2025 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale: AgVantage $ 6,034,583 $ — $ 6,034,583 $ ( 138 ) $ 27,270 $ ( 216,073 ) $ 5,845,642 Farmer Mac Guaranteed Securities (3) — 8,206 8,206 — 250 — 8,456 Total available-for-sale $ 6,034,583 $ 8,206 $ 6,042,789 $ ( 138 ) $ 27,520 $ ( 216,073 ) $ 5,854,098 Held-to-maturity: AgVantage $ 1,647,063 $ ( 25,178 ) $ 1,621,885 $ ( 128 ) $ 9,156 $ ( 8,575 ) $ 1,622,338 Farmer Mac Guaranteed USDA Securities 70,821 23 70,844 — 1,484 ( 516 ) 71,812 Total Farmer Mac Guaranteed Securities 1,717,884 ( 25,155 ) 1,692,729 ( 128 ) 10,640 ( 9,091 ) 1,694,150 USDA Securities 2,372,316 16,864 2,389,180 — 17,166 ( 157,186 ) 2,249,160 Total held-to-maturity $ 4,090,200 $ ( 8,291 ) $ 4,081,909 $ ( 128 ) $ 27,806 $ ( 166,277 ) $ 3,943,310 Trading: USDA Securities (4) $ 447 $ 29 $ 476 $ — $ — $ ( 20 ) $ 456 (1) Amounts presented exclude $ 60.3 million and $ 48.5 million of accrued interest receivable on available-for-sale and held-to-maturity securities, respectively, as of September 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 fair value of $ 8.5 million relates to an interest-only security with a notional amount of $ 210.2 million. (4) The trading USDA securities had a weighted average yield of 5.47 % as of September 30, 2025. 20 As of December 31, 2024 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Gains Unrealized Losses Fair Value (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: AgVantage $ 2,694,492 $ ( 26,928 ) $ 2,667,564 $ ( 178 ) $ 5,978 $ ( 21,592 ) $ 2,651,772 Farmer Mac Guaranteed USDA Securities 50,275 27 50,302 — 246 ( 1,220 ) 49,328 Total Farmer Mac Guaranteed Securities 2,744,767 ( 26,901 ) 2,717,866 ( 178 ) 6,224 ( 22,812 ) 2,701,100 USDA Securities 2,351,334 19,200 2,370,534 — 180 ( 258,190 ) 2,112,524 Total held-to-maturity $ 5,096,101 $ ( 7,701 ) $ 5,088,400 $ ( 178 ) $ 6,404 $ ( 281,002 ) $ 4,813,624 Trading: USDA Securities (4) $ 814 $ 42 $ 856 $ — $ — $ ( 38 ) $ 818 (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 Consolidated Statement of Operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The fair value of $ 9.0 million relates to an interest-only security with a notional amount of $ 228.0 million. (4) The trading USDA securities had a weighted average yield of 5.47 % as of December 31, 2024. As of September 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: Table 3.2 As of September 30, 2025 Available-for-Sale and Held-to-Maturity Securities Unrealized loss position for less than 12 months Unrealized loss position for more than 12 months Fair Value Unrealized Loss Fair Value Unrealized Loss (in thousands) Available-for-sale: AgVantage $ 446,255 $ ( 3,745 ) $ 3,438,088 $ ( 212,328 ) Total available-for-sale $ 446,255 $ ( 3,745 ) $ 3,438,088 $ ( 212,328 ) Held-to-maturity: AgVantage $ 588,063 $ ( 3,345 ) $ 539,729 $ ( 5,230 ) Farmer Mac Guaranteed USDA Securities — — 38,360 ( 516 ) USDA Securities — — 1,789,302 ( 157,186 ) Total held-to-maturity $ 588,063 $ ( 3,345 ) $ 2,367,391 $ ( 162,932 ) 21 As of December 31, 2024 Available-for-Sale and Held-to-Maturity Securities Unrealized loss position for less than 12 months Unrealized loss position for more than 12 months Fair Value Unrealized Loss Fair Value Unrealized Loss (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: AgVantage $ 998,200 $ ( 3,326 ) $ 1,187,464 $ ( 18,266 ) Farmer Mac Guaranteed USDA Securities 30,912 ( 529 ) 8,070 ( 691 ) USDA Securities 8,938 ( 164 ) 2,099,695 ( 258,026 ) Total held-to-maturity $ 1,038,050 $ ( 4,019 ) $ 3,295,229 $ ( 276,983 ) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to September 30, 2025 and December 31, 2024, as applicable. The credit exposure related to Farmer Mac's USDA Securities and Farmer Mac Guaranteed 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 51 and 66 available-for-sale securities as of September 30, 2025 and December 31, 2024, respectively. There were 22 and 45 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025 and December 31, 2024, 48 and 54 available-for-sale AgVantage securities had been in a loss position for more than 12 months, respectively. As of September 30, 2025 and December 31, 2024, there were 17 and 26 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months. During the three and nine months ended September 30, 2025 and 2024, Farmer Mac had no sales of Farmer Mac Guaranteed Securities or USDA Securities, therefore, Farmer Mac realized no gains or losses. 22 The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity securities by remaining contractual maturity as of September 30, 2025 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of September 30, 2025 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- Average Yield (dollars in thousands) Due within one year $ 755,000 $ 753,819 4.37 % Due after one year through five years 3,312,473 3,282,253 3.81 % Due after five years through ten years 1,041,694 972,023 3.51 % Due after ten years 933,622 846,003 3.99 % Total $ 6,042,789 $ 5,854,098 3.85 % (1) Amounts presented exclude $ 60.3 million of accrued interest receivable. As of September 30, 2025 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- Average Yield (dollars in thousands) Due within one year $ 590,175 $ 587,330 3.58 % Due after one year through five years 497,963 498,841 4.61 % Due after five years through ten years 326,128 302,526 3.79 % Due after ten years 2,667,643 2,554,613 4.36 % Total $ 4,081,909 $ 3,943,310 4.28 % (1) Amounts presented exclude $ 48.5 million of accrued interest receivable. 4. FINANCIAL DERIVATIVES Farmer Mac enters into financial derivative transactions to protect against risk from the effects of market price, or interest rate movements, on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes. Certain financial derivatives are designated as fair value hedges of fixed rate assets, classified as available-for-sale, to protect against fair value changes in the assets related to changes in a benchmark interest rate (e.g., Secured Overnight Financing Rate ("SOFR")). Certain other financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt. Certain financial derivatives are not designated in hedge accounting relationships. Farmer Mac manages the interest rate risk related to loans it has committed to acquire, but has not yet permanently funded, primarily through the use of futures contracts involving U.S. Treasury securities. 