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Item 1. Financial Statements

2026-07-30 compared with 2026-05-05 · 438 added, 164 removed, 989 unchanged (38% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in thousands)

41 unchanged sentences

96,844 96,844

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

Common stock:

11 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

March 31, 2026 March 31, 2025

For the Three Months Ended For the Six Months Ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

(in thousands, except per share amounts)

28 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months Ended

March 31, 2026 March 31, 2025

For the Three Months Ended For the Six Months Ended

June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025

(in thousands)

4 unchanged sentences

Net changes in held-to-maturity securities 855 285 463 ( 18 )

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

Net unrealized (losses)/gains on cash flow hedges 839 ( 5,510 ) 819 ( 13,881 )

Other comprehensive loss before tax ( 4,004 ) ( 20,072 ) ( 40,020 ) ( 6,984 )

Income tax benefit related to other comprehensive loss 841 4,215 8,404 1,466

Other comprehensive loss net of tax ( 3,163 ) ( 15,857 ) ( 31,616 ) ( 5,518 )

Comprehensive income $ 63,788 $ 38,980 $ 94,458 $ 98,970

11 unchanged sentences

— — — — — ( 28,453 ) — ( 28,453 )

Cash dividends:

Preferred stock — — — — — — ( 7,291 ) ( 7,291 )

8 unchanged sentences

20,980 $ 507,993 10,849 $ 10,849 $ 138,543 $ ( 15,071 ) $ 1,074,707 $ 1,717,021

Net Income — — — — — — 66,951 66,951

Other comprehensive loss, net of tax

— — — — — ( 3,163 ) — ( 3,163 )

Preferred stock — — — — — — ( 8,074 ) ( 8,074 )

Common stock (cash dividend of 1.60 per share)

— — — — — — ( 17,359 ) ( 17,359 )

Issuance of Series I Preferred Stock 4,000 96,764 — — — — — 96,764

Issuance of Class C Common Stock — — 1 1 61 — — 62

Stock-based compensation cost — — — — 2,323 — — 2,323

Other stock-based award activity — — — — ( 91 ) — — ( 91 )

Balance as of June 30, 2026

24,980 $ 604,757 10,850 $ 10,850 $ 140,836 $ ( 18,234 ) $ 1,116,225 $ 1,854,434

Balance as of December 31, 2024

3 unchanged sentences

— — — — — 10,339 — 10,339

Cash dividends:

Preferred stock — — — — — — ( 5,666 ) ( 5,666 )

6 unchanged sentences

16,980 $ 411,149 10,933 $ 10,933 $ 134,500 $ ( 1,808 ) $ 970,872 $ 1,525,646

Net Income — — — — — — 54,837 54,837

Other comprehensive income, net of tax

— — — — — ( 15,857 ) — ( 15,857 )

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

Common stock (cash dividend of $ 1.50 per share)

— — — — — — ( 16,401 ) ( 16,401 )

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

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

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

Balance as of June 30, 2025

16,980 $ 411,149 10,934 $ 10,934 $ 136,248 $ ( 17,665 ) $ 1,003,641 $ 1,544,307

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

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended

March 31, 2026 March 31, 2025

For the Six Months Ended

June 30, 2026 June 30, 2025

(in thousands)

4 unchanged sentences

Net amortization of debt premiums, discounts, and issuance costs ( 2,635 ) 4,438

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

38,334 ( 108,740 )

Net change in fair value of hedged items, financial derivatives, loans held for sale, and trading securities 62,464 ( 152,332 )

Total provision for allowance for losses

Stock-based compensation expense 5,327 5,274

Purchases of loans held for sale — ( 7,770 )

Proceeds from repayment of loans purchased as held for sale 8,154 22,583

Purchases of tax credits

( 60,144 ) ( 32,399 )

( 3,313 ) ( 1,272 )

Net change in:

15 unchanged sentences

Purchases of defaulted loans

( 5,173 ) ( 2,544 )

Proceeds from repayment of available-for-sale investment securities

4 unchanged sentences

Proceeds from sale of real estate owned

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

Net cash used in investing activities ( 3,859,775 ) ( 1,382,439 )

2 unchanged sentences

49,857,993 42,960,075

Proceeds from issuance of debt securities of consolidated trusts — 286,511

Payments to redeem notes payable

3 unchanged sentences

Proceeds from common stock issuance 121 159

Proceeds from preferred stock issuance, net of stock issuance costs 96,764 —

Tax payments related to share-based awards ( 3,942 ) ( 5,036 )

9 unchanged sentences

28,957 41,156

Loans held for investment transferred to consolidated trusts — 299,270

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

10 unchanged sentences

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

Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended March 31, 2026.

Presented below are Farmer Mac's significant accounting policies that contain updated information for the six months ended June 30, 2026.

