What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-19 compared with 2025-02-21 · 392 added, 949 removed, 1315 unchanged (50% of the section changed)

17 unchanged sentences

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of the Federal Agricultural Mortgage Corporation and its subsidiaries (the "Company") as of December 31, 2024 and 2023, and the related consolidated statements of operations and comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the "consolidated financial statements").

We have audited the accompanying consolidated balance sheets of the Federal Agricultural Mortgage Corporation and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements").

We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

25 unchanged sentences

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of AgVantage Farmer Mac Guaranteed Securities

As disclosed by management, the Company guarantees and purchases general obligations of lenders and other financial institutions that are secured by pools of the types of loans eligible for purchase under Farmer Mac's Agricultural Finance or Infrastructure Finance lines of business, which are referred to as AgVantage securities.

As described in Notes 5 and 13 to the consolidated financial statements, the total unpaid principal balance of AgVantage securities as of December 31, 2024 was $8.5 billion, and the fair value of the AgVantage securities of December 31, 2024 was $8.2 billion.

The fair value of AgVantage securities is estimated using a discounted cash flow model.

The significant unobservable input used is the discount rate commensurate with the risks involved.

The principal considerations for our determination that performing procedures relating to the valuation of AgVantage securities is a critical audit matter are (i) the high degree of audit effort in performing procedures and evaluating audit evidence related to the discount rate assumption used by management in

the valuation of the AgVantage securities, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.

Valuation of AgVantage Securities

As described in Notes 4 and 11 to the consolidated financial statements, as of December 31, 2025, the Company had $6.7 billion of available-for-sale AgVantage securities measured at fair value on a recurring basis and are classified as Level 3 within the fair value hierarchy, and $1.5 billion of held-to-maturity AgVantage securities disclosed at fair value.

Management applies a discount rate in calculating the net present value of future expected cash flows that is both significant to the estimate of the fair value of AgVantage securities and unobservable in the market.

The principal considerations for our determination that performing procedures relating to the valuation of AgVantage securities is a critical audit matter are (i) the high degree of audit effort in performing procedures related to the valuation of AgVantage securities and evaluating audit evidence related to the discount rate assumption and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the valuation of AgVantage securities, including controls over the model, data and assumption.

These procedures also included, among others, (i) the involvement of professionals with specialized skill and knowledge to assist in developing an independent range of prices for a sample of AgVantage securities, and (ii) comparing management’s estimate to the independently developed range to evaluate the reasonableness of management’s estimate.

Developing the independent range of prices involved testing the completeness and accuracy of data provided by management and independently developing the discount rate assumption.

These procedures included testing the effectiveness of controls relating to the valuation of the AgVantage securities, including controls over the discount rate assumption.

These procedures also included, among others, (i) testing the completeness and accuracy of certain data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management’s estimate by (a) developing an independent range of prices for a sample of AgVantage securities using an independently developed discount rate assumption and (b) comparing the independent range of prices to management’s estimate.

/s/ PricewaterhouseCoopers LLP

13 unchanged sentences

Other investments

15,871 11,835

Total Investment Securities

Farmer Mac Guaranteed Securities:

Available-for-sale, at fair value (amortized cost of $ 5,835,658 and $ 5,825,433 , respectively)

17,550,379 16,576,887

Held-to-maturity, at amortized cost 2,717,688 4,213,069

Total Farmer Mac Guaranteed Securities 8,232,234 9,745,548

USDA Securities:

Trading, at fair value 818 1,241

Held-to-maturity, at amortized cost 2,370,534 2,354,171

Total USDA Securities 2,371,352 2,355,412

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

17 unchanged sentences

Guarantee and commitment obligation 54,770 48,326

Accounts payable and accrued expenses 212,527 76,662

Reserve for losses 1,622 1,711

Other liabilities 153,101 214,149

Total Liabilities 33,651,208 29,835,716

1 unchanged sentence

Preferred stock:

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

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

6 unchanged sentences

121,327 121,327

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

Common stock:

3 unchanged sentences

Additional paid-in capital 139,370 135,894

Accumulated other comprehensive loss, net of tax ( 12,147 ) ( 40,145 )

Accumulated other comprehensive income/(loss), net of tax

13,382 ( 12,147 )

Retained earnings 1,047,347 943,239

8 unchanged sentences

Interest income:

Investments and cash equivalents $ 345,501 $ 287,144 $ 82,659

Farmer Mac Guaranteed Securities and USDA Securities 628,828 590,250 283,769

Investment securities and cash equivalents $ 846,441 $ 974,329 $ 877,394

Loans 765,806 629,187 514,894

6 unchanged sentences

Guarantee and commitment fees 19,575 15,738 16,712

Gains on financial derivatives 2,636 2,882 22,631

Losses on sale of mortgage loans

( 1,147 ) — —

Gains on sale of available-for-sale investment securities

Release of/(provision for) reserve for losses 89 ( 278 ) 517

(Losses)/gains on financial derivatives ( 5,120 ) 2,636 2,882

Other income 3,183 2,827 3,917

4 unchanged sentences

Regulatory fees 3,863 3,175 3,222

Real estate owned operating costs, net 196 — 819

Operating expenses 119,801 105,386 97,099

16 unchanged sentences

Other comprehensive income/(loss):

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

Net unrealized gains on available-for-sale securities

51,123 39,078 59,640

Net changes in held-to-maturity securities ( 26 ) ( 636 ) ( 31,750 )

Net unrealized (losses)/gains on cash flow hedges

Net unrealized losses on cash flow hedges

( 18,781 ) ( 3,002 ) ( 14,348 )

Other comprehensive income/(loss) before tax 35,440 13,542 ( 69,235 )

Income tax (expense)/benefit related to other comprehensive income/(loss) ( 7,442 ) ( 2,844 ) 14,539

Other comprehensive income/(loss) net of tax 27,998 10,698 ( 54,696 )

Other comprehensive income before tax

32,316 35,440 13,542

Income tax expense related to other comprehensive income

( 6,787 ) ( 7,442 ) ( 2,844 )

Other comprehensive income net of tax

25,529 27,998 10,698

Comprehensive income $ 232,944 $ 235,191 $ 210,701

7 unchanged sentences

Balance as of December 31, 2022

Net Income — — — — — — 178,144 178,144

Other comprehensive loss, net of tax

19,980 $ 484,531 10,801 $ 10,801 $ 128,939 $ ( 50,843 ) $ 698,530 $ 1,271,958

— — — — — — 200,003 200,003

Other comprehensive income, net of tax — — — — — 10,698 — 10,698

Cash dividends:

6 unchanged sentences

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 — — — — — — 200,003 200,003

Other comprehensive income, net of tax

— — — — — — 207,193 207,193

Other comprehensive income, net of tax — — — — — 27,998 — 27,998

Cash dividends:

2 unchanged sentences

— — — — — — ( 60,905 ) ( 60,905 )

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 — — 49 49 287 — — 336

2 unchanged sentences

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 — — — — — — 207,193 207,193

— — — — — — 207,415 207,415

Other comprehensive income, net of tax — — — — — 25,529 — 25,529

3 unchanged sentences

— — — — — — ( 65,439 ) ( 65,439 )

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

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

Issuance of Series H Preferred Stock 4,000 96,844 — — — — — 96,844

Issuance of Class C Common Stock — — 44 44 288 — — 332

Repurchase of Class C Common Stock — — ( 78 ) ( 78 ) — — ( 12,946 ) ( 13,024 )

Stock-based compensation cost — — — — 8,340 — — 8,340

4 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended

For the Years Ended December 31,

2025 2024 2023

4 unchanged sentences

Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities ( 21,545 ) ( 23,879 ) ( 17,025 )

Amortization of debt premiums, discounts, and issuance costs 21,242 31,421 19,656

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

Net amortization of debt premiums, discounts, and issuance costs 23,278 21,242 31,421

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

( 165,736 ) 214,319 78,249

Losses on sale of mortgage loans

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

Total provision for allowance for losses

32,913 11,490 1,136

Total provision for/(release of) allowance for losses 11,490 1,136 806

Excess tax benefits related to stock-based awards 831 523 101

Deferred income taxes ( 516 ) 6,690 12,406

Stock-based compensation expense 8,340 8,088 6,801

Proceeds from repayment of loans purchased as held for sale 40,266 29,216 24,378

Purchases of tax credits

( 61,459 ) ( 29,186 ) —

( 5,803 ) 410 7,213

Net change in:

6 unchanged sentences

Net cash provided by operating activities

80,062 612,646 375,798

Cash flows from investing activities:

1 unchanged sentence

— ( 5,272 ) —

Purchases of available-for-sale and held-to-maturity investment securities

Purchases of available-for-sale investment securities

( 3,744,720 ) ( 3,109,301 ) ( 3,649,087 )

Purchases of held-to-maturity investment securities

( 354,413 ) ( 922,743 ) ( 2,377,904 )

Purchases of other investment securities ( 4,420 ) ( 3,293 ) ( 3,145 )

Purchases of Farmer Mac Guaranteed Securities and USDA Securities ( 1,600,144 ) ( 4,453,284 ) ( 5,275,733 )

Purchases of loans held for investment ( 5,345,105 ) ( 3,870,628 ) ( 2,164,053 )

1 unchanged sentence

( 2,544 ) ( 4,447 ) —

Proceeds from repayment of available-for-sale and held-to-maturity investment securities

Proceeds from repayment of available-for-sale investment securities

1,865,144 1,951,127 2,958,508

Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities 3,067,497 3,478,124 4,429,364

Proceeds from repayment of held-to-maturity investment securities

1,497,209 2,445,086 1,916,712

Proceeds from repayment of loans purchased as held for investment 2,249,450 1,655,784 1,363,588

Proceeds from sale of real estate owned

Proceeds from sale of available-for-sale investment securities 19,537 115,247 —

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

5,775 — 9,000

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

60,192 — 99,643

Net cash used in investing activities ( 3,812,772 ) ( 1,682,473 ) ( 1,955,381 )

Cash flows from financing activities:

Proceeds from issuance of discount notes 59,737,284 49,291,165 52,470,273

Proceeds from issuance of medium-term notes 8,545,837 8,274,618 9,031,116

Proceeds from issuance of notes payable

90,081,802 68,283,121 57,565,783

Proceeds from issuance of debt securities of consolidated trusts 592,777 588,250 222,188

Payments to redeem notes payable

( 86,798,052 ) ( 67,361,321 ) ( 56,001,041 )

Payments to redeem discount notes ( 59,308,438 ) ( 48,138,591 ) ( 54,085,418 )

Payments to redeem medium-term notes ( 8,052,883 ) ( 7,862,450 ) ( 5,192,159 )

Payments to third parties on debt securities of consolidated trusts ( 226,843 ) ( 138,807 ) ( 102,045 )

Purchases of common stock

( 12,894 ) — —

Proceeds from common stock issuance 288 287 233

Proceeds from preferred stock issuance, net of stock issuance costs 96,844 — —

Tax payments related to share-based awards ( 5,109 ) ( 5,351 ) ( 3,013 )

Retirement of preferred stock — ( 75,000 ) —

( 75,000 ) — —

Dividends paid on common and preferred stock ( 89,043 ) ( 86,052 ) ( 74,817 )

7 unchanged sentences

Interest 910,556 819,959 582,960

Income taxes 39,200 48,000 33,800

Federal income taxes

— 39,200 48,000

Non-cash activity:

1 unchanged sentence

Loans held for investment transferred to consolidated trusts

611,615 624,097 281,027

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

6 unchanged sentences

Farmer Mac's secondary market activities include:

• purchasing eligible loans directly from lenders (including participation interests, syndicated notes, revolving and non-revolving credit facilities, and unfunded commitments to make advances on loans);

• guaranteeing and purchasing securities issued by lenders and other financial institutions that are secured by pools of eligible loans (Farmer Mac refers to these securities as "AgVantage," a registered trademark of Farmer Mac);

• issuing and guaranteeing securities that represent interests in, or obligations secured by, pools of eligible loans (together with AgVantage, Farmer Mac refers to these securities as "Farmer Mac Guaranteed Securities");

• servicing (including as master servicer) eligible loans purchased or securitized by Farmer Mac;

• purchasing eligible loans directly from lenders, including participation interests, syndicated notes, revolving and non-revolving credit facilities, and unfunded loan commitments.

"Eligible Loans" include obligations which are:

secured by a first lien mortgage on real estate used in agricultural production or processing, including part-time farms and rural housing loans;

agricultural and rural development loans guaranteed by the United States Department of Agriculture ("USDA");

and loans by lenders organized as cooperatives to finance electrification and telecommunications facilities, including broadband and middle mile broadband infrastructure, and renewable energy projects in rural areas;

• guaranteeing and purchasing securities issued by lenders and other financial institutions that obtain funding by pledging pools of Eligible Loans that they retain (Farmer Mac refers to these securities as "AgVantage," one of our registered trademarks);

• issuing and guaranteeing securities that represent interests in, or obligations secured by, pools of Eligible Loans that we purchase and transfer to trusts (together with AgVantage, Farmer Mac refers to these securities as "Farmer Mac Guaranteed Securities," which may be retained by the seller of the underlying loans, retained by Farmer Mac, or sold to third-party investors);

• servicing (including as master servicer) Eligible Loans, including those we purchase, securitize, or service on behalf of third-parties;

• providing long-term standby purchase commitments ("LTSPCs") for Eligible Loans.

4 unchanged sentences

accepted in the United States of America ("generally accepted accounting principles" or "GAAP").

preparation of consolidated financial statements in conformity with generally accepted accounting

principles requires management to make certain estimates and assumptions that affect the reported

preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported

amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the

6 unchanged sentences

(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.