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. All financial derivatives are recorded on the balance sheet at fair value as a freestanding asset or liability. 23 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 $ 23.1 million and $ 15.8 million of accrued interest receivable and $ 3.7 million and $ 4.9 million of accrued interest payable on uncleared swaps as of September 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. Table 4.1 As of September 30, 2025 Fair Value Weighted- Average Pay Rate Weighted- Average Receive Rate Weighted- Average Forward Price Weighted- Average Remaining Term (in years) Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Receive fixed non-callable $ 6,913,685 $ 2,084 $ ( 3,320 ) 4.45 % 3.52 % 1.21 Pay fixed non-callable 10,324,870 2,067 ( 3,379 ) 2.79 % 4.30 % 8.75 Receive fixed callable 4,747,883 21,310 ( 25,572 ) 4.32 % 3.76 % 3.04 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 463,000 9,965 ( 123 ) 1.93 % 4.63 % 3.18 No hedge designation: Interest rate swaps: Pay fixed non-callable 151,559 443 ( 77 ) 2.97 % 4.50 % 3.01 Receive fixed non-callable 1,390,415 189 — 4.28 % 4.00 % 0.42 Basis swaps 614,384 2 ( 274 ) 4.43 % 4.27 % 3.31 Treasury futures 52 202 ( 11 ) 112.87 Netting adjustments (1) — ( 3,595 ) 3,595 Total financial derivatives $ 24,605,848 $ 32,667 $ ( 29,161 ) (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. 24 As of December 31, 2024 Fair Value Weighted- Average Pay Rate Weighted- Average Receive Rate Weighted- Average Forward Price Weighted- Average Remaining Term (in years) Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Receive fixed non-callable $ 7,460,685 $ 174 $ ( 12,165 ) 4.71 % 3.40 % 1.53 Pay fixed non-callable 9,657,181 5,134 ( 97 ) 2.67 % 4.56 % 9.12 Receive fixed callable 4,592,077 5,119 ( 65,167 ) 4.54 % 3.67 % 2.65 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 540,000 16,903 ( 2 ) 1.92 % 4.87 % 3.43 No hedge designation: Interest rate swaps: Pay fixed non-callable 157,776 819 ( 1 ) 2.92 % 4.75 % 3.40 Receive fixed non-callable 1,803,328 48 ( 2 ) 4.52 % 4.43 % 0.30 Basis swaps 655,384 8 ( 354 ) 4.69 % 4.52 % 3.83 Treasury futures 29,900 46 — 108.91 Netting adjustments (1) — ( 462 ) 462 Total financial derivatives $ 24,896,331 $ 27,789 $ ( 77,326 ) (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, 2025, Farmer Mac expects to reclassify $ 7.2 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, 2025. 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, 2025 and 2024: 25 Table 4.2 For the Three Months Ended September 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 $ 93,398 $ 123,484 $ 198,459 $ ( 316,864 ) $ ( 1,062 ) $ 97,415 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 7,541 23,004 12,857 ( 29,051 ) — 14,351 Recognized on hedged items 14,558 57,249 21,659 ( 102,584 ) — ( 9,118 ) Premium/discount amortization recognized on hedged items 690 — — ( 581 ) — 109 Income/(expense) related to interest settlements on fair value hedging relationships $ 22,789 $ 80,253 $ 34,516 $ ( 132,216 ) $ — $ 5,342 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ ( 7,584 ) $ ( 19,533 ) $ ( 10,864 ) $ 26,984 $ — $ ( 10,997 ) Recognized on hedged items 7,376 19,248 10,436 ( 26,200 ) — 10,860 (Losses)/gains on fair value hedging relationships $ ( 208 ) $ ( 285 ) $ ( 428 ) $ 784 $ — $ ( 137 ) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 3,593 $ — $ 3,593 Recognized on hedged items — — — ( 5,837 ) — ( 5,837 ) Discount amortization recognized on hedged items — — — ( 22 ) — ( 22 ) Expense recognized on cash flow hedges $ — $ — $ — $ ( 2,266 ) $ — $ ( 2,266 ) Losses on financial derivatives not designated in hedging relationships: Gains on interest rate swaps $ — $ — $ — $ — $ 474 $ 474 Interest expense on interest rate swaps — — — — ( 707 ) ( 707 ) Treasury futures — — — — ( 829 ) ( 829 ) Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ ( 1,062 ) $ ( 1,062 ) 26 For the Three 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: $ 88,879 $ 156,602 $ 162,247 $ ( 320,937 ) $ ( 1,934 ) $ 84,857 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 10,774 39,127 17,878 ( 69,433 ) — ( 1,654 ) Recognized on hedged items 11,476 54,513 17,544 ( 106,154 ) — ( 22,621 ) Premium/discount amortization recognized on hedged items 623 — — ( 688 ) — ( 65 ) Income/(expense) related to interest settlements on fair value hedging relationships $ 22,873 $ 93,640 $ 35,422 $ ( 176,275 ) $ — $ ( 24,340 ) Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ ( 60,799 ) $ ( 189,698 ) $ ( 98,464 ) $ 212,027 $ — $ ( 136,934 ) Recognized on hedged items 60,915 189,141 98,015 ( 210,932 ) — 137,139 Gains/(losses) on fair value hedging relationships $ 116 $ ( 557 ) $ ( 449 ) $ 1,095 $ — $ 205 Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 5,338 $ — $ 5,338 Recognized on hedged items — — — ( 7,918 ) — ( 7,918 ) Discount amortization recognized on hedged items — — — ( 14 ) — ( 14 ) Expense recognized on cash flow hedges $ — $ — $ — $ ( 2,594 ) $ — $ ( 2,594 ) Losses on financial derivatives not designated in hedge relationships: Losses on interest rate swaps $ — $ — $ — $ — $ ( 1,310 ) $ ( 1,310 ) Interest expense on interest rate swaps — — — — ( 858 ) ( 858 ) Treasury futures — — — — 234 234 Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ ( 1,934 ) $ ( 1,934 ) 27 For the Nine Months Ended September 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 $ 265,691 $ 374,824 $ 555,262 $ ( 909,564 ) $ ( 3,618 ) $ 282,595 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 21,887 66,809 37,742 ( 85,320 ) — 41,118 Recognized on hedged items 41,789 169,792 60,261 ( 306,677 ) — ( 34,835 ) Premium/discount amortization recognized on hedged items 1,917 — — ( 1,964 ) — ( 47 ) Income/(expense) related to interest settlements on fair value hedging relationships $ 65,593 $ 236,601 $ 98,003 $ ( 393,961 ) $ — $ 6,236 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ ( 60,853 ) $ ( 139,496 ) $ ( 63,445 ) $ 144,818 $ — $ ( 118,976 ) Recognized on hedged items 60,625 139,035 64,277 ( 141,290 ) — 122,647 (Losses)/gains on fair value hedging relationships $ ( 228 ) $ ( 461 ) $ 832 $ 3,528 $ — $ 3,671 Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 11,163 $ — $ 11,163 Recognized on hedged items — — — ( 18,290 ) — ( 18,290 ) Discount amortization recognized on hedged items — — — ( 60 ) — ( 60 ) Expense recognized on cash flow hedges $ — $ — $ — $ ( 7,187 ) $ — $ ( 7,187 ) Losses on financial derivatives not designated in hedging relationships: Losses on interest rate swaps $ — $ — $ — $ — $ ( 3,063 ) $ ( 3,063 ) Interest expense on interest rate swaps — — — — ( 597 ) ( 597 ) Treasury futures — — — — 42 42 Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ ( 3,618 ) $ ( 3,618 ) 28 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 hedge 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 ) 29 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, 2025 and December 31, 2024: Table 4.3 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, 2025 December 31, 2024 September 30, 2025 December 31, 2024 (in thousands) Investment securities, Available-for-Sale, at fair value (1) $ 1,737,542 $ 1,477,880 $ ( 56,513 ) $ ( 117,137 ) Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value (2) 5,817,102 5,478,484 ( 168,323 ) ( 307,358 ) Loans held for investment, at amortized cost 2,137,711 1,816,738 ( 308,167 ) ( 372,444 ) Notes Payable (3) ( 11,506,463 ) ( 11,899,049 ) 7,710 148,999 (1) Amortized cost of $ 1.8 billion and $ 1.6 billion as of September 30, 2025 and December 31, 2024, respectively. (2) Amortized cost of $ 6.0 billion and $ 5.8 billion as of September 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 September 30, 2025 and December 31, 2024: Table 4.4 September 30, 2025 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 Net Amount (2) (in thousands) Assets: Uncleared derivatives $ 32,019 $ — $ 32,019 $ ( 19,187 ) $ — $ ( 12,630 ) $ 202 Cleared derivatives 4,172 ( 3,595 ) 577 — — — 577 Total $ 36,191 $ ( 3,595 ) $ 32,596 $ ( 19,187 ) $ — $ ( 12,630 ) $ 779 Liabilities: Uncleared derivatives $ ( 29,129 ) $ — $ ( 29,129 ) $ 19,187 $ — $ 6,589 $ ( 3,353 ) Cleared derivatives ( 3,595 ) 3,595 — — — — — Total $ ( 32,724 ) $ 3,595 $ ( 29,129 ) $ 19,187 $ — $ 6,589 $ ( 3,353 ) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) 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, 2025, Farmer Mac had additional net exposure of $ 232.9 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 15.5 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position. 30 December 31, 2024 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) Assets: Uncleared derivatives $ 22,759 $ — $ 22,759 $ ( 22,061 ) $ — $ ( 652 ) $ 46 Cleared derivatives 5,492 ( 462 ) 5,030 — ( 5,030 ) — — Total $ 28,251 $ ( 462 ) $ 27,789 $ ( 22,061 ) $ ( 5,030 ) $ ( 652 ) $ 46 Liabilities: Uncleared derivatives $ ( 77,326 ) $ — $ ( 77,326 ) $ 22,061 $ — $ 44,299 $ ( 10,966 ) Cleared derivatives ( 462 ) 462 — — — — — Total $ ( 77,788 ) $ 462 $ ( 77,326 ) $ 22,061 $ — $ 44,299 $ ( 10,966 ) (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, 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, 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 September 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 $ 24.6 billion notional amount of interest rate swaps outstanding as of September 30, 2025, $ 19.0 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. 5. LOANS Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. 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. 31 The following table includes loans held for investment and loans held for sale and displays the composition of the loan balances as of September 30, 2025 and December 31, 2024: Table 5.1 As of September 30, 2025 As of December 31, 2024 Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Agricultural Finance loans Farm & Ranch $ 5,915,220 $ 2,205,213 $ 8,120,433 $ 5,414,732 $ 2,038,283 $ 7,453,015 Corporate AgFinance 1,452,398 — 1,452,398 1,381,674 — 1,381,674 Total Agricultural Finance loans 7,367,618 2,205,213 9,572,831 6,796,406 2,038,283 8,834,689 Infrastructure Finance loans 6,148,280 — 6,148,280 4,774,483 — 4,774,483 Total unpaid principal balance (1) 13,515,898 2,205,213 15,721,111 11,570,889 2,038,283 13,609,172 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments ( 323,781 ) — ( 323,781 ) ( 381,311 ) — ( 381,311 ) Total loans 13,192,117 2,205,213 15,397,330 11,189,578 2,038,283 13,227,861 Allowance for losses ( 34,517 ) ( 823 ) ( 35,340 ) ( 22,594 ) ( 629 ) ( 23,223 ) Total loans, net of allowance $ 13,157,600 $ 2,204,390 $ 15,361,990 $ 11,166,984 $ 2,037,654 $ 13,204,638 (1) Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business. Allowance for Losses The following table is a summary, by asset type, of the allowance for losses as of September 30, 2025 and December 31, 2024: Table 5.2 September 30, 2025 December 31, 2024 Allowance for Losses Allowance for Losses (in thousands) Loans: Agricultural Finance loans Farm & Ranch $ 11,134 $ 5,132 Corporate AgFinance 7,128 5,379 Total Agricultural Finance loans 18,262 10,511 Infrastructure Finance loans 17,078 12,712 Total $ 35,340 $ 23,223 32 The following is a summary of the changes in the allowance for losses for the three and nine months ended September 30, 2025 and 2024: Table 5.3 September 30, 2025 September 30, 2024 Agricultural Finance loans Infrastructure Finance loans (3) Agricultural Finance loans Infrastructure Finance loans (3) Farm & Ranch (1) Corporate AgFinance (2) Total Farm & Ranch (1) Corporate AgFinance (2) Total (in thousands) For the Three Months Ended Beginning Balance $ 6,635 $ 6,943 $ 13,578 $ 16,378 $ 4,676 $ 4,014 $ 8,690 $ 7,810 Provision for losses 4,067 2,811 6,878 700 156 1,755 1,911 1,540 Charge-offs ( 1,243 ) ( 3,180 ) ( 4,423 ) — — — — — Recovery 1,675 554 2,229 — — — — — Ending Balance $ 11,134 $ 7,128 $ 18,262 $ 17,078 $ 4,832 $ 5,769 $ 10,601 $ 9,350 