WASHINGTON, May 2, 2019 /PRNewswire/ -- The Federal
Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and
AGM.A), the nation's largest secondary market provider that
increases the availability and affordability of credit for the
benefit of rural America, today announced its results for the
fiscal quarter ended March 31,
2019.
First Quarter 2019 Highlights
- Added $1.7 billion of gross
business volume, resulting in net growth of $782.4 million
-
- CoBank's transaction added $546.2
million
- CFC's new AgVantage bond added $325.0
million
- Net income attributable to common stockholders was $21.9 million, or $2.03 per diluted common share
- Core earnings, a non-GAAP measure grew to $22.2 million, or $2.06 per diluted common share
- Net interest income decreased $2.6
million from the prior year to $40.6
million
- Net effective spread, a non-GAAP measure, increased 5% from the
prior year to $38.8 million
- 90-day delinquencies were 0.73% of the $7.2 billion Farm & Ranch portfolio as of
March 31, 2019, compared to 0.69% as of March 31,
2018
- Authorization for our existing share repurchase program was
increased to $10.0 million of
outstanding Class C non-voting common stock
-
- Extended the term through March
2021
"Our returns to our common stockholders continue to lead those
of other financials, our credit quality remains favorable, and our
capital base is strong," said President and Chief Executive Officer
Brad Nordholm. "We are
evaluating all of our lines of business, our products, and how we
go to market as a wholesaler in order to more efficiently deliver
upon our mission. Notably, we recently created a new
executive level position to head up our lines of business, and this
new Chief Business Officer will start in about a week. From
recent significant-sized transactions in the rural utility
industry, to our new dividend policy, share buyback program and
recent additions to key personnel, Farmer Mac is firing on all
cylinders.
First Quarter 2019 Results
Business Volume
During first quarter 2019, we added $1.7
billion of gross new business volume, compared to
$1.4 billion in first quarter 2018.
Specifically, we:
- purchased $825.4 million of
AgVantage securities;
- purchased $546.2 million of Rural
Utilities loans;
- purchased $203.2 million of newly
originated Farm & Ranch loans;
- added $91.2 million of Farm &
Ranch loans under LTSPCs;
- purchased $38.3 million of USDA
Securities; and
- issued $18.9 million of Farmer
Mac Guaranteed USDA Securities.
After $0.9 billion of maturities
and principal paydowns on existing business during first quarter
2019, our outstanding business volume achieved a net increase of
$782.4 million from December 31, 2018 to $20.5
billion as of March 31,
2019.
This increase was driven by net growth of $482.6 million and $349.0
million in the Rural Utilities and Institutional Credit
lines of business, respectively. This net growth was
partially offset by a net decrease of $30.8
million and $18.4 million in
the USDA Guarantees and Farm & Ranch lines of business,
respectively.
The net growth in our Rural Utilities line of business was
primarily due to the purchase of a $546.2
million portfolio of participations in seasoned loans from
CoBank. Because this transaction settled on February 19, 2019, it contributed less than half
a quarter's worth of net effective spread in first quarter 2019.
This was the first time we have purchased program assets in any of
our lines of business from CoBank.
Within the Institutional Credit line of business, we experienced
net business volume growth in AgVantage securities purchased from
large counterparties of $333.8
million and net business volume growth purchased from
smaller financial fund counterparties of $15.3 million. The net growth from our
large counterparties was driven by the purchase of a new
$325 million AgVantage security in
the rural utilities industry. Because our purchase of this security
settled on February 15, 2019, it contributed approximately a
half quarter's worth of net effective spread in first quarter
2019.
Our Farm & Ranch line of business experienced a net decrease
of $18.4 million. Based on our
analysis of bank and FCS call report data, there was a decline in
the growth rate of the overall agricultural mortgage market in
2018. Nevertheless, our net growth of 7.9% in Farm & Ranch loan
purchases over the twelve months ended March
31, 2019 compared favorably to the 4.7% net growth of the
overall agricultural mortgage loan market over the twelve months
ended December 31, 2018.
Our USDA Guarantees line of business experienced a net decrease
of $30.8 million in first quarter
2019. This decrease in growth reflects the impact of lower loan
volume being processed through the USDA and the government shutdown
during January 2019.
Spreads
Net interest income was $40.6
million for first quarter 2019, a decrease of $2.6 million, as compared to $43.2 million in first quarter 2018. The
year-over-year decrease was primarily driven by a $5.5 million net change in fair value on
financial derivatives and hedged items in fair value hedge
accounting relationships. This negative fair value change was
partially offset by a $2.1 million
increase in net interest income generated from new business
volume. The overall net interest yield was 0.86% for first
quarter 2019, compared to 0.98% for first quarter 2018.
Net effective spread, a non-GAAP measure, was $38.8 million in first quarter 2019, an increase
of $1.7 million, as compared to
$37.1 million in first quarter
2018. The year-over-year increase in net effective spread was
primarily due to growth in outstanding business volume, which
increased net effective spread by $2.1
million. This positive factor was partially offset by
$0.5 million in increased LIBOR-based
funding costs. In percentage terms, net effective spread was 0.89%
in first quarter 2019, compared to 0.91% in first quarter 2018.