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.

(b) Cash and Cash Equivalents

(b) Cash, Cash Equivalents and Restricted Cash

Farmer Mac considers cash on hand and highly liquid investment securities with maturities at the time of purchase of three months or less to be cash equivalents.

Cash that is legally restricted from use by Farmer Mac for its discretionary purposes, or for general corporate use, is classified as restricted cash.

Securities for which Farmer Mac has the intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost.

3 unchanged sentences

Gains and losses on the sale of available-for-sale and trading securities are determined using the specific identification cost method.

Farmer Mac determines the fair value of investment securities using quoted market prices, when available.

Farmer Mac determines the fair values of certain investment securities for which quoted market prices are not available, Farmer Mac Guaranteed Securities, and USDA Securities based on the present value of the associated expected future cash flows.

In estimating the present value of the expected future cash flows, management is required to make estimates and assumptions.

The key estimates and assumptions include discount rates and collateral repayment rates.

Premiums, discounts, and other deferred costs are amortized to interest income using the effective interest method.

Farmer Mac generally receives compensation when loans with yield maintenance provisions underlying AgVantage Farmer Mac Guaranteed Securities prepay.

These yield maintenance payments mitigate Farmer Mac's exposure to reinvestment risk and are calculated such that, when reinvested with the prepaid principal, they should generate substantially the same cash flows that would have been generated had the loans not prepaid.

Yield maintenance payments are recognized as interest income in the consolidated statements of operations.

See Note 2(m)—Fair Value Measurements for more information on the accounting policy related to fair value measurement.

Loans for which Farmer Mac has the positive intent and ability to hold for the foreseeable future are classified as held for investment and reported at their unpaid principal balance, net of unamortized purchase discounts or premiums.

Loans for which Farmer Mac does not have the positive intent and ability to hold for the foreseeable future are classified as held for sale and reported at the lower of cost or fair value determined on a pooled basis.

Loans for which Farmer Mac has made a decision to sell the loan are classified as held for sale and reported at the lower of cost or fair value determined on a pooled basis.

Farmer Mac de-recognizes sold loans, and recognizes any associated gain or loss, when they have been legally isolated from Farmer Mac, the buyer has the right to pledge or exchange them, and Farmer Mac does not maintain effective control over them.

When Farmer Mac consolidates a trust, it recognizes the loans underlying the trust in the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost." See Note 2(o) for more information on the accounting policy related to consolidation.

When Farmer Mac consolidates a trust, it recognizes the loans underlying the trust in the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost." See Note 2(n)—Consolidation of Variable Interest Entities for more information on the accounting policy related to consolidation.

Non-accrual Loans

Non-accrual loans are loans for which it is probable that Farmer Mac will be unable to collect all amounts due according to the contractual terms of the loan agreement and include all loans 90 days or more past due.

When a loan becomes 90 days past due, interest accrual on the loan is discontinued and interest previously accrued is reversed against interest income in the current period.

The interest on such loans is accounted for on the cash basis until a loan qualifies for return to accrual status.

Non-accrual loans are loans for which it is probable that Farmer Mac will be unable to collect all amounts due according to the contractual terms of the loan agreement and generally includes loans 90 days or more past due.

In addition, certain loans may be placed on non-accrual status even if they are not yet 90 days delinquent when emerging credit deterioration, borrower financial stress, or other adverse information indicates that full collection of contractual principal and interest is no longer probable.

When a loan is placed on non-accrual, interest accrual on the loan is discontinued and interest previously accrued is reversed against interest income in the current period.

While on non-accrual status, interest is recognized under either the cash basis method or the cost recovery method, depending on the circumstances.

Under the cash basis method, interest income is recognized only as payments are received in cash.

Under the cost recovery method, all cash receipts are applied first to reduce the recorded investment in the loan, and interest income is not recognized until the loan balance has been fully recovered..

Loans are returned to accrual status when all the principal and interest payments contractually due are collected and certain performance criteria are met.

(e) Securitization

Securitization involves the transfer of financial assets to another entity in exchange for cash and/or beneficial interests in the assets transferred.

Farmer Mac or third parties transfer agricultural mortgage loans, Infrastructure loans, or USDA securities into trusts that are used as vehicles for the securitization of the transferred financial assets.

The trusts issue Farmer Mac Guaranteed Securities that are beneficial interests in the assets of the trusts, to either Farmer Mac or third-party investors.

Farmer Mac guarantees principal and interest payments on the securities issued by the trusts and receives guarantee fees as compensation for its guarantee.

Farmer Mac recognizes guarantee fees on the accrual basis over the terms of the Farmer Mac Guaranteed Securities, which generally coincide with the terms of the underlying loans.

As such, no guarantee fees are unearned at the end of any reporting period.

Farmer Mac is required to perform under its guarantee obligation when the underlying loans for the off-balance sheet Farmer Mac Guaranteed Securities do not make their scheduled installment payments.

When a loan underlying a Farmer Mac Guaranteed Security (other than Farmer Mac Guaranteed Securities structured as real estate mortgage investment conduits under 26 U.S.C.

§§ 860A-860G) becomes 90 days or more past due, Farmer Mac may, in its sole discretion, repurchase the loan from the trust and generally does repurchase such loans, thereby reducing the principal balance of the outstanding Farm & Ranch Guaranteed Security.

When Farmer Mac purchases a delinquent loan underlying a Farmer Mac Guaranteed Security, Farmer Mac stops accruing the guarantee fee upon loan purchase.

If Farmer Mac repurchases a loan that is collateral for a Farmer Mac Guaranteed Security, Farmer Mac would have the right to enforce the terms of the loan, and in the event of a default, would have access to the underlying collateral.

Farmer Mac typically recovers its investment in the defaulted loans purchased either through borrower payments, loan payoffs, payments by third parties, or foreclosure and sale of the collateral securing the loans.

Farmer Mac has recourse to the USDA for any amounts advanced for the timely payment of principal and interest on Farmer Mac Guaranteed USDA Securities.

That recourse is the USDA guarantee, a full-faith-and-credit obligation of the United States that becomes enforceable if a lender fails to repurchase the USDA-guaranteed portion from its owner within 30 days after written demand from the owner when (a) the borrower under the guaranteed loan is in default not less than 60 days in the payment of any principal or interest due on the USDA-guaranteed portion, or (b) the lender has failed to remit to the owner the payment made by the borrower on the USDA-guaranteed portion or any related loan subsidy within 30 days after the lender's receipt of the payment.

Transfers of Financial Assets

(e) Transfers of Financial Assets

Farmer Mac accounts for transfers of financial assets as sales when it has surrendered control over the related assets.

4 unchanged sentences

Farmer Mac enters into financial derivative transactions principally 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, not for trading or speculative purposes.

Farmer Mac enters into interest rate swap contracts to adjust the characteristics of its short-term debt to match more closely the cash flow and duration characteristics of its longer-term loans and other assets, and also to adjust the characteristics of its long-term debt to match more closely the cash flow and duration characteristics of its short-term assets, thereby reducing interest rate risk and, often times, deriving an overall lower effective cost of borrowing than would otherwise be available to Farmer Mac in the conventional debt market.

Accounting for financial derivatives differs depending on whether a derivative is designated in a hedge accounting relationship.

3 unchanged sentences

Effectiveness of the hedge is assessed before the end of the quarter of inception and monitored over the life of the hedging relationship.

Changes in the fair values of financial derivatives not designated as cash flow or fair value hedges were reported in "Gains on financial derivatives" in the consolidated statements of operations.

For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of hedged items related to the risk being hedged are reported in the same interest income or expense line item as income or expense from the hedged financial asset or liability in the consolidated statements of operations.

Interest accruals on derivatives designated in fair value hedge relationships are also recorded in "Net interest income" in the consolidated statements of operations.

Changes in the fair value of financial derivatives not designated as cash flow or fair value hedges are reported in "(Losses)/gains on financial derivatives" in the consolidated statements of operations.

financial derivatives designated in fair value hedge accounting relationships, changes in the fair value of the designated portion of the derivative hedging instrument (i.e., interest-rate swap) and related interest accruals are reported in the same interest income or expense line item in the consolidated statements of operations as the hedged item.

For financial derivatives designated in cash flow hedge relationships, the unrealized gain or loss on the derivative is recorded in other comprehensive income.

Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt.

Collateralized Agreements and Offsetting Arrangements

10 unchanged sentences

Farmer Mac nets the exposure by clearinghouse and clearing member.

See Notes 6 and 13 for more information on financial derivatives.

(g) Notes Payable

1 unchanged sentence

(h) Allowance for Losses and Reserve for Losses

Farmer Mac maintains an allowance for credit losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities, loans held for investment, and AgVantage Farmer Mac Guaranteed Securities (collectively referred to as "allowance for losses").

Farmer Mac maintains an allowance for credit losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities and loans held for investment (collectively referred to as "allowance for losses").

Farmer Mac also maintains a reserve for credit losses to cover current expected credit losses as of the balance sheet date for off-balance sheet loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (collectively referred to as "reserve for losses").

Both the allowance for losses and reserve for losses are based on historical information and reasonable and supportable forecasts.

Farmer Mac has never experienced a credit loss in its Infrastructure Finance line of business.

Farmer Mac measures its expected credit losses for the expected life of all financial instruments, including its Infrastructure Finance loans.

To estimate expected credit losses on these loans, Farmer Mac relies upon industry historical credit loss data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities and renewable industries.

See Note 2(l)—Guarantees for more information on the accounting policy related to LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities.

The allowance for losses increases through periodic provisions for loan losses that are charged against net interest income and the reserve for losses increases through provisions for losses that are charged to non-interest expense.

Both the allowance for losses and reserve for losses are decreased by charge-offs for realized losses, net of recoveries.

Releases from the allowance for losses or reserve for losses occur when

the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period.

Releases from the allowance for losses or reserve for losses occur when the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period.

The total allowance for losses consists of the allowance for losses and the reserve for losses.

17 unchanged sentences

• other factors to capture current portfolio trends and characteristics that differ from historical experience.

When a borrower is either in foreclosure or is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral by Farmer Mac the loan is

considered to be a collateral dependent asset ("CDA").

The current expected credit loss for CDA loans is calculated as the difference between the amortized cost basis of the loan and the estimated collateral value as of the reporting date, less costs to sell.

Subsequent changes in the estimated collateral value are recognized in the provision for credit losses.

Management believes that its methodology produces a reasonable estimate of expected credit losses, as of the balance sheet date, for the expected life of all of its financial assets.

6 unchanged sentences

Accrued interest receivable is recorded separately on the Consolidated Balance Sheet, and the allowance for credit losses excludes uncollectible accrued interest receivable.

Collateral Dependent Assets ("CDAs")

CDAs are loan credit exposures in which the borrower is either in foreclosure or is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral by Farmer Mac.

Farmer Mac estimates the current expected credit loss on CDAs based upon the appraised value of the collateral, the costs to sell it, and any applicable credit protection such as a guarantee.

(i) Earnings Per Common Share

13 unchanged sentences

Diluted EPS $ 182,493 10,983 $ 16.62 $ 180,428 10,975 $ 16.44 $ 172,838 10,937 $ 15.81

(1) For the Years Ended December 31, 2024, 2023, and 2022, SARs and restricted stock units of 30,891 , 32,683 , and 32,448 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

(1) For the years ended December 31, 2025, 2024, and 2023, average SARs and restricted stock units of 47,629 , 30,891 , and 32,683 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the years ended December 31, 2025, 2024, and 2023, contingent shares of unvested restricted stock units of 23,630 , 28,670 , and 30,648 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.

4 unchanged sentences

To the extent rates change, the deferred tax asset will be adjusted to reflect the new rate.

A increase in corporate tax rates would result in an increase in the value of the deferred tax asset.

An increase in corporate tax rates would result in an increase in the value of the deferred tax asset.

Farmer Mac evaluates its tax positions quarterly to identify and recognize any liabilities related to uncertain tax positions in its federal income tax returns.

4 unchanged sentences

In determining its deferred tax asset valuation allowance, Farmer Mac considered its taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback and carryforward periods available under the tax law and the impact of possible tax planning strategies.

(k) Stock-Based Compensation

Farmer Mac accounts for its stock-based employee compensation plans using the grant date fair value method of accounting.

Farmer Mac measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award determined using the Black-Scholes option pricing model.

The cost is recognized over the period during which an employee is required to provide service in exchange for the award.

For performance-based grants, Farmer Mac recognizes the grant-date fair value over the vesting period as long as it remains probable that the performance conditions will be met.

If the service or performance conditions are not met, Farmer Mac reverses previously recognized compensation expense upon forfeiture.

Farmer Mac recognized $ 8.1 million, $ 6.8 million, and $ 4.6 million of compensation expense related to SARs and non-vested restricted stock unit awards for the years ended December 31, 2024, 2023, and 2022, respectively.

(l) Comprehensive Income

(k) 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.