For the Nine 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 8,410 4,252 12,662 4,366 997 6,763 7,760 203 Charge-offs ( 4,083 ) ( 3,180 ) ( 7,263 ) — ( 101 ) ( 3,942 ) ( 4,043 ) — Recovery 1,675 677 2,352 — — — — — Ending Balance $ 11,134 $ 7,128 $ 18,262 $ 17,078 $ 4,832 $ 5,769 $ 10,601 $ 9,350 (1) As of September 30, 2025 and 2024, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 2.3 million and $ 1.2 million allowance for collateral dependent assets secured by agricultural real estate, respectively. (2) As of September 30, 2025 and 2024, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 1.0 million and $ 1.1 million allowance for collateral dependent assets secured by agricultural real estate, respectively. (3) As of both September 30, 2025 and 2024, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets. The $ 6.9 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended September 30, 2025 consisted of: • $ 3.3 million related to estimated decreases in land values of specific properties affected by ground water issues in California; • $ 4.9 million related to increased loss estimates on certain agricultural storage and processing substandard loans; and • $ 1.0 million related to increases in loan volume. These increases to the provision were partially offset by recoveries of $ 2.2 million related to permanent planting loans that were previously charged off. During third quarter 2025, we charged off $ 4.4 million attributable to the amount that we deemed uncollectible related to three borrowers. The $ 0.7 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended September 30, 2025 was primarily attributable to net volume growth and a credit downgrade on a single borrower within Broadband Infrastructure, partially offset by improved economic forecasts. The $ 12.7 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the nine months ended September 30, 2025 was primarily attributable to the factors noted above, along with credit downgrades and net volume growth. 33 The $ 4.4 million net provision to the allowance for the Infrastructure Finance portfolio during the nine months ended September 30, 2025 was primarily attributable to net volume growth and credit downgrades. The $ 1.5 million net provision to the allowance for the Infrastructure Finance portfolio during the quarter ended September 30, 2024 was primarily attributable to net volume growth. 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 Infrastructure Finance portfolio during the nine months ended September 30, 2024 was primarily attributable to net volume growth. 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 credit downgrades related to two permanent planting borrower relationships and other 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, 2025 and December 31, 2024: Table 5.4 As of September 30, 2025 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual Loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance loans Farm & Ranch $ 7,873,393 $ 34,291 $ 10,809 $ 13,740 $ 58,840 $ 188,200 $ 8,120,433 Corporate AgFinance 1,398,816 — — — — 53,582 1,452,398 Total Agricultural Finance loans 9,272,209 34,291 10,809 13,740 58,840 241,782 9,572,831 Infrastructure Finance loans 6,135,564 — — — — 12,716 6,148,280 Total $ 15,407,773 $ 34,291 $ 10,809 $ 13,740 $ 58,840 $ 254,498 $ 15,721,111 (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 $ 39.5 million of nonaccrual loans for which there was no associated allowance. During the three and nine months ended September 30, 2025, Farmer Mac received $ 1.9 million and $ 5.0 million in interest on nonaccrual loans, respectively. 34 As of December 31, 2024 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual Loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance loans Farm & Ranch $ 7,299,364 $ 16,478 $ 7,268 $ 6,359 $ 30,105 $ 123,546 $ 7,453,015 Corporate AgFinance 1,336,305 — — — — 45,369 1,381,674 Total Agricultural Finance loans 8,635,669 16,478 7,268 6,359 30,105 168,915 8,834,689 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 (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. During the year ended December 31, 2024, Farmer Mac received $ 4.9 million in interest on nonaccrual loans. Credit Quality Indicators The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of September 30, 2025 and December 31, 2024, by year of origination: Table 5.5 As of September 30, 2025 Year of Origination: 2025 2024 2023 2022 2021 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 1,136,666 $ 906,673 $ 463,709 $ 932,214 $ 1,462,387 $ 1,968,424 $ 387,741 $ 7,257,814 Special mention (2) 160,944 154,433 35,925 43,054 30,912 55,304 22,243 502,815 Substandard (3) 12,019 32,023 32,421 69,490 36,028 151,575 26,248 359,804 Total $ 1,309,629 $ 1,093,129 $ 532,055 $ 1,044,758 $ 1,529,327 $ 2,175,303 $ 436,232 $ 8,120,433 For the Three Months Ended September 30, 2025: Current period charge-offs $ — $ — $ — $ — $ 721 $ 522 $ — $ 1,243 For the Nine Months Ended September 30, 2025: Current period charge-offs $ — $ — $ — $ — $ 721 $ 1,687 $ 1,675 $ 4,083 (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) 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. 35 As of September 30, 2025 Year of Origination: 2025 2024 2023 2022 2021 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance (1) : Internally Assigned Risk Rating: Acceptable $ 235,810 $ 185,210 $ 129,135 $ 58,287 $ 146,858 $ 256,876 $ 290,390 $ 1,302,566 Special mention (2) — 11,841 — — — 26,379 10,261 48,481 Substandard (3) — — 7,312 — 24,711 44,987 24,341 101,351 Total $ 235,810 $ 197,051 $ 136,447 $ 58,287 $ 171,569 $ 328,242 $ 324,992 $ 1,452,398 For the Three Months Ended September 30, 2025: Current period charge-offs $ — $ — $ — $ — $ 3,180 $ — $ — $ 3,180 For the Nine Months Ended September 30, 2025: Current period charge-offs $ — $ — $ — $ — $ 3,180 $ — $ — $ 3,180 (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) 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 September 30, 2025 Year of Origination: 2025 2024 2023 2022 2021 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 1,048,515 $ 1,342,238 $ 582,192 $ 525,640 $ 183,246 $ 1,697,185 $ 689,950 $ 6,068,966 Special mention (2) — — — 7,152 — — — 7,152 Substandard (3) — — 26,542 45,620 — — — 72,162 Total $ 1,048,515 $ 1,342,238 $ 608,734 $ 578,412 $ 183,246 $ 1,697,185 $ 689,950 $ 6,148,280 For the Three Months Ended September 30, 2025: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — For the Nine Months Ended September 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) 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. 