Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 225

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 225
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 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 was primarily attributable to a net increase of $0.6 billion in the Infrastructure Finance line of business and $0.2 billion in the Agricultural Finance line of business.

For more information about Farmer Mac's business volume, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Business Volume."

Capital

Table 3As ofJune 30, 2025December 31, 2024(in thousands)Core capital$1,561,972 $1,501,173 Capital in excess of minimum capital level required602,106 583,527 

The increase in capital in excess of the minimum capital level required was primarily attributable to an increase in retained earnings, partially offset by the capital impact due to growth in total assets.

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Credit Quality

During second quarter 2025, we recorded a charge-off of $2.8 million primarily related to two specific borrower relationships for a permanent planting loan and a crop loan to reflect the amount of each loan that we deemed uncollectible. The following table presents Agricultural Finance on- and off-balance sheet substandard assets, in dollars and as a percentage of the respective portfolio as of June 30, 2025, March 31, 2025, and December 31, 2024:  

Table 4On-Balance SheetOff-Balance SheetSubstandard Assets% of PortfolioSubstandard Assets% of Portfolio(dollars in thousands)June 30, 2025$415,185 4.4 %$37,785 1.1 %March 31, 2025428,150 4.8 %37,800 1.1 %December 31, 2024367,012 4.2 %31,240 0.9 %Increase/(decrease) from prior quarter-ending $(12,965)(0.4)%$(15)— %Increase/(decrease) from prior year-ending48,173 0.2 %6,545 0.2 %

The decrease of $13.0 million in on-balance sheet substandard assets during second quarter was primarily driven by credit upgrades in crops and agricultural storage and processing, partially offset by downgrades in permanent plantings. 

Substandard assets within