Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 185

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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Total credit related expense/(income)1,651 (1,870)Operating expenses (GAAP):Compensation and employee benefits17,752 18,257 General and administrative10,758 8,255 Regulatory fees1,000 725 Total operating expenses29,510 27,237 Net earnings65,632 63,736 Income tax expense(4)14,000 13,553 Preferred stock dividends (GAAP)5,666 6,791 Core earnings$45,966 $43,392 Core earnings per share:  Basic$4.22 $4.00   Diluted$4.19 $3.96 Weighted-average shares:  Basic10,896 10,847   Diluted10,983 10,969 

(1)Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 10 for a reconciliation of net interest income to net effective spread.

(2)Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.  

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(3)Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(4)Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

Table 7Reconciliation of GAAP Basic Earnings Per Share to Core Earnings - Basic Earnings Per Share  For the Three Months Ended  March 31, 2025March 31, 2024(in thousands, except per share amounts)GAAP - Basic EPS$4.04 $4.33 Less reconciling items:(Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 13)(0.23)0.16 Gains on hedging activities due to fair value changes0.10