Company: AGM-PH
Filing Date: 2025-03-12
Form Type: 8-K
Source: 0000845877-25-000092
Chunk: 2

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-03-12
Form: 8-K
Item: Item 5.02
Chunk 2
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 the performance period of January 1, 2025 through December 31, 2027 (“Performance Period”). “ Earnings before Credit” is defined as core earnings (a non-GAAP financial measure reported by Farmer Mac and as described in its Form 10-K and Form 10-Q filings with the SEC), excluding the after-tax effects of provisions for losses, gains or losses on fair value, or sale of real estate owned (“ REO”) property.

The “gatekeepers” for the performance-based RSUs require the Committee to determine that during the Performance Period: (1) Farmer Mac maintained compliance with all applicable regulatory capital requirements; and (2) Farmer Mac achieved (a) a three-year average ratio of net charge-offs to the average balance of total outstanding on- and off-balance sheet loans, guarantees, and commitments, including any subordinated or non-guaranteed tranches of securitized assets but excluding any assets held in Farmer Mac’s liquidity investment portfolio (“Net Outstanding Business Volume”) less than 20 basis points, and (b) a three-year average percentage of total 90-day delinquencies to the average balance of Net Outstanding Business Volume of less than 1%. For purposes of performing these calculations, “net

charge-offs” is defined as charge-offs to Farmer Mac’s allowance for losses net of actual recoveries plus any writedowns on REO properties and any gains or losses realized upon disposition of REO properties. Average balances are determined by calculating a simple average of reported balances as of the end of each calendar quarter.

If at the end of the Performance Period the Committee determines that Farmer Mac has satisfied the above-listed “gatekeepers,” the performance-based RSUs will be eligible to vest on March 31, 2028 in an amount determined by the Committee for each executive officer between 0% and 200% of the target number of RSUs granted to that executive officer, based on Farmer Mac’s 3-year cumulative Earnings before Credit during the Performance Period. Performance at the target 3-year cumulative Earnings before Credit of $610.5 million will earn 100% of the target number of RSUs granted. Performance at a 3-year cumulative Earnings before Credit of 542.7 million is required for vesting of any performance-based RSUs and will earn the threshold level of 50% of the target number of RSUs granted. Performance at or above 3-year cumulative Earnings before Credit of $683.7 million will earn the maximum award of 200