Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 237

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 237
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 of Non-GAAP Measures—Net Effective Spread" for more information about net effective spread.

Table 10  For the Three Months EndedFor the Six Months Ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024 DollarsYieldDollarsYieldDollarsYieldDollarsYield (dollars in thousands)Net interest income$96,797 1.20 %$87,340 1.15 %$187,736 1.17 %$173,708 1.15 %Net effects of consolidated trusts(987)0.02 %(1,371)0.02 %(1,998)0.02 %(2,423)0.02 %Expense related to undesignated financial derivatives(208)— %(486)(0.01)%110 — %(521)— %Amortization of premiums/discounts on assets consolidated at fair value(22)— %(21)— %(47)— %(48)— %Amortization of losses due to terminations or net settlements on financial derivatives1,022 0.01 %738 0.01 %1,890 0.01 %1,530 0.01 %Fair value changes on fair value hedge relationships(2,709)(0.04)%(2,604)(0.03)%(3,808)(0.02)%(5,606)(0.04)%Net effective spread$93,893 1.19 %$83,596 1.14 %$183,883 1.18 %$166,640 1.14 %

The $10.3 million, or 5 basis point, year-over-year increase in net effective spread for second quarter 2025 compared to second quarter 2024 was primarily due to a $7.4 million increase from net new business volume, a $1.4 million contribution from our Investments segment and a $1.4 million decrease in funding costs. 

The $17.3 million, or 4 basis point, increase in net effective spread for the six months ended June 30, 2025, compared to the same period in the prior year, was primarily due to a $13.8 million increase in net new business volume, reflecting continued growth in the Renewable Energy and