Item 1. Financial Statements
Item 1. Financial Statements
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
As of
March 31, 2026 December 31, 2025
(in thousands)
Assets:
Cash and cash equivalents (includes restricted cash of $ 27,338 and $ 24,475 , respectively)
$ 773,935 $ 931,067
Investment securities:
Available-for-sale, at fair value (amortized cost of $ 14,269,843 and $ 13,813,551 , respectively)
13,971,122 13,580,285
Held-to-maturity, at amortized cost 4,230,583 3,954,223
Other investments
17,290 15,871
Total Investment Securities
18,218,995 17,550,379
Loans:
Loans held for investment, at amortized cost 14,860,528 13,877,051
Loans held for investment in consolidated trusts, at amortized cost 2,391,027 2,482,010
Allowance for losses ( 39,920 ) ( 37,785 )
Total loans, net of allowance 17,211,635 16,321,276
Financial derivatives, at fair value 15,481 44,875
Accrued interest receivable (includes $ 25,874 and $ 40,945 , respectively, related to consolidated trusts)
303,725 357,155
Guarantee and commitment fees receivable 56,941 57,214
Deferred tax asset, net 5,133 173
Prepaid expenses and other assets 143,401 108,018
Total Assets $ 36,729,246 $ 35,370,157
Liabilities and Equity:
Liabilities:
Notes payable $ 32,236,308 $ 30,822,570
Debt securities of consolidated trusts held by third parties 2,275,001 2,365,435
Financial derivatives, at fair value 46,490 21,618
Accrued interest payable (includes $ 13,012 and $ 15,795 , respectively, related to consolidated trusts)
254,798 233,714
Guarantee and commitment obligation 54,201 54,770
Other liabilities 145,427 153,101
Total Liabilities 35,012,225 33,651,208
Commitments and Contingencies ( Note 5 )
Equity:
Preferred stock:
Series D, par value $ 25 per share, 4,000,000 shares authorized, issued and outstanding
96,659 96,659
Series E, par value $ 25 per share, 3,180,000 shares authorized, issued and outstanding
77,003 77,003
Series F, par value $ 25 per share, 4,800,000 shares authorized, issued and outstanding
116,160 116,160
Series G, par value $ 25 per share, 5,000,000 shares authorized, issued and outstanding
121,327 121,327
Series H, par value $ 25 per share, 4,000,000 shares authorized, issued and outstanding
96,844 96,844
Common stock:
Class A Voting, $ 1 par value, no maximum authorization, 1,030,780 shares outstanding
1,031 1,031
Class B Voting, $ 1 par value, no maximum authorization, 500,301 shares outstanding
500 500
Class C Non-Voting, $ 1 par value, no maximum authorization, 9,317,502 shares and 9,325,556 shares outstanding, respectively
9,318 9,326
Additional paid-in capital 138,543 139,370
Accumulated other comprehensive (loss)/income, net of tax
( 15,071 ) 13,382
Retained earnings 1,074,707 1,047,347
Total Equity 1,717,021 1,718,949
Total Liabilities and Equity $ 36,729,246 $ 35,370,157
The accompanying notes are an integral part of these consolidated financial statements.
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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months Ended
March 31, 2026 March 31, 2025
(in thousands, except per share amounts)
Interest income:
Investment securities and cash equivalents $ 203,409 $ 209,650
Loans 212,552 171,764
Total interest income 415,961 381,414
Total interest expense 314,565 290,475
Net interest income 101,396 90,939
Provision for losses ( 4,308 ) ( 1,684 )
Net interest income after provision for losses 97,088 89,255
Non-interest income/(expense):
Guarantee and commitment fees 5,837 4,479
Gains/(losses) on financial derivatives 1,140 ( 2,636 )
Other income 752 1,537
Non-interest income 7,729 3,380
Operating expenses:
Compensation and employee benefits 21,257 17,752
General and administrative 11,262 10,758
Regulatory fees 863 1,000
Operating expenses 33,382 29,510
Income before income taxes 71,435 63,125
Income tax expense 12,312 13,474
Net income 59,123 49,651
Preferred stock dividends ( 7,291 ) ( 5,666 )
Net income attributable to common stockholders $ 51,832 $ 43,985
Earnings per common share:
Basic earnings per common share $ 4.78 $ 4.04
Diluted earnings per common share $ 4.75 $ 4.01
The accompanying notes are an integral part of these consolidated financial statements.
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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
For the Three Months Ended
March 31, 2026 March 31, 2025
(in thousands)
Net income $ 59,123 $ 49,651
Other comprehensive income/(loss):
Net unrealized (losses)/gains on available-for-sale securities
( 35,604 ) 21,762
Net changes in held-to-maturity securities ( 392 ) ( 303 )
Net unrealized losses on cash flow hedges
( 20 ) ( 8,371 )
Other comprehensive (loss)/income before tax
( 36,016 ) 13,088
Income tax benefit/(expense) related to other comprehensive (loss)/income
7,563 ( 2,749 )
Other comprehensive (loss)/income net of tax
( 28,453 ) 10,339
Comprehensive income $ 30,670 $ 59,990
The accompanying notes are an integral part of these consolidated financial statements.
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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
(unaudited)
Accumulated
Additional Other
Preferred Stock Common Stock Paid-In Comprehensive Retained Total
Shares Amount Shares Amount Capital Income/(Loss) Earnings Equity
(in thousands)
Balance as of December 31, 2025
20,980 $ 507,993 10,857 $ 10,857 $ 139,370 $ 13,382 $ 1,047,347 $ 1,718,949
Net Income — — — — — — 59,123 59,123
Other comprehensive loss, net of tax
— — — — — ( 28,453 ) — ( 28,453 )
Cash dividends:
Preferred stock — — — — — — ( 7,291 ) ( 7,291 )
Common stock (cash dividend of $ 1.60 per share)
— — — — — — ( 17,341 ) ( 17,341 )
Repurchase of Class C Common Stock
— — ( 47 ) ( 47 ) — — ( 7,131 ) ( 7,178 )
Issuance of Class C Common Stock — — 39 39 60 — — 99
Stock-based compensation cost — — — — 3,004 — — 3,004
Other stock-based award activity — — — — ( 3,891 ) — — ( 3,891 )
Balance as of March 31, 2026
20,980 $ 507,993 10,849 $ 10,849 $ 138,543 $ ( 15,071 ) $ 1,074,707 $ 1,717,021
Balance as of December 31, 2024
16,980 $ 411,149 10,891 $ 10,891 $ 135,894 $ ( 12,147 ) $ 943,239 $ 1,489,026
Net Income — — — — — — 49,651 49,651
Other comprehensive income, net of tax
— — — — — 10,339 — 10,339
Cash dividends:
Preferred stock — — — — — — ( 5,666 ) ( 5,666 )
Common stock (cash dividend of $ 1.50 per share)
— — — — — — ( 16,352 ) ( 16,352 )
Issuance of Class C Common Stock — — 42 42 79 — — 121
Stock-based compensation cost — — — — 3,529 — — 3,529
Other stock-based award activity — — — — ( 5,002 ) — — ( 5,002 )
Balance as of March 31, 2025
16,980 $ 411,149 10,933 $ 10,933 $ 134,500 $ ( 1,808 ) $ 970,872 $ 1,525,646
The accompanying notes are an integral part of these consolidated financial statements.
