Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 264

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 264
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.2 million sequential increase in net income attributable to common stockholders was primarily attributable to a $4.6 million after-tax increase in net interest income, a $3.2 million increase in federal income tax benefit from the purchase of renewable energy investment tax credits, and a $2.1 million after-tax increase in the fair value of financial derivatives. These increases were partially offset by a $4.9 million after-tax increase in the provision for credit losses.

The $8.9 million year-over-year increase in net income attributable to common stockholders was primarily attributable to a $7.5 million after-tax increase in net interest income, a $3.2 million increase in federal income tax benefit from the purchase of renewable energy investment tax credits, and a $1.5 million after-tax increase in the fair value of financial derivatives. These factors were partially offset by a $4.0 million after-tax increase in operating expenses and a $1.2 million after-tax increase in the provision for credit losses. 

The $1.4 million sequential increase in core earnings was primarily attributable to a $3.1 million after-tax increase in net effective spread and a $3.2 million increase in federal income tax benefit from the purchase of renewable energy investment tax credits, partially offset by a $4.9 million after-tax increase in the provision for credit losses.

The $7.6 million year-over-year increase in core earnings was primarily attributable to a $8.1 million after-tax increase in net effective spread and a $3.2 million increase in federal income tax benefit from the purchase of renewable energy investment tax credits, partially offset by a $4.0 million after-tax increase in operating expenses and a $1.2 million after-tax increase in the provision for credit losses. 

For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see "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."

Net Interest Income and Net Effective Spread

The following table shows our net interest income and net effective spread in both dollars and percentage yield or spread for the periods presented. Farmer Mac uses net effective spread, a non-GAAP measure, as an alternative to net interest income because management believes it is a