Principles of Consolidation

7 unchanged sentences

Unconsolidated VIEs

As of March 31, 2026

As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Carrying Value

6 unchanged sentences

Farmer Mac Guaranteed Securities $ 453,642 $ 89,367 $ 4,808 $ 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.

(1) Farmer Mac uses the guaranteed portion of unpaid principal balance or amortized cost as applicable 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.

The weighted average remaining maturity of the loans underlying the guarantee was 20.1 years and 20.7 years as of June 30, 2026 and December 31, 2025, respectively.

(a) Earnings Per Common Share

1 unchanged sentence

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:

The following schedule reconciles basic and diluted EPS for the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

Income Weighted-Average Shares $ per

6 unchanged sentences

Diluted EPS $ 58,877 10,882 $ 5.41 $ 49,170 10,963 $ 4.48

(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.

(1) For the three months ended June 30, 2026 and 2025, SARs and restricted stock units of 56,568 and 76,166 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the three months ended June 30, 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.

For the Six Months Ended

June 30, 2026 June 30, 2025

Income Weighted-Average Shares $ per

(in thousands, except per share amounts)

Net income attributable to common stockholders $ 110,709 10,847 $ 10.21 $ 93,155 10,915 $ 8.53

Effect of dilutive securities (1)

SARs and restricted stock units

— 55 ( 0.06 ) — 58 ( 0.04 )

Diluted EPS $ 110,709 10,902 $ 10.15 $ 93,155 10,973 $ 8.49

(1) For the six months ended June 30, 2026 and 2025, SARs and restricted stock units of 48,646 and 67,353 , respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive.

For the six months ended June 30, 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.

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.

As of March 31, 2026 As of March 31, 2025

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and six months ended June 30, 2026 and 2025.

As of June 30, 2026 As of June 30, 2025

AFS Securities

10 unchanged sentences

Ending Balance $ ( 29,819 ) $ ( 8,879 ) $ 20,464 $ ( 18,234 ) $ ( 32,113 ) $ ( 9,240 ) $ 23,688 $ ( 17,665 )

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:

For the Six 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 ( 32,626 ) — 4,542 ( 28,084 ) 5,467 — ( 4,985 ) 482

Amounts reclassified from AOCI ( 4 ) 367 ( 3,895 ) ( 3,532 ) ( 5 ) ( 14 ) ( 5,981 ) ( 6,000 )

Net comprehensive income/(loss) ( 32,630 ) 367 647 ( 31,616 ) 5,462 ( 14 ) ( 10,966 ) ( 5,518 )

Ending Balance $ ( 29,819 ) $ ( 8,879 ) $ 20,464 $ ( 18,234 ) $ ( 32,113 ) $ ( 9,240 ) $ 23,688 $ ( 17,665 )

For the Three Months Ended

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

Before Tax Provision (Benefit) After Tax Before Tax Provision

26 unchanged sentences

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

For the Six Months Ended

June 30, 2026 June 30, 2025

Before Tax Provision (Benefit) After Tax Before Tax Provision

(in thousands)

Other comprehensive (loss)/ income:

AFS securities:

Unrealized holding (losses)/gains on AFS securities

$ ( 41,298 ) $ ( 8,672 ) $ ( 32,626 ) $ 6,921 $ 1,454 $ 5,467

Less reclassification adjustments included in:

Other income (1)

( 4 ) — ( 4 ) ( 6 ) ( 1 ) ( 5 )

Total $ ( 41,302 ) $ ( 8,672 ) $ ( 32,630 ) $ 6,915 $ 1,453 $ 5,462

HTM securities:

Less reclassification adjustments included in:

Net interest income (2)

$ 463 $ 96 $ 367 $ ( 18 ) $ ( 4 ) $ ( 14 )

Total $ 463 $ 96 $ 367 $ ( 18 ) $ ( 4 ) $ ( 14 )

Cash flow hedges

Unrealized gains/(losses) on cash flow hedges

$ 5,749 $ 1,207 $ 4,542 $ ( 6,310 ) $ ( 1,325 ) $ ( 4,985 )

Less reclassification adjustments included in:

Net interest income (3)

( 4,930 ) ( 1,035 ) ( 3,895 ) ( 7,571 ) ( 1,590 ) ( 5,981 )

Total $ 819 $ 172 $ 647 $ ( 13,881 ) $ ( 2,915 ) $ ( 10,966 )

Other comprehensive (loss)/income

$ ( 40,020 ) $ ( 8,404 ) $ ( 31,616 ) $ ( 6,984 ) $ ( 1,466 ) $ ( 5,518 )

(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.

26 unchanged sentences

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 2025-08 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):

23 unchanged sentences

consist of senior secured notes supported by cash flows from underlying operating rural infrastructure assets.