6
FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the Three Months Ended
March 31, 2026 March 31, 2025
(in thousands)
Cash flows from operating activities:
Net income $ 59,123 $ 49,651
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities ( 5,092 ) ( 4,781 )
Net amortization of debt premiums, discounts, and issuance costs 4,509 18,053
Net change in fair value of hedged items, financial derivatives, loans held sale, and trading securities
38,334 ( 108,740 )
Total provision for allowance for losses
4,827 1,583
Stock-based compensation expense 3,004 3,529
Proceeds from repayment of loans purchased as held for sale 7,816 19,928
Purchases of tax credits
( 40,742 ) —
Other
1,294 608
Net change in:
Interest receivable 50,854 43,542
Guarantee and commitment fees receivable ( 296 ) ( 36 )
Other assets 5,288 41,298
Accrued interest payable 21,084 26,841
Custodial deposit liability ( 25,353 ) ( 141,384 )
Other liabilities ( 32,598 ) 89
Net cash provided by operating activities
92,052 ( 49,819 )
Cash flows from investing activities:
Purchases of available-for-sale investment securities
( 904,151 ) ( 853,122 )
Purchases of held-to-maturity investment securities
( 661,823 ) ( 78,516 )
Purchases of other investment securities ( 678 ) ( 2,264 )
Purchases of loans held for investment ( 1,550,137 ) ( 987,524 )
Purchases of defaulted loans
— ( 1,298 )
Proceeds from repayment of available-for-sale investment securities
450,303 608,578
Proceeds from repayment of held-to-maturity investment securities
384,951 338,358
Proceeds from repayment of loans purchased as held for investment 712,021 629,185
Proceeds from sale of real estate owned
— 725
Net cash used in investing activities ( 1,569,514 ) ( 345,878 )
Cash flows from financing activities:
Proceeds from issuance of notes payable
24,087,759 19,934,175
Payments to redeem notes payable
( 22,627,801 ) ( 19,419,950 )
Payments to third parties on debt securities of consolidated trusts ( 104,098 ) ( 67,501 )
Purchases of common stock
( 7,106 ) —
Proceeds from common stock issuance 60 79
Tax payments related to share-based awards ( 3,852 ) ( 4,960 )
Dividends paid on common and preferred stock ( 24,632 ) ( 22,018 )
Net cash provided by financing activities 1,320,330 419,825
Net change in cash and cash equivalents ( 157,132 ) 24,128
Cash, cash equivalents, and restricted cash at beginning of period
931,067 1,024,007
Cash, cash equivalents, and restricted cash at end of period
$ 773,935 $ 1,048,135
Non-cash activity:
Loans acquired through non-cash transactions
56,920 26,023
The accompanying notes are an integral part of these consolidated financial statements.
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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2025 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2025 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2025 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 19, 2026. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended March 31, 2026.
Principles of Consolidation
The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries: (1) Farmer Mac Mortgage Securities Corporation, whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, which operated substantially all of the business related to the USDA Securities included in the Agricultural Finance line of business from 2010 through 2023 and continues to hold a "run-off" portfolio of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary.
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 exclude 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.
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Table 1.1
Unconsolidated VIEs
As of March 31, 2026
As of December 31, 2025
Max Exposure
to Loss (1)
Carrying Value
of Assets (2)
Carrying Value of Liabilities (3)
Max Exposure
to Loss (1)
Carrying Value
of Assets (2)
Carrying Value of Liabilities (3)
(in thousands)
Farmer Mac Guaranteed Securities $ 454,899 $ 85,300 $ 4,876 $ 466,441 $ 85,791 $ 5,020
(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) Included in Investment securities, Guarantee and commitment fees receivable, and Prepaid expenses and other assets on our Consolidated Balance Sheets.
(3) Included in Guarantee and commitment obligation and Other liabilities on our Consolidated Balance Sheets. The weighted average remaining maturity of the loans underlying the guarantee was 20.4 years and 20.7 years as of March 31, 2026 and December 31, 2025, respectively.
(a) Earnings Per Common Share
Basic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding. Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock unit awards. The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2026 and 2025:
Table 1.2
For the Three Months Ended
March 31, 2026 March 31, 2025
Net
Income Weighted-Average Shares $ per
Share Net
Income Weighted-Average Shares $ per
Share
(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders $ 51,832 10,844 $ 4.78 $ 43,985 10,896 $ 4.04
Effect of dilutive securities (1)
SARs and restricted stock units
— 78 ( 0.03 ) — 87 ( 0.03 )
Diluted EPS $ 51,832 10,922 $ 4.75 $ 43,985 10,983 $ 4.01
(1) For the three months ended March 31, 2026 and 2025, SARs and restricted stock units of 40,723 and 58,539 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended March 31, 2026 and 2025, contingent shares of unvested restricted stock units of 10,962 and 29,507 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.
(b) Comprehensive Income
Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale ("AFS") securities, certain held-to-maturity ("HTM") securities transferred from the AFS classification, and cash flow hedges, net of related taxes.
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The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2026 and 2025.
Table 1.3
As of March 31, 2026 As of March 31, 2025
AFS Securities
HTM Securities
Cash Flow Hedges Total AFS Securities HTM Securities Cash Flow Hedges Total
(in thousands)
For the Three Months Ended:
Beginning Balance $ 2,811 $ ( 9,246 ) $ 19,817 $ 13,382 $ ( 37,575 ) $ ( 9,226 ) $ 34,654 $ ( 12,147 )
Other comprehensive (loss)/income before reclassifications
( 28,126 ) — 1,936 ( 26,190 ) 17,194 — ( 3,591 ) 13,603
Amounts reclassified from AOCI ( 2 ) ( 309 ) ( 1,952 ) ( 2,263 ) ( 3 ) ( 239 ) ( 3,022 ) ( 3,264 )
Net comprehensive (loss)/income
( 28,128 ) ( 309 ) ( 16 ) ( 28,453 ) 17,191 ( 239 ) ( 6,613 ) 10,339
Ending Balance $ ( 25,317 ) $ ( 9,555 ) $ 19,801 $ ( 15,071 ) $ ( 20,384 ) $ ( 9,465 ) $ 28,041 $ ( 1,808 )
The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2026 and 2025:
Table 1.4
For the Three Months Ended
March 31, 2026 March 31, 2025
Before Tax Provision (Benefit) After Tax Before Tax Provision
(Benefit)
After Tax
(in thousands)
Other comprehensive (loss)/ income:
AFS securities:
Unrealized holding (losses)/gains on AFS securities
$ ( 35,602 ) $ ( 7,476 ) $ ( 28,126 ) $ 21,766 $ 4,572 $ 17,194
Less reclassification adjustments included in:
Other income (1)
( 2 ) — ( 2 ) ( 4 ) ( 1 ) ( 3 )
Total $ ( 35,604 ) $ ( 7,476 ) $ ( 28,128 ) $ 21,762 $ 4,571 $ 17,191
HTM securities:
Less reclassification adjustments included in:
Net interest income (2)
$ ( 392 ) $ ( 83 ) $ ( 309 ) $ ( 303 ) $ ( 64 ) $ ( 239 )
Total $ ( 392 ) $ ( 83 ) $ ( 309 ) $ ( 303 ) $ ( 64 ) $ ( 239 )
Cash flow hedges
Unrealized gains/(losses) on cash flow hedges
$ 2,451 $ 515 $ 1,936 $ ( 4,546 ) $ ( 955 ) $ ( 3,591 )
Less reclassification adjustments included in:
Net interest income (3)
( 2,471 ) ( 519 ) ( 1,952 ) ( 3,825 ) ( 803 ) ( 3,022 )
Total $ ( 20 ) $ ( 4 ) $ ( 16 ) $ ( 8,371 ) $ ( 1,758 ) $ ( 6,613 )
Other comprehensive (loss)/income
$ ( 36,016 ) $ ( 7,563 ) $ ( 28,453 ) $ 13,088 $ 2,749 $ 10,339
(1) Represents amortization of deferred gains related to certain AFS USDA Securities and Farmer Mac Guaranteed USDA Securities.
