Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 279

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 279
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 net interest income and net effective spread from Farmer Mac's individual business segments. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Information" for quarterly net effective spread by line of business.

70

Provision for and Release of Allowance for Losses and Reserve for Losses. The following table summarizes the components of Farmer Mac's total allowance for losses for the three and six months ended June 30, 2025 and 2024:

Table 11As of June 30, 2025As of June 30, 2024AllowanceforLossesReservefor LossesTotalAllowancefor LossesAllowanceforLossesReservefor LossesTotalAllowancefor Losses(in thousands)For the Three Months EndedBeginning Balance$25,437 $1,521 $26,958 $14,788 $1,642 $16,430 Provision for losses7,713 99 7,812 6,179 51 6,230 Charge-offs(2,840)— (2,840)(4,043)— (4,043)Recovery40 — 40 — — — Ending Balance$30,350 $1,620 $31,970 $16,924 $1,693 $18,617 For the Six Months EndedBeginning Balance$23,670 $1,622 $25,292 $16,589 $1,711 $18,300 Provision for/(release of) losses9,397 (2)9,395 4,378 (18)4,360 Charge-offs(2,840)— (2,840)(4,043)— (4,043)Recovery123 — 123 — — — Ending Balance$30,350 $1,620 $31,970 $16,924 $1,693 $18,617 

During second quarter 2025, we recorded a $7.8 million net provision to the total allowance for losses of which $2.8 million resulted from two specific borrower relationships for a permanent planting loan and a crop loan. During second quarter 2025, we recorded a charge-off of $2.8 million related to these two specific borrower relationships to reflect the amount of each loan that we deemed uncollectible.