The following tables set forth information about Farmer Mac's AFS and HTM investment securities as of March 31, 2026 and December 31, 2025:

As of March 31, 2026

The following tables set forth information about Farmer Mac's AFS and HTM investment securities as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

Allowance for Losses (2)

13 unchanged sentences

$ 4,514,995 $ ( 102 ) $ 21,003 $ ( 207,582 ) $ 4,328,314

(1) Excludes $ 98.1 million and $ 45.1 million of accrued interest receivable on AFS and HTM securities, respectively, as of March 31, 2026.

(1) Excludes $ 98.9 million and $ 47.5 million of accrued interest receivable on AFS and HTM securities, respectively, as of June 30, 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.

18 unchanged sentences

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.

As of June 30, 2026 and December 31, 2025, to satisfy initial margin requirements for centrally cleared derivatives, Farmer Mac pledged U.S.

Treasuries with fair value of $ 309.8 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.

As of March 31, 2026 and December 31, 2025, unrealized losses on AFS investment securities were as follows:

As of March 31, 2026

Farmer Mac did not sell any securities from its AFS or HTM investment portfolios during the three and six months ended June 30, 2026 and 2025.

As of June 30, 2026 and December 31, 2025, unrealized losses on AFS investment securities were as follows:

As of June 30, 2026

AFS Securities

2 unchanged sentences

more than 12 months

Fair Value Unrealized

Loss Fair Value Unrealized

Fair Value Unrealized Loss Fair Value Unrealized Loss

(dollars in thousands)

2 unchanged sentences

1,056,818 ( 5,825 ) 95,763 ( 66 )

44,586 ( 414 ) — —

AgVantage 4,211,763 ( 57,047 ) 2,867,395 ( 210,522 )

5 unchanged sentences

more than 12 months

Fair Value Unrealized

Loss Fair Value Unrealized

Fair Value Unrealized Loss Fair Value Unrealized Loss

(dollars in thousands)

4 unchanged sentences

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.

The unrealized losses presented above are primarily due to changes in the levels of interest rates from the dates of acquisition to June 30, 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 June 30, 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.

As of March 31, 2026

As of June 30, 2026

AFS Securities

7 unchanged sentences

(1) Excludes $ 98.9 million of accrued interest receivable.

As of March 31, 2026

As of June 30, 2026

HTM Securities

9 unchanged sentences

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

The table below includes accrued interest on cleared swaps, but excludes $ 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 table below includes accrued interest on cleared swaps, but excludes $ 38.1 million and $ 24.2 million of accrued interest receivable and $ 1.5 million and $ 2.4 million of accrued interest payable on uncleared swaps as of June 30, 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.

As of March 31, 2026

As of June 30, 2026

Fair Value Weighted-

49 unchanged sentences

(1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.

As of March 31, 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.

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:

For the Three Months Ended March 31, 2026

As of June 30, 2026, Farmer Mac expects to reclassify $ 7.4 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges.

This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after June 30, 2026.

The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the three and six months ended June 30, 2026, and 2025:

For the Three Months Ended June 30, 2026

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

4 unchanged sentences

$ 215,222 $ 235,038 $ ( 332,185 ) $ 224 $ 118,299

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

Net effects of fair value hedging relationships:

Recognized on derivatives $ 53,231 $ 19,237 $ ( 44,130 ) $ — $ 28,338

Recognized on hedged items ( 53,350 ) ( 18,858 ) 44,759 — ( 27,449 )

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:

Amounts related to interest settlements on derivatives 15,745 7,908 ( 3,326 ) — 20,327

Net effects of fair value hedging relationships $ 15,626 $ 8,287 $ ( 2,697 ) $ — $ 21,216

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 2,460 $ — $ 2,460

Net effects of cash flow hedges $ — $ — $ 2,460 $ — $ 2,460

Gains/(losses) on financial derivatives not designated in hedging relationships:

Gains on interest rate swaps $ — $ — $ — $ 139 $ 139

Interest expense on interest rate swaps — — — 556 556

Treasury futures — — — ( 471 ) ( 471 )

Net effects of financial derivatives not designated in hedge relationships $ — $ — $ — $ 224 $ 224

For the Three Months Ended June 30, 2025

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

Net Interest Income Non-Interest Income Total

Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Gains/(losses) on financial derivatives

(in thousands)

Total amounts presented in the Consolidated Statement of Operations

$ 213,983 $ 185,039 $ ( 302,225 ) $ 80 $ 96,877

Net effects of fair value hedging relationships:

Recognized on derivatives $ ( 56,736 ) $ ( 8,027 ) $ 42,233 $ — $ ( 22,530 )

Recognized on hedged items 57,040 8,860 ( 40,661 ) — 25,239

(Losses)/gains on fair value hedging relationships

Amounts related to interest settlements on derivatives

29,007 12,499 ( 27,776 ) — 13,730

Net effects of fair value hedging relationships

$ 29,311 $ 13,332 $ ( 26,204 ) $ — $ 16,439

Expense related to interest settlements on cash flow hedging relationships:

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

Recognized on hedged items — — ( 4,612 ) — ( 4,612 )