(2) Represents amortization of unrealized gain/loss reported in AOCI prior to the reclassification of certain securities from AFS to HTM, which occurred at fair value. The unrealized gain/loss will be amortized over the securities' remaining life with no impact on future net income.
(3) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.
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(c) New Accounting Standards
Recently Adopted Accounting Guidance
Standard
Description
Date of Adoption
Effect on Consolidated Financial Statements
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.
January 1, 2026 Farmer Mac adopted the new standard on a prospective basis. The adoption of this amendment did not have a material impact on Farmer Mac's financial position, results of operations, or cash flows. See Note 3 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.
Standard
Description
ASU 2024-03 , Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
This Update requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted.
ASU 2025-06 , Intangibles - Goodwill and Other - Internal-use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
This 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 2025-11 , 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.
(d) Reclassifications
Certain reclassifications of prior period information were made to conform to the current period presentation. The reclassifications of prior period information were not material to the consolidated financial statements.
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2. INVESTMENT 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:
• U.S. Government guaranteed securities: single-family and multi-family mortgage-backed securities ("MBS") 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;
• Government-sponsored enterprise ("GSE") guaranteed securities: single-family and multi-family MBS issued by Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac). GSE securities are not guaranteed by the U.S. government;
• U.S. Treasury Obligations: sovereign debt issued by the United States of America.
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 loans.
• USDA Securities: securities backed by the guaranteed portion of a loan guaranteed by the USDA under the Consolidated Farm and Rural Development Act.
• Asset-backed Securities ("ABS"): consist of senior secured notes supported by cash flows from underlying operating rural infrastructure assets.
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The following tables set forth information about Farmer Mac's AFS and HTM investment securities as of March 31, 2026 and December 31, 2025:
Table 2.1
As of March 31, 2026
Amortized
Cost (1)
Allowance for losses (2)
Unrealized
Gains Unrealized
Losses Fair
Value
(in thousands)
AFS:
Government/GSE guaranteed MBS
$ 5,549,969 $ — $ 22,954 $ ( 96,089 ) $ 5,476,834
U.S. Treasuries
1,612,868 — 2,338 ( 2,416 ) 1,612,790
ABS
45,000 — — ( 414 ) 44,586
AgVantage 7,054,127 ( 138 ) 16,355 ( 241,585 ) 6,828,759
Interest-Only Farmer Mac Guaranteed Securities 7,879 — 274 — 8,153
Total AFS
$ 14,269,843 $ ( 138 ) $ 41,921 $ ( 340,504 ) $ 13,971,122
HTM:
Government/GSE guaranteed MBS
$ 8,497 $ — $ 204 $ — $ 8,701
AgVantage 1,723,852 ( 69 ) 11,616 ( 10,897 ) 1,724,502
USDA Securities 2,498,303 — 4,403 ( 180,040 ) 2,322,666
Total HTM
$ 4,230,652 $ ( 69 ) $ 16,223 $ ( 190,937 ) $ 4,055,869
(1) Excludes $ 98.1 million and $ 45.1 million of accrued interest receivable on AFS and HTM securities, respectively, as of March 31, 2026.
(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.
As of December 31, 2025
Amortized
Cost (1)
Allowance for losses (2)
Unrealized
Gains Unrealized
Losses Fair
Value
(in thousands)
AFS:
Government/GSE guaranteed MBS
$ 5,351,174 $ — $ 35,078 $ ( 89,234 ) $ 5,297,018
U.S. Treasuries 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 AFS
$ 13,813,551 $ ( 130 ) $ 71,380 $ ( 304,516 ) $ 13,580,285
HTM:
Government/GSE guaranteed MBS
$ 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 HTM
$ 3,954,300 $ ( 77 ) $ 22,576 $ ( 182,847 ) $ 3,793,952
(1) Excludes $ 91.3 million and $ 56.7 million of accrued interest receivable on AFS and HTM 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.
As of March 31, 2026 and December 31, 2025, to satisfy initial margin requirements for centrally cleared derivatives, Farmer Mac pledged U.S. Treasuries with fair value of $ 260.4 million and $ 250.6 million, respectively.
Farmer Mac did not sell any securities from its AFS or HTM investment portfolios during the three months ended March 31, 2026 and 2025.
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As of March 31, 2026 and December 31, 2025, unrealized losses on AFS investment securities were as follows:
Table 2.2
As of March 31, 2026
AFS Securities
Unrealized loss position for
less than 12 months Unrealized loss position for
more than 12 months
Fair Value Unrealized
Loss Fair Value Unrealized
Loss
(dollars in thousands)
Government/GSE guaranteed MBS
$ 1,134,042 $ ( 4,373 ) $ 2,242,621 $ ( 91,716 )
U.S. Treasuries
578,053 ( 2,304 ) 95,452 ( 112 )
ABS
44,586 ( 414 ) — —
AgVantage 2,681,993 ( 34,283 ) 2,956,448 ( 207,302 )
Total
$ 4,438,674 $ ( 41,374 ) $ 5,294,521 $ ( 299,130 )
As of December 31, 2025
AFS Securities
Unrealized loss position for
less than 12 months Unrealized loss position for
more than 12 months
Fair Value Unrealized
Loss Fair Value Unrealized
Loss
(dollars in thousands)
Government/GSE guaranteed MBS
$ 799,619 $ ( 4,695 ) $ 2,008,388 $ ( 84,539 )
U.S. Treasuries
29,902 ( 13 ) 95,270 ( 35 )
AgVantage 1,607,457 ( 18,768 ) 3,123,117 ( 196,466 )
Total $ 2,436,978 $ ( 23,476 ) $ 5,226,775 $ ( 281,040 )
The unrealized losses presented above are primarily due to changes in the levels of interest rates from the dates of acquisition to March 31, 2026 and December 31, 2025, as applicable.
The amortized cost, fair value, and weighted-average yield of AFS and HTM investment securities by remaining contractual maturity as of March 31, 2026 are set forth below. ABS and MBS are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.
Table 2.3
As of March 31, 2026
AFS Securities
Amortized
Cost (1)
Fair
Value
Weighted-Average
Yield
(dollars in thousands)
Due within one year $ 1,468,344 $ 1,461,445 3.41 %
Due after one year through five years 6,990,803 6,941,541 4.04 %
Due after five years through ten years 3,558,256 3,418,984 3.54 %
Due after ten years 2,252,440 2,149,152 4.10 %
Total $ 14,269,843 $ 13,971,122 3.88 %
(1) Excludes $ 98.1 million of accrued interest receivable.
14
As of March 31, 2026
HTM Securities
Amortized
Cost (1)
Fair
Value
Weighted-Average
Yield
(dollars in thousands)
Due within one year $ 370,746 $ 378,214 3.80 %
Due after one year through five years 690,848 678,072 4.20 %
Due after five years through ten years 499,918 466,587 4.03 %
Due after ten years 2,669,140 2,532,996 4.23 %
Total $ 4,230,652 $ 4,055,869 4.16 %
(1) Excludes $ 45.1 million of accrued interest receivable.
3. FINANCIAL DERIVATIVES
The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements. The table below includes accrued interest on cleared swaps, but excludes $ 32.9 million and $ 24.2 million of accrued interest receivable and $ 1.8 million and $ 2.4 million of accrued interest payable on uncleared swaps as of March 31, 2026 and December 31, 2025, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the consolidated balance sheets.