4 unchanged sentences

$ ( 115,561 ) $ 16,357 $ 48,361 $ ( 50,843 )

Other comprehensive (loss)/income before reclassifications

( 108,624 ) — 54,688 ( 53,936 )

Other comprehensive income/(loss) before reclassifications 47,114 ( 25,199 ) 4,973 26,888

Amounts reclassified from AOCI — 118 ( 16,308 ) ( 16,190 )

Net comprehensive (loss)/income ( 108,629 ) 204 53,729 ( 54,696 )

Net comprehensive income/(loss) 47,114 ( 25,081 ) ( 11,335 ) 10,698

Balance as of December 31, 2023 $ ( 68,447 ) $ ( 8,724 ) $ 37,026 $ ( 40,145 )

4 unchanged sentences

Balance as of December 31, 2024

Other comprehensive income before reclassifications

$ ( 37,575 ) $ ( 9,226 ) $ 34,654 $ ( 12,147 )

Other comprehensive income/(loss) before reclassifications 40,266 — ( 3,666 ) 36,600

Amounts reclassified from AOCI 120 ( 20 ) ( 11,171 ) ( 11,071 )

1 unchanged sentence

Balance as of December 31, 2025

$ 2,811 $ ( 9,246 ) $ 19,817 $ 13,382

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 years ended December 31, 2025, 2024, and 2023:

1 unchanged sentence

2025 2024 2023

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

Before Tax Provision

After Tax Before Tax Provision

(in thousands)

1 unchanged sentence

Available-for-sale-securities:

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

Unrealized holding gains on available-for-sale securities

$ 50,971 $ 10,705 $ 40,266 $ 40,145 $ 8,430 $ 31,715 $ 59,640 $ 12,526 $ 47,114

Less reclassification adjustments included in:

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

Losses/(gains) on sale of available-for-sale investment securities (1)

163 34 129 ( 1,052 ) ( 221 ) ( 831 ) — — —

10 unchanged sentences

Cash flow hedges

Unrealized gains on cash flow hedges

Unrealized (losses)/gains on cash flow hedges

$ ( 4,641 ) $ ( 975 ) $ ( 3,666 ) $ 17,655 $ 3,708 $ 13,947 $ 6,295 $ 1,322 $ 4,973

3 unchanged sentences

Total $ ( 18,781 ) $ ( 3,944 ) $ ( 14,837 ) $ ( 3,002 ) $ ( 630 ) $ ( 2,372 ) $ ( 14,348 ) $ ( 3,013 ) $ ( 11,335 )

Other comprehensive income/(loss)

Other comprehensive income

$ 32,316 $ 6,787 $ 25,529 $ 35,440 $ 7,442 $ 27,998 $ 13,542 $ 2,844 $ 10,698

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

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

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

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

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

(4) 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.

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

(m) Guarantees

Farmer Mac accounts for its LTSPCs as guarantees.

(l) Guarantees

LTSPCs and securitization trusts where Farmer Mac is not the primary beneficiary result in the creation of guarantee obligations for Farmer Mac.

Farmer Mac records, at the inception of a guarantee or LTSPC, a liability for the fair value of its obligation to stand ready to perform under the terms of each guarantee or LTSPC and an asset that is equal to the fair value of the fees that will be received over the life of each guarantee or LTSPC.

The fair values of the guarantee obligation and asset at inception 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.

Because the cash flows of these instruments may be interest rate path dependent, these values and projected discount rates are derived using a Monte Carlo simulation model.

The fair values of the guarantee obligation and asset at inception 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.

Because the cash flows of these instruments may be interest rate path dependent, these values

and projected discount rates are derived using a Monte Carlo simulation model.

The guarantee obligation and corresponding asset are later amortized into guarantee and commitment fee income in relation to the decrease in the unpaid principal balance on the underlying Agricultural Finance real estate mortgage loans and Infrastructure Finance loans.

See Note 2(h) for Farmer Mac's policy for estimating probable losses for LTSPCs.

(n) Fair Value Measurement

(m) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

15 unchanged sentences

Farmer Mac's assessment of the significance of a particular input to the fair value measurement of an instrument requires judgment and consideration of factors specific to the instrument.

While Farmer Mac believes its valuation methods are appropriate and consistent with those of other market participants, using different methodologies or assumptions to

determine fair value could result in a materially different estimate of fair value for some financial instruments.

While Farmer Mac believes its valuation methods are appropriate and consistent with those of other market participants, using different methodologies or assumptions to determine fair value could result in a materially different estimate of fair value for some financial instruments.

The following is a description of the fair value techniques used for instruments measured at fair value as well as the general classification of those instruments under the valuation hierarchy described above.

4 unchanged sentences

Farmer Mac classifies these fair value measurements as "Level 1."

For a significant portion of Farmer Mac's investment portfolio, including most asset-backed securities, senior agency debt securities, and Government/GSE guaranteed mortgage-backed securities, fair value is primarily determined using a reputable and nationally recognized third-party pricing service.

For a significant portion of Farmer Mac's investment portfolio, including most asset-backed securities, senior agency debt securities, and Government or government-sponsored enterprise ("GSE") guaranteed mortgage-backed securities, fair value is primarily determined using a reputable and nationally recognized third-party pricing service.

The prices obtained are non-binding and generally representative of recent market trades on similar securities.

9 unchanged sentences

or (4) there is limited availability of public market information.

Farmer Mac classifies these fair value measurements as "Level 3."

Available-for-Sale and Trading Farmer Mac Guaranteed Securities and USDA Securities

Farmer Mac estimates the fair value of its Farmer Mac Guaranteed Securities and USDA Securities by discounting the projected cash flows of these instruments at discount rates commensurate with the risks involved.

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.

Farmer Mac classifies these fair value measurements as "Level 3" because there is limited market activity and therefore require the use of significant unobservable inputs in estimating the fair value.

11 unchanged sentences

Farmer Mac also internally values its derivative portfolio using a discounted cash flow valuation technique and obtains counterparty valuations to corroborate management's estimate of fair value, which is based upon a third-party accounting and valuation system.

See Note 13 for more information about fair value measurement.

(o) Consolidation of Variable Interest Entities

(n) Consolidation of Variable Interest Entities

Farmer Mac has interests in various entities that are considered to be VIEs.

7 unchanged sentences

Generally, the ability to make decisions regarding default mitigation is evidence of that power.

Farmer Mac determined that it is the primary beneficiary for the securitization trusts related to most Agricultural Finance securitization transactions because of its rights as guarantor under both programs to control the default mitigation activities of the trusts.

For certain securitization trusts created when loans subject to LTSPCs were converted to Farmer Mac Guaranteed Securities, Farmer Mac determined that it was not the primary beneficiary since the power to make decisions regarding default mitigation was shared among unrelated parties.

For these trusts, the shared power provisions are substantive with respect to decision-making power and relate to the same activity (i.e., default mitigation).

For similar securitization transactions where the power to make decisions regarding default mitigation was shared with a related party, Farmer Mac determined that it was the primary beneficiary because the applicable accounting guidance does not permit parties within a related party group to conclude that the power is shared.

In the event that a related party status changes, consolidation or deconsolidation of these securitization trusts could occur.

For those trusts that Farmer Mac is the primary beneficiary, the assets and liabilities are presented on the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost" and "Debt securities of consolidated trusts held by third parties," respectively.

These assets can only be used to satisfy the obligations of the related trust.

For those trusts in which Farmer Mac has a variable interest but is not the primary beneficiary, Farmer Mac's interests are presented as either "Farmer Mac Guaranteed Securities," "USDA Securities," or "Investment securities" on the consolidated balance sheets.

Farmer Mac's involvement in VIEs classified as Farmer Mac Guaranteed Securities or USDA Securities include securitization trusts under the Agricultural Finance line of business.

Farmer Mac determined that it is the primary beneficiary for the securitization trusts related to most Agricultural Finance securitization transactions because of its ability to control the default mitigation activities of the trusts through its role as master servicer.

For those trusts where Farmer Mac is the primary beneficiary, the assets and liabilities are presented on the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost" and "Debt securities of consolidated trusts held by third parties," respectively.

The assets can only be used to satisfy the obligations of the related trust.

For those trusts in which Farmer Mac has a variable interest but is not the primary beneficiary, Farmer Mac's interests are presented as "Investment securities" on the consolidated balance sheets.

Farmer Mac's involvement in VIEs include securitization trusts under the Agricultural Finance line of business.

In the case of USDA guaranteed trusts, Farmer Mac is not determined to be the primary beneficiary because it does not have the decision-making power over default mitigation activities.

1 unchanged sentence

Farmer Mac does not have exposure to losses that could be significant to the trust and there are no triggers that would result in Farmer Mac superseding the USDA's authority with regard to directing the activities of the trust.

For VIEs classified as investment securities, which include auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE") guaranteed mortgage-backed securities, Farmer Mac is determined not to be the primary beneficiary because of the lack of voting rights or other powers to direct the activities of the trust.

The following tables present, by segment, details about the consolidation of VIEs:

Consolidation of 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)

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 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 amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary 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.

Consolidation of Variable Interest Entities

As of December 31, 2023

Agricultural Finance Treasury Total

The following table provides a summary of unconsolidated VIEs with which Farmer Mac has significant continuing involvement but is not the primary beneficiary.

The balances presented in the table below excludes certain transactions with unconsolidated VIEs where Farmer Mac's continuing involvement is insignificant.

Farmer Mac considers continuing involvement to be insignificant when it relates to a VIE

where Farmer Mac only invests in securities issued by the VIE and where Farmer Mac was not involved in the design of the VIE or where no transfers have occurred between Farmer Mac and the VIE.

Unconsolidated Variable Interest Entities

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

(in thousands)

On-Balance Sheet:

Consolidated VIEs:

Loans held for investment in consolidated trusts, at amortized cost $ 1,432,261 $ — $ 1,432,261

Debt securities of consolidated trusts held by third parties (1)(2)

1,351,069 — 1,351,069

Unconsolidated VIEs:

Farmer Mac Guaranteed Securities:

2 unchanged sentences

80,384 58,985

Investment securities:

Carrying value (4)

— 3,676,555 3,676,555

Maximum exposure to loss (3)(4)

— 3,862,006 3,862,006

Off-Balance Sheet:

Unconsolidated VIEs:

Farmer Mac Guaranteed Securities:

1 unchanged sentence

386,057 426,310

(1) Includes borrower remittances of $ 6.0 million.

The borrower remittances had not been passed through to third-party investors as of December 31, 2023.

(2) Includes $ 87.1 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.

(p) Custodial Deposit Liability

(1) Farmer Mac uses the guaranteed portion of unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(2) The 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.

(3) 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 $ 5.0 million and $ 5.6 million as of December 31, 2025 and 2024, respectively.

The weighted average remaining maturity of the loans underlying the guarantee was 20.7 years and 21.2 years as of December 31, 2025 and 2024, respectively.

(o) Custodial Deposit Liability

Farmer Mac, as a servicer, collects cash from borrowers in advance of the borrower's contractual payment date.

Farmer Mac's policy is to include the cash in the consolidated balance sheet as "Cash and cash equivalents" with an offsetting liability to "Accounts payable and accrued expenses" until the payment is contractually due, at which point the payment is applied to the loan.

Under the terms of Farmer Mac's servicing agreement, the cash is not applied to the loan until the contractual payment due date.

As such, Farmer Mac's policy is to include the cash in the consolidated balance sheet as "Cash and cash equivalents" with an offsetting liability to "Accounts payable and accrued expenses" until the payment is contractually due, at which point the payment is applied to the loan.

The net change in the amount of this custodial cash will also be disclosed in the consolidated statements of cash flows as "Custodial deposit liability." The balance of this liability was $ 59.9 million and $ 157.1 million as of December 31, 2025 and 2024, respectively.

(q) Business Segments

During fourth quarter 2024, Farmer Mac's Chief Operating Decision Maker ("CODM") – its President and Chief Executive Officer – began to be provided with financial information of an additional operating segment, "Broadband Infrastructure." Prior to fourth quarter 2024, the financial information of the Broadband Infrastructure segment had been included within the Rural Utilities segment, which was renamed as "Power & Utilities" in fourth quarter 2024.

(p) Business Segments

During fourth quarter 2024, Farmer Mac's Chief Operating Decision Maker ("CODM") – its Chief Executive Officer – began to be provided with financial information of an additional operating segment, "Broadband Infrastructure." Prior to fourth quarter 2024, the financial information of the Broadband Infrastructure segment had been included within the Rural Utilities segment, which was renamed as "Power & Utilities" in fourth quarter 2024.

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

3 unchanged sentences

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

The purpose of separately reporting the

financial results of the Broadband Infrastructure segment is for the CODM to separately review and analyze its financial performance according to this type of customer and market because it is meaningfully distinct from the Power & Utilities customer and market.

The purpose of separately reporting the financial results of the Broadband Infrastructure segment is for the CODM to separately review and analyze its financial

performance according to this type of customer and market because it is meaningfully distinct from the Power & Utilities customer and market.

Prior to 2024, all operating expenses were allocated to a Corporate segment.

1 unchanged sentence

The remaining operating expenses that are not directly attributable to operating segments are unallocated and reported as a reconciling adjustment between total segment results and consolidated net income.

For the three years ended December 31, 2024, 2023, and 2022, Farmer Mac has recast its segment results to reflect these changes.

See Note 14 for more information on segment profitability.

(r) New Accounting Standards

For the years ended December 31, 2024 and 2023, Farmer Mac has recast its segment results to reflect these changes.

(q) New Accounting Standards

Recently Adopted Accounting Guidance

Standard Description Date of Adoption

Effect on Consolidated Financial Statements

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

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

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

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

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

Improvements to Reportable Segment Disclosures

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

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

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

December 31, 2024 Farmer Mac adopted this ASU for the year-end December 31, 2024, and applied it retrospectively to all prior periods presented.

See note 14 to the consolidated financial statements.

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

Date of Adoption

Effect on Consolidated Financial Statements

3 unchanged sentences

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 a prospective 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.

January 1, 2025 Farmer Mac adopted the new standard on a retrospective basis.

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

See Note 9 to the financial statements.

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

Farmer Mac is still assessing the impact of the new accounting standards in the table below 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):

3 unchanged sentences

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.

(s) Reclassifications

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.