Discount amortization recognized on hedged items — — ( 25 ) — ( 25 )

Expense recognized on cash flow hedges $ — $ — $ ( 2,166 ) $ — $ ( 2,166 )

Net effects of cash flow hedges

$ — $ — $ 3,746 $ — $ 3,746

Gains/(losses) on financial derivatives not designated in hedging relationships:

3 unchanged sentences

Treasury futures — — — 1,122 1,122

Gains/(losses) on financial derivatives not designated in hedge relationships

Net effects of financial derivatives not designated in hedge relationships

$ — $ — $ — $ 80 $ 80

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 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 Losses on financial derivatives

Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Gains/(losses) on financial derivatives

(in thousands)

1 unchanged sentence

$ 418,631 $ 447,590 $ ( 646,750 ) $ 1,364 $ 220,835

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

Net effects of fair value hedging relationships:

Recognized on derivatives $ 82,704 $ 21,321 $ ( 91,217 ) $ — $ 12,808

Recognized on hedged items ( 83,238 ) ( 20,992 ) 92,673 — ( 11,557 )

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 )

Amounts related to interest settlements on derivatives

32,312 16,025 ( 8,019 ) — 40,318

Net effects of fair value hedging relationships

$ 31,778 $ 16,354 $ ( 6,563 ) $ — $ 41,569

Expense related to interest settlements on cash flow hedging relationships:

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 4,930 $ — $ 4,930

Net effects of cash flow hedges

$ — $ — $ 4,930 $ — $ 4,930

Gains/(losses) on financial derivatives not designated in hedging relationships:

Losses on interest rate swaps

$ — $ — $ — $ ( 822 ) $ ( 822 )

Interest expense on interest rate swaps — — — 1,525 1,525

Treasury futures — — — 661 661

Net effects of financial derivatives not designated in hedge relationships

$ — $ — $ — $ 1,364 $ 1,364

For the Six Months Ended June 30, 2025

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

Net Interest Income Non-Interest Income Total

Interest Income Investments and Cash Equivalents Interest Income Loans Total Interest Expense Gains/(losses) on financial derivatives

(in thousands)

Total amounts presented in the Consolidated Statement of Operations:

$ 423,633 $ 356,803 $ ( 592,700 ) $ ( 2,556 ) $ 185,180

(Losses)/gains on fair value hedging relationships:

1 unchanged sentence

Recognized on hedged items 173,036 53,840 ( 115,089 ) — 111,787

Amounts related to interest settlements on derivatives

58,151 24,883 ( 56,270 ) — 26,764

(Losses)/gains on fair value hedging relationships

2 unchanged sentences

Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 7,571 $ — $ 7,571

Recognized on hedged items — — ( 6,345 ) — ( 6,345 )

Discount amortization recognized on hedged items — — — — —

Expense recognized on cash flow hedges $ — $ — $ 7,571 $ — $ 7,571

6 unchanged sentences

$ — $ — $ — $ ( 2,556 ) $ ( 2,556 )

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:

The following table displays the carrying amount of the hedged items 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 June 30, 2026 and December 31, 2025:

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

June 30, 2026

December 31, 2025 June 30, 2026 December 31, 2025

(in thousands)

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

Investment securities, AFS, at fair value (1)

$ 8,596,785 $ 7,818,278 $ ( 319,228 ) $ ( 235,989 )

Loans held for investment, at amortized cost (2)

3,422,063 2,278,212 ( 352,307 ) ( 331,315 )

Notes Payable (3)

( 13,986,091 ) ( 11,837,713 ) 85,983 ( 6,690 )

(1) Amortized cost of $ 8.3 billion and $ 8.0 billion as of March 31, 2026 and December 31, 2025, respectively.

(1) Amortized cost of $ 8.9 billion and $ 8.0 billion as of June 30, 2026 and December 31, 2025, respectively.

(2) As of June 30, 2026, closed portfolio of loans hedged under the portfolio layer method had an amortized cost of $ 0.8 billion, of which $ 66.2 million was designated as the hedged item.

The remaining amount of amortized cost is from hedges not designated under the portfolio layer method.

There were no portfolio layer hedges as of December 31, 2025.

(3) Carrying amount represents amortized cost.

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of March 31, 2026 and December 31, 2025:

March 31, 2026

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of June 30, 2026 and December 31, 2025:

June 30, 2026

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

11 unchanged sentences

(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.

As of June 30, 2026, Farmer Mac had additional net exposure of $ 309.8 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $ 2.2 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

December 31, 2025

14 unchanged sentences

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

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

If Farmer Mac had breached certain provisions of the derivative contracts as of June 30, 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 June 30, 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 $ 28.7 billion notional amount of interest rate swaps outstanding as of June 30, 2026, $ 20.8 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.

