Federal Agricultural Mortgage (AGM) Q4 2025 earnings summary

Executive summary

• Achieved record core earnings of $182.9 million in 2025, with a 10-year core earnings per share CAGR of 15% and net income attributable to common stockholders of $182.5 million.

• Outstanding business volume reached $33.4 billion, up $3.8 billion or 13% year-over-year, reflecting an 8% 10-year CAGR.

• Quarterly dividend increased by $0.10 to $1.60 per share, a 7% rise and the fifteenth consecutive annual increase, with $78 million returned to shareholders via dividends and repurchases.

• Completed seventh farm securitization transaction and issued new Series H preferred stock at 6.500%, enhancing liquidity and capital efficiency.

• Provided $10.5 billion in liquidity and lending capacity to rural lenders, supporting agriculture and rural infrastructure.

Financial highlights

• Net effective spread reached a record $383 million for the year, up 13% year-over-year, with net interest income growing 10% to $390.7 million.

• Core earnings per diluted share rose to $16.66, and book value per share climbed to $112.77.

• Total assets increased to $35.4 billion from $31.3 billion year-over-year.

• Allowance for losses increased to $39.7 million, or 17% of nonaccrual assets, up from $25.3 million (15%) the prior year.

• 90-day delinquencies stood at 0.40% at year-end 2025.

Outlook and guidance

• Expects continued strong growth in all segments, especially Infrastructure Finance and Farm and Ranch AgVantage, with robust pipelines into 2026.

• Management anticipates ongoing demand for liquidity and capital efficiency, with expense growth expected due to business volume expansion and strategic investments, but efficiency ratio target of 30% will be maintained.

• Dividend increases are expected to continue, marking the 15th consecutive year in 2026.

• No systemic credit issues identified; credit provisioning expected to remain stable barring unforeseen events.