ASU 2025-08 , Financial Instruments - Credit Losses (Topic 326):

Purchased Loans

This Update expands the scope of the "gross-up" approach from applicable only to purchased credit-deteriorated ("PCD") assets to include financial assets acquired without credit deterioration and deemed "seasoned." Non-PCD loans are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

Under this model, an allowance for expected credit losses is recognized at acquisition, offsetting the loan's amortized cost basis, thereby eliminating the day-one credit-loss expense previously required for non-PCD assets.

ASU 2025-08 is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted.

ASU 2025-09 , Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements

ASU 2025-09 amends ASC 815 to align hedge accounting more closely with the economics of an entity's risk management practices.

Among other things, key amendments include:

similar risk assessment for cash flow hedges, hedging interest payments on choose-your-rate debt, cash flow hedges of nonfinancial forecasted transactions, and net written options as hedging instruments.

ASU 2025-09 is effective for annual periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted.

ASU 2025-11 , Interim Reporting (Topic 270):

Narrow-Scope Improvements

This Update clarifies interim disclosure requirements, including providing a comprehensive list of interim disclosure requirements under U.S.

GAAP and a disclosure principle that requires entities to disclose events since the last annual reporting period that have a material impact on the entity.

ASU 2025-11 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods, with early adoption permitted.

(r) Reclassifications

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

1 unchanged sentence

RELATED PARTY TRANSACTIONS

Farmer Mac considers an entity to be a related party if (1) the entity holds at least 5 % of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac.

As provided by Farmer Mac's statutory Charter, only banks, insurance companies, and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock and only institutions of the Farm Credit System may hold Farmer Mac's Class B voting common stock.

3 unchanged sentences

All related party transactions were conducted with terms and conditions comparable to those available to any other participant in Farmer Mac's lines of business not related to Farmer Mac.

In general, Farmer Mac's related parties include entities that hold more than 10 % of total Farmer Mac voting common stock outstanding.

Material related party transactions during 2025, 2024, and 2023 are disclosed below.

Zions Bancorporation, National Association :

Farmer Mac considers Zions Bancorporation, National Association and its affiliates ("Zions") a related party because Zions owns approximately 31.2 % of Farmer Mac's Class A voting common stock.

Zions Bancorporation, National Association and its affiliates ("Zions") is a related party as they own approximately 21.0 % of Farmer Mac's total voting common stock outstanding.

The following transactions occurred between Farmer Mac and Zions during 2025, 2024, and 2023:

6 unchanged sentences

Sales of Farmer Mac Guaranteed Securities — 60,192 —

Outstanding Agricultural Finance mortgage loans purchased and USDA Securities purchased from Zions represented 3.1 % of Farmer Mac's outstanding business volume (excluding loans serviced for others) as of both December 31, 2024 and 2023.

As of December 31, 2025, Farmer Mac had entered into mandatory purchase commitments with Zions of $ 4.6 million.

Zions retained servicing fees of $ 11.6 million, $ 11.2 million, and $ 11.2 million in 2025, 2024, and 2023, respectively, for its work as a Farmer Mac servicer.

National Rural Utilities Cooperative Financial Corporation :

Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party because CFC owns approximately 7.91 % of Farmer Mac's Class A voting common stock.

The following transactions occurred between Farmer Mac and CFC during 2024, 2023, and 2022:

Farmer Mac Loan Purchases and Guarantees

CoBank is a related party as they own approximately 10.7 % of Farmer Mac's total voting common stock outstanding.

The following transactions occurred between Farmer Mac and CoBank during 2025, 2024, and 2023:

For the Years Ended December 31,

3 unchanged sentences

Loans $ 529,156 $ 442,749 $ 438,821

LTSPCs — — 30,421

AgVantage Securities

200,000 1,450,000 670,000

Total purchases and guarantees $ 653,972 $ 1,748,254 $ 1,087,419

Of Farmer Mac's total outstanding business volume (excluding loans serviced for others) as of December 31, 2024 and 2023, Power & Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 19.0 % and 20.4 %, respectively.

Farmer Mac had interest receivable of $ 30.0 million and $ 27.0 million as of December 31, 2024 and 2023, respectively, and earned interest income of $ 158.4 million, $ 143.5 million, and $ 79.4 million during 2024, 2023, and 2022, respectively, related to its AgVantage transactions with CFC.

As of both December 31, 2024 and 2023, Farmer Mac had $ 0.1 million of commitment fees receivable from CFC and earned commitment fees of $ 0.9 million , $ 1.0 million, and $ 1.1 million, respectively for 2024, 2023, and 2022.

CFC retained servicing fees of $ 4.1 million, $ 3.7 million, and $ 3.4 million in 2024, 2023, and 2022, respectively, for its work as a Farmer Mac central servicer.

Farmer Mac considers CoBank a related party because CoBank owns approximately 32.6 % of Farmer Mac's Class B voting common stock.

Farmer Mac purchased $ 442.7 million, $ 438.8 million, and $ 376.0 million of loans and participations from CoBank, under the Infrastructure Finance and Agricultural Finance lines of business in 2024, 2023, and 2022, respectively.

Of Farmer Mac's total outstanding business volume as of December 31, 2024 and 2023, CoBank's loans, participations, and unfunded commitments represented 7.1 % and 6.7 %, respectively, of total outstanding volume (excluding loans serviced for others).

CoBank retained servicing fees of $ 4.1 million, $ 4.0 million, and $ 3.6 million in 2025, 2024, and 2023, respectively, for its work as a Farmer Mac central servicer.

AgFirst Farm Credit Bank :

Farmer Mac considers AgFirst Farm Credit Bank ("AgFirst") a related party because AgFirst owns approximately 16.8 % of Farmer Mac's Class B voting common stock.

AgFirst entered into no Agricultural Finance LTSPC transactions in either 2024, 2023, or 2022.

The aggregate balance of Agricultural Finance LTSPCs outstanding as of December 31, 2024 and 2023 was $ 415.2 million and $ 447.3 million, respectively.

In 2024, 2023, and 2022, Farmer Mac received $ 1.3 million, $ 1.4 million, and $ 1.2 million, respectively, in commitment fees from AgFirst, and had $ 0.1 million of commitment fees receivable as of both December 31, 2024 and 2023.

AgFirst owns certain securities backed by rural housing loans.

Farmer Mac guarantees the last ten percent of losses (based on the original principal balance at the time of pooling) from each loan in the pool backing those securities.

As of December 31, 2024 and 2023, the outstanding balance of those securities owned by AgFirst was $ 1.5 million and $ 1.8 million, respectively.

Farmer Mac received guarantee fees of $ 12,000 , $ 12,000 , and $ 15,000 in 2024, 2023, and 2022, respectively, on those securities.

Farm Credit Bank of Texas :

Farmer Mac considers Farm Credit Bank of Texas a related party because the bank owns approximately 7.7 % of Farmer Mac's Class B voting common stock.

Farmer Mac received from Farm Credit Bank of Texas commitment fees of $ 3.6 million, $ 3.4 million, and $ 2.9 million in 2024, 2023, and 2022, respectively.

The aggregate amount of Agricultural Finance LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2024 and 2023 was $ 1.2 billion and $ 923.9 million, respectively.

In each of 2024, 2023, and 2022, Farm Credit Bank of Texas retained $ 0.1 million in servicing fees for its work as a Farmer Mac central servicer.

Other Related Party Transactions

Farmer Mac considers Friona Industries LP and Farm Credit of Florida related parties because each of those entities has an affiliation with a member of Farmer Mac's board of directors.

In 2024, Farmer Mac purchased an Agricultural Finance loan participation in the amount of $ 46.2 million from an unrelated seller where Friona Industries LP was the borrower.

Farmer Mac did no t purchase any Agricultural Finance mortgage loans where Friona Industries LP was the borrower in 2023 or 2022.

Farmer Mac purchased $ 1.7 million in Agricultural Finance loans from Farm Credit of Florida in 2024.

Farmer Mac did no t purchase any Agricultural Finance mortgage loans from Farm Credit of Florida in 2023 or 2022.

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:

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

Liquidity Investments:

Government guaranteed securities:

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

Government Sponsored Enterprise (“GSE”) guaranteed securities:

• 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).

2 unchanged sentences

sovereign debt issued by the United States of America.

Program Investments:

• AgVantage Securities:

securities backed by corporate obligations of approved agricultural or rural infrastructure financial institution counterparties, backed by a pledge of eligible agricultural or infrastructure finance mortgages.

• USDA Securities:

securities backed by the guaranteed portion of a loan guaranteed by the USDA under the Consolidated Farm and Rural Development Act.

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

As of December 31, 2025

Amount Outstanding Unamortized Premium/(Discount) Amortized

Allowance for losses (2)

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

Government/GSE guaranteed mortgage-backed securities

$ 5,351,174 $ — $ 35,078 $ ( 89,234 ) $ 5,297,018

Floating rate U.S.

Treasuries — — — — — — —

Fixed rate U.S.

Treasuries 1,302,677 ( 10,743 ) 1,291,934 — 2,604 ( 4,692 ) 1,289,846

1,537,112 — 7,083 ( 48 ) 1,544,147

AgVantage 6,917,225 ( 130 ) 29,056 ( 215,234 ) 6,730,917

Interest-Only Farmer Mac Guaranteed Securities 8,040 — 163 — 8,203

Total available-for-sale $ 13,813,551 $ ( 130 ) $ 71,380 $ ( 304,516 ) $ 13,580,285

Held-to-maturity:

Floating rate Government/GSE guaranteed mortgage-backed securities (3)

Government/GSE guaranteed mortgage-backed securities

$ 8,657 $ — $ 281 $ — $ 8,938

AgVantage 1,486,284 ( 77 ) 16,444 ( 3,731 ) 1,498,920

USDA Securities 2,459,359 — 5,851 ( 179,116 ) 2,286,094

Total held-to-maturity $ 3,954,300 $ ( 77 ) $ 22,576 $ ( 182,847 ) $ 3,793,952

(1) Amounts presented exclude $ 22.3 million of accrued interest receivable on investment securities as of December 31, 2024.

(1) Amounts presented exclude $ 91.3 million and $ 56.7 million of accrued interest receivable on available-for-sale and held-to-maturity securities, respectively, as of December 31, 2025.

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

Amount excludes unrealized losses relating to non-credit factors.

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

As of December 31, 2024

Amount Outstanding Unamortized Premium/(Discount) Amortized

Allowance for losses (2)

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 ) $ — $ ( 591 ) $ 19,082

Floating rate Government/GSE guaranteed mortgage-backed securities 2,454,009 ( 1,138 ) 2,452,871 — 1,212 ( 29,649 ) 2,424,434

Fixed rate Government/GSE guaranteed mortgage-backed securities

Auction-rate certificates backed by Government guaranteed student loans

$ 19,700 $ ( 27 ) $ — $ ( 197 ) $ 19,476

Floating rate U.S.

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

Fixed rate U.S.

Treasuries 869,585 ( 12,885 ) 856,700 — 2,074 ( 2,942 ) 855,832

Government/GSE guaranteed mortgage-backed securities

4,793,482 — 6,910 ( 156,700 ) 4,643,692

1,291,934 — 2,604 ( 4,692 ) 1,289,846

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

Interest-Only Farmer Mac Guaranteed Securities

8,710 — 305 — 9,015

Total available-for-sale $ 11,940,774 $ ( 263 ) $ 16,114 $ ( 489,065 ) $ 11,467,560

Held-to-maturity:

Floating rate Government/GSE guaranteed mortgage-backed securities (3)

Government/GSE guaranteed mortgage-backed securities

$ 9,270 $ — $ 270 $ — $ 9,540

AgVantage 2,667,564 ( 178 ) 5,978 ( 21,592 ) 2,651,772

USDA Securities 2,420,836 — 426 ( 259,410 ) 2,161,852

Total held-to-maturity $ 5,097,670 $ ( 178 ) $ 6,674 $ ( 281,002 ) $ 4,823,164

(1) Amounts presented exclude $ 15.9 million of accrued interest receivable on investment securities as of December 31, 2023.

(1) Amounts presented exclude $ 79.7 million and $ 59.9 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 held-to-maturity investment securities had a weighted average yield of 6.7 % as of December 31, 2023.

During the year ended December 31, 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.

As of December 31, 2025 and 2024, to satisfy initial margin requirements for centrally cleared derivatives, Farmer Mac pledged U.S.

Treasuries with fair value of $ 250.6 million and $ 213.4 million, respectively, as collateral at the Chicago Mercantile Exchange ("CME").

During the year ended December 31, 2025, Farmer Mac sold floating rate auction-rate certificates backed by government guaranteed student loans for $ 19.5 million from its available-for-sale investment portfolio, resulting in a realized loss of $ 0.2 million.

During the year ended December 31, 2024, Farmer Mac sold floating rate government/GSE guaranteed mortgage-backed securities for $ 115.2 million from its

available-for-sale investment portfolio, resulting in a gain of $ 1.1 million.

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

Farmer Mac did no t sell any securities from its available-for-sale investment portfolio during the years ended December 31, 2023 and 2022.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the year ended December 31, 2023.

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

7 unchanged sentences

(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 )

Floating rate U.S.

Treasuries — — — —

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

Government/GSE guaranteed mortgage-backed securities

$ 799,619 $ ( 4,695 ) $ 2,008,388 $ ( 84,539 )

29,902 ( 13 ) 95,270 ( 35 )

AgVantage 1,607,457 ( 18,768 ) 3,123,117 ( 196,466 )

$ 2,436,978 $ ( 23,476 ) $ 5,226,775 $ ( 281,040 )

As of December 31, 2024

6 unchanged sentences

(dollars in thousands)

Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 19,082 $ ( 591 )

Floating rate Government/GSE guaranteed mortgage-backed securities 568,759 ( 4,395 ) 1,449,122 ( 25,254 )

Fixed rate Government/GSE guaranteed mortgage-backed securities 384,305 ( 4,262 ) 905,759 ( 113,562 )

Floating rate U.S.