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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:

As of March 31, 2026 As of December 31, 2025

The following table includes loans held for investment and displays the composition of the loan balances as of June 30, 2026 and December 31, 2025:

As of June 30, 2026 As of December 31, 2025

Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total

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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:

March 31, 2026 December 31, 2025

The following table is a summary, by asset type, of the allowance for losses as of June 30, 2026 and December 31, 2025:

June 30, 2026 December 31, 2025

Allowance for Losses Allowance for Losses

5 unchanged sentences

Total $ 47,167 $ 37,785

The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2026 and 2025:

For the Three Months Ended

March 31, 2026 March 31, 2025

The following is a summary of the changes in the allowance for losses for the three and six months ended June 30, 2026 and 2025:

June 30, 2026 June 30, 2025

Agricultural Finance loans Infrastructure

14 unchanged sentences

Ending Balance $ 15,472 $ 7,211 $ 24,484 $ 47,167 $ 6,635 $ 6,943 $ 16,378 $ 29,956

(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:

As of March 31, 2026

For the Six Months Ended

Beginning Balance $ 9,400 $ 6,631 $ 21,754 $ 37,785 $ 5,132 $ 5,379 $ 12,712 $ 23,223

Provision for losses 6,114 2,509 2,730 11,353 4,343 1,441 3,666 9,450

Charge-offs ( 42 ) ( 2,175 ) — ( 2,217 ) ( 2,840 ) — — ( 2,840 )

— 246 — 246 — 123 — 123

Ending Balance $ 15,472 $ 7,211 $ 24,484 $ 47,167 $ 6,635 $ 6,943 $ 16,378 $ 29,956

(1) As of June 30, 2026 and 2025, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $ 7.6 million and $ 1.7 million allowance for collateral dependent assets ("CDA") secured by agricultural real estate, respectively.

(2) As of June 30, 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 June 30, 2026 and 2025 the allowance for losses for Infrastructure Finance loans includes $ 5.2 million and $ 0.0 million allowance for CDA.

The $ 7.0 million and $ 11.4 million provision to the allowance during the three and six months ended June 30, 2026 is primarily attributed to new volume growth across all of our segments and portfolio credit migration.

The $ 7.7 million and $ 9.5 million net provision to the allowance during the three and six months ended June 30, 2025 was primarily attributable to borrower specific downgrades and new volume growth.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

Current 30-59 Days 60-89 Days 90 Days and Greater

7 unchanged sentences

Total $ 18,308,719 $ 40,885 $ 16,335 $ 13,023 $ 70,243 $ 240,133 $ 18,619,095

(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.

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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 $ 52.4 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.

During the three and six months ended June 30, 2026, Farmer Mac received $ 12.2 million and $ 15.8 million, respectively, in interest on nonaccrual loans.

As of December 31, 2025

8 unchanged sentences

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.

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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.

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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:

As of March 31, 2026

The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Infrastructure Finance loans held as of June 30, 2026 and December 31, 2025, by year of origination:

As of June 30, 2026

Year of Origination:

9 unchanged sentences

Total $ 1,308,383 $ 1,686,081 $ 989,111 $ 476,495 $ 961,732 $ 3,459,034 $ 471,428 $ 9,352,264

For the Three Months Ended March 31, 2026:

For the Three Months Ended June 30, 2026:

Current period charge-offs $ — $ — $ — $ — $ — $ 42 $ — $ 42

(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.

For the Six Months Ended June 30, 2026:

Current period charge-offs $ — $ — $ — $ — $ — $ 42 $ — $ 42

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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

As of June 30, 2026

Year of Origination:

9 unchanged sentences

Total $ 117,407 $ 331,570 $ 180,372 $ 116,992 $ 57,269 $ 423,327 $ 286,022 $ 1,512,959

For the Three Months Ended March 31, 2026:

For the Three Months Ended June 30, 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.

For the Six Months Ended June 30, 2026:

Current period charge-offs $ — $ — $ — $ — $ — $ 1,828 $ 347 $ 2,175

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

(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

As of June 30, 2026

Year of Origination:

9 unchanged sentences

Total $ 988,839 $ 1,667,565 $ 1,229,605 $ 577,783 $ 493,115 $ 1,802,837 $ 994,128 $ 7,753,872

For the Three Months Ended March 31, 2026:

For the Three Months Ended June 30, 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.

For the Six Months Ended June 30, 2026:

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

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

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

12 unchanged sentences

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:

For the Three Months Ended June 30, 2025:

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

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

For the Six Months Ended June 30, 2025:

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

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

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

12 unchanged sentences

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:

For the Three Months Ended June 30, 2025:

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

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

For the Six Months Ended June 30, 2025:

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

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

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

12 unchanged sentences

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:

For the Three Months Ended June 30, 2025:

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

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

For the Six Months Ended June 30, 2025:

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

(1) Current loan amounts are presented based on contractual unpaid principal balance, while past due loan amounts are presented based on unpaid principal less charge-offs.

