Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 71

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 71
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36,110 2.3 years96,939 96,939 As of December 31, 2024 and 2023, the intrinsic value of  SARs, and non-vested restricted stock units outstanding, exercisable, and vested or expected to vest was $28.4 million and $35.0 million, respectively. During the years ended December 31, 2024, 2023, and 2022, the total intrinsic value of SARs exercised was $4.6 million, $2.4 million, and $1.1 million, respectively. As of December 31, 2024, there was $7.5 million of total unrecognized compensation cost related to non-vested SARs and restricted stock unit awards. This cost is expected to be recognized over a weighted-average period of 1.7 years.The weighted-average grant date fair values of SARs and restricted stock unit awards granted in the years ended December 31, 2024, 2023, and 2022 were $159.08, $114.68, and $91.94 per share, respectively. Under the fair value-based method of accounting for stock-based compensation cost, Farmer Mac recognized compensation expense of $8.1 million, $6.8 million, and $4.6 million during the years ended December 31, 2024, 2023, and 2022, respectively.  

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The fair value of SARs was estimated using the Black-Scholes option pricing model based on the following assumptions:Table 9.5 For the Years Ended December 31, 202420232022Risk-free interest rate4.1%4.1%1.9%Expected years until exercise6 years6 years6 yearsExpected stock volatility36.0%36.6%37.4%Dividend yield2.8%3.3%3.2%The risk-free interest rates used in the model were based on the U.S. Treasury yield curve in effect at the grant date. Farmer Mac used historical data to estimate the timing of SARs exercises used in the model. Expected volatilities were based on historical volatility of Farmer Mac's Class C non-voting common stock. The dividend yields were based on the expected dividends as a percentage of the value of Farmer Mac's Class C non-voting common stock on the grant date.Because stock will be issued upon the