Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 74

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 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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(Losses)/gains on financial derivatives. The components of gains and losses on financial derivatives for the three months ended March 31, 2025 and 2024 are summarized in the following table:

Table 13 For the Three Months EndedChange March 31, 2025March 31, 2024$% (dollars in thousands)(Losses)/gains due to fair value changes$(2,573)$1,683 $(4,256)(253)%Accrual of contractual payments318 (34)352 (1,035)%(Losses)/gains due to terminations or net settlements(381)430 (811)(189)%(Losses)/gains on financial derivatives$(2,636)$2,079 $(4,715)(227)%

These changes in fair value are primarily the result of fluctuations in long-term interest 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