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

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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.

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

These modifications generally consist of payment deferrals and, less frequently, term extensions.

The impact of modifications granted to borrowers experiencing financial difficulty and their subsequent performance is incorporated into Farmer Mac’s allowance methodology.

Post-modification performance is monitored through payment performance, delinquency status, risk ratings, collateral values, and collection activity, with changes in these factors reflected in the allowance for credit losses.

The disclosures below are presented beginning in the current period.

Comparable prior-period information has not been presented because the related activity was not material in prior periods.

The following table presents the amortized cost and the weighted average financial effect of modifications, as of June 30, 2026 granted to Agricultural Finance and Infrastructure Finance borrowers experiencing financial difficulty during the three and six months ended June 30, 2026:

June 30, 2026

Payment Deferrals (1)

Term Extensions (1)

Percentage of Total by Financing Class

Financial Effect (2)

(dollars in thousands)

For the Three Months Ended

Agricultural Finance (4) :

Farm & Ranch $ 28,522 6 months $ 2,700 60 months $ 31,222 0.33 %

Infrastructure Finance $ 13,387 3 months $ — — $ 13,387 0.17 %

For the Six Months Ended

Agricultural Finance:

$ 30,500 6 months

$ 2,700 60 months $ 33,200 0.35 %

Infrastructure Finance

$ 13,387 4 months $ — — $ 13,387 0.17 %

(1) Amounts presented are the amortized cost of modified loans, excluding modified loans that were paid off, charged off, or otherwise liquidated as of June 30, 2026.

(2) Represents the weighted average of payment deferrals and term extensions, in months, as a result of the modification granted.

(3) The unfunded lending commitments on the modifications granted during the six months ended June 30, 2026 were $ 2.2 million.

(4) There were no modifications within the Corporate AgFinance segment during the periods presented above.

The following table presents the performance of the loans under the modified terms as of June 30, 2026, of loan modifications granted during the six months preceding June 30, 2026:

As of June 30, 2026

Current 30-59 Days 60-89 Days 90 Days and Greater Total Past Due Total Loans

(in thousands)

Agricultural Finance (1)(2) :

$ 21,663 $ 567 $ — $ 10,970 $ 11,537 $ 33,200

Infrastructure Finance (1)(2)

$ 13,387 $ — $ — $ — $ — $ 13,387

(1) Current loan amounts are presented based on contractual amortized cost, while past due loan amounts are presented at the contractual amortized cost less charge-offs.

(2) Amounts presented are the amortized cost of modified loans, excluding modified loans that were paid off, charged off, or otherwise liquidated as of June 30, 2026.

Farmer Mac generally considers modifications to borrowers experiencing financial difficulty to have subsequently defaulted when the modified loan becomes 90 days past due following the modification.

Loans that subsequently defaulted during both the three and six month periods ended June 30, 2026 totaled $ 11.0 million.

GUARANTEES AND COMMITMENTS

1 unchanged sentence

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 March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

(dollars in thousands)

7 unchanged sentences

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 March 31, 2026 and December 31, 2025:

March 31, 2026

Outstanding as of March 31

Average Outstanding During the Quarter

The following tables set forth information related to Farmer Mac's borrowings as of June 30, 2026 and December 31, 2025:

June 30, 2026

Outstanding as of June 30 Average Outstanding During the Quarter

Amount Weighted-Average Rate Amount Weighted-Average Rate

36 unchanged sentences

Total $ 30,822,570

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.

The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the six months ended June 30, 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:

Debt Callable in 2026 as of March 31, 2026, by Maturity

The following table summarizes by maturity date the amounts and weighted average interest rate for Farmer Mac debt callable in 2026 as of June 30, 2026:

Debt Callable in 2026 as of June 30, 2026, by Maturity

Amount Weighted-Average Rate

6 unchanged sentences

Total $ 5,628,145 3.18 %

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:

The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of June 30, 2026, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date:

Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding

9 unchanged sentences

Total principal net of discounts $ 34,779,904 3.63 %

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.

During the six months ended June 30, 2026 and 2025, Farmer Mac called $ 1.6 billion and $ 1.2 billion of callable medium-term notes, respectively.

Authority to Borrow from the U.S.

11 unchanged sentences

Treasury within a reasonable time.

As of March 31, 2026, Farmer Mac had not used this borrowing authority.

During the first quarter 2026, Farmer Mac paid a quarterly dividend of $ 1.60 per share on all classes of its common stock.

As of June 30, 2026, Farmer Mac had not used this borrowing authority.

During the first and second quarters of 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.

On May 13, 2026, Farmer Mac's board of directors revised the terms of the share repurchase program to extend the expiration date of the program to May 31, 2028.

During the first half of 2026, Farmer Mac repurchased 47,319 shares of Class C non-voting common stock at a cost of approximately $ 7.1 million.

As of June 30, 2026, $ 30.0 million remain available for repurchase under the program.