Earnings
Our net income attributable to common stockholders for first
quarter 2019 was $21.9 million
($2.03 per diluted common share),
compared to $22.5 million
($2.10 per diluted common share) in
first quarter 2018. The $0.6
million year-over-year decrease in net income attributable
to common stockholders was primarily driven by a $2.1 million after-tax decrease in net interest
income and a $1.0 million after-tax
increase in operating expenses. The increase in operating
expenses was primarily due to increased headcount and continued
investments in technology and business infrastructure to expand
capacity and efficiency. The year-over-year negative factors
were offset in part by a $2.8 million
after-tax decrease in losses on undesignated financial
derivatives.
Our non-GAAP core earnings for first quarter 2019 were
$22.2 million ($2.06 per diluted common share), an increase of
$0.4 million, as compared to
$21.8 million in first quarter 2018
(2.03 per diluted common share). The year-over-year increase
in core earnings was primarily due to a $1.3
million after-tax increase in net effective spread.
This year-over-year positive factor was partially offset by a
$1.0 million after-tax increase in
operating expenses. The increase in operating expenses was
primarily due to increased headcount and continued investments in
technology and business infrastructure to expand capacity and
efficiency.
See "Use of Non-GAAP Measures" below for more information about
core earnings, core earnings per share, and net effective spread
and for reconciliations of the comparable GAAP measures to these
non-GAAP measures.
Credit
Our overall credit quality as of March
31, 2019 declined modestly as compared to December 31, 2018, as our 90-day delinquencies
and substandard assets both increased in dollars and as a
percentage of the Farm & Ranch portfolio. However,
Farmer Mac's 90-day delinquency rate and substandard asset rate
each remained below Farmer Mac's historical averages. We
experienced a release of $0.4 million
from our total allowance for losses due to a decline in Farm &
Ranch outstanding business volume and lower specific allowance
amounts on $25 million in Farm &
Ranch loans that we identified as impaired and individually
evaluated. In first quarter 2018, we also released
$0.4 million from our total allowance
for losses.
As of March 31, 2019, Farmer Mac's 90-day delinquencies
were $52.4 million (0.73% of the Farm
& Ranch portfolio), compared to $26.9
million (0.37%) as of December 31,
2018 and $47.6 million
(0.69%) as of March 31,
2018. Consistent with prior years, higher delinquency
levels are generally observed at the end of the first and third
quarters due to the seasonality of payments in our loan portfolio
that have annual (January 1st) and
semi-annual (January 1st and
July 1st) payment terms, which
account for most of the loans in the Farm & Ranch
portfolio.
As of March 31, 2019, Farmer Mac's substandard assets were
$246.7 million (3.4% of the Farm
& Ranch portfolio), compared to $232.7
million (3.2%) as of December 31,
2018 and $221.2 million (3.2%)
as of March 31, 2018. Farmer Mac did not experience a
significant change in the concentration of its substandard assets
among commodities during first quarter 2019 as compared to
December 31, 2018.
Farmer Mac's 90-day delinquencies rate and substandard assets
rate during first quarter 2019 each remained below Farmer Mac's
historical averages of 1.0% and 4.0%, respectively.
Capital
As of March 31, 2019, our core capital level was
$742.0 million, which was
$169.1 million above the minimum
capital level required by our statutory charter. As of
December 31, 2018, our core capital level was $727.6 million, which was $182.6 million above the minimum capital
requirement. Farmer Mac's Tier-1 capital ratio was 13.2% as
of March 31, 2019, compared to 13.4%
as of December 31, 2018. The
modest decrease in capital measures this quarter was due to growth
in our outstanding business volume.
Share Repurchase Program
On March 14, 2019, Farmer Mac's
board of directors modified the terms of Farmer Mac's existing
share repurchase program by increasing the authorization for the
repurchase of up to $10.0 million of
Farmer Mac's outstanding Class C common stock and extending the
term of the program through March 2021. Farmer Mac intends to
repurchase shares only when it views repurchases as both highly
accretive and consistent with its strategic objectives. As of
March 31, 2019, Farmer Mac had
repurchased approximately 668,000 shares of its Class C common
stock at a cost of $19.6 million
under the share repurchase program, which originally authorized the
repurchase of up to $25.0 million of
Class C common stock, but has not repurchased any shares since
first quarter 2016.
Earnings Conference Call Information
The conference call to discuss Farmer Mac's first quarter 2019
financial results will be held beginning at 11:00 a.m. eastern time on Thursday, May 2, 2019
and can be accessed by telephone or live webcast as follows:
Telephone (Domestic): (888) 346-2616
Telephone (International): (412) 902-4254
Webcast:
https://www.farmermac.com/investors/events-presentations/
Presentation materials to be referenced during the call will be
posted on the webpage that can be accessed by clicking on the link
noted above. When dialing in to the call, please ask for the
"Farmer Mac Earnings Conference Call." The call can be heard live
and will also be available for replay on Farmer Mac's website for
two weeks following the conclusion of the call.
More complete information about Farmer Mac's performance for
first quarter 2019 is in Farmer Mac's Quarterly Report on Form 10-Q
for the period ended March 31, 2019
filed today with the SEC.