Treasuries 49,969 ( 15 ) — —

Fixed rate U.S.

Treasuries 140,435 ( 606 ) 237,192 ( 2,336 )

Total $ 1,143,468 $ ( 9,278 ) $ 2,611,155 $ ( 141,743 )

Number of securities in loss position 91 162

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

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

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

government, a U.S.

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

Securities in unrealized loss positions for 12 months or longer have a fair value as of December 31, 2024 that is, on average, approximately 93.6 % 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 December 31, 2024 are set forth below.

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

As of December 31, 2024

Available-for-Sale Securities

Cost Fair Value Weighted-

(dollars in thousands)

Due within one year $ 463,931 $ 464,956 3.90 %

Due after one year through five years 2,308,576 2,288,524 4.09 %

Due after five years through ten years 2,441,044 2,319,007 3.94 %

Due after ten years 891,565 880,527 4.97 %

Total $ 6,105,116 $ 5,953,014 4.15 %

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 December 31, 2024 and 2023:

As of December 31, 2024

Unpaid Principal Balance Unamortized Premium/(Discount) Amortized

Allowance for losses (2)

Gains Unrealized

Losses Fair Value

(in thousands)

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

Available-for-sale:

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

Farmer Mac Guaranteed Securities (3)

— 8,710 8,710 — 305 — 9,015

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

USDA Securities (4)

Auction-rate certificates backed by Government guaranteed student loans

$ — $ — $ 19,476 $ ( 197 )

(1) Amounts presented exclude $ 57.5 million and $ 59.8 million of accrued interest receivable on available-for-sale and held-to-maturity securities, respectively, as of December 31, 2024.

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

Amount excludes unrealized losses relating to non-credit factors.

(3) Fair value includes $ 9.0 million of 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 December 31, 2023

Unpaid Principal Balance Unamortized Premium/(Discount) Amortized

Allowance for losses (2)

Gains Unrealized

Losses Fair Value

(in thousands)

Held-to-maturity:

AgVantage $ 4,206,324 $ ( 29,622 ) $ 4,176,702 $ ( 209 ) $ 4,676 $ ( 39,451 ) $ 4,141,718

Farmer Mac Guaranteed USDA Securities 36,543 33 36,576 — 107 ( 806 ) 35,877

Total Farmer Mac Guaranteed Securities 4,242,867 ( 29,589 ) 4,213,278 ( 209 ) 4,783 ( 40,257 ) 4,177,595

USDA Securities 2,331,093 23,078 2,354,171 — 417 ( 319,783 ) 2,034,805

Total held-to-maturity $ 6,573,960 $ ( 6,511 ) $ 6,567,449 $ ( 209 ) $ 5,200 $ ( 360,040 ) $ 6,212,400

Available-for-sale:

AgVantage $ 5,816,024 $ — $ 5,816,024 $ ( 317 ) $ 16,416 $ ( 309,411 ) $ 5,522,712

Farmer Mac Guaranteed Securities (3)

Government/GSE guaranteed mortgage-backed securities

1,269,655 ( 18,102 ) 1,971,526 ( 138,598 )

Total available-for-sale $ 5,816,024 $ 9,409 $ 5,825,433 $ ( 317 ) $ 16,774 $ ( 309,411 ) $ 5,532,479

USDA Securities (4)

590,307 ( 4,375 ) 58,523 ( 317 )

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

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

Amount excludes unrealized losses relating to non-credit factors.

(3) Fair value includes $ 9.8 million of an interest-only security with a notional amount of $ 238.4 million.

(4) The trading USDA securities had a weighted average yield of 5.46 % as of December 31, 2023.

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

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

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

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

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

As of December 31, 2024

Held-to-Maturity and 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

(in thousands)

Held-to-maturity:

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

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 )

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 )

As of December 31, 2023

Held-to-Maturity and 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

(in thousands)

Held-to-maturity:

AgVantage $ 2,070,770 $ ( 6,705 ) $ 725,347 $ ( 32,746 )

Farmer Mac Guaranteed USDA Securities — — 8,393 ( 806 )

USDA Securities — — 2,023,801 ( 319,783 )

Total held-to-maturity $ 2,070,770 $ ( 6,705 ) $ 2,757,541 $ ( 353,335 )

Available-for-sale:

AgVantage $ 508,182 $ ( 5,716 ) $ 4,043,431 $ ( 303,695 )

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

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

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

The unrealized losses from AgVantage securities were on 66 and 68 available-for-sale securities as of December 31, 2024 and 2023, respectively.

There were 45 and 53 held-to-maturity AgVantage securities with an unrealized loss as of December 31, 2024 and 2023, respectively.

As of December 31, 2024 and 2023, 54 and 62 available-for-sale AgVantage securities had been in a loss position for more than 12 months, respectively.

As of December 31, 2024 and 2023, there were 26 and 22 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months.

During the three years ended December 31, 2024, 2023, and 2022.

Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading Securities and, therefore, Farmer Mac realized no gains or losses.

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

Total $ 3,012,189 $ ( 35,366 ) $ 5,699,370 $ ( 453,699 )

The unrealized losses presented above are primarily due to changes in the levels of interest rates from the dates of acquisition to December 31, 2025 and 2024, as applicable.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of December 31, 2025 are set forth below.

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

As of December 31, 2025

Available-for-Sale Securities

Fair Value Weighted-

Weighted-Average

(dollars in thousands)

7 unchanged sentences

Held-to-Maturity Securities

Fair Value Weighted-

Weighted-Average

(dollars in thousands)

6 unchanged sentences

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., 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.

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

55 unchanged sentences

This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after December 31, 2025.

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

The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the years ended December 31, 2025, 2024, and 2023:

2 unchanged sentences

Net Interest Income Non-Interest Income Total

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

Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Losses on financial derivatives

(in thousands)

Total amounts presented in the Consolidated Statement of Operations

$ 846,441 $ 765,806 $ ( 1,221,513 ) $ ( 5,120 ) $ 385,614

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

3 unchanged sentences

Income/(expense) related to interest settlements on fair value hedging relationships $ 400,339 $ 132,154 $ ( 517,001 ) $ — $ 15,492

Gains/(losses) on fair value hedging relationships:

(Losses)/gains on fair value hedging relationships:

Recognized on derivatives $ ( 188,941 ) $ ( 38,209 ) $ 159,983 $ — $ ( 67,167 )

Recognized on hedged items 188,506 41,128 ( 155,689 ) — 73,945

Gains/(losses) on fair value hedging relationships

(Losses)/gains on fair value hedging relationships

$ ( 435 ) $ 2,919 $ 4,294 $ — $ 6,778

4 unchanged sentences

Expense recognized on cash flow hedges $ — $ — $ ( 9,382 ) $ — $ ( 9,382 )

Gains on financial derivatives not designated in hedging relationships:

Gains on interest rate swaps

Losses on financial derivatives not designated in hedging relationships:

Losses on interest rate swaps

$ — $ — $ — $ ( 2,784 ) $ ( 2,784 )

1 unchanged sentence

Treasury futures — — — ( 1,895 ) ( 1,895 )

Gains on financial derivatives not designated in hedge relationships

Losses on financial derivatives not designated in hedge relationships

$ — $ — $ — $ ( 5,120 ) $ ( 5,120 )

2 unchanged sentences

Net Interest Income Non-Interest Income Total

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

Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Gains on financial derivatives

(in thousands)

7 unchanged sentences

Income/(expense) related to interest settlements on fair value hedging relationships $ 448,342 $ 137,862 $ ( 702,012 ) $ — $ ( 115,808 )

(Losses)/gains on fair value hedging relationships:

Gains/(losses) on fair value hedging relationships:

Recognized on derivatives $ 81,675 $ 71,213 $ 105,355 $ — $ 258,243

Recognized on hedged items ( 78,424 ) ( 66,852 ) ( 101,419 ) — ( 246,695 )

(Losses)/gains on fair value hedging relationships

$ ( 973 ) $ ( 1,714 ) $ ( 1,842 ) $ ( 865 ) $ — $ ( 5,394 )

Gains/(losses) on fair value hedging relationships $ 3,251 $ 4,361 $ 3,936 $ — $ 11,548

Expense related to interest settlements on cash flow hedging relationships:

5 unchanged sentences

Gains on interest rate swaps

$ — $ — $ — $ 2,424 $ 2,424

Interest expense on interest rate swaps — — — ( 1,377 ) ( 1,377 )

1 unchanged sentence

Gains on financial derivatives not designated in hedge relationships

$ — $ — $ — $ 2,636 $ 2,636

For the Year Ended December 31, 2023

1 unchanged sentence

Net Interest Income Non-Interest Income Total

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

Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Gains on financial derivatives

(in thousands)

11 unchanged sentences

(Losses)/gains on fair value hedging relationships

$ ( 2,687 ) $ ( 1,842 ) $ ( 865 ) $ — $ ( 5,394 )

Expense related to interest settlements on cash flow hedging relationships:

5 unchanged sentences

Gains on interest rate swaps

$ — $ — $ — $ 4,395 $ 4,395

Interest expense on interest rate swaps — — — ( 4,845 ) ( 4,845 )

1 unchanged sentence

Gains on financial derivatives not designated in hedge relationships

$ — $ — $ — $ 2,882 $ 2,882

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 December 31, 2025 and 2024:

5 unchanged sentences

$ 7,818,278 $ 6,956,364 $ ( 235,989 ) $ ( 424,495 )

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

5,478,484 5,497,948 ( 307,358 ) ( 257,436 )

Loans held for investment, at amortized cost 2,278,212 1,816,738 ( 331,315 ) ( 372,444 )

2 unchanged sentences

(1) Amortized cost of $ 8.0 billion and $ 7.4 billion as of December 31, 2025 and 2024, respectively.

(2) Amortized cost of $ 5.8 billion as of both December 31, 2024 and 2023.

(2) Carrying amount represents amortized cost.

12 unchanged sentences

Total $ ( 23,143 ) $ 1,631 $ ( 21,512 ) $ 15,601 $ — $ 2,093 $ ( 3,818 )

(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.

1 unchanged sentence

December 31, 2024

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

Gross Amounts Not Offset in the Consolidated Balance Sheet

Netting Adjustments Financial instruments pledged Cash Collateral (2)

Net Amount (3)

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

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

(in thousands)

5 unchanged sentences

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

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

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

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

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

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

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

2 unchanged sentences

As of December 31, 2025 and 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 $ 24.9 billion notional amount of interest rate swaps outstanding as of December 31, 2024, $ 19.1 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME").

Of Farmer Mac's $ 25.5 billion notional amount of interest rate swaps outstanding as of December 31, 2025, $ 19.4 billion were cleared through 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.

1 unchanged sentence

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

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

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

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

64 unchanged sentences

Total principal net of discounts $ 30,815,880 3.58 %

During the years ended December 31, 2024 and 2023, Farmer Mac called $ 1.9 billion and $ 233.0 million of callable medium-term notes, respectively.

During the years ended December 31, 2025 and 2024, Farmer Mac called $ 2.2 billion and $ 1.9 billion of callable medium-term notes, respectively.

Authority to Borrow from the U.S.

Farmer Mac's statutory charter authorizes it, upon satisfying certain conditions, to borrow up to $ 1.5 billion from the U.S.

Farmer Mac's statutory Charter authorizes it to borrow up to $ 1.5 billion from the U.S.

Treasury through the issuance of debt obligations to the U.S.

1 unchanged sentence

Treasury may be used solely to fulfill Farmer Mac's guarantee obligations.

The Charter provides that the U.S.

Treasury is required to purchase debt obligations up to the authorized limit if Farmer Mac certifies that:

• a portion of the guarantee fees have been set aside as a reserve against losses arising from guarantee activities in an amount determined by Farmer Mac's board of directors to be necessary and such reserve has been exhausted;

• the proceeds of the purchase of such obligations are needed 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

obligations from Farmer Mac.

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

1 unchanged sentence

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

Gains on Repurchases of Outstanding Debt

No outstanding debt repurchases were made in the years ended December 31, 2024 and 2023.

During 2022, Farmer Mac repurchased $ 27.0 million of outstanding debt at a gain of $ 0.2 million.

Farmer Mac classifies loans as either held for investment or held for sale.

1 unchanged sentence

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

As of December 31, 2024, Farmer Mac had $ 6.2 million of loans held for sale and none as of December 31, 2023.

During the year ended December 31, 2024, Farmer Mac recorded $ 1.0 million of lower of cost or fair value adjustments and none during the year ended December 31, 2023.

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

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.

Farmer Mac monitors and assesses credit risk for each segment, recognizing the different credit risk profiles within each segment.

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

23 unchanged sentences

Total Agricultural Finance loans

16,031 10,511

Infrastructure Finance loans 21,754 12,712

Total $ 37,785 $ 23,223

The following is a summary of the changes in the allowance for losses for each year in the three-year

period ended December 31, 2024:

The following is a summary of the changes in the allowance for losses for each year in the three-year period ended December 31, 2025:

Agricultural Finance loans Infrastructure

4 unchanged sentences

Balance as of December 31, 2022

Provision for/(release of) losses 1,246 2,171 3,417 ( 2,285 )

$ 4,044 $ 2,731 $ 6,775 $ 8,314

(Release of)/provision for losses ( 108 ) 217 109 833

Charge-offs — — — —

Balance as of December 31, 2023

(Release of)/provision for losses ( 108 ) 217 109 833

$ 3,936 $ 2,948 $ 6,884 $ 9,147

Provision for losses

1,297 6,828 8,125 3,565

Charge-offs ( 101 ) ( 4,397 ) ( 4,498 ) —

Balance as of December 31, 2024

$ 5,132 $ 5,379 $ 10,511 $ 12,712

Provision for losses

1 unchanged sentence

Charge-offs ( 6,064 ) ( 14,819 ) ( 20,883 ) —

1,675 677 2,352 —

Balance as of December 31, 2025

$ 9,400 $ 6,631 $ 16,031 $ 21,754

(1) As of December 31, 2025, 2024, and 2023, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 1.6 million, $ 1.2 million, and $ 1.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(2) As of December 31, 2025, 2024, and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 1.0 million, $ 1.0 million, and $ 0.0 million allowance for collateral dependent assets secured by agricultural real estate, respectively.

