Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 191

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 191
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 — — Ending Balance$25,437 $1,521 $26,958 $14,788 $1,642 $16,430 

61

See Notes 5 and 6 to the consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees." 

During first quarter 2025, we recorded a $1.6 million net provision to the total allowance for losses primarily due to new loan volume in the Infrastructure Finance and Agricultural Finance lines of business. 

Guarantee and Commitment Fees. The following table presents guarantee and commitment fees, which compensate Farmer Mac for assuming the credit risk on loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs, for the three months ended March 31, 2025 and 2024:

Table 12For the Three Months EndedChangeMarch 31, 2025March 31, 2024$%(dollars in thousands)Contractual guarantee and commitment fees$4,429 $3,904 $525 13 %Guarantee obligation amortization1,756 1,782 (26)(1)%Guarantee asset fair value changes(1,706)(1,769)63 4 %Guarantee and commitment fee income$4,479 $3,917 $562 14 %

Guarantee and commitment fee income increased for the three months ended March 31, 2025 compared to 2024, which was primarily attributable to increased business volume in unused commitments in the Infrastructure Finance line of business. As adjusted for the non-GAAP core earnings presentation, guarantee and commitment fees were $5.5 million for the three months ended March 31, 2025, compared to $5.0 million for the three months ended March 31, 2024.

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