Federal Agricultural Mortgage Corporation · NYSE:AGM
Federal Agricultural Mortgage — Q2 2025 Earnings Presentation
26 slides from Federal Agricultural Mortgage's earnings presentation, Aug 7, 2025
Slide 1: Equity Investor Presentation Second Quarter 2025
Equity Investor Presentation Second Quarter 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements In addition to historical information, this presentation includes forward-looking statements that reflect management’s current expectations for Farmer Mac’s future financial results, business prospects, and business developments. Forward-looking statements include, without
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation is for general informational purposes only, is current only as of June 30, 2025 and should be read in conjunction with Farmer Mac’s Quarterly Report on Form 10-Q filed with the SEC on August 7, 2025. In the accompanying analysis of its financial i
Slide 4: Farmer Mac At A Glance
FARMER MAC AT A GLANCE (NYSE: AGM) Key Highlights 2Q25 Business Volume by Segment Market Cap* $2B 10-Year Revenue CAGR** 11% $18.2B $2.0B $7.3B Farm & Ranch Corporate AgFinance Power & Utilities 10-Year Core EPS CAGR** 13% 10-Year Dividend CAGR** 28% Employees* 207 $1.9B $1.2B Renewable Energy Broad
Slide 5: Farmer Mac's Competitive Advantage
FARMER MAC’S COMPETITIVE ADVANTAGE Unique, Mission-Driven Operating Model • Mission directly supports low-cost access to capital for Our Operating Model U.S. agriculture and rural infrastructure • GSE status provides steady, low-cost access to funding markets • Disciplined asset-liability management
Slide 6: Consistent Revenue Growth
CONSISTENT REVENUE GROWTH Over the past 10 years, Farmer Mac’s revenue Indexed Revenue Performance* has consistently grown through a variety of $450 6 Fed Funds Effective Rate (%) different economic cycles, with revenue $400 5 Revenue Performance $350 growth being driven by: $300 4 $250 • Strong und
Slide 7: Growing, Recurring, High-Quality Earnings
GROWING, RECURRING, HIGH-QUALITY EARNINGS Consistent historical financial performance highlights the diversification and resiliency of Farmer Mac’s business model Disciplined asset-liability management and uninterrupted access to the capital markets have provided buffer against market volatility and
Slide 8: Segment Profitability
SEGMENT PROFITABILITY Risk-Adjusted Volume 2Q2025 Net Each business segment is comprised Line of Gross Return on Segment ($ IN BILLIONS Effective Business AS OF 6/30/2025) Spread (%) Allocated Capital of both spread-based and fee-income (%) products • Loan Purchases (spread) Farm & Ranch $18.2 1.07%
Slide 9: Treasury/Investments Segment
TREASURY/INVESTMENTS SEGMENT Includes the financial results of the company’s Liquidity Portfolio funding, liquidity, and capital allocation strategies and operations Guaranteed By GSEs and U.S. Cash & Equiv. Gov't Agencies Liquidity & Investment Portfolio 13.4% 86.4% • Maintain investment portfolio
Slide 10: Strong, Growing Capital Base
STRONG, GROWING $1,800 35.0% CAPITAL BASE $1,600 $1,452 $1,501 $1,562 30.0% Consistent, strong earnings growth has $1,400 $1,323 supported capital base and allowed for $1,210 $602 25.0% consistent returns to shareholders $1,200 $584 $589 TIER 1 CAPITAL RATIO (%) ($ IN MILLIONS) CORE CAPITAL $517 20.