(3) As of December 31, 2024, 2023, and 2022, the allowance for losses for Infrastructure Finance loans includes no allowance for collateral dependent assets.

The $ 3.6 million net provision to the allowance for the Infrastructure Finance portfolio during the year ended December 31, 2024 was primarily attributable to new loan volume within the Broadband Infrastructure and Renewable Energy segments and a single renewable energy project that became substandard during fourth quarter 2024.

(3) As of December 31, 2025, the allowance for losses for Infrastructure Finance loans includes $ 5.2 million allowance for collateral dependent assets.

As of December 31, 2024 and 2023 there was no allowance for collateral dependent assets.

The $ 24.1 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2025 primarily consisted of:

• $ 14.6 million related to individually significant credit deteriorations within the Corporate AgFinance portfolio, which we also charged off because we deemed these amounts to be uncollectible.

• $ 5.0 million related to credit deterioration within the Farm & Ranch portfolio, of which we had a net charge off of $ 4.4 million because we deemed that amount to be uncollectible.

• The remainder was attributable to net volume growth during 2025.

The $ 9.0 million net provision to the allowance for the Infrastructure Finance portfolio during year ended December 31, 2025 was primarily attributable to $ 5.1 million in individually significant credit deterioration in the Broadband Infrastructure portfolio and $ 3.9 million in net volume growth.

The $ 8.1 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2024 was primarily attributable to two permanent planting borrower relationships and other risk rating downgrades.

During the year ended December 31, 2024, Farmer Mac

had charge-offs of $ 4.5 million, which was primarily related to a single permanent planting borrower that entered into bankruptcy during second quarter 2024, at which time $ 3.9 million was deemed uncollectible.

The $ 0.8 million net provision to the allowance for the Infrastructure Finance portfolio during the year ended December 31, 2023 was primarily attributable to a single telecommunications loan that was downgraded to substandard during the year.

During the year ended December 31, 2024, Farmer Mac had charge-offs of $ 4.5 million, which was primarily related to a single permanent planting borrower that entered into bankruptcy during second quarter 2024, at which time $ 3.9 million was deemed uncollectible.

The $ 0.1 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2023 was primarily attributable to increased loan volume.

The $ 2.3 million net release from the allowance for the Infrastructure Finance portfolio during the year ended December 31, 2022 was primarily attributable to a risk rating upgrade on a single loan and improvements in forecasts of future economic conditions.

The risk rating upgrade on that loan reflected that borrower's successful securitization of its large payable that arose during the arctic freeze that struck Texas in February 2021.

The $ 3.4 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the year ended December 31, 2022 was primarily attributable to a risk rating downgrade on a single agricultural storage and processing loan, due to its ongoing bankruptcy proceedings.

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

9 unchanged sentences

Total $ 16,434,377 $ 21,209 $ 8,595 $ 4,290 $ 34,094 $ 238,049 $ 16,706,520

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

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

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

(2) 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.

(3) Includes $ 59.2 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.

During the year ended December 31, 2025, Farmer Mac received $ 6.5 million in interest on nonaccrual loans, respectively.

As of December 31, 2024

8 unchanged sentences

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

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

(2) Includes loans in consolidated trusts with beneficial interests owned (single-class) by third parties 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.

(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 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.

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

17 unchanged sentences

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

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

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

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

14 unchanged sentences

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

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

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

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

14 unchanged sentences

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

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

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

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

14 unchanged sentences

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

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

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

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

14 unchanged sentences

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

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

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

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

14 unchanged sentences

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

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

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

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

Loan Modifications to Borrowers Experiencing Financial Difficulty

As a part of our loss mitigation activities, Farmer Mac may agree to the modify the contractual terms of loans to borrowers experiencing financial difficulty.

These modifications generally include payment deferrals, capitalization of interest, and extensions of maturities.

During the years ended December 31, 2025, 2024, and 2023, within Agricultural Finance - Farm & Ranch loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $ 33.8 million, $ 47.7 million, and $ 18.4 million, respectively.

These amounts represented approximately 0.40 %, 0.64 %, and 0.28 % of the total Farm & Ranch loan portfolio for each respective year.

There were no modifications to borrowers experiencing financial difficulty within the Agricultural Finance - Corporate AgFinance loans portfolio during the years ended December 31, 2025, 2024, and 2023.

During the year ended December 31, 2025, within Infrastructure Finance loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $ 13.2 million, which represented approximately 0.19 % of the Infrastructure Finance loans portfolio.

There were no modifications to borrowers experiencing financial difficulty within the Infrastructure Finance loans portfolio during the years ended December 31, 2024 and 2023.

The weighted‑average internal risk ratings for both the Agricultural Finance and Infrastructure Finance population of modified loans as of December 31, 2025 and 2024, were within the "substandard" internally assigned risk rating category.

For additional information regarding Farmer Mac’s internally assigned risk ratings, see Table 7.5.

Farmer Mac has three classes of common stock outstanding:

6 unchanged sentences

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

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

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

In February 2023, Farmer Mac's board of directors renewed the share repurchase program on its previous terms (with a remaining authorization of up to $ 9.8 million in stock repurchases) and extended the expiration date of the program to February 2025.

Farmer Mac has not

repurchased any shares of its Class C non-voting common stock since the repurchase program was reinstated in March 2021.

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

On August 5, 2025, Farmer Mac's board of directors revised the terms of the company's share repurchase program to increase the total authorized amount of repurchases from the then remaining $ 9.8 million to $ 50.0 million, and to extend the expiration date of the program to August 5, 2027.

During fourth quarter 2025, Farmer Mac repurchased 78,481 shares of Class C non-voting common stock at a cost of approximately $ 12.9 million.

As of December 31, 2025, Farmer Mac had repurchased approximately 751,000 shares of Class C non-voting common stock at a cost of approximately $ 32.7 million under the share repurchase program since its inception in 2015.

As of December 31, 2025, $ 37.1 million remain available for repurchase under the program.

Preferred Stock

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

As a result of this redemption, Farmer Mac recognized $ 1.6 million of loss on retirement of preferred stock in third quarter 2024, which was related to deferred issuance costs.

The following table presents the Series D Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock, and the Series G Preferred Stock (collectively referred to as the "Outstanding Preferred Stock") as of December 31, 2024:

The following table presents the Outstanding Preferred Stock as of December 31, 2025:

Name Issuance Date Issuance Cost Shares Issued Annual Dividend Rate (1)

5 unchanged sentences

Series G May 27, 2021 $ 3,673,677 5,000,000 4.875 % $ 25.00 July 17, 2026

August 25, 2025 $ 3,156,010 4,000,000 6.500 % $ 25.00 October 17, 2030

(1) Dividends on all series of Outstanding Preferred Stock are non-cumulative, which means that if Farmer Mac's board of directors has not declared a dividend before the applicable dividend payment date for any dividend period, such dividend will not be paid or cumulate, and Farmer Mac will have no obligation to pay dividends for such dividend period, whether or not dividends on any series of Outstanding Preferred Stock are declared for any future dividend period.

(2) Farmer Mac has the right but not the obligation to redeem.

The following tables present the quarterly dividends paid by Farmer Mac on its outstanding preferred stock during the years ended December 31, 2024, 2023, and 2022:

For the Year Ended December 31, 2024

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

6.000 % Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C

$ 0.3750 $ 0.3750 $ — $ —

5.700 % Non-Cumulative Preferred Stock, Series D

0.3563 0.3563 0.3563 0.3563

5.750 % Non-Cumulative Preferred Stock, Series E

0.3594 0.3594 0.3594 0.3594

5.250 % Non-Cumulative Preferred Stock, Series F

0.3281 0.3281 0.3281 0.3281

4.875 % Non-Cumulative Preferred Stock, Series G

0.3047 0.3047 0.3047 0.3047

For the Year Ended December 31, 2023

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

6.000 % Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C

$ 0.3750 $ 0.3750 $ 0.3750 $ 0.3750

5.700 % Non-Cumulative Preferred Stock, Series D

0.3563 0.3563 0.3563 0.3563

5.750 % Non-Cumulative Preferred Stock, Series E

0.3594 0.3594 0.3594 0.3594

5.250 % Non-Cumulative Preferred Stock, Series F

0.3281 0.3281 0.3281 0.3281

4.875 % Non-Cumulative Preferred Stock, Series G

0.3047 0.3047 0.3047 0.3047

For the Year Ended December 31, 2022

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

6.000 % Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C

$ 0.3750 $ 0.3750 $ 0.3750 $ 0.3750

5.700 % Non-Cumulative Preferred Stock, Series D

0.3563 0.3563 0.3563 0.3563

5.750 % Non-Cumulative Preferred Stock, Series E

0.3594 0.3594 0.3594 0.3594

5.250 % Non-Cumulative Preferred Stock, Series F

0.3281 0.3281 0.3281 0.3281

4.875 % Non-Cumulative Preferred Stock, Series G

0.3047 0.3047 0.3047 0.3047

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.

As a result of this redemption, Farmer Mac recognized $ 1.6 million of loss on retirement of preferred stock in third quarter 2024, which was related to deferred issuance costs.

Equity-Based Incentive Compensation Plans

4 unchanged sentences

For all SARs granted, the exercise price is equal to the closing price of Farmer Mac's Class C non-voting common stock on the date of grant.

SARs granted during the years ended December 31, 2024, 2023, and 2022 have a weighted average exercise price per share of $ 198.54 , $ 135.12 and $ 120.38 , respectively.

During the years ended December 31, 2024, 2023, and 2022, restricted stock unit awards were granted to employees, officers, and directors with vesting periods of one to three years .

The following tables summarize SARs and non-vested restricted stock unit activity for the years ended December 31, 2024, 2023, and 2022:

For the Years Ended December 31,

2024 2023 2022

SARs Weighted-

Price SARs Weighted-

Outstanding, beginning of year 125,952 $ 87.18 132,163 $ 75.82 130,409 $ 66.10

Granted 15,465 198.54 16,761 135.12 18,432 120.38

Exercised ( 34,728 ) 65.59 ( 22,972 ) 56.82 ( 16,678 ) 49.04

Canceled — — — — — —

Outstanding, end of year 106,689 110.35 125,952 87.18 132,163 75.82

Exercisable at end of year 73,906 87.31 87,378 73.15 83,054 63.12

For the Years Ended December 31,

2024 2023 2022

Fair Value Non-vested

Outstanding, beginning of year 114,353 $ 120.13 100,025 $ 91.84 103,891 $ 78.55

Granted 39,333 197.52 59,745 135.56 38,668 120.14

Canceled ( 4,854 ) 160.27 ( 62 ) 88.68 ( 2,711 ) 97.44

Vested and issued ( 51,893 ) 107.33 ( 45,355 ) 78.12 ( 39,823 ) 84.25

Outstanding, end of year 96,939 156.37 114,353 120.13 100,025 91.84

The cancellations of non-vested restricted stock units during the years ended December 31, 2024, 2023, and 2022 were due to unvested awards terminating in accordance with the provisions of the applicable equity compensation plans or award agreements upon directors' or employees' departures from Farmer Mac.

Cash is not received from exercises of SARs or the vesting and issuance of restricted stock units.

During the years ended December 31, 2024, 2023, and 2022, the reduction of income taxes payable as a result of the deduction for the exercise of SARs and the vesting of restricted stock units was $ 3.0 million, $ 1.7 million, and $ 1.2 million, respectively.

During the years ended December 31, 2024, 2023, and 2022 , Farmer Mac recorded a net decrease to additional paid-in capital of $ 5.4 million, $ 3.1 million, and $ 1.9 million, respectively, related to stock-based compensation awards.

As of December 31, 2024, Farmer Mac had no stock options outstanding.

The following tables summarize information about SARs and non-vested restricted stock units outstanding as of December 31, 2024:

Outstanding Exercisable Vested or Expected to Vest

Exercise Prices SARs Weighted-

Average Remaining Contractual Life SARs Weighted-

Average Remaining Contractual Life

$ 25.00 - $ 39.99

4,000 0.2 years 4,000 0.2 years 4,000 0.2 years

40.00 - 54.99

— 0.0 years — 0.0 years — 0.0 years

55.00 - 69.99

3,381 2.2 years 3,381 2.2 years 3,381 2.2 years

70.00 - 84.99

30,942 4.8 years 30,942 4.8 years 30,942 4.8 years

85.00 - 99.99

21,162 5.8 years 21,162 5.8 years 21,162 5.8 years

100.00 - 114.99

— 0.0 years — 0.0 years — 0.0 years

115.00 - 129.99

14,978 7.2 years 8,834 7.2 years 14,978 7.2 years

130.00 - 144.99

16,761 8.3 years 5,587 8.3 years 16,761 8.3 years

145.00 - 159.99

— 0.0 years — 0.0 years — 0.0 years

160.00 - 174.99

— 0.0 years — 0.0 years — 0.0 years

175.00 - 189.99

— 0.0 years — 0.0 years — 0.0 years

190.00 - 204.99

15,465 2.3 years — 0.0 years 15,465 2.3 years

106,689 73,906 106,689

Non-vested Restricted Stock Units:

Outstanding Expected to Vest

Fair Value Non-vested Restricted Stock Units

Weighted-Average Remaining Contractual

Life Non-vested Restricted Stock Units

Weighted-Average Remaining Contractual

$ 110.00 - $ 124.99

20,087 0.3 years 20,087 0.3 years

125.00 - 139.99

38,272 1.3 years 38,272 1.3 years

140.00 - 154.99

1,860 1.3 years 1,860 1.3 years

155.00 - 169.99

— 0.0 years — 0.0 years

170.00 - 184.99

610 2.3 years 610 2.3 years

185.00 - 199.99

36,110 2.3 years 36,110 2.3 years

96,939 96,939

As of December 31, 2024 and 2023, the intrinsic value of SARs, and non-vested restricted stock units outstanding, exercisable, and vested or expected to vest was $ 28.4 million and $ 35.0 million, respectively.

