Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 247

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 247
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 effective spread from Farmer Mac's individual business segments. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Supplemental Information" for quarterly net effective spread by line of business.

Provision for and Release of Allowance for Losses and Reserve for Losses. The following table summarizes the components of Farmer Mac's total allowance for losses for the three month period ended March 31, 2025 and 2024:

Table 11For the Three Months EndedMarch 31, 2025March 31, 2024AllowanceforLossesReservefor LossesTotalAllowancefor LossesAllowanceforLossesReservefor LossesTotalAllowancefor Losses(in thousands)Beginning Balance$23,670 $1,622 $25,292 $16,589 $1,711 $18,300 Provision for/(release of) losses1,684 (101)1,583 (1,801)(69)(1,870)Recovery83 — 83 — — — Ending Balance$25,437 $1,521 $26,958 $14,788 $1,642 $16,430 

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See Notes 5 and 6 to the consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk—Loans and Guarantees." 

During first quarter 2025, we recorded a $1.6 million net provision to the total allowance for losses primarily due to new loan volume in the Infrastructure Finance and Agricultural Finance lines of business. 

Guarantee and Commitment Fees. The following table presents guarantee and commitment fees, which compensate Farmer Mac for assuming the credit risk on loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs, for the three months ended March 31, 2025 and 2024:

Table 12For the Three Months EndedChangeMarch 31, 2025March 31, 2024$%(dollars in thousands)Contractual guarantee and commitment fees$4,429 $3,904 $525 13 %Guarantee obligation amortization1,756 1,782 (26)(1)%Guarantee asset fair value changes(1,706)(1,769)63 4 %Guarantee and commitment fee income$4,479 $3