Table 3.1
As of March 31, 2026
Fair Value Weighted-
Average
Pay Rate Weighted-
Average Receive Rate Weighted-
Average
Forward
Price Weighted-
Average
Remaining
Term (in years)
Notional Amount Asset (Liability)
(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable $ 6,235,735 $ 1,608 $ ( 1,118 ) 3.89 % 3.54 % 1.00
Pay fixed non-callable 11,068,510 880 ( 6,843 ) 2.84 % 3.73 % 8.43
Receive fixed callable 6,602,663 6,018 ( 40,619 ) 3.77 % 3.84 % 3.47
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable 440,000 8,723 ( 197 ) 1.90 % 4.12 % 2.84
No hedge designation:
Interest rate swaps:
Pay fixed non-callable 153,384 448 ( 80 ) 2.89 % 3.94 % 3.50
Receive fixed non-callable 1,639,902 125 ( 1 ) 3.72 % 3.83 % 0.35
Basis swaps 382,811 — ( 164 ) 3.94 % 3.86 % 4.78
Treasury futures 60,600 304 ( 93 ) 111.40
Netting adjustments (1)
— ( 2,625 ) 2,625
Total financial derivatives $ 26,583,605 $ 15,481 $ ( 46,490 )
(1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.
15
As of December 31, 2025
Fair Value Weighted-
Average
Pay Rate Weighted-
Average Receive Rate Weighted-
Average
Forward
Price Weighted-
Average
Remaining
Term (in years)
Notional Amount Asset (Liability)
(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable $ 6,388,935 $ 330 $ ( 2,954 ) 4.08 % 3.56 % 1.12
Pay fixed non-callable 10,681,418 16,685 ( 168 ) 2.79 % 3.93 % 8.66
Receive fixed callable 5,446,883 19,322 ( 19,911 ) 3.96 % 3.73 % 3.14
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable 452,000 9,335 ( 1 ) 1.92 % 4.22 % 3.00
No hedge designation:
Interest rate swaps:
Pay fixed non-callable 159,684 613 ( 1 ) 2.88 % 4.13 % 3.61
Receive fixed non-callable 1,963,363 66 ( 9 ) 3.89 % 3.93 % 0.28
Basis swaps 382,811 1 ( 190 ) 4.13 % 3.89 % 5.03
Treasury futures 102,000 154 ( 15 ) 112.57
Netting adjustments (1)
— ( 1,631 ) 1,631
Total financial derivatives $ 25,577,094 $ 44,875 $ ( 21,618 )
(1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.
As of March 31, 2026, Farmer Mac expects to reclassify $ 6.9 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after March 31, 2026.
16
The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the three months ended March 31, 2026, and 2025:
Table 3.2
For the Three Months Ended March 31, 2026
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
Net Interest Income Non-Interest Income Total
Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Gains/(losses) on financial derivatives
(in thousands)
Total amounts presented in the Consolidated Statement of Operations
$ 203,409 $ 212,552 $ ( 314,565 ) $ 1,140 $ 102,536
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives 16,566 8,116 ( 4,692 ) — 19,990
Recognized on hedged items 75,184 24,882 ( 110,730 ) — ( 10,664 )
Premium/discount amortization recognized on hedged items 609 — ( 697 ) — ( 88 )
Income/(expense) related to interest settlements on fair value hedging relationships $ 92,359 $ 32,998 $ ( 116,119 ) $ — $ 9,238
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives $ 29,472 $ 2,084 $ ( 47,087 ) $ — $ ( 15,531 )
Recognized on hedged items ( 29,888 ) ( 2,133 ) 47,914 — 15,893
(Losses)/gains on fair value hedging relationships
$ ( 416 ) $ ( 49 ) $ 827 $ — $ 362
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 2,471 $ — $ 2,471
Recognized on hedged items — — ( 4,612 ) — ( 4,612 )
Discount amortization recognized on hedged items — — ( 25 ) — ( 25 )
Expense recognized on cash flow hedges $ — $ — $ ( 2,166 ) $ — $ ( 2,166 )
Gains/(losses) on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps
$ — $ — $ — $ ( 961 ) $ ( 961 )
Interest expense on interest rate swaps — — — 969 969
Treasury futures — — — 1,132 1,132
Gains/(losses) on financial derivatives not designated in hedge relationships
$ — $ — $ — $ 1,140 $ 1,140
17
For the Three Months Ended March 31, 2025
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
Net Interest Income Non-Interest Income Total
Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Losses on financial derivatives
(in thousands)
Total amounts presented in the Consolidated Statement of Operations: $ 209,650 $ 171,764 $ ( 290,475 ) $ ( 2,636 ) $ 88,303
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives 29,144 12,386 ( 28,494 ) — 13,036
Recognized on hedged items 69,001 18,968 ( 103,878 ) — ( 15,909 )
Premium/discount amortization recognized on hedged items 431 — ( 660 ) — ( 229 )
Income/(expense) related to interest settlements on fair value hedging relationships $ 98,576 $ 31,354 $ ( 133,032 ) $ — $ ( 3,102 )
(Losses)/gains on fair value hedging relationships:
Recognized on derivatives $ ( 116,494 ) $ ( 44,554 ) $ 75,600 $ — $ ( 85,448 )
Recognized on hedged items 115,995 44,981 ( 74,429 ) — 86,547
(Losses)/gains on fair value hedging relationships
$ ( 499 ) $ 427 $ 1,171 $ — $ 1,099
Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 3,825 $ — $ 3,825
Recognized on hedged items — — ( 6,345 ) — ( 6,345 )
Discount amortization recognized on hedged items — — — — —
Expense recognized on cash flow hedges $ — $ — $ ( 2,520 ) $ — $ ( 2,520 )
Losses on financial derivatives not designated in hedge relationships:
Losses on interest rate swaps
$ — $ — $ — $ ( 2,703 ) $ ( 2,703 )
Interest expense on interest rate swaps — — — 318 318
Treasury futures — — — ( 251 ) ( 251 )
Losses on financial derivatives not designated in hedge relationships
$ — $ — $ — $ ( 2,636 ) $ ( 2,636 )
18
The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2026 and December 31, 2025:
Table 3.3
Hedged Items in Fair Value Relationship
Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025
(in thousands)
Investment securities, Available-for-Sale, at fair value (1)
$ 7,999,738 $ 7,818,278 $ ( 265,878 ) $ ( 235,989 )
Loans held for investment, at amortized cost 2,427,133 2,278,212 ( 333,449 ) ( 331,315 )
Notes Payable (2)
( 12,641,440 ) ( 11,837,713 ) 41,224 ( 6,690 )
(1) Amortized cost of $ 8.3 billion and $ 8.0 billion as of March 31, 2026 and December 31, 2025, respectively.
(2) Carrying amount represents amortized cost.
The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of March 31, 2026 and December 31, 2025:
Table 3.4
March 31, 2026
Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1)
Gross Amounts Not Offset in the Consolidated Balance Sheet
Netting Adjustments Financial instruments pledged Cash Collateral
Net Amount (2)
(in thousands)
Assets:
Uncleared derivatives $ 15,481 $ — $ 15,481 $ ( 15,178 ) $ — $ — $ 303
Cleared derivatives 2,625 ( 2,625 ) — — — — —
Total $ 18,106 $ ( 2,625 ) $ 15,481 $ ( 15,178 ) $ — $ — $ 303
Liabilities:
Uncleared derivatives $ ( 38,833 ) $ — $ ( 38,833 ) $ 15,178 $ — $ 7,068 $ ( 16,587 )
Cleared derivatives ( 7,136 ) 2,625 ( 4,511 ) — 4,511 — —
Total $ ( 45,969 ) $ 2,625 $ ( 43,344 ) $ 15,178 $ 4,511 $ 7,068 $ ( 16,587 )
(1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.
