Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 265

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 265
---
 useful metric that reflects the economics of the net spread between all the assets owned by Farmer Mac and all related funding, including any associated derivatives, some of which may not be included in net interest income.

Table 2For the Three Months EndedJune 30, 2025March 31, 2025June 30, 2024(in thousands)Net interest income$96,797 $90,939 $87,340 Net interest yield %1.20 %1.15 %1.15 %Net effective spread$93,893 $89,990 $83,596 Net effective spread %1.19 %1.17 %1.14 %

59

The $5.9 million, or 5 basis points, sequential increase in net interest income was primarily due to a $3.6 million increase from net new business volume and a $1.6 million increase in the fair value of derivatives designated in fair value hedge accounting relationships (designated financial derivatives). 

The $9.5 million year-over-year increase in net interest income for second quarter 2025 compared to second quarter 2024 was primarily attributable to a $7.4 million increase from net new business volume.

The $3.9 million sequential increase in net effective spread was primarily attributable to a $3.6 million increase from net new business volume. 

The $10.3 million, or 5 basis points, 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. 

For more information about Farmer Mac's use of net effective spread as a financial measure, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." For a reconciliation of net interest income to net effective spread, see Table 10 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

Business Volume

Our outstanding business volume was $30.6 billion as of June 30, 2025, a net increase of $0.8 billion from March 31, 2025 after taking into account all new business, maturities, sales, and paydowns on existing assets. The net increase