Use of Non-GAAP Measures
In the accompanying analysis of its financial information,
Farmer Mac uses the following non-GAAP measures: "core earnings,"
"core earnings per share," and "net effective spread." Farmer Mac
uses these non-GAAP measures to measure corporate economic
performance and develop financial plans because, in management's
view, they are useful alternative measures in understanding Farmer
Mac's economic performance, transaction economics, and business
trends. The non-GAAP financial measures that Farmer Mac uses may
not be comparable to similarly labeled non-GAAP financial measures
disclosed by other companies. Farmer Mac's disclosure of these
non-GAAP measures is intended to be supplemental in nature, and is
not meant to be considered in isolation from, as a substitute for,
or as more important than, the related financial information
prepared in accordance with GAAP.
Core earnings and core earnings per share principally differ
from net income attributable to common stockholders and earnings
per common share, respectively, by excluding the effects of fair
value fluctuations. These fluctuations are not expected to have a
cumulative net impact on Farmer Mac's financial condition or
results of operations reported in accordance with GAAP if the
related financial instruments are held to maturity, as is
expected.
Core earnings and core earnings per share also differ from net
income attributable to common stockholders and earnings per common
share, respectively, by excluding specified infrequent or unusual
transactions that Farmer Mac believes are not indicative of future
operating results and that may not reflect the trends and economic
financial performance of Farmer Mac's core business.
Farmer Mac uses net effective spread to measure the net spread
Farmer Mac earns between its interest-earning assets and the
related net funding costs of these assets. Net effective spread
differs from net interest income and net interest yield because it
excludes: (1) the amortization of premiums and discounts on assets
consolidated at fair value that are amortized as adjustments to
yield in interest income over the contractual or estimated
remaining lives of the underlying assets; (2) interest income and
interest expense related to consolidated trusts with beneficial
interests owned by third parties, which are presented on Farmer
Mac's consolidated balance sheets as "Loans held for investment in
consolidated trusts, at amortized cost"; and (3) the fair
value changes of financial derivatives and the corresponding assets
or liabilities designated in a fair value hedge relationship.
Net effective spread also principally differs from net interest
income and net interest yield because it includes:
(1) the accrual of income and expense related to the
contractual amounts due on financial derivatives that are not
designated in hedge relationships ("undesignated financial
derivatives"); and (2) the net effects of terminations or net
settlements on financial derivatives. More information about
Farmer Mac's use of non-GAAP measures is available in "Management's
Discussion and Analysis of Financial Condition and Results of
Operations—Results of Operations" in Farmer Mac's Quarterly Report
on Form 10-Q for the quarter ended March 31,
2019 filed today with the SEC.
For a reconciliation of Farmer Mac's net income attributable to
common stockholders to core earnings and of earnings per common
share to core earnings per share, and net interest income and net
interest yield to net effective spread, see the "Reconciliations"
section below.
Forward-Looking Statements
Management's expectations for Farmer Mac's future necessarily
involve assumptions and estimates and the evaluation of risks and
uncertainties. Various factors or events, both known and unknown,
could cause Farmer Mac's actual results to differ materially from
the expectations as expressed or implied by the forward-looking
statements in this release, including uncertainties about:
- the availability to Farmer Mac of debt and equity financing
and, if available, the reasonableness of rates and terms;
- legislative or regulatory developments that could affect Farmer
Mac, its sources of business, or the agricultural or rural
utilities industries;
- fluctuations in the fair value of assets held by Farmer Mac and
its subsidiaries;
- the rate and direction of development of the secondary market
for agricultural mortgage and rural utilities loans, including
lender interest in Farmer Mac's products and the secondary market
provided by Farmer Mac;
- the general rate of growth in agricultural mortgage and rural
utilities indebtedness;
- the effect of economic conditions, including the effects of
drought and other weather-related conditions and fluctuations in
agricultural real estate values, on agricultural mortgage lending
and borrower repayment capacity;
- the effect of any changes in Farmer Mac's executive
leadership;
- developments in the financial markets, including possible
investor, analyst, and rating agency reactions to events involving
government-sponsored enterprises, including Farmer Mac;
- changes in the level and direction of interest rates, which
could, among other things, affect the value of collateral securing
Farmer Mac's agricultural mortgage loan assets;
- the degree to which Farmer Mac is exposed to basis risk, which
results from fluctuations in Farmer Mac's borrowing costs relative
to market indexes; and
- volatility in commodity prices relative to costs of production,
changes in U.S. trade policies, or fluctuations in export demand
for U.S. agricultural products.
Other risk factors are discussed in "Risk Factors" in Part I,
Item 1A in Farmer Mac's Annual Report on Form 10-K for the year
ended December 31, 2018, as filed
with the SEC on February 21, 2019.
Considering these potential risks and uncertainties, no undue
reliance should be placed on any forward-looking statements
expressed in this release. The forward-looking statements contained
in this release represent management's expectations as of the date
of this release. Farmer Mac undertakes no obligation to release
publicly the results of revisions to any forward-looking statements
included in this release to reflect new information or any future
events or circumstances, except as otherwise required by applicable
law or regulation. The information in this release is not
necessarily indicative of future results.
