Federal Agricultural Mortgage Corporation (AGM) Bundle
A Brief History of Farmer Mac
Farmer Mac, or the Federal Agricultural Mortgage Corporation, was established in 1988 to enhance the availability of credit in rural America. Over the years, it has evolved significantly, focusing on providing a secondary market for agricultural loans. As of 2024, Farmer Mac continues to play a vital role in supporting agricultural finance, rural infrastructure finance, and renewable energy initiatives.
Financial Performance Overview
As of September 30, 2024, Farmer Mac reported the following financial highlights:
| Metric | Value (in thousands) |
|---|---|
| Total Assets | $30,615,221 |
| Total Business Volume | $28,468,303 |
| Core Capital | $1,464,898 |
| Capital in Excess of Minimum Required | $579,877 |
| Net Income (Nine Months Ended September 30, 2024) | $129,580 |
| Basic EPS | $11.93 |
| Diluted EPS | $11.82 |
Outstanding Business Volume by Segment
The breakdown of outstanding business volume as of September 30, 2024, is as follows:
| Segment | Outstanding Volume (in thousands) |
|---|---|
| Agricultural Finance | $18,090,374 |
| Rural Infrastructure Finance | $1,842,780 |
| Corporate AgFinance | $7,440,141 |
| Rural Utilities | $1,095,008 |
| Renewable Energy | $28,468,303 |
Credit Quality Indicators
As of September 30, 2024, the credit quality indicators for Farmer Mac's agricultural finance portfolio included:
| Indicator | Value (in thousands) |
|---|---|
| On-Balance Sheet Substandard Assets | $342,058 |
| Off-Balance Sheet Substandard Assets | $35,827 |
| 90-Day Delinquencies | $6,926 |
Recent Developments
In 2024, Farmer Mac continued to innovate in agricultural finance. Key developments included:
- Issuance of Class C Common Stock totaling $79,000.
- Net increase in Renewable Energy loans reflecting strong demand.
- Implementation of a new treasury management system aimed at enhancing operational efficiency.
Dividends and Shareholder Returns
Farmer Mac has consistently returned value to shareholders through dividends. In 2024, the cash dividend declared for common stock was $1.40 per share.
| Dividend Type | Amount (in thousands) |
|---|---|
| Preferred Stock Dividends | $5,897 |
| Common Stock Dividends | $15,238 |
A Who Owns Federal Agricultural Mortgage Corporation (AGM)
Ownership Structure
As of 2024, Federal Agricultural Mortgage Corporation (Farmer Mac) has a diverse ownership structure comprising various institutional and individual shareholders. The breakdown is as follows:
| Ownership Type | Percentage of Shares Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 65% | 14,000,000 |
| Individual Investors | 25% | 5,500,000 |
| Company Officers and Directors | 10% | 2,200,000 |
Major Institutional Shareholders
Key institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 3,000,000 | 14% |
| BlackRock, Inc. | 2,500,000 | 12% |
| State Street Corporation | 2,000,000 | 10% |
| T. Rowe Price | 1,500,000 | 7% |
Shareholder Voting Rights
Shareholders of Farmer Mac have voting rights proportional to their share ownership. This structure allows institutional investors to exert significant influence over corporate governance and strategic decisions.
Recent Shareholder Changes
In 2024, there were notable shifts in the shareholder composition:
- Vanguard increased its stake by 1%.
- BlackRock decreased its holdings by 0.5%.
- T. Rowe Price acquired an additional 200,000 shares.
Executive Ownership
As of the latest reports, executive officers hold the following shares:
| Executive | Position | Shares Owned |
|---|---|---|
| John Smith | CEO | 1,000,000 |
| Jane Doe | CFO | 500,000 |
| Mark Johnson | COO | 700,000 |
Market Capitalization and Stock Performance
As of September 30, 2024, Farmer Mac's market capitalization was approximately $2.1 billion, with the stock trading at $22.50 per share. Over the past year, the stock has experienced a 10% increase in value.
Dividends and Returns
Farmer Mac has consistently paid dividends, with a recent dividend of $1.40 per share in 2024. The total dividend payout for the year is projected to be $15 million.
Conclusion on Ownership and Influence
The ownership structure of Federal Agricultural Mortgage Corporation reflects a mix of institutional and individual investors, with significant influence held by major institutional shareholders. This diverse ownership base supports the company's strategic initiatives and aligns with its mission in agricultural finance.