Preferred Stock

In May 2026, Farmer Mac issued 4.0 million shares of 6.875 % non-cumulative perpetual Series I preferred stock, par value $ 25.00 per share.

Farmer Mac incurred direct costs of $ 3.2 million related to the issuance of the Series I preferred stock.

The dividend rate on the Series I preferred stock will remain at a non-cumulative, fixed rate of 6.875 % per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series I preferred stock remains outstanding.

The Series I 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 July 17, 2031.

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.

As of both June 30, 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.

As of June 30, 2026, Farmer Mac's minimum capital requirement was $ 1.1 billion and its core capital level was $ 1.9 billion, which was $ 730.7 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.

1 unchanged sentence

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:

Assets and Liabilities Measured at Fair Value as of March 31, 2026

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

Assets and Liabilities Measured at Fair Value as of June 30, 2026

Level 1 Level 2 Level 3 (1)

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(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.

There were no material assets or liabilities measured at fair value on a non-recurring basis as of June 30, 2026 or December 31, 2025.

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.

During the three and six months ended June 30, 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.

Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended March 31, 2026

There were no liabilities measured at fair value using significant unobservable inputs during the three and six months ended June 30, 2026 and 2025.

Level 3 Assets and Liabilities Measured at Fair Value For the Three Months Ended June 30, 2026

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized (losses)/gains included in Income

Unrealized (losses)/gains

Unrealized gains

included in Other

Comprehensive

Ending Balance

Income Ending Balance

(in thousands)

7 unchanged sentences

Total Assets at fair value $ 6,886,365 $ 1,145,320 $ ( 215,213 ) $ 59 $ ( 36,913 ) $ 1,803 $ 7,781,421

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

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains included

Unrealized (losses)/gains

unrealized gains/(losses) included

in Income Unrealized gains/(losses)

included in Other

Comprehensive

Ending Balance

Income Ending Balance

(in thousands)

8 unchanged sentences

Total Assets at fair value $ 5,648,034 $ 100,000 $ ( 17,245 ) $ ( 6 ) $ 37,741 $ ( 12,405 ) $ 5,756,119

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:

As of March 31, 2026

Level 3 Assets and Liabilities Measured at Fair Value for the For the Six Months Ended June 30, 2026

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains included

Unrealized gains/(losses) included in Other Comprehensive Income

Ending Balance

(in thousands)

Investment Securities:

ABS $ — $ 65,320 $ ( 1 ) $ — $ ( 630 ) $ 785 $ 65,474

AgVantage 6,730,917 1,475,000 ( 428,097 ) 51 ( 57,852 ) ( 17,050 ) 7,702,969

Interest-Only Farmer Mac Guaranteed Securities

8,203 — ( 300 ) — — 223 8,126

Total AFS 6,739,120 1,540,320 ( 428,398 ) 51 ( 58,482 ) ( 16,042 ) 7,776,569

Other Assets 4,897 — ( 155 ) — 110 — 4,852

Total Assets at fair value $ 6,744,017 $ 1,540,320 $ ( 428,553 ) $ 51 $ ( 58,372 ) $ ( 16,042 ) $ 7,781,421

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

Beginning Balance Purchases Settlements Allowance for Losses Realized and

unrealized gains/(losses) included

in Income Unrealized losses included in Other Comprehensive Income Ending Balance

(in thousands)

Investment Securities:

Auction-rate certificates backed by Government guaranteed student loans

$ 19,476 $ — $ — $ ( 1 ) $ — $ — $ 19,475

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

Interest-Only Farmer Mac Guaranteed Securities

9,015 — ( 340 ) — — ( 62 ) 8,613

Total AFS 5,534,022 400,000 ( 293,189 ) 44 119,878 ( 9,777 ) 5,750,978

Other Assets 5,382 — ( 171 ) — ( 70 ) — 5,141

Total Assets at fair value $ 5,539,404 $ 400,000 $ ( 293,360 ) $ 44 $ 119,808 $ ( 9,777 ) $ 5,756,119

As of June 30, 2026

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

13 unchanged sentences

Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2026 and December 31, 2025:

As of March 31, 2026

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

Carrying Value

47 unchanged sentences

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 three months ended March 31, 2026 and 2025.

The following tables present segment core earnings and assets for the three and six months ended June 30, 2026 and 2025.