About Farmer Mac
Farmer Mac is a vital part of the
agricultural credit markets and works to increase the availability
and affordability of credit for the benefit of American
agricultural and rural communities. As the nation's largest
secondary market for agricultural credit, we provide financial
solutions to a broad spectrum of the agricultural community,
including agricultural lenders, agribusinesses, and other
institutions that can benefit from access to flexible, low-cost
financing and risk management tools. Farmer Mac's customers benefit
from our low cost of funds, low overhead costs, and high
operational efficiency. In fact, we are often able to provide the
lowest cost of borrowing to agricultural and rural borrowers. For
more than thirty years, Farmer Mac has been delivering the capital
and commitment rural America deserves. More information about
Farmer Mac (including the Quarterly Report on Form 10-Q referenced
above and the Annual Report on Form 10-K) is available on Farmer
Mac's website at www.farmermac.com.
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
|
|
|
2019
|
2018
|
|
|
|
|
|
|
(in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
376,122
|
|
|
$
|
425,256
|
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
2,457,978
|
|
|
|
2,217,852
|
|
|
|
Held-to-maturity, at
amortized cost
|
|
45,032
|
|
|
|
45,032
|
|
|
|
|
Total Investment
Securities
|
|
2,503,010
|
|
|
|
2,262,884
|
|
|
Farmer Mac Guaranteed
Securities
|
|
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
6,441,624
|
|
|
|
5,974,497
|
|
|
|
Held-to-maturity, at
amortized cost
|
|
2,040,415
|
|
|
|
2,096,618
|
|
|
|
|
Total Farmer Mac
Guaranteed Securities
|
|
8,482,039
|
|
|
|
8,071,115
|
|
|
USDA
Securities
|
|
|
|
|
|
|
|
|
|
Trading, at fair
value
|
|
9,487
|
|
|
|
9,999
|
|
|
|
Held-to-maturity, at
amortized cost
|
|
2,125,312
|
|
|
|
2,166,174
|
|
|
|
|
Total USDA
Securities
|
|
2,134,799
|
|
|
|
2,176,173
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment, at amortized cost
|
|
4,480,511
|
|
|
|
4,004,968
|
|
|
|
Loans held for
investment in consolidated trusts, at amortized cost
|
|
1,566,330
|
|
|
|
1,517,101
|
|
|
|
Allowance for loan
losses
|
|
(6,753)
|
|
|
|
(7,017)
|
|
|
|
|
Total loans, net of
allowance
|
|
6,040,088
|
|
|
|
5,515,052
|
|
|
Real estate owned, at
lower of cost or fair value
|
|
1,253
|
|
|
|
128
|
|
|
Financial
derivatives, at fair value
|
|
6,053
|
|
|
|
7,487
|
|
|
Interest receivable
(includes $11,727 and $19,783, respectively, related to
consolidated trusts)
|
|
143,877
|
|
|
|
180,080
|
|
|
Guarantee and
commitment fees receivable
|
|
39,913
|
|
|
|
40,366
|
|
|
Deferred tax asset,
net
|
|
3,994
|
|
|
|
6,369
|
|
|
Prepaid expenses and
other assets
|
|
66,629
|
|
|
|
9,418
|
|
|
|
|
Total
Assets
|
$
|
19,797,777
|
|
|
$
|
18,694,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Notes
Payable:
|
|
|
|
|
|
|
|
|
|
Due within one
year
|
$
|
8,571,615
|
|
|
$
|
7,757,050
|
|
|
|
Due after one
year
|
|
8,679,287
|
|
|
|
8,486,647
|
|
|
|
|
Total notes
payable
|
|
17,250,902
|
|
|
|
16,243,697
|
|
|
Debt securities of
consolidated trusts held by third parties
|
|
1,567,195
|
|
|
|
1,528,957
|
|
|
Financial
derivatives, at fair value
|
|
22,203
|
|
|
|
19,633
|
|
|
Accrued interest
payable (includes $9,647 and $17,125, respectively, related to
consolidated trusts)
|
|
94,420
|
|
|
|
96,743
|
|
|
Guarantee and
commitment obligation
|
|
38,288
|
|
|
|
38,683
|
|
|
Accounts payable and
accrued expenses
|
|
59,433
|
|
|
|
11,891
|
|
|
Reserve for
losses
|
|
2,038
|
|
|
|
2,167
|
|
|
|
|
Total
Liabilities
|
|
19,034,479
|
|
|
|
17,941,771
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
|
|
|
Series A, par value
$25 per share, 2,400,000 shares authorized, issued and
outstanding
|
|
58,333
|
|
|
|
58,333
|
|
|
|
Series B, par value
$25 per share, 3,000,000 shares authorized, issued and
outstanding
|
|
73,044
|
|
|
|
73,044
|
|
|
|
Series C, par value
$25 per share, 3,000,000 shares authorized, issued and
outstanding
|
|
73,382
|
|
|
|
73,382
|
|
|
Common
stock:
|
|
|
|
|
|
|
|
|
|
Class A Voting, $1
par value, no maximum authorization, 1,030,780 shares
outstanding
|
|
1,031
|
|
|
|
1,031
|
|
|
|
Class B Voting, $1
par value, no maximum authorization, 500,301 shares
outstanding
|
|
500
|
|
|
|
500
|
|
|
|
Class C Non-Voting,
$1 par value, no maximum authorization, 9,157,841 shares and
9,137,550 shares
outstanding, respectively
|
|
9,158
|
|
|
|
9,138
|
|
|
Additional paid-in
capital
|
|
118,841
|
|
|
|
118,822
|
|
|
Accumulated other
comprehensive income, net of tax
|
|
21,254
|
|
|
|
24,956
|
|
|
Retained
earnings
|
|
407,755
|
|
|
|
