Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 77

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 77
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(1) Relates to LTSPCs issued or modified on or after January 1, 2003.CommitmentsFarmer Mac enters into mandatory and optional delivery commitments to purchase loans. Most loan purchase commitments entered into by Farmer Mac are mandatory commitments, in which Farmer Mac charges a fee to extend or cancel the commitment. As of December 31, 2024 and 2023, commitments to purchase Agricultural Finance loans and USDA Guarantees totaled $54.0 million and $31.0 million, respectively, all of which were mandatory commitments. Farmer Mac also has unfunded commitments and letters of credit under which Farmer Mac earns a nominal fee for the obligation to provide funding at a future date. As of December 31, 2024 and 2023, Farmer Mac had $602.6 million and $261.2 million of these unfunded commitments and letters of credit under the Agricultural Finance and Infrastructure lines of business. Any optional loan purchase commitments are sold forward under optional commitments to deliver Farmer Mac Guaranteed Securities that may be canceled by Farmer Mac without penalty.Reserve for Losses -  LTSPCs and Farmer Mac Guaranteed Securities The following table is a summary, by asset type, of the reserve for losses as of December 31, 2024 and 2023:Table 12.6December 31, 2024December 31, 2023Reserve for LossesReserve for Losses(in thousands)Agricultural Finance$1,431 $1,471 Infrastructure Finance192 240 Total$1,623 $1,711 

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The following is a summary of the net changes in the reserve for losses for the three-year period ended December 31, 2024:Table 12.7Agricultural Finance loansInfrastructure Finance loansReserve for LossesReserve for Losses(in thousands)Balance as of December 31, 2021$1,068 $882 Release of losses(249)(268)Balance as of December 31, 2022$819 $614 Provision for/(release of) losses652 (374)Balance as of December 31, 2023$1,471 $240 Release of losses(40)(48)Balance as of December 31, 2024$1,431 $192 The release from the reserve for losses during 2024 for both Agricultural Finance and Infrastructure Finance was primarily due to ratings upgrades.The provision for the reserve for losses