During the years ended December 31, 2024, 2023, and 2022, the total intrinsic value of SARs exercised was $ 4.6 million, $ 2.4 million, and $ 1.1 million, respectively.

As of December 31, 2024, there was $ 7.5 million of total unrecognized compensation cost related to non-vested SARs and restricted stock unit awards.

This cost is expected to be recognized over a weighted-average period of 1.7 years.

The weighted-average grant date fair values of SARs and restricted stock unit awards granted in the years ended December 31, 2024, 2023, and 2022 were $ 159.08 , $ 114.68 , and $ 91.94 per share, respectively.

Farmer Mac accounts for its stock-based employee compensation plans using the grant date fair value method of accounting.

Under the fair value-based method of accounting for stock-based compensation cost, Farmer Mac recognized compensation expense of $ 8.3 million , $ 8.1 million, and $ 6.8 million during the years ended December 31, 2025, 2024, and 2023, respectively.

The fair value of SARs was estimated using the Black-Scholes option pricing model based on the following assumptions:

For the Years Ended December 31,

2024 2023 2022

Risk-free interest rate 4.1 % 4.1 % 1.9 %

Expected years until exercise 6 years 6 years 6 years

Expected stock volatility 36.0 % 36.6 % 37.4 %

Dividend yield 2.8 % 3.3 % 3.2 %

The risk-free interest rates used in the model were based on the U.S.

Treasury yield curve in effect at the grant date.

Farmer Mac used historical data to estimate the timing of SARs exercises used in the model.

Expected volatilities were based on historical volatility of Farmer Mac's Class C non-voting common stock.

The dividend yields were based on the expected dividends as a percentage of the value of Farmer Mac's Class C non-voting common stock on the grant date.

Because stock will be issued upon the vesting of restricted stock units regardless of the stock price, expected stock volatility is not considered in determining grant date fair value.

Restricted stock unit awards also accrue dividends which are paid at vesting.

The weighted-average grant date fair value of the restricted stock units awarded in the years ended December 31, 2024, 2023, and 2022 was $ 197.52 , $ 135.56 , and $ 120.14 per unit, respectively, which is based on the closing price of Farmer Mac's Class C non-voting stock on the date granted.

During the years ended December 31, 2025, 2024, and 2023 , Farmer Mac recorded a net decrease to additional paid-in capital of $ 5.2 million, $ 5.4 million, and $ 3.1 million, respectively, related to stock-based compensation awards.

Capital Requirements

2 unchanged sentences

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

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.

As of December 31, 2025, Farmer Mac's minimum capital requirement was $ 1.0 billion and its core capital level was $ 1.7 billion, which was $ 677.7 million above the minimum capital requirement as of that date.

11 unchanged sentences

2025 2024 2023

Amount Percent Amount Percent

(dollars in thousands)

Tax expense at statutory rate $ 54,201 $ 53,151 $ 47,393

Excess tax benefits related to stock-based awards ( 1,755 ) ( 924 ) ( 401 )

Federal Statutory Tax Rate $ 53,699 21.0 % $ 54,201 21.0 % $ 53,151 21.0 %

Renewable Energy Investment Tax Credits ( 4,791 ) ( 1.9 ) % ( 2,627 ) ( 1.0 ) % — — %

Other Tax Credits

( 869 ) ( 0.3 ) % ( 633 ) ( 0.3 ) % ( 305 ) ( 0.1 ) %

Other 1,724 871 543

Nontaxable or Nondeductible Items 257 0.1 % ( 31 ) — % 252 0.1 %

Income tax expense $ 48,296 18.9 % $ 50,910 19.7 % $ 53,098 21.0 %

Statutory tax rate 21.0 % 21.0 % 21.0 %

The components of the deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows:

7 unchanged sentences

Stock-based compensation 3,261 3,014

Capital loss carryforwards — 35

Valuation allowance — ( 35 )

Other 5,789 5,887

9 unchanged sentences

Tax years 2022 through 2025 remain subject to examination.

EMPLOYEE BENEFITS

Farmer Mac makes contributions to a defined contribution retirement plan for all of its employees.

Farmer Mac contributed 13.2 % of the lesser of an employee's gross salary and the maximum compensation permitted under the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") ($ 345,000 for 2024, $ 330,000 for 2023, and $ 305,000 for 2022), plus 5.7 % of the difference between:

(1) the lesser of the gross salary and the amount established under EGTRRA and (2) the Social Security Taxable Wage Base.

Employees are fully vested after having been employed for approximately 3 years.

Expenses for this plan for the years ended December 31, 2024, 2023, and 2022 were $ 4.2 million, $ 3.6 million, and $ 3.1 million, respectively.

Farmer Mac established a Nonqualified Deferred Compensation Plan ("NQDC Plan") for its executive officers effective May 1, 2017.

Under the NQDC Plan, Farmer Mac credits the account of each participant each calendar year with an amount equal to 18.9 % of the difference between:

(1) the amount established under EGTRRA and (2) a participant’s gross annual base salary, which for purposes of calculating employer credits under the NQDC Plan is capped at $ 750,000 for all other participants.

contribution percentage is the same formula used for determining employer contributions to Farmer Mac’s defined contribution retirement plan based on an employee’s gross annual base salary that is above the amount established under EGTRRA for that year.

Expenses for the NQDC Plan were $ 0.2 million, $ 0.1 million, and $ 0.2 million, respectively, for the years ended December 31, 2024, 2023, and 2022.

GUARANTEES AND COMMITMENTS

Farmer Mac offers two credit enhancement alternatives to direct loan purchases that allow approved lenders the ability to retain the cash flow benefits of their loans and increase their liquidity and lending capacity:

(1) Farmer Mac Guaranteed Securities and (2) LTSPCs, both of which are available through each of the Agricultural Finance and Infrastructure Finance lines of business.

The contractual terms of Farmer Mac's off-balance sheet guarantees and LTSPCs range from less than 1 year to 30 years.

However, the actual term of each guarantee or LTSPC may be significantly less than the contractual term based on the prepayment characteristics of the related loans.

Farmer Mac's maximum potential exposure under these off-balance sheet guarantees and LTSPCs is the unpaid principal balance of the underlying loans.

Farmer Mac's maximum potential exposure was $ 4.5 billion and $ 4.1 billion as of December 31, 2024 and 2023, respectively.

The maximum exposure from these guarantees and LTSPCs is not representative of the actual loss Farmer Mac is likely to incur, based on historical loss experience.

In the event Farmer Mac was required to make payments under its guarantees or LTSPCs, Farmer Mac would have the right to enforce the terms of the loans, and in the event of default, would have access to the underlying collateral.

For information on Farmer Mac's methodology for determining the reserve for losses for its financial guarantees, see Note 2(h).

The following table presents changes in Farmer Mac's guarantee and commitment obligations in the consolidated balance sheets for the years ended December 31, 2024, 2023, and 2022:

For the Years Ended December 31,

2024 2023 2022

(in thousands)

Beginning balance, January 1 $ 47,563 $ 46,582 $ 43,926

Additions to the guarantee and commitment obligation (1)

6,036 5,312 8,569

Amortization of the guarantee and commitment obligation ( 5,273 ) ( 4,331 ) ( 5,913 )

Ending balance, December 31 $ 48,326 $ 47,563 $ 46,582

(1) Represents the fair value of the guarantee and commitment obligation at inception.

Off-Balance Sheet Farmer Mac Guaranteed Securities

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

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities

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

(in thousands)

Agricultural Finance

Farmer Mac Guaranteed Securities $ 426,310 $ 452,602

Infrastructure Finance

Farmer Mac Guaranteed Securities — —

Total off-balance sheet Farmer Mac Guaranteed Securities $ 426,310 $ 452,602

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

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

For the Years Ended December 31,

2024 2023 2022

(in thousands)

Proceeds from new securitizations $ 648,442 $ 222,188 $ 357,841

Guarantee fees received 1,484 1,620 1,852

Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the consolidated balance sheets.

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

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

(dollars in thousands)

Guarantee and commitment obligation $ 5,595 $ 5,969

Weighted average remaining maturity:

Farmer Mac Guaranteed Securities 21.2 years 21.9 years

Long-Term Standby Purchase Commitments

Farmer Mac has recorded a liability for its obligation to stand ready under the commitment in the guarantee and commitment obligation on the consolidated balance sheets.

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

Farmer Mac has recorded a liability for its obligation to stand ready under Farmer Mac's 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:

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

4 unchanged sentences

Weighted-average remaining maturity 14.4 years 14.5 years

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

Reserve for losses 1,586 1,623

Farmer Mac enters into mandatory and optional delivery commitments to purchase loans.

2 unchanged sentences

Farmer Mac also has unfunded commitments and letters of credit under which Farmer Mac earns a nominal fee for the obligation to provide funding at a future date.

As of December 31, 2024 and 2023, Farmer Mac had $ 602.6 million and $ 261.2 million of these unfunded commitments and letters of credit under the Agricultural Finance and Infrastructure lines of business.

As of December 31, 2025 and 2024, Farmer Mac had $ 1.1 billion and $ 0.6 billion of these unfunded commitments and letters of credit under the Agricultural Finance and Infrastructure lines of business.

Any optional loan purchase commitments are sold forward under optional commitments to deliver Farmer Mac Guaranteed Securities that may be canceled by Farmer Mac without penalty.

Reserve for Losses - LTSPCs and Farmer Mac Guaranteed Securities

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

December 31, 2024 December 31, 2023

Reserve for Losses Reserve for Losses

(in thousands)

Agricultural Finance $ 1,431 $ 1,471

Infrastructure Finance

Total $ 1,623 $ 1,711

The following is a summary of the net changes in the reserve for losses for the three-year period ended December 31, 2024:

Agricultural Finance loans Infrastructure Finance loans

Reserve for Losses Reserve for Losses

(in thousands)

Balance as of December 31, 2021 $ 1,068 $ 882

Release of losses ( 249 ) ( 268 )

Balance as of December 31, 2022 $ 819 $ 614

Provision for/(release of) losses

Balance as of December 31, 2023 $ 1,471 $ 240

Release of losses ( 40 ) ( 48 )

Balance as of December 31, 2024 $ 1,431 $ 192

The release from the reserve for losses during 2024 for both Agricultural Finance and Infrastructure Finance was primarily due to ratings upgrades.

The provision for the reserve for losses in the Agricultural Finance LTSPC portfolio recorded during the year ended December 31, 2023 was primarily due to an updated estimate of expected losses based on additional available industry data.

The release from the reserve for losses in the Infrastructure Finance LTSPC portfolio recorded during the year ended December 31, 2023 was primarily due to an updated estimate of expected losses based on additional available loss-given-default industry data.

The release from the reserve for losses in the Infrastructure Finance LTSPC portfolio recorded during the year ended December 31, 2022 was primarily due to decreased volume and ratings upgrades.

The release from the reserve for losses in the Agricultural Finance LTSPC portfolio was primarily due to ratings upgrades.

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

As of December 31, 2024

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

Total Past Due Total Loans

(in thousands)

Agricultural Finance:

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

Infrastructure Finance:

732,731 — — — — 732,731

Total $ 4,257,137 $ 1,421 $ 1,358 $ 7,603 $ 10,382 $ 4,267,519

(1) Includes loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs 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.

As of December 31, 2023

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

Total Past Due Total Loans

(in thousands)

Agricultural Finance:

$ 3,390,918 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,397,844

Infrastructure Finance:

535,013 — — — — 535,013

Total $ 3,925,931 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,932,857

Credit Quality Indicators

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

As of December 31, 2024

Year of Origination:

2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total

(in thousands)

Agricultural Finance:

Internally Assigned Risk Rating:

Acceptable $ 70,757 $ 163,646 $ 267,551 $ 563,747 $ 583,598 $ 1,312,988 $ 452,909 $ 3,415,196

Special mention (1)

— 5,963 4,920 15,954 4,354 44,964 12,197 88,352

Substandard (2)

— — 1,246 1,135 6,345 21,297 1,217 31,240

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

For the Year Ended December 31, 2024:

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

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

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

As of December 31, 2024

Year of Origination:

2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total

(in thousands)

Infrastructure Finance:

Internally Assigned Risk Rating:

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

Special mention (1)

— — — — — — — —

Substandard (2)

— — — — — — — —

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

For the Year Ended December 31, 2024:

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

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

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

As of December 31, 2023

Year of Origination:

2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total

(in thousands)

Agricultural Finance:

Internally Assigned Risk Rating:

Acceptable $ 169,429 $ 246,441 $ 515,396 $ 534,395 $ 264,815 $ 1,185,811 $ 391,335 $ 3,307,622

Special mention (1)

— 71 2,466 872 531 44,631 8,565 57,136

Substandard (2)

— — — 131 1,536 26,328 5,091 33,086

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

For the Year Ended December 31, 2023:

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

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

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

As of December 31, 2023

Year of Origination:

2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total

(in thousands)

Infrastructure Finance:

Internally Assigned Risk Rating:

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

Special mention (1)

— — — — — — — —

Substandard (2)

— — — — — — — —

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

For the Year Ended December 31, 2023:

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

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

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

FAIR VALUE DISCLOSURES

6 unchanged sentences

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

Floating rate U.S.