393,351
|
|
|
|
|
Total
Equity
|
|
763,298
|
|
|
|
752,557
|
|
|
|
|
Total Liabilities and
Equity
|
$
|
19,797,777
|
|
|
$
|
18,694,328
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
(in thousands, except per share amounts)
|
Interest
income:
|
|
|
|
|
Investments and cash
equivalents
|
$
|
18,707
|
|
|
$
|
11,463
|
|
|
Farmer Mac Guaranteed
Securities and USDA Securities
|
|
85,411
|
|
|
|
62,430
|
|
|
Loans
|
|
51,397
|
|
|
|
45,653
|
|
|
|
Total interest
income
|
|
155,515
|
|
|
|
119,546
|
|
|
Total interest
expense
|
|
114,916
|
|
|
|
76,317
|
|
|
|
Net interest
income
|
|
40,599
|
|
|
|
43,229
|
|
|
Release of loan
losses
|
|
264
|
|
|
|
431
|
|
|
|
Net interest income
after release of loan losses
|
|
40,863
|
|
|
|
43,660
|
|
Non-interest
income:
|
|
|
|
|
Guarantee and
commitment fees
|
|
3,513
|
|
|
|
3,499
|
|
|
Losses on financial
derivatives
|
|
(360)
|
|
|
|
(3,850)
|
|
|
Gains on trading
securities
|
|
44
|
|
|
|
16
|
|
|
Other
income
|
|
493
|
|
|
|
574
|
|
|
|
Non-interest
income
|
|
3,690
|
|
|
|
239
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
7,606
|
|
|
|
6,654
|
|
|
General and
administrative
|
|
4,596
|
|
|
|
4,326
|
|
|
Regulatory
fees
|
|
688
|
|
|
|
625
|
|
|
Real estate owned
operating costs, net
|
|
-
|
|
|
|
16
|
|
|
(Release of)/povision
for reserve for losses
|
|
(129)
|
|
|
|
21
|
|
|
|
Non-interest
expense
|
|
12,761
|
|
|
|
11,642
|
|
|
|
Income before income
taxes
|
|
31,792
|
|
|
|
32,257
|
|
Income tax
expense
|
|
6,622
|
|
|
|
6,438
|
|
|
Net income
attributable to Farmer Mac
|
|
25,170
|
|
|
|
25,819
|
|
Preferred stock
dividends
|
|
(3,296)
|
|
|
|
(3,295)
|
|
|
|
Net income
attributable to common stockholders
|
$
|
21,874
|
|
|
$
|
22,524
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
2.05
|
|
|
$
|
2.12
|
|
|
|
Diluted earnings per
common share
|
$
|
2.03
|
|
|
$
|
2.10
|
|
Reconciliation of Net
Income Attributable to Common Stockholders to Core
Earnings
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
|
|
|
|
(in thousands,
except per share amounts)
|
Net income
attributable to common stockholders
|
|
$
|
21,874
|
|
|
$
|
19,560
|
|
|
$
|
22,524
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial derivatives due to fair value
changes
|
|
|
2,240
|
|
|
|
(96)
|
|
|
|
(2,279)
|
|
|
(Losses)/gains on
hedging activities due to fair value changes
|
|
|
(2,817)
|
|
|
|
(853)
|
|
|
|
2,564
|
|
|
Unrealized gains on
trading securities
|
|
|
44
|
|
|
|
57
|
|
|
|
16
|
|
|
Amortization of
premiums/discounts and deferred gains on assets consolidated at
fair value
|
|
|
(16)
|
|
|
|
67
|
|
|
|
(686)
|
|
|
Net effects of
terminations or net settlements on financial derivatives
|
|
110
|
|
|
|
(312)
|
|
|
|
1,242
|
|
|
Income tax effect
related to reconciling items
|
|
|
92
|
|
|
|
238
|
|
|
|
(180)
|
|
|
|
Sub-total
|
|
|
(347)
|
|
|
|
(899)
|
|
|
|
677
|
|
Core
earnings
|
|
$
|
22,221
|
|
|
$
|
20,459
|
|
|
$
|
21,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread(1)
|
|
$
|
38,801
|
|
|
$
|
38,855
|
|
|
$
|
37,101
|
|
|
Guarantee and
commitment fees(2)
|
|
|
5,419
|
|
|
|
5,309
|
|
|
|
5,083
|
|
|
Other(3)
|
|
|
509
|
|
|
|
(129)
|
|
|
|
428
|
|
|
|
Total
revenues
|
|
|
44,729
|
|
|
|
44,035
|
|
|
|
42,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
(income)/expense (GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Release
of)/provision for losses
|
|
|
(393)
|
|
|
|
166
|
|
|
|
(410)
|
|
|
REO operating
expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
16
|
|
|
|
Total credit
related(income)/expense
|
|
|
(393)
|
|
|
|
166
|
|
|
|
(394)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
(GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
|
7,606
|
|
|
|
7,167
|
|
|
|
6,654
|
|
|
General and
administrative
|
|
|
4,596
|
|
|
|
5,829
|
|
|
|
4,326
|
|
|
Regulatory
fees
|
|
|
688
|
|
|
|
687
|
|
|
|
625
|
|
|
|
Total operating
expenses
|
|
|
12,890
|
|
|
|
13,683
|
|
|
|
11,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
32,232
|
|
|
|
30,186
|
|
|
|
31,401
|
|
|
Income tax
expense(4)
|
|
|
6,715
|
|
|
|
6,431
|
|
|
|
6,259
|
|
|
Preferred stock
dividends (GAAP)
|
|
|
3,296
|
|
|
|
3,296
|
|
|
|
3,295
|
|
|
|
Core
earnings
|
|
$
|
22,221
|
|
|
$
|
20,459
|
|
|
$
|
21,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.08
|
|
|
$
|
1.92
|
|
|
$
|
2.06
|
|
|
Diluted
|
|
|
2.06
|
|
|
|
1.90
|
|
|
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net
effective spread is a non-GAAP measure. See "Use of Non-GAAP
Measures—Net Effective Spread" above for an explanation of net
effective spread. See below for a reconciliation of net
interest income to net effective spread.
|
|
(2)
Includes interest income and interest expense related to
consolidated trusts owned by third parties reclassified from net
interest income to guarantee and commitment fees to reflect
management's view that the net interest income Farmer Mac earns is
effectively a guarantee fee on the consolidated Farmer Mac
Guaranteed Securities.
|
|
(3)Reflects reconciling adjustments for
the reclassification to exclude expenses related to interest rate
swaps not designated as hedges and terminations or net settlements
on financial derivatives and hedging activities, and reconciling
adjustments to exclude fair value adjustments on financial
derivatives and trading assets and the recognition of deferred
gains over the estimated lives of certain Farmer Mac Guaranteed
Securities and USDA Securities.
|
|
(4)
Includes the tax impact of non-GAAP reconciling items between net
income attributable to common stockholders and core
earnings.
|
|
Reconciliation of
GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per
Share
|
|
For the Three Months
Ended
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
|
(in thousands, except per share amounts)
|
GAAP - Basic
EPS
|
$
|
2.05
|
|
|
$
|
1.84
|
|
|
$
|
2.12
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial derivatives due to fair value
changes
|
|
0.21
|
|
|
|
(0.01)
|
|
|
|
(0.21)
|
|
|
(Losses)/gains on
hedging activities due to fair value changes
|
|
(0.26)
|
|
|
|
(0.08)
|
|
|
|
0.24
|
|
|
Unrealized gains on
trading securities
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
Amortization of
premiums/discounts and deferred gains on assets consolidated at
fair value
|
|
—
|
|
|
|
0.01
|
|
|
|
(0.06)
|
|
|
Net effects of
terminations or net settlements on financial derivatives
|
|
0.01
|
|
|
|
(0.03)
|
|
|
|
0.12
|
|
|
Income tax effect
related to reconciling items
|
|
0.01
|
|
|
|
0.02
|
|
|
|
(0.03)
|
|
|
Sub-total
|
|
(0.03)
|
|
|
|
(0.08)
|
|
|
|
0.06
|
|
Core Earnings - Basic
EPS
|
$
|
2.08
|
|
|
$
|
1.92
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and Core Earnings)
|
|
10,670
|
|
|
|
10,669
|
|
|
|
10,622
|
|
Reconciliation of
GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings
Per Share
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
|
|
|
(in thousands, except per share amounts)
|
GAAP - Diluted
EPS
|
$
|
2.03
|
|
|
$
|
1.82
|
|
|
$
|
2.10
|
|
Less reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial derivatives due to fair value
changes
|
|
0.21
|
|
|
|
(0.01)
|
|
|
|
(0.21)
|
|
|
(Losses)/gains on
hedging activities due to fair value changes
|
|
(0.26)
|
|
|
|
(0.08)
|
|
|
|
0.24
|
|
|
Unrealized gains on
trading securities
|
|
—
|
|
|
|
0.01
|
|
|
|
—
|
|
|
Amortization of
premiums/discounts and deferred gains on assets consolidated at
fair value
|
|
—
|
|
|
|
0.01
|
|
|
|
(0.06)
|
|
|
Net effects of
terminations or net settlements on financial derivatives and
hedging
activities
|
|
0.01
|
|
|
|
(0.03)
|
|
|
|
0.12
|
|
|
Income tax effect
related to reconciling items
|
|
0.01
|
|
|
|
0.02
|
|
|
|
(0.02)
|
|
|
Sub-total
|
|
(0.03)
|
|
|
|
(0.08)
|
|
|
|
0.07
|
|
Core Earnings -
Diluted EPS
|
$
|
2.06
|
|
|
$
|
1.90
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation (GAAP and Core Earnings)
|
|
10,777
|
|
|
|
10,745
|
|
|
|
10,741
|
|
Reconciliation of
GAAP Net Interest Income/Yield to Net Effective Spread
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
March 31,
2018
|
|
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
|
|
(dollars
in thousands)
|
Net interest
income/yield
|
$
|
40,599
|
|
|
0.86
|
%
|
|
$
|
42,216
|
|
|
0.93
|
%
|
|
$
|
43,229
|
|
0.98
|
%
|
Net effects of
consolidated trusts
|
|
(1,905)
|
|
|
0.03
|
%
|
|
|
(1,804)
|
|
|
0.04
|
%
|
|
|
(1,584)
|
|
0.04
|
%
|
Expense related to
undesignated financial derivatives
|
|
(2,544)
|
|
|
(0.06)
|
%
|
|
|
(2,161)
|
|
|
(0.06)
|
%
|
|
|
(2,302)
|
|
(0.06)
|
%
|
Amortization of
premiums/discounts on assets
consolidated at fair value
|
|
23
|
|
|
-
|
%
|
|
|
(138)
|
|
|
-
|
%
|
|
|
694
|
|
0.02
|
%
|
Amortization of
losses due to terminations or net
settlements on financial derivatives
|
|
(71)
|
|
|
-
|
%
|
|
|
(69)
|
|
|
-
|
%
|
|
|
(98)
|
|
-
|
%
|
Fair value changes on
fair value hedge relationships
|
|
2,699
|
|
|
0.06
|
%
|
|
|
811
|
|
|
0.02
|
%
|
|
|
(2,838)
|
|
(0.07)
|
%
|
Net effective
spread
|
$
|
38,801
|
|
|
0.89
|
%
|
|
$
|
38,855
|
|
|
0.93
|
%
|
|
$
|
37,101
|
|
0.91
|
%
|
Core Earnings by
Business Segment
|
For the Three Months
Ended March 31, 2019
|
|
|
|
Farm &
Ranch
|
|
USDA
Guarantees
|
|
Rural
Utilities
|
|
Institutional
Credit
|
|
Corporate
|
|
Reconciling
Adjustments
|
|
Consolidated Net
Income
|
|
|
|
(in thousands)
|
Net interest
income
|
$
|
15,282
|
|
$
|
4,442
|
|
$
|
(274)
|
|
$
|
18,187
|
|
$
|
2,962
|
|
$
|
—
|
|
$
|
40,599
|
|
|
Less: reconciling
adjustments(1)(2)(3)
|
|
(2,545)
|
|
|
(478)
|
|
|
3,507
|
|
|
(1,814)
|
|
|
(468)
|
|
|
1,798
|
|
|
—
|
|
Net effective
spread
|
|
12,737
|
|
|
3,964
|
|
|
3,233
|
|
|
16,373
|
|
|
2,494
|
|
|
1,798
|
|
|
—
|
|
Guarantee and
commitment fees(2)
|
|
4,744
|
|
|
224
|
|
|
363
|
|
|
88
|
|
|
—
|
|
|
(1,906)
|
|
|
3,513
|
|
Other
income/(expense)(3)
|
|
480
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
22
|
|
|
(332)
|
|
|
177
|
|
|
Non-interest
income/(loss)
|
|
5,224
|
|
|
224
|
|
|
370
|
|
|
88
|
|
|
22
|
|
|
(2,238)
|
|
|
3,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Release of loan
losses
|
|
264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Release of reserve
for losses
|
|
129
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
129
|
|
Other non-interest
expense
|
|
(4,799)
|
|
|
(1,428)
|
|
|
(866)
|
|
|
(2,159)
|
|
|
(3,638)
|
|
|
—
|
|
|
(12,890)
|
|
|
Non-interest
expense(4)
|
|
(4,670)
|
|
|
(1,428)
|
|
|
(866)
|
|
|
(2,159)
|
|
|
(3,638)
|
|
|
—
|
|
|
(12,761)
|
|
Core earnings before
income taxes
|
|
13,555
|
|
|
2,760
|
|
|
2,737
|
|
|
14,302
|
|
|
(1,122)
|
|
|
(440)
|
(5)
|
|
31,792
|
|
Income tax
(expense)/benefit
|
|
(2,847)
|
|
|
(580)
|
|
|
(575)
|
|
|
(3,003)
|
|
|
290
|
|
|
93
|
|
|
(6,622)
|
|
|
Core earnings before
preferred stock
dividends and attribution of income to
non-controlling interest
|
|
10,708
|
|
|
2,180
|
|
|
2,162
|
|
|
11,299
|
|
|
(832)
|
|
|
(347)
|
(5)
|
|
25,170
|
|
Preferred stock
dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,296)
|
|
|
—
|
|
|
(3,296)
|
|
|
Segment core
earnings/(losses)
|
$
|
10,708
|
|
$
|
2,180
|
|
$
|
2,162
|
|
$
|
11,299
|
|
$
|
(4,128)
|
|
$
|
(347)
|
(5)
|
$
|
21,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets at
carrying value
|
$
|
4,698,250
|
|
$
|
2,191,896
|
|
$
|
1,443,393
|
|
$
|
8,502,084
|
|
$
|
2,962,154
|
|
$
|
-
|
|
$
|
19,797,777
|
|
Total on-and
off-balance sheet program
assets at principal balance
|
$
|
7,215,585
|
|
$
|
2,484,779
|
|
$
|
2,074,714
|
|
$
|
8,731,835
|
|
$
|
-
|
|
$
|
-
|
|
$
|
20,506,913
|
|
|
(1)
Excludes the amortization of premiums and discounts on assets
consolidated at fair value, originally included in interest income,
to reflect core earnings amounts.
