Federal Agricultural Mortgage (AGM) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 results with outstanding business volume of $37.2 billion, up 22% year-over-year, and broad-based growth across all segments, driven by disciplined execution and strong net interest income.

• Revenue increased 25% year-over-year to $125.2 million, with core earnings reaching $58.8 million ($5.40 per diluted share), up 24% year-over-year.

• Net income attributable to common stockholders was $58.9 million, up $9.7 million year-over-year.

• Launched the Farmer Mac Loan Exchange (FLX), a digital platform to enhance efficiency and liquidity in Farm & Ranch lending.

• Issued $100 million of Series I preferred stock, strengthening the capital base and flexibility.

Financial highlights

• Net interest income was $118.1 million, up from $96.8 million in Q2 2025; net effective spread reached $117.4 million (1.26%), up 25% year-over-year, including a $7.4 million one-time interest recovery.

• Core return on equity was 19%, among the highest in company history.

• Operating efficiency ratio remained below the 30% target, at 28%.

• Total assets grew to $39.3 billion, up 19.1% year-over-year.

• Allowance for losses increased to $47.4 million, reflecting portfolio growth and credit migration.

Outlook and guidance

• Management expects continued growth in Farm & Ranch and Infrastructure Finance portfolios, supported by strong pipelines, minimal maturities, and robust demand for liquidity.

• Compensation expense growth is projected to moderate in the second half of 2026, with full-year expenses 20%-22% higher than 2025.

• Ongoing investments in technology and infrastructure are expected to enhance scalability and efficiency.

• Risk transfer solutions, including synthetic securitization, are being developed to enhance capital efficiency.

• Focus remains on delivering high-quality earnings and long-term shareholder value amid evolving macroeconomic conditions.