Federal Agricultural Mortgage (AGM) Q1 2026 earnings summary

Executive summary

• Achieved record-setting first quarter 2026 with outstanding business volume of $34.8 billion, up 17% year-over-year, and record revenue of $109.9 million, reflecting robust growth and strong execution across all segments.

• Core earnings reached $51.7 million, up 13% year-over-year, with a return on equity of 17%.

• Net income attributable to common stockholders was $51.8 million, or $4.75 per diluted share.

• Maintained robust capital position, exceeding minimum requirements by 62%, with a Tier 1 Capital Ratio of 13.0%.

• Returned $32 million to shareholders through dividends and share repurchases.

Financial highlights

• Business volume grew 17% year-over-year to $34.8 billion, with broad-based growth across all operating segments.

• Net effective spread reached a record $102 million (1.16% yield), up 13% year-over-year.

• Total revenues increased 14% year-over-year to $109.9 million, with 99% recurring NES and fees.

• Operating efficiency ratio remained below the 30% strategic target, at 29.6% for Q1 2026.

• Book value per share increased 11% year-over-year to $112.67.

Outlook and guidance

• Management expects continued growth in Farm & Ranch and Infrastructure Finance portfolios, supported by strong liquidity needs and market opportunities in broadband and renewable energy.

• Anticipate sustained net growth in AgVantage securities and ongoing robust deal flow in infrastructure and renewable energy segments.

• Project stable growth in renewable energy beyond 2027, driven by market demand rather than policy incentives.

• Operating expenses are expected to rise as investments in technology and servicing capabilities continue.

• Confident in maintaining strong return on equity in the 17% range going forward.