(2) Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of March 31, 2026, Farmer Mac had additional net exposure of $ 255.9 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 8.6 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.
19
December 31, 2025
Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1)
Gross Amounts Not Offset in the Consolidated Balance Sheet
Netting Adjustments Financial instruments pledged Cash Collateral Net Amount (2)
(in thousands)
Assets:
Uncleared derivatives $ 29,179 $ — $ 29,179 $ ( 15,601 ) $ — $ ( 11,684 ) $ 1,894
Cleared derivatives 17,242 ( 1,631 ) 15,611 — ( 15,611 ) — —
Total $ 46,421 $ ( 1,631 ) $ 44,790 $ ( 15,601 ) $ ( 15,611 ) $ ( 11,684 ) $ 1,894
Liabilities:
Uncleared derivatives $ ( 21,512 ) $ — $ ( 21,512 ) $ 15,601 $ — $ 2,093 $ ( 3,818 )
Cleared derivatives ( 1,631 ) 1,631 — — — — —
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. As of December 31, 2025, Farmer Mac had additional net exposure of $ 235.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 16.9 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.
Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the Consolidated Balance Sheets. If Farmer Mac had breached certain provisions of the derivative contracts as of March 31, 2026 or December 31, 2025, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral. As of March 31, 2026 and December 31, 2025, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.
Of Farmer Mac's $ 26.5 billion notional amount of interest rate swaps outstanding as of March 31, 2026, $ 19.2 billion were cleared through 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 the CME.
4. LOANS
Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance. 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 displays the composition of the loan balances as of March 31, 2026 and December 31, 2025:
20
Table 4.1
As of March 31, 2026 As of December 31, 2025
Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total
(in thousands)
Agricultural Finance loans
Farm & Ranch $ 6,477,745 $ 2,391,027 $ 8,868,772 $ 6,002,738 $ 2,482,010 $ 8,484,748
Corporate AgFinance 1,502,771 — 1,502,771 1,460,691 — 1,460,691
Total Agricultural Finance loans 7,980,516 2,391,027 10,371,543 7,463,429 2,482,010 9,945,439
Infrastructure Finance loans 7,234,015 — 7,234,015 6,761,081 — 6,761,081
Total unpaid principal balance (1)
15,214,531 2,391,027 17,605,558 14,224,510 2,482,010 16,706,520
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments ( 354,003 ) — ( 354,003 ) ( 347,459 ) — ( 347,459 )
Total loans 14,860,528 2,391,027 17,251,555 13,877,051 2,482,010 16,359,061
Allowance for losses ( 38,274 ) ( 1,646 ) ( 39,920 ) ( 36,673 ) ( 1,112 ) ( 37,785 )
Total loans, net of allowance $ 14,822,254 $ 2,389,381 $ 17,211,635 $ 13,840,378 $ 2,480,898 $ 16,321,276
(1) Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.
Allowance for Losses
The following table is a summary, by asset type, of the allowance for losses as of March 31, 2026 and December 31, 2025:
Table 4.2
March 31, 2026 December 31, 2025
Allowance for Losses Allowance for Losses
(in thousands)
Loans:
Agricultural Finance loans
Farm & Ranch $ 12,324 $ 9,400
Corporate AgFinance 6,421 6,631
Infrastructure Finance loans 21,175 21,754
Total $ 39,920 $ 37,785
21
The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2026 and 2025:
Table 4.3
For the Three Months Ended
March 31, 2026 March 31, 2025
Agricultural Finance loans Infrastructure
Finance loans (3)
Total Agricultural Finance loans Infrastructure
Finance loans (3)
Total
Farm & Ranch (1)
Corporate AgFinance (2)
Farm & Ranch (1)
Corporate AgFinance (2)
(in thousands)
For the Three Months Ended
Beginning Balance $ 9,400 $ 6,631 $ 21,754 $ 37,785 $ 5,132 $ 5,379 $ 12,712 $ 23,223
Provision for losses
2,924 1,965 ( 579 ) 4,310 ( 61 ) 836 975 1,750
Charge-offs — ( 2,175 ) — ( 2,175 ) — — — —
Recovery
— — — — — 83 — 83
Ending Balance $ 12,324 $ 6,421 $ 21,175 $ 39,920 $ 5,071 $ 6,298 $ 13,687 $ 25,056
(1) As of March 31, 2026 and 2025, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 3.1 million and $ 0.7 million allowance for collateral dependent assets ("CDA") secured by agricultural real estate, respectively.
(2) As of March 31, 2026 and 2025 the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $ 0.0 million and $ 1.0 million allowance for CDA secured by agricultural real estate, respectively.
(3) As of March 31, 2026 and 2025 the allowance for losses for Infrastructure Finance loans includes $ 5.2 million and $ 0.0 million allowance for CDA.
The $ 4.3 million provision to the allowance during the three months ended March 31, 2026 is primarily attributed to new volume growth across all of our segments and portfolio credit migration.
The $ 0.8 million and $ 1.0 million net provision to the allowance for the Agricultural Finance mortgage loan and Infrastructure Finance loan portfolios during the three months ended March 31, 2025 was primarily attributable to net new business volume.
The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans as of March 31, 2026 and December 31, 2025:
Table 4.4
As of March 31, 2026
Accruing
Current 30-59 Days 60-89 Days 90 Days and Greater
Total Past Due Nonaccrual Loans (2)(3)
Total Loans
(in thousands)
Loans (1) :
Agricultural Finance loans
Farm & Ranch $ 8,606,022 $ 19,446 $ 7,915 $ 15,278 $ 42,639 $ 220,111 $ 8,868,772
Corporate AgFinance 1,466,153 8,911 — — 8,911 27,707 1,502,771
Total Agricultural Finance loans 10,072,175 28,357 7,915 15,278 51,550 247,818 10,371,543
Infrastructure Finance loans 7,220,628 — — — — 13,387 7,234,015
Total $ 17,292,803 $ 28,357 $ 7,915 $ 15,278 $ 51,550 $ 261,205 $ 17,605,558
(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 $ 58.6 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2026, Farmer Mac received $ 3.6 million in interest on nonaccrual loans.
22
As of December 31, 2025
Accruing
Current 30-59 Days 60-89 Days 90 Days and Greater
Total Past Due Nonaccrual Loans (2)(3)
Total Loans
(in thousands)
Loans (1) :
Agricultural Finance loans
Farm & Ranch $ 8,271,176 $ 21,209 $ 8,595 $ 4,290 $ 34,094 $ 179,478 $ 8,484,748
Corporate AgFinance 1,415,507 — — — — 45,184 1,460,691
Total Agricultural Finance loans 9,686,683 21,209 8,595 4,290 34,094 224,662 9,945,439
Infrastructure Finance loans 6,747,694 — — — — 13,387 6,761,081
Total $ 16,434,377 $ 21,209 $ 8,595 $ 4,290 $ 34,094 $ 238,049 $ 16,706,520
(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 $ 59.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2025, Farmer Mac received $ 6.5 million in interest on nonaccrual loans.
Credit Quality Indicators
The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of March 31, 2026 and December 31, 2025, by year of origination:
Table 4.5
As of March 31, 2026
Year of Origination:
2026 2025 2024 2023 2022 Prior Revolving Loans - Amortized Cost Basis Total
(in thousands)
Agricultural Finance - Farm & Ranch loans (1) :
Internally Assigned Risk Rating:
Acceptable $ 614,883 $ 1,425,067 $ 880,088 $ 428,061 $ 882,480 $ 3,260,764 $ 410,705 $ 7,902,048
Special mention (2)
46,642 259,679 74,417 17,887 31,090 73,861 13,715 517,291
Substandard (3)
756 36,245 66,566 50,700 76,254 185,449 33,463 449,433
Total $ 662,281 $ 1,720,991 $ 1,021,071 $ 496,648 $ 989,824 $ 3,520,074 $ 457,883 $ 8,868,772
For the Three Months Ended March 31, 2026:
Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —
(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.
