Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 75

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 75
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's off-balance sheet guarantees and LTSPCs range from less than 1 year to 30 years. However, the actual term of each guarantee or LTSPC may be significantly less than the contractual term based on the prepayment characteristics of the related loans. Farmer Mac's maximum potential exposure under these off-balance sheet guarantees and LTSPCs is the unpaid principal balance of the underlying loans. Farmer Mac's maximum potential exposure was $4.5 billion and $4.1 billion as of December 31, 2024 and 2023, respectively. The maximum exposure from these guarantees and LTSPCs is not representative of the actual loss Farmer Mac is likely to incur, based on historical loss experience. In the event Farmer Mac was required to make payments under its guarantees or LTSPCs, Farmer Mac would have the right to enforce the terms of the loans, and in the event of default, would have access to the underlying collateral. For information on Farmer Mac's methodology for determining the reserve for losses for its financial guarantees, see Note 2(h). The following table presents changes in Farmer Mac's guarantee and commitment obligations in the consolidated balance sheets for the years ended December 31, 2024, 2023, and 2022:Table 12.1 For the Years Ended December 31,  202420232022  (in thousands)Beginning balance, January 1$47,563 $46,582 $43,926 Additions to the guarantee and commitment obligation(1)6,036 5,312 8,569 Amortization of the guarantee and commitment obligation(5,273)(4,331)(5,913)Ending balance, December 31$48,326 $47,563 $46,582 (1)Represents the fair value of the guarantee and commitment obligation at inception.Off-Balance Sheet Farmer Mac Guaranteed SecuritiesThe following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of December 31, 2024 and 2023, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

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Table 12.2Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities  As of December 31,