Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 246

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 246
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 effective spread. Net effective spread is measured by: including (1) expenses related to undesignated financial derivatives, which consists of income or expense related to contractual amounts due on financial derivatives not designated in hedge relationships (the income or expense related to financial derivatives 

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designated in hedge accounting relationships is already included in net interest income), and (2) the amortization of losses due to terminations or net settlements of financial derivatives; and excluding (1) the amortization of premiums and discounts on assets consolidated at fair value, (2) the net effects of consolidated trusts with beneficial interests owned by third parties (single-class), and (3) the fair value changes of financial derivatives and corresponding financial assets or liabilities in fair value hedge relationships. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for more information about net effective spread.

Table 10  For the Three Months Ended March 31, 2025March 31, 2024 DollarsYieldDollarsYield (dollars in thousands)Net interest income/yield$90,939 1.15 %$86,368 1.15 %Net effects of consolidated trusts(1,010)0.02 %(1,052)0.02 %Expense related to undesignated financial derivatives318 — %(34)— %Amortization of premiums/discounts on assets consolidated at fair value(25)— %(27)— %Amortization of losses due to terminations or net settlements on financial derivatives867 0.01 %791 0.01 %Fair value changes on fair value hedge relationships(1,099)(0.01)%(3,002)(0.04)%Net effective spread$89,990 1.17 %$83,044 1.14 %

The $6.9 million year-over-year increase in net effective spread for first quarter 2025 compared to first quarter 2024 was primarily due to a $6.4 million increase from net new business volume and a $0.6 million decrease in funding costs. In percentage terms, the year-over-year increase of 0.03% was primarily attributable to the shift in the composition of new business volume towards higher-yielding assets, partially offset by increased funding costs.

See Note 10 to the consolidated financial statements for more information about net interest income and net