Company: AGM-PH
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000845877-25-000252
Chunk: 215

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 215
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 attributable to common stockholders was primarily attributable to a $1.1 million decrease in the fair value of financial derivatives and a $1.1 million increase in income tax expense primarily related to fewer purchases of renewable energy investment tax credits in third quarter 2025 compared to second quarter 2025. These decreases in net income were partially offset by a $1.7 million increase in net interest income. 

The $6.4 million year-over-year increase in net income attributable to common stockholders was primarily attributable to a $11.7 million increase in net interest income partially offset by a $4.2 million increase in the provision for credit losses. 

The $2.3 million sequential increase in core earnings was primarily attributable to a $3.9 million increase in net effective spread and a $0.4 million decrease in the provision for credit losses. These impacts were partially offset by a $1.8 million increase in income tax expense due to fewer purchases of renewable energy investment tax credits in third quarter 2025 compared to second quarter 2025.

The $4.7 million year-over-year increase in core earnings was primarily attributable to a $12.4 million increase in net effective spread, a $1.1 million increase in guarantee and commitment fees, and a $0.7 million decrease in income tax expense primarily related to purchases of renewable energy investment tax credits in third quarter 2025. These impacts were partially offset by a $4.2 million increase in the provision for credit losses and a $5.2 million increase in operating expenses. 

For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." 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."

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Net Interest Income and Net Effective Spread

The following table shows our net interest income and net effective spread in both dollars and percentage yield or spread for the periods presented. Farmer Mac uses net effective spread, a non-GAAP measure, as an alternative to net interest income because management believes it is a useful metric that reflects the economics of the net spread between all the assets owned by Farmer Mac and all related funding, including any associated derivatives, some of which may not be included in net interest income.

Table