Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 47

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 47
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 futures21,300 11 (91)112.51 Netting adjustments(1)— (1,236)1,236 Total financial derivatives$25,779,468 $37,478 $(117,131)      (1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent. As of December 31, 2024, Farmer Mac expects to reclassify $10.5 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after December 31, 2024. During the years ended December 31, 2024 and 2023, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it was probable that the originally forecasted transactions would occur. The following tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the years ended December 31, 2024, 2023, and 2022:

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Table 6.2For the Year Ended December 31, 2024Net Income/(Expense) Recognized in Consolidated Statement of Operations on DerivativesNet Interest IncomeNon-Interest IncomeTotalInterest Income Investments and Cash Equivalents Interest Income Farmer Mac Guaranteed Securities and USDA SecuritiesInterest Income LoansTotal Interest ExpenseGains on financial derivatives(in thousands)Total amounts presented in the consolidated statement of operations$345,501 $628,828 $629,187 $(1,249,649)$2,636 $356,503 Income/(expense) related to interest settlements on fair value hedging relationships:Recognized on derivatives40,224 147,922 68,346 (275,387)— (18,895)Recognized on hedged items44,303 213,759 69,516 (423,428)— (95,850)Premium/discount amortization recognized on hedged items2,134 — — (3,197)— (1,063)Income/(expense) related to interest settlements on fair value hedging relationships$86,661 $361,681 $137,862 $(702,012)$— $(115,