Treasuries — — — —

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:

Government/GSE guaranteed mortgage-backed securities

$ — $ 5,297,018 $ — $ 5,297,018

1,544,147 — — 1,544,147

AgVantage — — 6,730,917 6,730,917

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

Interest-Only Farmer Mac Guaranteed Securities

— — 8,203 8,203

Total Available-for-sale Investment Securities 1,544,147 5,297,018 6,739,120 13,580,285

Financial derivatives 154 44,721 — 44,875

Guarantee Asset — — 5,382 5,382

Other Assets (2)

— — 4,897 4,897

Total Assets at fair value $ 1,544,301 $ 5,341,739 $ 6,744,017 $ 13,630,057

2 unchanged sentences

(1) Level 3 assets represent 19 % of total assets and 49 % of financial instruments measured at fair value.

(2) Represents a retained beneficial interest related to transfers of financial assets.

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

3 unchanged sentences

Available-for-sale:

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

Floating rate Government/GSE guaranteed mortgage-backed securities — 2,424,434 — 2,424,434

Fixed rate GSE guaranteed mortgage-backed securities — 1,569,615 — 1,569,615

Floating rate U.S.

Treasuries 49,968 — — 49,968

Fixed rate U.S.

Treasuries 855,832 — — 855,832

Total Available-for-sale Investment Securities 905,800 3,994,049 19,082 4,918,931

Farmer Mac Guaranteed Securities:

Available-for-sale:

Auction-rate certificates backed by Government guaranteed student loans

$ — $ — $ 19,476 $ 19,476

Government/GSE guaranteed mortgage-backed securities

— 4,643,692 — 4,643,692

1,289,846 — — 1,289,846

AgVantage — — 5,505,531 5,505,531

Farmer Mac Guaranteed Securities — — 9,767 9,767

Total Farmer Mac Guaranteed Securities — — 5,532,479 5,532,479

USDA Securities:

Trading — — 1,241 1,241

Total USDA Securities — — 1,241 1,241

Interest-Only Farmer Mac Guaranteed Securities

— — 9,015 9,015

Total Available-for-sale Investment Securities 1,289,846 4,643,692 5,534,022 11,467,560

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

— 6,160 — 6,160

Financial derivatives 47 27,742 — 27,789

Guarantee Asset — — 5,831 5,831

Other Assets (2)

— — 5,382 5,382

Total Assets at fair value $ 1,289,893 $ 4,677,594 $ 5,539,404 $ 11,506,891

2 unchanged sentences

(1) Level 3 assets represent 18 % of total assets and 48 % of financial instruments measured at fair value.

(2) Represents a retained beneficial interest related to transfers of financial assets.

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

5 unchanged sentences

Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2025

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included

Beginning Balance Purchases Sales Settlements Allowance for Losses Realized and

unrealized (losses)/gains included in Income

Unrealized gains/(losses)

1 unchanged sentence

Comprehensive

Income Ending Balance

Ending Balance

(in thousands)

1 unchanged sentence

Available-for-sale:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,082 $ — $ — $ — $ — $ 394 $ 19,476

Total available-for-sale 19,082 — — — — 394 19,476

Farmer Mac Guaranteed Securities:

Available-for-sale:

Auction-rate certificates backed by Government guaranteed student loans

$ 19,476 $ — $ ( 19,537 ) $ — $ 27 $ ( 163 ) $ 197 $ —

Farmer Mac Guaranteed Securities 9,767 — ( 699 ) — — ( 53 ) 9,015

5,505,531 2,013,475 — ( 923,198 ) 106 130,539 4,464 6,730,917

Interest-Only Farmer Mac Guaranteed Securities

9,015 — — ( 670 ) — — ( 142 ) 8,203

Total available-for-sale 5,534,022 2,013,475 ( 19,537 ) ( 923,868 ) 133 130,376 4,519 6,739,120

USDA Securities:

Trading 1,241 — ( 443 ) — 20 — 818

Total USDA Securities 1,241 — ( 443 ) — 20 — 818

Guarantee and commitment obligations:

Guarantee Asset 5,831 — ( 343 ) — ( 106 ) — 5,382

Total Guarantee and commitment obligations 5,831 — ( 343 ) — ( 106 ) — 5,382

Other Assets 5,382 — — ( 341 ) — ( 144 ) — 4,897

Total Assets at fair value $ 5,539,404 $ 2,013,475 $ ( 19,537 ) $ ( 924,209 ) $ 133 $ 130,232 $ 4,519 $ 6,744,017

1 unchanged sentence

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains included

unrealized losses included

Unrealized gains/(losses)

5 unchanged sentences

Available-for-sale:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,027 $ — $ — $ 6 $ — $ 49 $ — $ 19,082

Total available-for-sale 19,027 — — 6 — 49 — 19,082

Farmer Mac Guaranteed Securities:

Available-for-sale:

Auction-rate certificates backed by Government guaranteed student loans

$ 19,082 $ — $ — $ — $ — $ 394 $ 19,476

AgVantage 5,522,712 677,400 ( 666,476 ) 81 ( 49,727 ) 21,541 5,505,531

Farmer Mac Guaranteed

Securities 7,847 — ( 1,213 ) — — 3,133 — 9,767

Interest-Only Farmer Mac Guaranteed Securities

9,767 — ( 699 ) — — ( 53 ) 9,015

Total available-for-sale 5,551,561 677,400 ( 667,175 ) 81 ( 49,727 ) 21,882 5,534,022

USDA Securities:

Trading 1,767 — ( 550 ) — 24 — — 1,241

Total USDA Securities 1,767 — ( 550 ) — 24 — — 1,241

Guarantee and commitment obligations:

Guarantee Asset 4,467 — ( 590 ) — 1,954 — — 5,831

Total Guarantee and commitment obligations 4,467 — ( 590 ) — 1,954 — — 5,831

Other Assets 5,831 — ( 343 ) — ( 106 ) — 5,382

Total Assets at fair value $ 5,557,392 $ 677,400 $ ( 667,518 ) $ 81 $ ( 49,833 ) $ 21,882 $ 5,539,404

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

Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2023

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized losses included

Unrealized losses

included in Other

Comprehensive

unrealized gains included

Unrealized gains/(losses) included in Other Comprehensive Income

Transfers Out (1)

Ending Balance

2 unchanged sentences

Available-for-sale:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,254 $ — $ — $ 19 $ — $ ( 246 ) $ 19,027

Total available-for-sale 19,254 — — 19 — ( 246 ) 19,027

Farmer Mac Guaranteed Securities:

Available-for-sale:

Auction-rate certificates backed by Government guaranteed student loans

$ 19,027 $ — $ — $ 6 $ — $ 49 $ — $ 19,082

AgVantage 7,599,379 2,084,650 ( 1,561,507 ) 230 89,629 ( 5,573 ) ( 2,684,096 ) 5,522,712

Farmer Mac Guaranteed

Securities 12,414 — ( 1,675 ) — — ( 2,892 ) 7,847

Interest-Only Farmer Mac Guaranteed Securities

7,847 — ( 1,213 ) — — 3,133 — 9,767

Total available-for-sale 7,626,253 2,084,650 ( 1,562,720 ) 236 89,629 ( 2,391 ) ( 2,684,096 ) 5,551,561

USDA Securities:

Trading 4,401 — ( 2,583 ) — ( 51 ) — 1,767

Total USDA Securities 4,401 — ( 2,583 ) — ( 51 ) — 1,767

Guarantee and commitment obligations:

Guarantee Asset 6,237 — ( 903 ) — ( 867 ) — 4,467

Total Guarantee and commitment obligations 6,237 — ( 903 ) — ( 867 ) — 4,467

Other Assets 4,467 — ( 590 ) — 1,954 — — 5,831

Total Assets at fair value $ 7,630,720 $ 2,084,650 $ ( 1,563,310 ) $ 236 $ 91,583 $ ( 2,391 ) $ ( 2,684,096 ) $ 5,557,392

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

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

3 unchanged sentences

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 $ 6,730,917 Discounted cash flow Discount rate 4.3 % - 4.9 % ( 4.5 %)

Farmer Mac Guaranteed Securities $ 9,015 Discounted cash flow Discount rate 7.9 %

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 %

Interest-Only Farmer Mac Guaranteed Securities $ 8,203 Discounted cash flow Discount rate 7.8 %

Other Assets $ 4,897 Discounted cash flow Discount rate 7.8 %

As of December 31, 2024

2 unchanged sentences

Investment securities:

Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,082 Indicative bids Range of broker quotes 97.0 % - 97.0 % ( 97.0 %)

Farmer Mac Guaranteed Securities:

Auction-rate certificates backed by Government guaranteed student loans

$ 19,476 Indicative bids Range of broker quotes 99.0 % - 99.0 % ( 99.0 %)

AgVantage $ 5,505,531 Discounted cash flow Discount rate 5.0 % - 5.5 % ( 5.1 %)

Farmer Mac Guaranteed Securities $ 9,767 Discounted cash flow Discount rate 8.3 %

USDA Securities $ 1,241 Discounted cash flow Discount rate 5.4 % - 5.4 % ( 5.4 %)

CPR 12 % - 12 % ( 12 %)

Guarantee Asset $ 5,831 Discounted cash flow Discount rate 8.3 %

The significant unobservable input used in the fair value measurements of AgVantage Farmer Mac Guaranteed Securities is the discount rate commensurate with the risks involved.

Interest-Only Farmer Mac Guaranteed Securities $ 9,015 Discounted cash flow Discount rate 7.9 %

Other Assets $ 5,382 Discounted cash flow Discount rate 7.9 %

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.

1 unchanged sentence

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.

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.

Disclosures on Fair Value of Financial Instruments

7 unchanged sentences

Investment securities 17,390,108 17,550,379 16,302,559 16,576,887

Farmer Mac Guaranteed Securities 8,215,646 8,232,234 9,710,074 9,745,548

USDA Securities 2,113,342 2,371,352 2,036,046 2,355,412

Loans 16,342,149 16,321,276 12,924,604 13,204,638

11 unchanged sentences

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.

Farmer Mac internally models the fair value of its portfolio assets;

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.

Level 3 Farmer Mac Guaranteed Securities include our AgVantage securities for which we apply a discount rate in calculating the net present value of future expected cash flows that is both significant to the estimate of their fair value and unobservable in the market.

We rely upon this significant unobservable input to estimate the fair value of AgVantage because there are no observable transactions in these securities in the market.

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 Monte Carlo simulation model.

Notes payable are valued by discounting the expected cash flows of

these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3.

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

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

2 unchanged sentences

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.

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.

3 unchanged sentences

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

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

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

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

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 the execution of 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.

2 unchanged sentences

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

The President and Chief Executive Officer serves as the CODM.

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.

2 unchanged sentences

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

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

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

The following tables present segment core earnings and assets for the years ended December 31, 2025, 2024, and 2023.

1 unchanged sentence

For the Year Ended December 31, 2025

Agricultural Finance Rural Infrastructure Treasury

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

17 unchanged sentences

( 27,664 ) ( 10,372 ) ( 4,575 ) ( 5,103 ) ( 6,633 ) ( 11,644 ) ( 3,370 ) ( 69,361 )

Income tax (expense)/benefit ( 27,360 ) ( 2,916 ) ( 3,559 ) ( 1,934 ) ( 894 ) ( 23,949 ) ( 536 ) ( 61,148 )

Income tax expense

( 26,120 ) ( 2,220 ) ( 4,069 ) ( 1,960 ) ( 4,035 ) ( 25,222 ) ( 784 ) ( 64,410 )

Segment core earnings

13 unchanged sentences

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

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

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

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

2 unchanged sentences

For the Year Ended December 31, 2024

Agricultural Finance Rural Infrastructure Treasury

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Broadband Infrastructure

Renewable Energy Funding Investments Total

Utilities Broadband Infrastructure Renewable Energy Funding Investments Total

(in thousands)

14 unchanged sentences

( 24,741 ) ( 7,905 ) ( 4,281 ) ( 3,666 ) ( 4,848 ) ( 10,855 ) ( 3,108 ) ( 59,404 )

Income tax (expense)/benefit ( 27,183 ) ( 5,418 ) ( 3,746 ) ( 453 ) ( 238 ) ( 25,405 ) 414 ( 62,029 )

Income tax expense

( 27,360 ) ( 2,916 ) ( 3,559 ) ( 1,934 ) ( 894 ) ( 23,949 ) ( 536 ) ( 61,148 )

Segment core earnings

4 unchanged sentences

Income tax effect related to reconciling items 10,238

Net income $ 207,193

Total Assets:

7 unchanged sentences

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

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

2 unchanged sentences

For the Year Ended December 31, 2023

Agricultural Finance Rural Infrastructure Treasury

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Broadband Infrastructure

Renewable Energy Funding Investments Total

Utilities Broadband Infrastructure Renewable Energy Funding Investments Total

(in thousands)

8 unchanged sentences

17,415 283 1,090 43 97 — — 18,928

Other income/(expense)

2,952 35 — — — 3 29 3,019

10 unchanged sentences

Income tax effect related to reconciling items 8,931

Net income $ 200,003

Total Assets:

7 unchanged sentences

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

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

2 unchanged sentences

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data