Farmer Mac Reports FY2025 Earnings, Announces 7% Dividend Increase and Strong Business Momentum

Key Highlights from the 2025 Annual Report

• 7% Increase in Quarterly Dividend: Farmer Mac’s Board declared a 7% increase in its quarterly dividend, signaling confidence in the company’s earnings power and capital position.
• Record Business Volume: Outstanding business volume reached \$33.4 billion, underscoring Farmer Mac’s growing presence and continued demand for its agricultural finance solutions.
• Solid Earnings Performance: Net interest income (GAAP) for FY2025 was \$353.9 million, up 10% from the prior year, while net effective spread (non-GAAP) increased 13% to \$339.6 million.
• EPS Growth: Diluted earnings per share (GAAP) came in at \$16.44 for the year, a slight increase from \$16.42 a year earlier. Diluted core EPS (non-GAAP) was \$16.62.
• Dividend Details: Quarterly dividends declared were \$1.30 per share for Class C common stock, \$0.325 per share for Class A Voting Common Stock, and \$0.325 per share for Class B Voting Common Stock, all payable on March 31, 2026, to shareholders of record as of March 15, 2026.
• Strong Retained Earnings and Capital: Retained earnings were \$1.05 billion at year-end, with total equity at \$1.72 billion, reflecting a robust capital base supporting future growth and shareholder returns.
• Non-GAAP Financials: Farmer Mac continues to emphasize non-GAAP metrics such as “core earnings,” “core earnings per share,” and “net effective spread” as useful measures of economic performance, excluding the impact of fair value fluctuations on derivatives and hedging activities.
• Forward-Looking Statements: Management highlighted ongoing risks including legislative changes, market volatility, Federal Reserve policy, severe weather events, and agricultural real estate trends, all of which could impact future results.

Details Investors Need to Know

On February 19, 2026, Federal Agricultural Mortgage Corporation (“Farmer Mac”) reported its financial results for the year ended December 31, 2025. The company also announced a 7% increase in its quarterly dividend, reflecting its strong financial performance and positive outlook.

Financial Results Overview

• Net Interest Income (GAAP): \$353.9 million for FY2025, up 10% year-over-year.
• Net Effective Spread (Non-GAAP): \$339.6 million, up 13% year-over-year, indicating operational efficiency and strong core profitability.
• Diluted EPS (GAAP): \$16.44, versus \$16.42 in FY2024.
• Diluted Core EPS (Non-GAAP): \$16.62, versus \$16.59 in FY2024.
• Net Income Attributable to Common Stockholders: \$207.2 million, compared to \$197.3 million in FY2024.
• Core Earnings: \$182.9 million, up from \$171.6 million in the prior year.

Business Growth and Balance Sheet

• Outstanding Business Volume: \$33.4 billion as of December 31, 2025, showing continued growth in Farmer Mac’s loan and guarantee portfolios.
• Retained Earnings: \$1.05 billion, up from \$943 million in 2024.
• Total Equity: \$1.72 billion, compared to \$1.62 billion at the previous year-end.
• Preferred Stock: \$9.3 million, with \$139 million in additional paid-in capital.
• Accumulated Other Comprehensive Income: \$13.4 million (2025), compared to a loss of \$12.1 million at year-end 2024.

Dividends and Shareholder Returns

Farmer Mac’s Board of Directors declared quarterly cash dividends with a notable 7% increase, as follows:

• \$1.30 per share on Class C Common Stock
• \$0.325 per share on Class A Voting Common Stock
• \$0.325 per share on Class B Voting Common Stock

All dividends are payable on March 31, 2026, to shareholders of record as of March 15, 2026.

Additional News and Potential Price Movers

• Investor Presentation: Farmer Mac published an updated investor presentation on its website, detailing strategy, earnings trends, and growth opportunities. This presentation may be used in future communications with analysts and investors.
• Conference Call: Management hosted a conference call to discuss results and strategic outlook, with replay available on the company’s website.
• Non-GAAP Emphasis: Management continues to guide the market to focus on core financial metrics that strip out fair value swings from derivatives, which are not expected to affect long-term results if instruments are held to maturity.
• Risk Factors: Management highlighted ongoing risks, including:
  • Potential legislative, regulatory, or political changes affecting Farmer Mac or the agricultural sector.
  • Market volatility and Federal Reserve actions on monetary policy.
  • Weather-related risks (severe weather, floods, drought) impacting agricultural real estate values and loan repayment capacity.

Implications for Shareholders

• Dividend Increase is Price-Sensitive: The 7% dividend hike signals management’s confidence and is likely to be well received by income-focused investors, potentially supporting share price appreciation.
• Consistent EPS and Core Earnings Growth: Despite macroeconomic challenges, Farmer Mac demonstrated resilience with both GAAP and Core EPS growing year-over-year, which may bolster investor sentiment.
• Strong Capital Base: Higher retained earnings and total equity enhance Farmer Mac’s ability to weather volatility and pursue growth, supporting long-term shareholder value.
• Transparency and Communication: The release of detailed presentations and forward-looking guidance reflects a commitment to transparency, which can help sustain investor confidence amid market uncertainties.

Conclusion

The combination of record business volume, robust net interest income growth, and a meaningful increase in the dividend signals ongoing strength for Farmer Mac. While management continues to caution about risks from regulatory, market, and weather developments, the underlying fundamentals remain strong, and the Board’s actions reinforce a positive outlook for shareholders in 2026 and beyond.