(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
23
As of March 31, 2026
Year of Origination:
2026 2025 2024 2023 2022 Prior Revolving Loans - Amortized Cost Basis Total
(in thousands)
Agricultural Finance - Corporate AgFinance (1) :
Internally Assigned Risk Rating:
Acceptable $ 61,448 $ 338,161 $ 167,699 $ 93,446 $ 57,801 $ 371,871 $ 248,132 $ 1,338,558
Special mention (2)
— — 16,158 7,272 — 26,373 30,151 79,954
Substandard (3)
— — — 28,797 — 43,045 12,417 84,259
Total $ 61,448 $ 338,161 $ 183,857 $ 129,515 $ 57,801 $ 441,289 $ 290,700 $ 1,502,771
For the Three Months Ended March 31, 2026:
Current period charge-offs $ — $ — $ — $ — $ — $ 1,828 $ 347 $ 2,175
(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.
(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of March 31, 2026
Year of Origination:
2026 2025 2024 2023 2022 Prior Revolving Loans - Amortized Cost Basis Total
(in thousands)
Infrastructure Finance loans (1) :
Internally Assigned Risk Rating:
Acceptable $ 397,335 $ 1,815,223 $ 1,235,560 $ 569,018 $ 443,555 $ 1,812,200 $ 831,547 $ 7,104,438
Special mention (2)
— — — 18,863 53,433 647 — 72,943
Substandard (3)
— — — 27,867 28,767 — — 56,634
Total $ 397,335 $ 1,815,223 $ 1,235,560 $ 615,748 $ 525,755 $ 1,812,847 $ 831,547 $ 7,234,015
For the Three Months Ended March 31, 2026:
Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —
(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.
(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
24
As of December 31, 2025
Year of Origination:
2025 2024 2023 2022 2021 Prior Revolving Loans - Amortized Cost Basis Total
(in thousands)
Agricultural Finance - Farm & Ranch loans (1) :
Internally Assigned Risk Rating:
Acceptable $ 1,474,950 $ 938,955 $ 451,188 $ 921,048 $ 1,447,158 $ 1,964,423 $ 418,798 $ 7,616,520
Special mention (2)
260,579 95,950 28,693 37,269 25,928 35,505 22,958 506,882
Substandard (3)
17,583 40,618 35,538 71,201 33,835 140,445 22,126 361,346
Total $ 1,753,112 $ 1,075,523 $ 515,419 $ 1,029,518 $ 1,506,921 $ 2,140,373 $ 463,882 $ 8,484,748
For the Three Months Ended March 31, 2025:
Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —
(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.
(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
As of December 31, 2025
Year of Origination:
2025 2024 2023 2022 2021 Prior Revolving Loans - Amortized Cost Basis Total
(in thousands)
Agricultural Finance - Corporate AgFinance loans (1) :
Internally Assigned Risk Rating:
Acceptable $ 364,140 $ 177,260 $ 120,428 $ 58,073 $ 131,421 $ 232,710 $ 212,487 $ 1,296,519
Special mention (2)
— 16,514 7,273 — — 45,753 17,954 87,494
Substandard (3)
— — 5,658 — 9,870 41,933 19,217 76,678
Total $ 364,140 $ 193,774 $ 133,359 $ 58,073 $ 141,291 $ 320,396 $ 249,658 $ 1,460,691
For the Three Months Ended March 31, 2025:
Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —
(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.
(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
25
As of December 31, 2025
Year of Origination:
2025 2024 2023 2022 2021 Prior Revolving Loans - Amortized Cost Basis Total
(in thousands)
Infrastructure Finance loans (1) :
Internally Assigned Risk Rating:
Acceptable $ 1,652,127 $ 1,238,560 $ 578,518 $ 488,572 $ 175,962 $ 1,668,596 $ 829,382 $ 6,631,717
Special mention (2)
— — 18,863 37,244 — — — $ 56,107
Substandard (3)
— — 27,903 45,354 — — — $ 73,257
Total $ 1,652,127 $ 1,238,560 $ 625,284 $ 571,170 $ 175,962 $ 1,668,596 $ 829,382 $ 6,761,081
For the Three Months Ended March 31, 2025:
Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ —
(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.
(2) Special mention assets generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.
(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
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 three months ended March 31, 2026 and 2025, within Agricultural Finance - Farm & Ranch loans, Farmer Mac modified loans to borrowers experiencing financial difficulty with aggregate unpaid principal balances of $ 18.1 million and $ 6.7 million, respectively. These amounts represented approximately 0.20 % and 0.09 % 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 three months ended March 31, 2026 and 2025.
During the three months ended March 31, 2026, 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 0.18 % of the Infrastructure Finance loans portfolio. There were no modifications to borrowers experiencing financial difficulty within the Infrastructure Finance loans portfolio during the three months ended March 31, 2025.
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5. GUARANTEES AND COMMITMENTS
Farmer Mac has recorded a liability for its obligation to stand ready under Farmer Mac's long-term standby purchase commitments ("LTSPCs") in the guarantee and commitment obligation on the consolidated balance sheets. The following table presents Farmer Mac's liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs (excluding offsets from recourse provisions, third-party recoveries, or loan collateral), the weighted-average remaining maturity of loans underlying LTSPCs, and the amount of the reserve for losses for the periods indicated:
Table 5.1
As of March 31, 2026 As of December 31, 2025
(dollars in thousands)
Guarantee and commitment obligation
$ 49,327 $ 49,750
Maximum principal amount 5,158,838 4,997,829
Weighted-average remaining maturity 14.4 years 14.4 years
Reserve for losses 1,571 1,586
6. NOTES PAYABLE
Farmer Mac's borrowings consist of discount notes and medium-term notes, both of which are unsecured general obligations of Farmer Mac. Discount notes generally have original maturities of 1 year or less, whereas medium-term notes generally have original maturities of 0.5 years to 25.0 years.
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The following tables set forth information related to Farmer Mac's borrowings as of March 31, 2026 and December 31, 2025:
Table 6.1
March 31, 2026
Outstanding as of March 31
Average Outstanding During the Quarter
Amount Weighted- Average Rate Amount Weighted- Average Rate
(dollars in thousands)
Due within one year:
Discount notes $ 2,064,121 3.78 % $ 2,275,725 3.78 %
Medium-term notes 2,640,399 3.84 % 2,731,521 3.86 %
Current portion of medium-term notes 6,798,600 3.00 %
Total due within one year $ 11,503,120 3.33 %
Due after one year:
Medium-term notes due in:
Two years $ 6,207,456 3.71 %
Three years 3,807,152 3.94 %
Four years 3,379,599 4.15 %
Five years 5,242,070 3.60 %
Thereafter 2,138,135 3.04 %
Total due after one year $ 20,774,412 3.73 %
Total principal net of discounts $ 32,277,532 3.59 %
Hedging adjustments ( 41,224 )
Total $ 32,236,308
December 31, 2025
Outstanding as of December 31 Average Outstanding During the Year
Amount Weighted- Average Rate Amount Weighted- Average Rate
(dollars in thousands)
Due within one year:
Discount notes $ 2,614,571 3.87 % $ 1,854,488 4.22 %
Medium-term notes 2,822,454 4.02 % 2,901,863 4.35 %
Current portion of medium-term notes 5,834,657 2.77 %
Total due within one year $ 11,271,682 3.34 %
Due after one year:
Medium-term notes due in:
Two years $ 6,641,397 3.65 %
Three years 3,740,471 3.97 %
Four years 2,836,656 4.24 %
Five years 3,889,804 3.71 %
Thereafter 2,435,870 2.88 %
Total due after one year $ 19,544,198 3.71 %
Total principal net of discounts $ 30,815,880 3.58 %
Hedging adjustments 6,690
Total $ 30,822,570
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The maximum amount of Farmer Mac's discount notes outstanding at any month end during the three months ended March 31, 2026 and 2025 was $ 2.2 billion and $ 2.1 billion, respectively.