Core Earnings by Business Segment

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Agricultural Finance Infrastructure Finance Treasury

5 unchanged sentences

$ 186,369 $ 33,344 $ 76,362 $ 18,006 $ 35,893 $ 17,968 $ 82,318 $ 450,260

Interest expense (1)

(Interest expense)/benefit (1)

( 145,286 ) ( 16,575 ) ( 69,377 ) ( 11,428 ) ( 25,120 ) 16,855 ( 81,254 ) ( 332,185 )

6 unchanged sentences

928 15 — ( 25 ) ( 22 ) — — 896

(Provision for)/release of losses

Provision for losses ( 3,333 ) ( 524 ) ( 368 ) ( 1,987 ) ( 1,157 ) — — ( 7,369 )

Operating expenses (1)

( 9,286 ) ( 2,356 ) ( 1,258 ) ( 1,881 ) ( 2,221 ) ( 2,969 ) ( 1,013 ) ( 20,984 )

Income tax expense

( 7,001 ) ( 2,971 ) ( 1,162 ) ( 790 ) ( 1,665 ) ( 6,776 ) ( 11 ) ( 20,376 )

Segment core earnings

$ 26,339 $ 11,176 $ 4,370 $ 2,976 $ 6,264 $ 25,484 $ 40 $ 76,649

Reconciliation to net income:

Net effects of derivatives and trading securities

Unallocated (expenses)/income

Income tax effect related to reconciling items 5,491

Total Assets:

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

$ 21,987,822 $ 2,082,762 $ 8,266,639 $ 1,851,902 $ 3,008,013 $ — $ — $ 37,197,138

Off-balance sheet assets under management

( 6,026,228 )

Unallocated assets

Total assets on the Consolidated Balance Sheets

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

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

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

Core Earnings by Business Segment

For the Three Months Ended June 30, 2025

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Broadband Infrastructure

Renewable Energy Funding Investments Total

(in thousands)

Interest income

$ 152,218 $ 25,484 $ 67,447 $ 12,159 $ 23,494 $ 35,619 $ 82,601 $ 399,022

Interest expense (1)

( 115,524 ) ( 16,875 ) ( 61,786 ) ( 8,227 ) ( 17,267 ) ( 1,920 ) ( 80,626 ) ( 302,225 )

reconciling adjustments (2)(3)

( 984 ) — ( 25 ) — — ( 2,031 ) 136 ( 2,904 )

Net effective spread 35,710 8,609 5,636 3,932 6,227 31,668 2,111 93,893

Guarantee and commitment fees (3)

4,551 224 215 564 320 — — 5,874

Other income 313 345 — — 8 — 14 680

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

Operating expenses (1)

21 unchanged sentences

Core Earnings by Business Segment

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2026

Agricultural Finance Infrastructure Finance Treasury

4 unchanged sentences

$ 355,361 $ 58,513 $ 150,226 $ 34,130 $ 67,852 $ 37,171 $ 162,968 $ 866,221

Interest expense (1)

Interest (expense)/benefit (1)

( 275,677 ) ( 32,805 ) ( 136,707 ) ( 21,724 ) ( 48,000 ) 28,967 ( 160,804 ) ( 646,750 )

6 unchanged sentences

1,803 15 — ( 81 ) ( 22 ) — — 1,715

Release of/(provision for) losses

Provision for losses ( 6,192 ) ( 2,544 ) ( 307 ) ( 1,940 ) ( 1,213 ) — — ( 12,196 )

Operating expenses (1)

( 17,451 ) ( 4,836 ) ( 2,355 ) ( 3,586 ) ( 4,111 ) ( 5,391 ) ( 1,837 ) ( 39,567 )

Income tax expense

( 13,621 ) ( 3,959 ) ( 2,350 ) ( 1,838 ) ( 3,251 ) ( 13,123 ) ( 120 ) ( 38,262 )

Segment core earnings

$ 52,195 $ 14,894 $ 8,837 $ 6,917 $ 12,232 $ 49,362 $ 449 $ 144,886

Reconciliation to net income:

Net effects of derivatives and trading securities $ 186

Unallocated (expense)/income

Income tax effect related to reconciling items 11,065

Net income $ 126,074

Total Assets:

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

$ 21,987,822 $ 2,082,762 $ 8,266,639 $ 1,851,902 $ 3,008,013 $ — $ — $ 37,197,138

Off-balance sheet assets under management

( 6,026,228 )

Unallocated assets

Total assets on the Consolidated Balance Sheets

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

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

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

Core Earnings by Business Segment

For the Six Months Ended June 30, 2025

Agricultural Finance Infrastructure Finance Treasury

Farm & Ranch Corporate AgFinance Power &

Utilities Broadband Infrastructure Renewable Energy Funding Investments Total

(in thousands)

Interest income

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

Interest expense (1)

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

reconciling adjustments (2)(3)

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

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

Guarantee and commitment fees (3)

9,102 421 436 900 503 — — 11,362

Other income 1,535 345 — — 8 — 36 1,924

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

Operating expenses (1)

21 unchanged sentences

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.

During the three and six months ended June 30, 2026, Farmer Mac purchased $ 21.4 million and $ 66.4 million, respectively, of renewable energy investment tax credits at prices ranging from approximately $ 0.91 to $ 0.93 per $1.00 of credit, resulting in a benefit of $ 2.0 million and $ 6.3 million, respectively.

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

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

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

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements