Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 188

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 188
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 segments. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Information" for quarterly net effective spread by line of business.

Provision for and Release of Allowance for Losses and Reserve for Losses. The following table summarizes the components of Farmer Mac's total allowance for losses for the three-year period ended December 31, 2024:

Table 11AllowanceforLossesReservefor LossesTotalAllowancefor Losses(in thousands)Balance as of December 31, 2021$14,492 $1,950 $16,442 Provision for/(release of) losses1,323 (517)806 Charge-offs(84)— (84)Balance as of December 31, 2022$15,731 $1,433 $17,164 Provision for losses858 278 1,136 Balance as of December 31, 2023$16,589 $1,711 $18,300 Provision for/(release of) losses11,579 (89)11,490 Charge-offs(4,498)— (4,498)Balance as of December 31, 2024$23,670 $1,622 $25,292 

See Notes 8 and 12 to the consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees." 

During 2024, we recorded a $11.5 million net provision to the total allowance for losses primarily as a result of one permanent planting borrower relationship, risk rating downgrades in Agricultural Finance, and new loan volume in Infrastructure Finance. 

Guarantee and Commitment Fees. The following table presents guarantee and commitment fees, which compensate Farmer Mac for assuming the credit risk on loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs, for the years ended December 31, 2024, 2023, and 2022:

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Table 12For the Years Ended December 31,202420232022(dollars in thousands)Contractual guarantee and commitment fees$15,952 $15,084 $14,235 Guarantee obligation amortization5,273 4,331 5,913 Guarantee asset fair value changes(5,487)(2,703)(7,108)Gu