Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 178

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 178
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The discussion below of Farmer Mac's financial information includes "non-GAAP measures," which are measures of financial performance not presented in accordance with generally accepted accounting principles in the United States ("GAAP"). For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

Net Income and Core Earnings

The following table shows our net income attributable to common stockholders and core earnings for the periods presented. Core earnings and core earnings per share are non-GAAP measures that differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations and specified infrequent or unusual transactions.

Table 1For the Three Months EndedMarch 31, 2025December 31, 2024March 31, 2024(in thousands)Net income attributable to common stockholders$43,985 $50,848 $46,955 Core earnings45,966 43,554 43,392 

The $6.9 million sequential decrease in net income attributable to common stockholders was primarily attributable to a $5.5 million after-tax decrease in the fair value of financial derivatives, a $2.6 million decrease in federal income tax benefit from the purchase of renewable energy investment tax credits that occurred in fourth quarter 2024 and did not recur in first quarter 2025, and a $1.9 million after-tax decrease in net interest income. These decreases were partially offset by a $1.8 million after-tax decrease 

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in the provision for credit losses, and a $0.8 million after-tax decrease in an unrealized loss on a mortgage loan held for sale that occurred in fourth quarter 2024 and did not recur in first quarter 2025.

The $3.0 million year-over-year decrease in net income attributable to common stockholders for first quarter 2025 compared to first quarter 2024 was primarily attributable to a $3.7 million after-tax decrease in the fair value of financial derivatives and a $2.7 million after-tax increase in the provision for credit losses. These factors were partially offset by a $3.6 million after-tax increase in net interest income. 

The $2.4 million sequential increase in core earnings was primarily attributable to a $1.9 million after-tax increase in net effective spread, a $1.8 million after-tax decrease in the provision for credit losses,