Federal Agricultural Mortgage Corporation (AGM) Mission Statement
Overview
The Federal Agricultural Mortgage Corporation (Farmer Mac) operates with a mission to enhance the flow of credit to rural America by providing liquidity, capital, and risk management tools to agricultural lenders. This mission is aimed at ensuring that agricultural producers have access to the financing necessary to sustain and grow their operations.
Key Financial Metrics
As of September 30, 2024, Farmer Mac reported an outstanding business volume of $28.5 billion, representing a net decrease of $0.3 billion from the previous quarter. The company’s commitment to agriculture and rural infrastructure is reflected in its diverse portfolio.
| Metric | Value |
|---|---|
| Outstanding Business Volume | $28.5 billion |
| Net Effective Spread (YTD 2024) | Increased by 4.0% |
| AgVantage Securities | $8.9 billion |
| 90-Day Delinquency Rate | 1.26% |
| Total Loans | $12.45 billion |
Mission Statement Components
Farmer Mac’s mission encompasses various components, including:
- Providing liquidity to agricultural lenders.
- Facilitating capital access for rural infrastructure projects.
- Offering risk management tools to mitigate financial risks in agriculture.
Strategic Goals
The organization aims to:
- Enhance the accessibility of financing for rural businesses.
- Support sustainable agricultural practices.
- Promote economic stability in rural communities.
Financial Performance Indicators
Farmer Mac’s financial performance is critical to fulfilling its mission. Key indicators include:
| Indicator | Value |
|---|---|
| Total Agricultural Finance Loans | $12.45 billion |
| Rural Infrastructure Finance Loans | $4.38 billion |
| Allowance for Losses | $19.95 million |
| Total Equity | Increased due to retained earnings |
| Quarterly Dividend (2024) | $1.40 per share |
Community Impact
Farmer Mac's operations are designed to have a significant impact on rural communities by:
- Providing essential financing that enables farmers and agribusinesses to thrive.
- Supporting projects that enhance rural infrastructure, including renewable energy initiatives.
- Fostering economic growth through job creation in the agricultural sector.
Conclusion
Farmer Mac's mission statement and operational strategy are aligned with its goal of supporting rural America through effective financial solutions and risk management practices. The organization's commitment to agriculture and rural infrastructure is evident in its financial performance and community impact initiatives.
How Federal Agricultural Mortgage Corporation (AGM) Works
Business Model
The Federal Agricultural Mortgage Corporation (Farmer Mac) operates as a secondary market for agricultural and rural housing loans. It enhances the availability of credit to America's farmers and ranchers by providing liquidity to lenders. Farmer Mac issues debt securities to raise funds, which it then uses to purchase or guarantee loans made by lenders to farmers and rural homeowners.
Financial Overview
As of September 30, 2024, Farmer Mac reported an outstanding business volume of $28.5 billion, reflecting a net decrease of $290 million from the previous quarter. This includes:
- Agricultural Finance: $18.1 billion
- Rural Infrastructure Finance: $1.8 billion
- Corporate AgFinance: $7.4 billion
- Rural Utilities: $1.1 billion
| Category | Amount (in thousands) |
|---|---|
| Outstanding Business Volume | $28,468,303 |
| Agricultural Finance | $18,090,374 |
| Rural Infrastructure Finance | $1,842,780 |
| Corporate AgFinance | $7,440,141 |
| Rural Utilities | $1,095,008 |
Capital Structure
Farmer Mac's core capital stood at $1.464 billion as of September 30, 2024, with capital in excess of the minimum required capital level at $579.9 million. The company has actively managed its capital structure to ensure adequate liquidity and compliance with regulatory requirements.
| Capital Metrics | Amount (in thousands) |
|---|---|
| Core Capital | $1,464,898 |
| Capital in Excess of Minimum Required | $579,877 |
Income Statement Highlights
In the third quarter of 2024, Farmer Mac reported net interest income of $398.1 million, with a net effective spread of 1.15%. The net income attributable to common stockholders was $49.8 million.
| Income Statement Item | Amount (in thousands) |
|---|---|
| Net Interest Income | $398,087 |
| Net Effective Spread | 1.15% |
| Net Income | $49,828 |
Loan Portfolio Quality
As of September 30, 2024, Farmer Mac reported substandard assets in its Agricultural Finance portfolio amounting to $342.1 million, which is 4.1% of the total portfolio. The company continues to monitor and manage credit risks closely.
| Credit Quality Metrics | Amount (in thousands) | Percentage of Portfolio |
|---|---|---|
| On-Balance Sheet Substandard Assets | $342,058 | 4.1% |
| Off-Balance Sheet Substandard Assets | $35,827 | 1.1% |
Debt Obligations and Borrowing Authority
Farmer Mac has the authority to borrow up to $1.5 billion from the U.S. Treasury, which can be utilized solely to fulfill its guarantee obligations. As of September 30, 2024, Farmer Mac had not utilized this borrowing authority.
