Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 249

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 249
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 rates. The accrual of periodic cash settlements for interest paid or received from Farmer Mac's interest rate swaps that are undesignated financial derivatives is shown as income or expense related to financial derivatives. Payments or receipts to terminate undesignated derivative positions or net cash settled forward sales contracts on the debt of other GSEs and undesignated U.S. Treasury security futures and initial cash payments received upon the inception of certain undesignated swaps are included in "Gains due to terminations or net settlements" in the table above. See Note 4 to the consolidated financial statements for more information about Farmer Mac's financial derivatives. 

Operating Expenses. The components of operating expenses for the three months ended March 31, 2025 and 2024 are summarized in the following table:

Table 14

 For the Three Months EndedChangeMarch 31, 2025March 31, 2024$% (dollars in thousands)Compensation and employee benefits$17,752 $18,257 $(505)(3)%General and administrative10,758 8,255 2,503 30 %Regulatory fees1,000 725 275 38 %Total Operating Expenses$29,510 $27,237 $2,273 8 %

Compensation and Employee Benefits. The decrease in compensation and employee benefits expenses for the quarter ended March 31, 2025 compared to 2024 was primarily attributable to lower short-term incentive compensation awards.

General and Administrative Expenses (G&A). The increase in G&A expenses for the quarter ended March 31, 2025 compared to 2024 was primarily attributable to an increase in information technology infrastructure costs, transactional legal fees, hiring expenses, and servicing advance expenses. 

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Income Tax Expense. The following table presents income tax expense and the effective income tax rate for the three months ended March 31, 2025 and 2024:

Table 15 For the Three Months EndedChangeMarch 31, 2025March 31, 2024$% (dollars in thousands)Income tax expense$13,474 $14,500 $(1,026)(7)%Effective tax rate21.3 %21.2 %0.1 %

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Business Volume.  

The following table sets forth the net growth or decrease in Farmer Mac's lines of business for the three months ended March 31, 2025 and 2024: