Company: AGM-PH
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000845877-25-000252
Chunk: 82

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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ization of losses due to terminations or net settlements on financial derivatives987 0.01 %757 0.01 %2,876 0.01 %2,287 0.01 %Fair value changes on fair value hedge relationships137 — %(205)(0.01)%(3,671)(0.01)%(5,811)(0.02)%Net effective spread$97,769 1.20 %$85,396 1.16 %$281,652 1.19 %$252,036 1.15 %

The $12.4 million, or 4 basis point, year-over-year increase in net effective spread for third quarter 2025 compared to third quarter 2024 was primarily due to a $9.6 million increase from net new business volume and a $3.9 million decrease in funding costs, partially offset by a $1.3 million decrease in interest income related to an increase in loans on non-accrual.

The $29.6 million, or 4 basis point, increase in net effective spread for the nine months ended September 30, 2025, compared to the same period in the prior year, was primarily due to a $22.2 million increase in net new business volume, reflecting continued growth in the Renewable Energy and Broadband Infrastructure segments and a $7.5 million decrease in funding costs.

See Note 10 to the consolidated financial statements for more information about net interest income and net effective spread from Farmer Mac's individual business 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.

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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 and nine months ended September 30, 2025 and 2024:

Table 11As of September 30, 2025As of September 30, 2024AllowanceforLossesReservefor LossesTotalAllowancefor LossesAllowanceforLossesReservefor LossesTotalAllowancefor Losses(in thousands)For the Three Months EndedBeginning Balance$30,350 $1,620 $31,970 $16,924 $1,693 $18,617 Provision for/(release