Federal Agricultural Mortgage Stock Earnings Reports

Farmer Mac reported strong third-quarter 2025 results driven by continued portfolio diversification and growth in higher-spread infrastructure businesses. Key financials: record net effective spread of $97.8 million for the quarter, record core earnings of $49.6 million, year-to-date net effective spread and core earnings up double digits, total outstanding business volume exceeding $31 billion, and core ROE around 17%. Management strengthened capital with a $100 million Series H preferred issuance, raising core capital to $1.7 billion and improving Tier 1 to 13.9%. Portfolio growth was led by infrastructure finance (notably renewable energy and broadband), with Renewable Energy volumes more than doubling year-over-year to $2.3 billion and Broadband doubling to $1.3 billion. Farm & Ranch loan purchases also grew materially. Credit activity included a $7.4 million net provision (driven by model CECL updates, specific Ag storage/processing and California groundwater-impacted loans) and $4.4 million of charge-offs; the allowance was $37.2 million (12 bps of outstanding volume). Management emphasized diversified, mission-aligned growth, disciplined expense management (target efficiency ratio ~30%), active capital management (including securitizations and buybacks), and confidence in asset quality and liquidity. CEO Brad Nordholm announced his planned retirement in March 2027 and named Zack Carpenter as his successor.