36 As of December 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 987,444 $ 525,559 $ 1,079,933 $ 1,577,305 $ 1,019,779 $ 1,287,334 $ 404,950 $ 6,882,304 Special mention (2) 139,297 34,290 32,886 24,204 7,533 23,099 22,087 283,396 Substandard (3) 8,077 28,790 52,350 24,733 60,418 92,594 20,353 287,315 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, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — For the Nine Months Ended September 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) 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 December 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance loans (1) : Internally Assigned Risk Rating: Acceptable $ 210,807 $ 152,918 $ 64,860 $ 235,493 $ 80,085 $ 161,354 $ 262,295 $ 1,167,812 Special mention (2) — 37,010 — 14,557 75,440 — 7,158 134,165 Substandard (3) — 7,309 7,652 — 14,335 33,479 16,922 79,697 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, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — For the Nine Months Ended September 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) 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. 37 As of December 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 1,158,427 $ 521,143 $ 578,882 $ 174,232 $ 574,135 $ 1,229,626 $ 461,162 $ 4,697,607 Special mention (2) — — 34,388 — — — — 34,388 Substandard (3) — 13,356 29,132 — — — — 42,488 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, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — For the Nine Months Ended September 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) 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. 6. GUARANTEES AND COMMITMENTS Farmer Mac has recorded a liability for its obligation to stand ready under our Long-Term Standby Purchase Commitments ("LTSPCs") in the guarantee and commitment obligation on the consolidated balance sheets. The following table presents Farmer Mac's liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs (excluding offsets from recourse provisions, third-party recoveries, or loan collateral), the weighted-average remaining maturity of loans underlying LTSPCs, and the amount of the reserve for losses for the periods indicated: Table 6.1 As of September 30, 2025 As of December 31, 2024 (dollars in thousands) Guarantee and commitment obligation $ 43,313 $ 42,731 Maximum principal amount 4,463,288 4,029,019 Weighted-average remaining maturity 14.4 years 14.5 years Reserve for losses 1,578 1,623 7. NOTES PAYABLE 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 original maturities of 0.5 years to 25.0 years. 38 The following tables set forth information related to Farmer Mac's borrowings as of September 30, 2025 and December 31, 2024: Table 7.1 September 30, 2025 Outstanding as of September 30 Average Outstanding During the Quarter Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 1,697,407 4.02 % $ 1,652,951 4.24 % Medium-term notes 3,229,398 4.20 % 3,312,239 4.30 % Current portion of medium-term notes 5,219,770 2.94 % Total due within one year $ 10,146,575 3.52 % Due after one year: Medium-term notes due in: Two years $ 6,426,273 3.42 % Three years 3,903,276 3.91 % Four years 2,540,026 4.40 % Five years 3,545,517 3.97 % Thereafter 2,642,823 2.80 % Total due after one year $ 19,057,915 3.67 % Total principal net of discounts $ 29,204,490 3.61 % Hedging adjustments ( 7,710 ) Total $ 29,196,780 December 31, 2024 Outstanding as of December 31 Average Outstanding During the Year Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 2,167,258 4.42 % $ 1,928,884 5.11 % Medium-term notes 2,343,264 4.64 % 1,000,290 5.28 % Current portion of medium-term notes 5,927,101 3.20 % Total due within one year $ 10,437,623 3.77 % Due after one year: Medium-term notes due in: Two years $ 4,844,538 2.66 % Three years 3,822,999 3.53 % Four years 2,732,980 4.13 % Five years 2,491,831 4.41 % Thereafter 3,190,202 2.63 % Total due after one year $ 17,082,550 3.34 % Total principal net of discounts $ 27,520,173 3.51 % Hedging adjustments ( 148,999 ) Total $ 27,371,174 39 The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the nine months ended September 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 September 30, 2025: Table 7.2 Debt Callable in 2025 as of September 30, 2025, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2026 $ 1,083,332 1.58 % 2027 659,736 2.37 % 2028 309,478 3.74 % 2029 205,731 3.81 % Thereafter 1,318,391 2.48 % Total $ 3,576,668 2.37 % The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of September 30, 2025, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date: Table 7.3 Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding Amount Weighted-Average Rate (dollars in thousands) Debt with interest rate resets, or debt maturities in: 2025 $ 8,025,013 4.11 % 2026 6,377,935 2.91 % 2027 3,983,848 3.35 % 2028 3,382,518 4.04 % 2029 2,547,171 4.30 % Thereafter 4,888,005 3.23 % Total principal net of discounts $ 29,204,490 3.61 % During the nine months ended September 30, 2025 and 2024, Farmer Mac called $ 1.7 billion and $ 1.2 billion of callable medium-term notes, respectively. Authority to Borrow from the U.S. Treasury Farmer Mac's statutory charter authorizes it, upon satisfying certain conditions, to borrow up to $ 1.5 billion from the U.S. Treasury through the issuance of debt obligations to the U.S. Treasury. Any funds borrowed from the U.S. Treasury may be used solely to fulfill Farmer Mac's guarantee obligations. Any debt obligations issued by Farmer Mac under this authority would bear interest at a rate determined by the U.S. Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of the 40 obligations from Farmer Mac. The charter requires Farmer Mac to repurchase any of its debt obligations held by the U.S. Treasury within a reasonable time. As of September 30, 2025, Farmer Mac had not used this borrowing authority. 8. EQUITY Common Stock During each of the first, second, and third quarters 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. Preferred Stock In August 2025, Farmer Mac issued 4.0 million shares of 6.500 % non-cumulative perpetual Series H preferred stock, par value $ 25.00 per share. Farmer Mac incurred direct costs of $ 3.1 million related to the issuance of the Series H preferred stock. The dividend rate on the Series H preferred stock will remain at a non-cumulative, fixed rate of 6.500 % per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series H preferred stock remains outstanding. The Series H preferred stock has no maturity date, but Farmer Mac has the option to redeem the preferred stock at any time on any dividend payment date on and after October 17, 2030. 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, 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, 2025, Farmer Mac's minimum capital requirement was $ 969.1 million and its core capital level was $ 1.7 billion, which was $ 723.4 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. In accordance with a rule of the Farm Credit Administration ("FCA") on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds. 41 9. FAIR VALUE DISCLOSURES 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, 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: Table 9.1 Assets and Liabilities Measured at Fair Value as of September 30, 2025 Level 1 Level 2 Level 3 (1) Total (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 19,482 $ 19,482 Floating rate Government/GSE guaranteed mortgage-backed securities — 2,313,850 — 2,313,850 Fixed rate Government/GSE guaranteed mortgage-backed securities — 2,846,121 — 2,846,121 Fixed rate U.S. Treasuries 1,476,493 — — 1,476,493 Total Available-for-sale Investment Securities 1,476,493 5,159,971 19,482 6,655,946 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 5,845,642 5,845,642 Farmer Mac Guaranteed Securities — — 8,456 8,456 Total Farmer Mac Guaranteed Securities — — 5,854,098 5,854,098 USDA Securities: Trading — — 456 456 Total USDA Securities — — 456 456 Financial derivatives 202 32,465 — 32,667 Guarantee Asset — — 5,049 5,049 Total Assets at fair value $ 1,476,695 $ 5,192,436 $ 5,879,085 $ 12,548,216 Liabilities: Financial derivatives $ 11 $ 29,150 $ — $ 29,161 Total Liabilities at fair value $ 11 $ 29,150 $ — $ 29,161 (1) Level 3 assets represent 18 % of total assets and 47 % of financial instruments measured at fair value. 42 Assets and Liabilities Measured at Fair Value as of December 31, 2024 Level 1 Level 2 Level 3 (1) Total (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 19,476 $ 19,476 Floating rate Government/GSE guaranteed mortgage-backed securities — 2,305,725 — 2,305,725 Fixed rate Government/GSE guaranteed mortgage-backed securities — 2,337,967 — 2,337,967 Fixed rate U.S. Treasuries 1,289,846 — — 1,289,846 Total Available-for-sale Investment Securities 1,289,846 4,643,692 19,476 5,953,014 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 5,505,531 5,505,531 Farmer Mac Guaranteed Securities — — 9,015 9,015 Total Farmer Mac Guaranteed Securities — — 5,514,546 5,514,546 USDA Securities: Trading — — 818 818 Total USDA Securities — — 818 818 Loans: Loans held for sale, at lower of cost or fair value — 6,160 — 6,160 Total Loans — 6,160 — 6,160 Financial derivatives 47 27,742 — 27,789 Guarantee Asset — — 5,382 5,382 Total Assets at fair value $ 1,289,893 $ 4,677,594 $ 5,540,222 $ 11,507,709 Liabilities: Financial derivatives $ — $ 77,326 $ — $ 77,326 Total Liabilities at fair value $ — $ 77,326 $ — $ 77,326 (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, 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, 2025 and 2024, there were no transfers within the fair value hierarchy. 43 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, 2025 and 2024. Table 9.2 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2025 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized gains/(losses) included in Income Unrealized gains included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,475 $ — $ — $ 7 $ — $ — $ 19,482 Total available-for-sale 19,475 — — 7 — — 19,482 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,722,890 350,000 ( 249,516 ) 53 19,290 2,925 5,845,642 Farmer Mac Guaranteed Securities 8,613 — ( 164 ) — — 7 8,456 Total available-for-sale 5,731,503 350,000 ( 249,680 ) 53 19,290 2,932 5,854,098 USDA Securities: Trading 560 — ( 109 ) — 5 — 456 Total USDA Securities 560 — ( 109 ) — 5 — 456 Guarantee and commitment obligations: Guarantee Asset 5,141 — ( 84 ) — ( 8 ) — 5,049 Total Guarantee and commitment obligations 5,141 — ( 84 ) — ( 8 ) — 5,049 Total Assets at fair value $ 5,756,679 $ 350,000 $ ( 249,873 ) $ 60 $ 19,287 $ 2,932 $ 5,879,085 44 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2024 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized gains included in Income Unrealized (losses)/gains included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,478 $ — $ — $ — $ — $ — $ 19,478 Total available-for-sale 19,478 — — — — — 19,478 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,389,841 400,000 ( 215,855 ) 44 189,191 ( 10,836 ) 5,752,385 Farmer Mac Guaranteed Securities 9,310 — ( 176 ) — — 172 9,306 Total available-for-sale 5,399,151 400,000 ( 216,031 ) 44 189,191 ( 10,664 ) 5,761,691 USDA Securities: Trading 1,026 — ( 198 ) — 14 — 842 Total USDA Securities 1,026 — ( 198 ) — 14 — 842 Guarantee and commitment obligations: Guarantee Asset 5,559 — ( 86 ) — 83 — 5,556 Total Guarantee and commitment obligations 5,559 — ( 86 ) — 83 — 5,556 Total Assets at fair value $ 5,425,214 $ 400,000 $ ( 216,315 ) $ 44 $ 189,288 $ ( 10,664 ) $ 5,787,567 Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2025 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized gains/(losses) included in Income Unrealized losses