Callable medium‑term notes give Farmer Mac the option to redeem the debt at par value on specified call dates or, depending on the instrument, periodically on or after a specified call date. The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2026 as of March 31, 2026:
Table 6.2
Debt Callable in 2026 as of March 31, 2026, by Maturity
Amount Weighted-Average Rate
(dollars in thousands)
Maturity:
2027 $ 933,756 2.64 %
2028 1,241,374 3.95 %
2029 1,324,124 4.42 %
2030 1,220,984 3.00 %
Thereafter 1,504,548 2.64 %
Total $ 6,224,786 3.35 %
The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2026, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:
Table 6.3
Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding
Amount Weighted-Average Rate
(dollars in thousands)
Debt with interest rate resets, or debt maturities in:
2026 $ 13,199,515 3.51 %
2027 4,645,344 3.40 %
2028 3,417,858 3.92 %
2029 2,970,135 4.14 %
2030 4,088,892 3.67 %
Thereafter 3,955,788 3.28 %
Total principal net of discounts $ 32,277,532 3.59 %
During the three months ended March 31, 2026 and 2025, Farmer Mac called $ 843.1 million and $ 488.5 million of callable medium-term notes, respectively.
Authority to Borrow from the U.S. Treasury
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. Treasury. Any funds borrowed from the U.S. 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:
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• 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; and
• 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. Treasury within a reasonable time. As of March 31, 2026, Farmer Mac had not used this borrowing authority.
7. EQUITY
Common Stock
During the first quarter 2026, Farmer Mac paid a quarterly dividend of $ 1.60 per share on all classes of its common stock. For each quarter in 2025, Farmer Mac paid a quarterly dividend of $ 1.50 per share on all classes of its common stock.
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 first quarter 2026, Farmer Mac repurchased 47,319 shares of Class C non-voting common stock at a cost of approximately $ 7.1 million. As of March 31, 2026, $ 30.0 million remain available for repurchase under the program.
Capital Requirements
Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both March 31, 2026 and December 31, 2025, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements.
As of March 31, 2026, Farmer Mac's minimum capital requirement was $ 1.1 billion and its core capital level was $ 1.7 billion, which was $ 663.2 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.
In accordance with a rule of the Farm Credit Administration ("FCA") on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds.
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8. FAIR VALUE DISCLOSURES
Fair Value Classification and Transfers
The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:
Table 8.1
Assets and Liabilities Measured at Fair Value as of March 31, 2026
Level 1 Level 2 Level 3 (1)
Total
(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
Government/GSE guaranteed MBS
$ — $ 5,476,834 $ — $ 5,476,834
U.S. Treasuries
1,612,790 — — 1,612,790
ABS
— — 44,586 44,586
AgVantage — — 6,828,759 6,828,759
Interest-Only Farmer Mac Guaranteed Securities
— — 8,153 8,153
Total AFS Investment Securities
1,612,790 5,476,834 6,881,498 13,971,122
Financial derivatives 304 15,177 — 15,481
Other Assets (2)
— — 4,867 4,867
Total Assets at fair value $ 1,613,094 $ 5,492,011 $ 6,886,365 $ 13,991,470
Liabilities:
Financial derivatives $ 93 $ 46,397 $ — $ 46,490
Total Liabilities at fair value $ 93 $ 46,397 $ — $ 46,490
(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, 2025
Level 1 Level 2 Level 3 (1)
Total
(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
Government/GSE guaranteed MBS
$ — $ 5,297,018 $ — $ 5,297,018
U.S. Treasuries
1,544,147 — — 1,544,147
AgVantage — — 6,730,917 6,730,917
Interest-Only Farmer Mac Guaranteed Securities
— — 8,203 8,203
Total AFS Investment Securities
1,544,147 5,297,018 6,739,120 13,580,285
Financial derivatives 154 44,721 — 44,875
Other Assets (2)
— — 4,897 4,897
Total Assets at fair value $ 1,544,301 $ 5,341,739 $ 6,744,017 $ 13,630,057
Liabilities:
Financial derivatives $ 15 $ 21,603 $ — $ 21,618
Total Liabilities at fair value $ 15 $ 21,603 $ — $ 21,618
(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.
There were no material assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2026 or December 31, 2025.
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Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the three months ended March 31, 2026 and 2025, there were no transfers within the fair value hierarchy.
The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three months ended March 31, 2026 and 2025.
Table 8.2
Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended March 31, 2026
Beginning Balance Purchases Settlements Allowance for Losses Realized and
unrealized (losses)/gains included in Income
Unrealized (losses)/gains
included in Other
Comprehensive
Income
Ending Balance
(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
ABS
$ — $ 45,000 $ — $ — $ ( 18 ) $ ( 396 ) $ 44,586
AgVantage
6,730,917 350,000 ( 213,096 ) ( 8 ) ( 21,495 ) ( 17,559 ) 6,828,759
Interest-Only Farmer Mac Guaranteed Securities
8,203 — ( 160 ) — — 110 8,153
Total AFS
6,739,120 395,000 ( 213,256 ) ( 8 ) ( 21,513 ) ( 17,845 ) 6,881,498
Other Assets 4,897 — ( 83 ) — 53 — 4,867
Total Assets at fair value $ 6,744,017 $ 395,000 $ ( 213,339 ) $ ( 8 ) $ ( 21,460 ) $ ( 17,845 ) $ 6,886,365
Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended March 31, 2025
Beginning Balance Purchases Settlements Allowance for Losses Realized and
unrealized gains included
in Income
Unrealized (losses)/gains
included in Other
Comprehensive
Income
Ending Balance
(in thousands)
Recurring:
Assets:
Investment Securities:
AFS:
Auction-rate certificates backed by Government guaranteed student loans
$ 19,476 $ — $ — $ — $ — $ ( 123 ) $ 19,353
AgVantage 5,505,531 300,000 ( 275,854 ) 50 82,066 2,719 5,614,512
Interest-Only Farmer Mac Guaranteed Securities
9,015 — ( 174 ) — — 31 8,872
Total AFS
5,534,022 300,000 ( 276,028 ) 50 82,066 2,627 5,642,737
Other Assets 5,382 — ( 86 ) — 1 — 5,297
Total Assets at fair value $ 5,539,404 $ 300,000 $ ( 276,114 ) $ 50 $ 82,067 $ 2,627 $ 5,648,034
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The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2026 and December 31, 2025:
Table 8.3
As of March 31, 2026
Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average)
(in thousands)
Assets:
Investment securities:
ABS
$ 44,586 Discounted cash flow Discount rate 7.6 % - 7.6 % ( 7.6 %)
AgVantage $ 6,828,759 Discounted cash flow Discount rate 4.5 % - 7.8 % ( 4.7 %)
Interest-Only Farmer Mac Guaranteed Securities $ 8,153 Discounted cash flow Discount rate 7.4 %
CPR 3 %
