Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 240

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 240
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 June 30, 2024, 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."

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Gains/(losses) on financial derivatives. The components of gains and losses on financial derivatives for the three and six months ended June 30, 2025 and 2024 are summarized in the following table:

Table 13 For the Three Months EndedFor the Six Months EndedChangeChange June 30, 2025June 30, 2024$%June 30, 2025June 30, 2024$% (dollars in thousands)(Losses)/gains on undesignated financial derivatives due to fair value changes$(639)$(359)$(280)78 %$(3,212)$1,324 $(4,536)(343)%Accrual of contractual payments(208)(486)278 (57)%110 (521)631 (121)%Gains/(losses) due to terminations or net settlements927 (954)1,881 (197)%546 (523)1,069 (204)%Gains/(losses) on financial derivatives$80 $(1,799)$1,879 (104)%$(2,556)$280 $(2,836)(1013)%

These changes in fair value are primarily the result of fluctuations in long-term interest rates. Payments or receipts to terminate undesignated derivative positions or net cash settled forward sales contracts on