included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,476 $ — $ — $ 6 $ — $ — $ 19,482 Total available-for-sale 19,476 — — 6 — — 19,482 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,505,531 750,000 ( 542,365 ) 98 139,168 ( 6,790 ) 5,845,642 Farmer Mac Guaranteed Securities 9,015 — ( 504 ) — — ( 55 ) 8,456 Total available-for-sale 5,514,546 750,000 ( 542,869 ) 98 139,168 ( 6,845 ) 5,854,098 USDA Securities: Trading 818 — ( 381 ) — 19 — 456 Total USDA Securities 818 — ( 381 ) — 19 — 456 Guarantee and commitment obligations: Guarantee Asset 5,382 — ( 255 ) — ( 78 ) — 5,049 Total Guarantee and commitment obligations 5,382 — ( 255 ) — ( 78 ) — 5,049 Total Assets at fair value $ 5,540,222 $ 750,000 $ ( 543,505 ) $ 104 $ 139,109 $ ( 6,845 ) $ 5,879,085 45 Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2024 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized gains/(losses) included in Income Unrealized gains included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: 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 5,522,712 675,000 ( 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 46 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, 2025 and December 31, 2024: Table 9.3 As of September 30, 2025 Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average) (in thousands) Assets: Investment securities: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,482 Indicative bids Range of broker quotes 99.0 % - 99.0 % ( 99.0 %) Farmer Mac Guaranteed Securities: AgVantage $ 5,845,642 Discounted cash flow Discount rate 4.4 % - 5.1 % ( 4.6 %) Farmer Mac Guaranteed Securities $ 8,456 Discounted cash flow Discount rate 4.5 % CPR 3 % USDA Securities $ 456 Discounted cash flow Discount rate 4.9 % - 5.1 % ( 4.9 %) CPR 11 % - 13 % ( 12 %) Guarantee Asset $ 5,049 Discounted cash flow Discount rate 4.5 % CPR 3 % As of December 31, 2024 Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average) (in thousands) Assets: Investment securities: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,476 Indicative bids Range of broker quotes 99.0 % - 99.0 % ( 99.0 %) Farmer Mac Guaranteed Securities: AgVantage $ 5,505,531 Discounted cash flow Discount rate 5.0 % - 5.5 % ( 5.1 %) Farmer Mac Guaranteed Securities $ 9,015 Discounted cash flow Discount rate 7.9 % CPR 3 % USDA Securities $ 818 Discounted cash flow Discount rate 5.3 % - 5.4 % ( 5.3 %) CPR 12 % - 12 % ( 12 %) Guarantee Asset $ 5,382 Discounted cash flow Discount rate 7.9 % CPR 3 % The significant unobservable input used in the fair value measurements of AgVantage securities is the discount rate commensurate with the risks involved. Typically, significant increases (decreases) in this input in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease. CPR are not presented in the table above for AgVantage securities because they generally have fixed maturity dates when the secured general obligations are due and do not prepay. 47 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, 2025 and December 31, 2024: Table 9.4 As of September 30, 2025 As of December 31, 2024 Fair Value Carrying Amount Fair Value Carrying Amount (in thousands) Financial assets: Cash and cash equivalents $ 901,023 $ 901,023 $ 1,024,007 $ 1,024,007 Investment securities 6,679,390 6,679,104 5,973,571 5,973,301 Farmer Mac Guaranteed Securities 7,548,248 7,546,699 8,215,646 8,232,234 USDA Securities 2,249,616 2,389,636 2,113,342 2,371,352 Loans 15,297,680 15,361,990 12,924,604 13,204,638 Financial derivatives 32,667 32,667 27,789 27,789 Guarantee and commitment fees receivable 57,634 50,775 57,562 50,499 Financial liabilities: Notes payable 28,824,748 29,196,780 26,759,873 27,371,174 Debt securities of consolidated trusts held by third parties 2,125,993 2,089,042 1,910,302 1,929,628 Financial derivatives 29,161 29,161 77,326 77,326 Guarantee and commitment obligations 55,284 48,426 55,388 48,326 The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. The fair value of investments in U.S. Treasuries are valued based on unadjusted quoted prices in active markets and are classified as Level 1. A significant portion of Farmer Mac's investment portfolio is valued using a reputable nationally recognized third-party pricing service. The prices obtained are non-binding and generally representative of recent market trades and are classified as Level 2. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Financial derivatives primarily are valued using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a 48 Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts. 10. 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. The Funding segment reflects the benefits and costs from Farmer Mac's funding and hedging strategies. 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 Infrastructure Finance Treasury Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments The 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. 49 The following tables present segment core earnings and assets for the three and nine months ended September 30, 2025 and 2024. Table 10.1 Core Earnings by Business Segment For the Three Months Ended September 30, 2025 Agricultural Finance Infrastructure Finance Treasury Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments Total (in thousands) Interest income $ 154,020 $ 26,662 $ 69,746 $ 13,375 $ 28,616 $ 36,139 $ 86,783 $ 415,341 Interest expense (1) ( 118,081 ) ( 17,615 ) ( 63,810 ) ( 8,996 ) ( 20,886 ) ( 1,686 ) ( 85,790 ) ( 316,864 ) Less: reconciling adjustments (2)(3) ( 1,099 ) — ( 26 ) — — 324 93 ( 708 ) Net effective spread 34,840 9,047 5,910 4,379 7,730 34,777 1,086 97,769 Guarantee and commitment fees (3) 4,572 218 212 701 429 — — 6,132 Other income/(expense) 1,080 111 ( 7 ) — — — ( 1 ) 1,183 (Provision for)/release of losses ( 4,050 ) ( 2,787 ) 424 ( 410 ) ( 616 ) — 6 ( 7,433 ) Operating expenses (1) ( 6,721 ) ( 3,131 ) ( 1,122 ) ( 1,362 ) ( 1,649 ) ( 2,712 ) ( 760 ) ( 17,457 ) Income tax (expense)/benefit ( 6,240 ) ( 727 ) ( 1,137 ) ( 695 ) ( 1,238 ) ( 6,734 ) ( 70 ) ( 16,841 ) Segment core earnings $ 23,481 $ 2,731 $ 4,280 $ 2,613 $ 4,656 $ 25,331 $ 261 $ 63,353 Reconciliation to net income: Net effects of derivatives and trading securities $ ( 1,193 ) Unallocated (expenses)/income ( 12,311 ) Income tax effect related to reconciling items 5,154 Net income $ 55,003 Total Assets: Total on- and off-balance sheet segment assets at principal balance $ 18,218,755 $ 1,891,228 $ 7,426,517 $ 1,299,097 $ 2,283,565 $ — $ — $ 31,119,162 Off-balance sheet assets under management ( 5,264,616 ) Unallocated assets 7,525,014 Total assets on the Consolidated Balance Sheets $ 33,379,560 (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 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. 50 Core Earnings by Business Segment For the Three Months Ended September 30, 2024 Agricultural Finance Infrastructure Finance Treasury Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments Total (in thousands) Interest income $ 155,634 $ 24,834 $ 64,345 $ 9,955 $ 15,679 $ 58,095 $ 79,186 $ 407,728 Interest expense (1) ( 118,818 ) ( 18,437 ) ( 59,531 ) ( 7,161 ) ( 11,869 ) ( 26,878 ) ( 78,243 ) ( 320,937 ) Less: reconciling adjustments (2)(3) ( 1,061 ) — ( 29 ) — — ( 305 ) — ( 1,395 ) Net effective spread 35,755 6,397 4,785 2,794 3,810 30,912 943 85,396 Guarantee and commitment fees (3) 4,304 168 232 106 187 — — 4,997 Other income/(expense) 1,176 39 — — — — 10 1,225 Release of/(provision for) losses 10 ( 1,779 ) ( 196 ) ( 955 ) ( 337 ) — ( 1 ) ( 3,258 ) Operating expenses (1) ( 6,180 ) ( 1,893 ) ( 1,009 ) ( 887 ) ( 1,204 ) ( 2,354 ) ( 638 ) ( 14,165 ) Income tax (expense)/benefit ( 7,364 ) ( 616 ) ( 801 ) ( 222 ) ( 515 ) ( 5,997 ) ( 66 ) ( 15,581 ) Segment core earnings $ 27,701 $ 2,316 $ 3,011 $ 836 $ 1,941 $ 22,561 $ 248 $ 58,614 Reconciliation to net income: Net effects of derivatives and trading securities $ ( 1,263 ) Unallocated (expense)/income ( 10,683 ) Income tax effect related to reconciling items 3,160 Net income $ 49,828 Total Assets: Total on- and off-balance sheet segment assets at principal balance $ 18,090,374 $ 1,842,780 $ 6,794,435 $ 645,706 $ 1,095,008 $ — $ — $ 28,468,303 Off-balance sheet assets under management ( 4,562,819 ) Unallocated assets 6,709,737 Total assets on the Consolidated Balance Sheets $ 30,615,221 (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 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. 51 Core Earnings by Business Segment For the Nine Months Ended September 30, 2025 Agricultural Finance Infrastructure Finance Treasury Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments Total (in thousands) Interest income $ 455,919 $ 77,268 $ 202,188 $ 36,367 $ 72,425 $ 104,736 $ 246,874 $ 1,195,777 Interest expense (1) ( 348,394 ) ( 50,972 ) ( 185,234 ) ( 24,490 ) ( 53,356 ) ( 5,066 ) ( 242,052 ) ( 909,564 ) Less: reconciling adjustments (2)(3) ( 3,090 ) — ( 79 ) — — ( 1,621 ) 229 ( 4,561 ) Net effective spread 104,435 26,296 16,875 11,877 19,069 98,049 5,051 281,652 Guarantee and commitment fees (3) 13,674 639 648 1,601 932 — — 17,494 Other income/(expense) 2,615 456 ( 7 ) — 8 — 35 3,107 (Provision for)/release of losses ( 8,351 ) ( 4,229 ) 274 ( 847 ) ( 3,680 ) — 5 ( 16,828 ) Operating expenses (1) ( 20,336 ) ( 7,642 ) ( 3,401 ) ( 3,688 ) ( 4,917 ) ( 8,515 ) ( 2,471 ) ( 50,970 ) Income tax (expense)/benefit ( 19,323 ) ( 3,262 ) ( 3,020 ) ( 1,879 ) ( 2,397 ) ( 18,803 ) ( 551 ) ( 49,235 ) Segment core earnings $ 72,714 $ 12,258 $ 11,369 $ 7,064 $ 9,015 $ 70,731 $ 2,069 $ 185,220 Reconciliation to net income: Net effects of derivatives and trading securities $ ( 1,468 ) Unallocated (expenses)/income ( 37,741 ) Income tax effect related to reconciling items 13,480 Net income $ 159,491 Total Assets: Total on- and off-balance sheet segment assets at principal balance $ 18,218,755 $ 1,891,228 $ 7,426,517 $ 1,299,097 $ 2,283,565 $ — $ — $ 31,119,162 Off-balance sheet assets under management ( 5,264,616 ) Unallocated assets 7,525,014 Total assets on the Consolidated Balance Sheets $ 33,379,560 (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 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. 52 Core Earnings by Business Segment For the Nine Months Ended September 30, 2024 Agricultural Finance Infrastructure Finance Treasury Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments Total (in thousands) Interest income $ 465,155 $ 75,758 $ 198,026 $ 27,378 $ 35,428 $ 175,179 $ 230,827 $ 1,207,751 Interest expense (1) ( 358,928 ) ( 53,524 ) ( 183,010 ) ( 19,849 ) ( 26,570 ) ( 76,623 ) ( 228,748 ) ( 947,252 ) Less: reconciling adjustments (2)(3) ( 3,473 ) — ( 88 ) — — ( 4,902 ) — ( 8,463 ) Net effective spread 102,754 22,234 14,928 7,529 8,858 93,654 2,079 252,036 Guarantee and commitment fees (3) 13,400 382 733 255 465 — — 15,235 Other income/(expense) 2,688 ( 1,101 ) — — — — 1,073 2,660 (Provision for)/release of losses ( 734 ) ( 6,755 ) 94 2,252 ( 2,476 ) — 1 ( 7,618 ) Operating expenses (1) ( 18,175 ) ( 5,648 ) ( 3,156 ) ( 2,607 ) ( 3,458 ) ( 7,236 ) ( 2,021 ) ( 42,301 ) Income tax (expense)/benefit ( 20,987 ) ( 1,914 ) ( 2,647 ) ( 1,560 ) ( 711 ) ( 18,148 ) ( 238 ) ( 46,205 ) Segment core earnings $ 78,946 $ 7,198 $ 9,952 $ 5,869 $ 2,678 $ 68,270 $ 894 $ 173,807 Reconciliation to net income: Net effects of derivatives and trading securities $ 3,869 Unallocated (expense)/income ( 34,168 ) Income tax effect related to reconciling items 7,171 Net income $ 150,679 Total Assets: Total on- and off-balance sheet segment assets at principal balance $ 18,090,374 $ 1,842,780 $ 6,794,435 $ 645,706 $ 1,095,008 $ — $ — $ 28,468,303 Off-balance sheet assets under management ( 4,562,819 ) Unallocated assets 6,709,737 Total assets on the Consolidated Balance Sheets $ 30,615,221 (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 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. 11. INCOME TAXES During the three and nine months ended September 30, 2025, Farmer Mac purchased $ 24.2 million and $ 59.8 million, respectively, in renewable energy investment tax credits at prices that range from approximately $ 0.91 to $ 0.94 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 $ 1.5 million and $ 4.7 million for the three and nine months ended September 30, 2025, respectively. 53