Other Assets $ 4,867 Discounted cash flow Discount rate 7.4 %
CPR 3 %
As of December 31, 2025
Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average)
(in thousands)
Assets:
Investment securities:
AgVantage $ 6,730,917 Discounted cash flow Discount rate 4.3 % - 4.9 % ( 4.5 %)
Interest-Only Farmer Mac Guaranteed Securities $ 8,203 Discounted cash flow Discount rate 7.8 %
CPR 3 %
Other Assets $ 4,897 Discounted cash flow Discount rate 7.8 %
CPR 3 %
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Disclosures on Fair Value of Financial Instruments
The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2026 and December 31, 2025:
Table 8.4
As of March 31, 2026
Carrying Value
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Estimated Fair Value
(in thousands)
Financial Assets:
Cash and cash equivalents $ 773,935 $ 773,935 $ — $ — $ 773,935
Investment securities
18,218,995 1,612,790 5,476,834 10,954,657 18,044,281
Loans
17,211,635 — — 17,229,987 17,229,987
Financial derivatives
15,481 304 15,177 — 15,481
Guarantee and commitment fees receivable 56,941 — — 62,487 62,487
Financial liabilities:
Notes payable 32,236,308 — — 31,829,907 31,829,907
Debt securities of consolidated trusts held by third parties 2,275,001 — — 2,323,479 2,323,479
Financial derivatives 46,490 93 46,397 — 46,490
Guarantee and commitment obligations 54,201 — — 59,748 59,748
As of December 31, 2025
Carrying Value
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Estimated Fair Value
(in thousands)
Financial Assets:
Cash and cash equivalents $ 931,067 $ 931,067 — — $ 931,067
Investment securities
17,550,379 1,544,147 5,297,018 10,548,943 17,390,108
Loans
16,321,276 — — 16,342,149 16,342,149
Financial derivatives
44,875 154 44,721 — 44,875
Guarantee and commitment fees receivable 57,214 — — 63,677 63,677
Financial liabilities:
Notes payable 30,822,570 — — 30,489,417 30,489,417
Debt securities of consolidated trusts held by third parties 2,365,435 — — 2,420,149 2,420,149
Financial derivatives 21,618 15 21,603 — 21,618
Guarantee and commitment obligations 54,770 — — 61,234 61,234
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9. BUSINESS SEGMENT REPORTING
The following table presents Farmer Mac's seven segments:
Agricultural Finance Infrastructure Finance Treasury
Farm & Ranch Corporate AgFinance Power & Utilities Broadband Infrastructure Renewable Energy Funding Investments
The Chief Executive Officer serves as the Chief Operating Decision Maker ("CODM"). The CODM reviews segment core earnings to make decisions about allocating resources and to assess the financial performance of the segments. The main difference between core earnings and net income is the exclusion of the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Another difference is that core earnings excludes specified infrequent or unusual transactions that are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. The CODM also looks at changes in the segments' on- and off-balance sheet unpaid principal balances to assess the performance of the segments.
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The following tables present segment core earnings and assets for the three months ended March 31, 2026 and 2025.
Table 9.1
Core Earnings by Business Segment
For the Three Months Ended March 31, 2026
Agricultural Finance Infrastructure Finance Treasury
Farm & Ranch Corporate AgFinance Power &
Utilities
Broadband Infrastructure
Renewable Energy Funding Investments Total
(in thousands)
Interest income
$ 168,992 $ 25,169 $ 73,864 $ 16,124 $ 31,959 $ 19,203 $ 80,650 $ 415,961
Interest expense (1)
( 130,391 ) ( 16,230 ) ( 67,330 ) ( 10,296 ) ( 22,880 ) 12,112 ( 79,550 ) ( 314,565 )
Less: reconciling adjustments (2)(3)
( 928 ) — ( 43 ) — — 1,332 242 603
Net effective spread 37,673 8,939 6,491 5,828 9,079 32,647 1,342 101,999
Guarantee and commitment fees (3)
4,952 267 200 875 421 — — 6,715
Other income/(expense)
875 — — ( 56 ) — — — 819
(Provision for)/release of losses
( 2,859 ) ( 2,020 ) 61 47 ( 56 ) — — ( 4,827 )
Operating expenses (1)
( 8,165 ) ( 2,480 ) ( 1,097 ) ( 1,705 ) ( 1,890 ) ( 2,422 ) ( 824 ) ( 18,583 )
Income tax expense
( 6,620 ) ( 988 ) ( 1,188 ) ( 1,048 ) ( 1,586 ) ( 6,347 ) ( 109 ) ( 17,886 )
Segment core earnings
$ 25,856 $ 3,718 $ 4,467 $ 3,941 $ 5,968 $ 23,878 $ 409 $ 68,237
Reconciliation to net income:
Net effects of derivatives and trading securities
$ 71
Unallocated (expenses)/income
( 14,759 )
Income tax effect related to reconciling items 5,574
Net income
$ 59,123
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$ 20,240,198 $ 2,052,309 $ 7,975,632 $ 1,690,148 $ 2,887,767 $ — $ — $ 34,846,054
Off-balance sheet assets under management
( 5,902,319 )
Unallocated assets
7,785,511
Total assets on the Consolidated Balance Sheets
$ 36,729,246
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
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Core Earnings by Business Segment
For the Three Months Ended March 31, 2025
Agricultural Finance Infrastructure Finance Treasury
Farm & Ranch Corporate AgFinance Power &
Utilities Broadband Infrastructure Renewable Energy Funding Investments Total
(in thousands)
Interest income
$ 149,681 $ 25,122 $ 64,995 $ 10,833 $ 20,315 $ 32,978 $ 77,490 $ 381,414
Interest expense (1)
( 114,789 ) ( 16,482 ) ( 59,638 ) ( 7,267 ) ( 15,203 ) ( 1,460 ) ( 75,636 ) ( 290,475 )
Less: reconciling adjustments (2)(3)
( 1,007 ) — ( 28 ) — — 86 — ( 949 )
Net effective spread 33,885 8,640 5,329 3,566 5,112 31,604 1,854 89,990
Guarantee and commitment fees (3)
4,551 197 221 336 183 — — 5,488
Other income/(expense)
1,222 — — — — — 22 1,244
Release of/(provision for) losses
193 ( 828 ) ( 77 ) 229 ( 1,100 ) — — ( 1,583 )
Operating expenses (1)
( 6,595 ) ( 2,133 ) ( 1,123 ) ( 1,052 ) ( 1,708 ) ( 2,800 ) ( 823 ) ( 16,234 )
Income tax expense
( 6,982 ) ( 1,235 ) ( 913 ) ( 647 ) ( 522 ) ( 6,049 ) ( 221 ) ( 16,569 )
Segment core earnings
$ 26,274 $ 4,641 $ 3,437 $ 2,432 $ 1,965 $ 22,755 $ 832 $ 62,336
Reconciliation to net income:
Net effects of derivatives and trading securities $ ( 2,535 )
Unallocated (expense)/income
( 13,245 )
Income tax effect related to reconciling items 3,095
Net income $ 49,651
Total Assets:
Total on- and off-balance sheet segment assets at principal balance
$ 18,094,515 $ 1,889,363 $ 7,187,966 $ 974,835 $ 1,608,664 $ — $ — $ 29,755,343
Off-balance sheet assets under management
( 5,071,733 )
Unallocated assets
7,120,329
Total assets on the Consolidated Balance Sheets
$ 31,803,939
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
10. INCOME TAXES
During the first quarter of 2026, Farmer Mac purchased $ 45.0 million of tax credits at prices ranging from approximately $ 0.91 to $ 0.93 per $1.00 of credit, resulting in a benefit of $ 4.2 million. Farmer Mac did not purchase any tax credits during the first quarter of 2025.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.