Company: AGM-PH
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000845877-25-000252
Chunk: 222

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 222
---
 Effective Spread" for more information and Table 10 for a reconciliation of net interest income to net effective spread.

(2)Includes net interest income of $1.1 million for both the three months ended September 30, 2025 and 2024, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.  

63

(3)Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(4)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

64

Reconciliation of Net Income Attributable to Common Stockholders to Core EarningsFor the Nine Months EndedSeptember 30, 2025September 30, 2024(in thousands, except per share amounts)Net income attributable to common stockholders$141,855 $129,580 Less reconciling items:  (Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 12)(2,330)260 Gains on hedging activities due to fair value changes3,671 5,811 Unrealized losses on trading securities(60)(2)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value79 84 Net effects of terminations or net settlements on financial derivatives(2,749)(2,200)Issuance costs on the retirement of preferred stock— (1,619)Income tax effect related to reconciling items291 (830)Sub-total(1,098)1,504 Core earnings$142,953 $128,076 Composition of Core Earnings:Revenues:Net effective spread(1)$281,652 $252,036 Guarantee and commitment fees(2)17,494 15,235 Gain on sale of investment securities (GAAP)— 1,052 Loss on sale of mortgage loan (GAAP)— (1,147)Other(3)3,242 2,691 Total revenues302,388 269