Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 190

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 190
---
(dollars in thousands)Net interest income/yield$90,939 1.15 %$86,368 1.15 %Net effects of consolidated trusts(1,010)0.02 %(1,052)0.02 %Expense related to undesignated financial derivatives318 — %(34)— %Amortization of premiums/discounts on assets consolidated at fair value(25)— %(27)— %Amortization of losses due to terminations or net settlements on financial derivatives867 0.01 %791 0.01 %Fair value changes on fair value hedge relationships(1,099)(0.01)%(3,002)(0.04)%Net effective spread$89,990 1.17 %$83,044 1.14 %

The $6.9 million year-over-year increase in net effective spread for first quarter 2025 compared to first quarter 2024 was primarily due to a $6.4 million increase from net new business volume and a $0.6 million decrease in funding costs. In percentage terms, the year-over-year increase of 0.03% was primarily attributable to the shift in the composition of new business volume towards higher-yielding assets, partially offset by increased funding costs.

See Note 10 to the consolidated financial statements for more information about 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.

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 month period ended March 31, 2025 and 2024:

Table 11For the Three Months EndedMarch 31, 2025March 31, 2024AllowanceforLossesReservefor LossesTotalAllowancefor LossesAllowanceforLossesReservefor LossesTotalAllowancefor Losses(in thousands)Beginning Balance$23,670 $1,622 $25,292 $16,589 $1,711 $18,300 Provision for/(release of) losses1,684 (101)1,583 (1,801)(69)(1,870)Recovery83 — 83 —