Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 77

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 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.

Reconciliation of Net Income Attributable to Common Stockholders to Core EarningsFor the Six Months EndedJune 30, 2025June 30, 2024(in thousands, except per share amounts)Net income attributable to common stockholders$93,155 $87,268 Less reconciling items:  (Losses)/gains on undesignated financial derivatives due to fair value changes (see Table 13)(3,212)1,324 Gains on hedging activities due to fair value changes3,808 5,606 Unrealized losses on trading securities(56)(101)Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value53 57 Net effects of terminations or net settlements on financial derivatives(815)(1,697)Income tax effect related to reconciling items46 (1,090)Sub-total(176)4,099 Core earnings$93,331 $83,169 Composition of Core Earnings:Revenues:Net effective spread(1)$183,883 $166,640 Guarantee and commitment fees(2)11,362 10,238 Gain on sale of investment securities (GAAP)— 1,052 Loss on sale of mortgage loan (GAAP)— (1,147)Other(3)2,057 1,558 Total revenues197,302 178,341 Credit related expense/(income) (GAAP):Provision for losses9,395 4,360 REO operating expenses148 — Gain on REO(19)— Total credit related expense/(income)9,524 4,360 Operating expenses (GAAP):Compensation and employee benefits