Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 66

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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ations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps. The inclusion of these items in net effective spread is intended to reflect our view of the complete net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.

For a reconciliation of net interest income and net interest yield to net effective spread, see Table 10 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

Results of Operations

Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings:

56

Table 6

Reconciliation of Net Income Attributable to Common Stockholders to Core EarningsFor the Three Months EndedMarch 31, 2025March 31, 2024(in thousands, except per share amounts)Net income attributable to common stockholders$43,985 $46,955 Less reconciling items:  (Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 13)(2,573)1,683 Gains on hedging activities due to fair value changes1,099 3,002 Unrealized gains/(losses) on trading securities9 (14)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value28 31 Net effects of terminations or net settlements on financial derivatives(1,070)(192)Income tax effect related to reconciling items526 (947)Sub-total(1,981)3,563 Core earnings$45,966 $43,392 Composition of Core Earnings:Revenues:Net effective spread(1)$89,990 $83,044 Guarantee and commitment fees(2)5,488 4,982 Other(3)1,315 1,077 Total revenues96,793 89,103 Credit related expense/(income) (GAAP):Provision for/(release of) losses1,583 (1