Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 190

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 190
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 fluctuations in long-term interest rates. The accrual of periodic cash settlements for interest paid or received from Farmer Mac's interest rate swaps that are undesignated financial derivatives is shown as income or expense related to financial derivatives. Payments or receipts to terminate undesignated derivative positions or net cash settled forward sales contracts on the debt of other GSEs and undesignated U.S. Treasury security futures and initial cash 

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payments received upon the inception of certain undesignated swaps are included in "Gains due to terminations or net settlements" in the table above. See Note 6 to the consolidated financial statements for more information about Farmer Mac's financial derivatives. 

Operating Expenses. The components of operating expenses for the years ended December 31, 2024, 2023, and 2022 are summarized in the following table:

Table 14

 For the Years Ended December 31,202420232022 (dollars in thousands)Compensation and employee benefits$63,975 $58,914 $48,766 General and administrative38,236 34,963 29,772 Regulatory fees3,175 3,222 3,269 Total Operating Expenses$105,386 $97,099 $81,807 

Compensation and Employee Benefits. The increase in compensation and employee benefits expenses for the year ended December 31, 2024 compared to 2023 was largely due to increased headcount and increased stock compensation expense. The increase in compensation and employee benefits expenses for the year ended December 31, 2023 compared to 2022 was largely due to increased headcount.

General and Administrative Expenses (G&A). The increase in G&A expenses for the year ended December 31, 2024 compared to 2023 was primarily due to an increase in licensing fees and information technology infrastructure costs from the deployment of our modernized treasury and cash management systems in fourth quarter 2024. We also saw an increase in transactional legal fees as we continue to grow our Broadband Infrastructure and Renewable Energy portfolios. 

Income Tax Expense. The following table presents income tax expense and the effective income tax rate for the years ended December 31, 2024, 2023, and 2022:

Table 15 For the Years Ended December 31,202420232022 (dollars in thousands)Income tax expense$50,910 $53,098 $47,535 Effective tax rate19.7