Slide 11: Quality Earnings Drive Strong Dividends
QUALITY EARNINGS DRIVE STRONG DIVIDENDS Strong earnings and consistent capital position $1.60 7% year-over-year increase in 2025 support continued dividend growth for $1.50 $1.40 Farmer Mac. $1.40 • Farmer Mac’s dividend growth rate over the past 14 Increased quarterly dividend $1.20 payments for 14
Slide 12: Farmer Mac Uses Proven, Rigorous Underwriting
FARMER MAC USES PROVEN, RIGOROUS UNDERWRITING Industry-leading credit Credits are less likely to Losses less likely even in requirements default default • Total debt coverage • Not a “lender of last • Average portfolio LTV ratio of at least 1.25x resort” of 47% as of June 30, • LTVs average 40% to •
Slide 13: Credit Consistently Outperforms
CREDIT CONSISTENTLY OUTPERFORMS Peer Analysis: Charge-Offs All Commercial Bank Loans and Farm Credit System Average: Banks Average: 0.16% Farmer Mac Average: 0.02% Leases Average: 0.87%(4) 0.09% Agricultural Lender Charge-off Rates 0.70% CHARGE-OFFS AS % OF ASSETS 0.60% 0.50% 0.40% 0.30% 0.20% 0.10%
Slide 14: Allowance For Losses — Quarterly
ALLOWANCE FOR LOSSES —QUARTERLY The total allowance for losses increased $5.0 March 31, 2025 to June 30, 2025 Allowance million to $32.0 million in second quarter Fluctuation 2025. $40.0 $35.0 $5.0 $0.0 • $2.7 million net provision to the allowance for the $30.0 $2.7 ($2.8) $32.0 Infrastructure Fina
Slide 15: Growth Opportunities To Increase Assets Under Management
GROWTH OPPORTUNITIES TO INCREASE ASSETS UNDER MANAGEMENT Agricultural Pool Infrastructure Finance Purchases Finance Securitization Renewable Energy & Project Finance Growing Wholesale Electricity Funding Demand Syndications Loan Rural Servicing Broadband Collateral Value Efficiencies Core Farm & Ran
Slide 16: Agricultural Mortgage-Backed Securities Opportunity
AGRICULTURAL MORTGAGE-BACKED SECURITIES OPPORTUNITY FARM securitization program exemplifies Farmer Mac’s core mission to lower costs for the end borrower and improve credit availability in rural America, while transforming the agricultural mortgage market industry with new efficiencies Building upon
Slide 17: Key Takeaways
KEY TAKEWAYS Core Return on Common Equity Unique, Mission-Driven Operating Model 25% • Mission directly supports low-cost access to capital for U.S. Core Return on Common Equity greater than 14% agriculture and rural infrastructure 20% • GSE status provides steady, low-cost access to funding 15% mar
Slide 18: Contact Investor Relations
CONTACT INVESTOR RELATIONS Jalpa Nazareth Senior Director – Investor Relations & Finance Strategy Phone: (202) 872-5570 Email: jnazareth@farmermac.com
Slide 19: Appendix
APPENDIX
Slide 20: Key Company Metrics
KEY COMPANY METRICS ($ in thousands, except per share amounts) 2025 YTD 2024 2023 2022 2021 Core Earnings $93,331 $171,630 $171,156 $124,314 $113,570 Core Earnings per Diluted Share $8.51 $15.64 $15.65 $11.42 $10.47 Net Effective Spread ($) $183,883 $339,564 $326,980 $255,529 $220,668 Net Effective
Slide 21: Equity Capital Structure
EQUITY CAPITAL STRUCTURE Summary Stratifications NYSE Ticker Dividend Yield Shares Outstanding CLASS A VOTING COMMON STOCK AGM.A 4.21% 1.0 million • Ownership restricted to non-Farm Credit System financial institutions COMMON CLASS B VOTING COMMON STOCK – – 0.5 million STOCK • Ownership restricted t
Slide 22: Positioning For Growth With Securitization
POSITIONING FOR GROWTH WITH SECURITIZATION As Farmer Mac grows its business, securitization is available as a tool to achieve capital relief • Securitization is expected to stimulate growth by increasing Farmer Mac’s brand awareness in the capital markets Securitization provides an alternative optio
Slide 23: Reconciliation Of Net Income To Core Earnings
RECONCILIATION OF NET INCOME TO CORE EARNINGS Core Earnings by Period Ended (in thousands) 2025 YTD 2024 2023 2022 2021 Net income attributable to common stockholders $ 93,155 $ 180,428 $ 172,838 $ 150,979 $ 111,413 Less reconciling items: (Losses)/gains on undesignated financial derivatives due to
Slide 24: Reconciliation Of Net Interest Income To Net Effective Spread
RECONCILIATION OF NET INTEREST INCOME TO NET EFFECTIVE SPREAD Net Effective Spread By Period Ended 2025 YTD 2024 2023 2022 2021 $ in thousands Dollars Yield Dollars Yield Dollars Yield Dollars Yield Dollars Yield Net interest income/yield $ 187,736 1.17% $ 353,867 1.16% $ 327,547 1.15% $ 270,940 1.0
Slide 25: Resources
RESOURCES Footnote 1: USDA, National Agricultural Statistics Service (as of August 2015). Historic values are not necessarily predictive of future results or outcomes. Footnote 2: Kansas City Federal Reserve Agriculture Finance Databook (https://www.kansascityfed.org/agriculture/agfinance -updates/)
Slide 26: Farmer Mac
FARMER MAC
Federal Agricultural Mortgage — Q2 2025 Earnings Presentation on 6ix