Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 189

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 189
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arantee and commitment fee income$15,738 $16,712 $13,040 

Guarantee and commitment fee income decreased for the year ended December 31, 2024 compared to 2023, which was due to a decrease in the fair value of our retained beneficial interest in our off-balance sheet securitization. As adjusted for the non-GAAP core earnings presentation, guarantee and commitment fees were $20.3 million for the year ended December 31, 2024, compared to $18.9 million and $18.1 million for the years ended December 31, 2023 and 2022, respectively.

In Farmer Mac's presentation of non-GAAP core earnings, guarantee and commitment fees include interest income and interest expense related to consolidated trusts owned by third parties to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on those consolidated Farmer Mac Guaranteed Securities. Farmer Mac has also excluded changes in the fair values of guarantee assets from the presentation of core earnings because management does not expect these fluctuations to have a cumulative net impact on Farmer Mac's financial condition, results of operations, or cash flows if Farmer Mac fulfills its guarantee obligation throughout the term of the guaranteed securities, as is expected. 

For more information about net income attributable to common stockholders, the composition of non-GAAP core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see Table 6 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

Gains on financial derivatives. The components of gains and losses on financial derivatives for the years ended December 31, 2024, 2023, and 2022 are summarized in the following table:

Table 13 For the Years Ended December 31, 202420232022 (dollars in thousands)Gains due to fair value changes$3,344 $5,142 $13,495 Accrual of contractual payments(1,377)(4,845)(7,756)Gains due to terminations or net settlements669 2,585 16,892 Gains on financial derivatives$2,636 $2,882 $22,631 

These changes in fair value are primarily the result of