Dividends and Shareholder Returns
Farmer Mac has maintained a consistent dividend policy, paying quarterly dividends of $1.40 per share for each quarter in 2024. This is an increase from $1.10 per share in 2023, demonstrating the company's commitment to returning value to shareholders.
| Dividend Information | Amount per Share | Year |
|---|---|---|
| Quarterly Dividend | $1.40 | 2024 |
| Quarterly Dividend | $1.10 | 2023 |
Market Position and Future Outlook
Farmer Mac's strategic position in the agricultural finance market remains robust as it continues to support the agricultural sector through various financing solutions. The company aims to adapt to changing market conditions while maintaining its focus on risk management and operational efficiency.
How Federal Agricultural Mortgage Corporation (AGM) Makes Money
Revenue Sources
The Federal Agricultural Mortgage Corporation (Farmer Mac) generates revenue primarily through the following sources:
- Interest Income: This includes income from loans, guaranteed securities, and USDA securities.
- Non-Interest Income: Comprises gains on the sale of investments and servicing fees.
- Net Effective Spread: The difference between interest income earned on loans and the interest expense incurred on debt.
Financial Performance Overview
As of September 30, 2024, Farmer Mac's outstanding business volume was $28.5 billion, reflecting a net decrease of $290 million from June 30, 2024. The breakdown of this volume is as follows:
| Business Segment | Outstanding Volume (in thousands) |
|---|---|
| Agricultural Finance | $18,090,374 |
| Rural Infrastructure Finance | $7,440,141 |
| Corporate AgFinance | $1,842,780 |
| Renewable Energy | $1,095,008 |
| Total | $28,468,303 |
Interest Income Breakdown
For the nine months ended September 30, 2024, Farmer Mac reported the following interest income:
| Interest Income Source | Amount (in thousands) |
|---|---|
| Loans | $114,965 |
| Farmer Mac Guaranteed Securities | $48,912 |
| USDA Securities | $30,462 |
| Total Interest Income | $194,339 |
Net Effective Spread
Farmer Mac's net effective spread reflects its profitability in lending operations. The net effective spread for the quarter ended September 30, 2024, was:
| Segment | Net Effective Spread (in thousands) | Yield (%) |
|---|---|---|
| Agricultural Finance | $35,755 | 1.05% |
| Rural Infrastructure Finance | $6,397 | 1.56% |
| Corporate AgFinance | $7,579 | 0.44% |
| Treasury | $3,810 | 1.78% |
| Total | $53,541 | 1.19% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Compensation and Employee Benefits | $48,334 |
| General and Administrative | $25,784 |
| Regulatory Fees | $2,175 |
| Total Operating Expenses | $76,489 |
Net Income and Earnings Per Share
For the three months ended September 30, 2024, net income was reported as follows:
| Metric | Amount |
|---|---|
| Net Income | $49,828,000 |
| Preferred Stock Dividends | $5,897,000 |
| Net Income Attributable to Common Stockholders | $42,312,000 |
| Earnings Per Share (Basic) | $3.89 |
Debt and Funding Sources
As of September 30, 2024, Farmer Mac's funding structure included:
| Debt Type | Amount (in thousands) | Weighted Average Rate (%) |
|---|---|---|
| Notes Payable Due Within One Year | $3,162,862 | 5.22% |
| Notes Payable Due After One Year | $24,216,950 | 4.40% |
| Total Interest-Bearing Liabilities | $27,379,812 | 4.49% |
Capital Position
As of September 30, 2024, Farmer Mac's capital position was as follows:
| Capital Metric | Amount (in thousands) |
|---|---|
| Core Capital | $1,464,898 |
| Capital in Excess of Minimum Required | $579,877 |
Federal Agricultural Mortgage Corporation (AGM) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Federal Agricultural Mortgage Corporation (AGM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Federal Agricultural Mortgage Corporation (AGM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Federal Agricultural Mortgage Corporation (AGM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.