|
|
(2)
Includes the reclassification of interest income and interest
expense from consolidated trusts owned by third parties to
guarantee and commitment fees, to reflect management's view that
the net interest income Farmer Mac earns is effectively a guarantee
fee.
|
|
(3)
Includes the reclassification of interest expense related to
interest rate swaps not designated as hedges, which are included in
"Losses on financial derivatives" on the consolidated financial
statements, to determine the effective funding cost for each
operating segment.
|
|
(4)
Includes directly attributable costs and an allocation of
indirectly attributable costs based on employee
headcount.
|
|
(5)
Net adjustments to reconcile to the corresponding income
measures: core earnings before income taxes reconciled to income
before income taxes; core earnings before preferred stock dividends
and attribution of income to non-controlling interest reconciled to
net income; and segment core earnings reconciled to net income
attributable to common stockholders.
|
Lines of Business -
Outstanding Business Volume
|
|
|
|
|
|
As of March 31,
2019
|
|
As of December 31,
2018
|
|
|
|
|
|
(in thousands)
|
On-balance
sheet:
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
Loans
|
$
|
3,044,567
|
|
|
$
|
3,071,222
|
|
|
|
Loans held in
trusts:
|
|
|
|
|
|
|
|
|
|
|
Beneficial interests
owned by third party investors
|
|
1,566,330
|
|
|
|
1,517,101
|
|
|
USDA
Guarantees:
|
|
|
|
|
|
|
|
|
|
USDA
Securities
|
|
2,081,498
|
|
|
|
2,120,553
|
|
|
|
Farmer Mac Guaranteed
USDA Securities
|
|
26,794
|
|
|
|
27,383
|
|
|
Rural
Utilities:
|
|
|
|
|
|
|
|
|
|
Loans
|
|
1,429,101
|
|
|
|
938,843
|
|
|
Institutional
Credit:
|
|
|
|
|
|
|
|
|
|
AgVantage
securities
|
|
8,421,937
|
|
|
|
8,072,919
|
|
|
|
|
Total on-balance
sheet
|
$
|
16,570,227
|
|
|
$
|
15,748,021
|
|
Off-balance
sheet:
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
LTSPCs
|
$
|
2,476,467
|
|
|
$
|
2,509,787
|
|
|
|
Guaranteed
Securities
|
|
128,221
|
|
|
|
135,862
|
|
|
USDA
Guarantees:
|
|
|
|
|
|
|
|
|
|
Farmer Mac Guaranteed
USDA Securities
|
|
376,487
|
|
|
|
367,684
|
|
|
Rural
Utilities:
|
|
|
|
|
|
|
|
|
LTSPCs(1)
|
|
645,613
|
|
|
|
653,272
|
|
|
Institutional
Credit:
|
|
|
|
|
|
|
|
|
|
AgVantage
securities
|
|
9,898
|
|
|
|
9,898
|
|
|
|
Revolving floating
rate AgVantage facility(2)
|
|
300,000
|
|
|
|
300,000
|
|
|
|
|
Total off-balance
sheet
|
$
|
3,936,686
|
|
|
$
|
3,976,503
|
|
|
|
|
Total
|
$
|
20,506,913
|
|
|
$
|
19,724,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes $20.0 million and $17.0 million related to one-year loan
purchase commitments on which Farmer Mac receives a nominal unused
commitment fee as of March 31, 2019 and December 31, 2018,
respectively.
|
|
(2)
During first quarter 2019, $100.0 million of this facility was
drawn and later repaid. During first quarter 2018, this facility
was not utilized. Farmer Mac receives a fixed fee based on
the full dollar amount of the facility. If the counterparty
draws on the facility, the amounts drawn will be in the form of
AgVantage securities, and Farmer Mac will earn interest income on
those securities.
|
|
|
Net Effective Spread
by Line of Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farm &
Ranch
|
|
USDA
Guarantees
|
|
Rural
Utilities
|
|
Institutional
Credit
|
|
Corporate
|
|
Net Effective
Spread
|
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
|
(dollars in
thousands)
|
For the quarter
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2019(1)
|
$
|
12,737
|
|
|
1.70
|
%
|
|
$
|
3,964
|
|
|
0.74
|
%
|
|
$
|
3,233
|
|
|
1.12
|
%
|
|
$
|
16,373
|
|
|
0.79
|
%
|
|
$
|
2,494
|
|
|
0.35
|
%
|
|
$
|
38,801
|
|
|
0.89
|
%
|
|
December 31,
2018
|
|
13,288
|
|
|
1.79
|
%
|
|
|
4,630
|
|
|
0.85
|
%
|
|
|
2,833
|
|
|
1.19
|
%
|
|
|
15,751
|
|
|
0.80
|
%
|
|
|
2,353
|
|
|
0.36
|
%
|
|
|
38,855
|
|
|
0.93
|
%
|
|
September 30,
2018
|
|
13,887
|
|
|
1.91
|
%
|
|
|
4,627
|
|
|
0.86
|
%
|
|
|
2,877
|
|
|
1.18
|
%
|
|
|
15,642
|
|
|
0.78
|
%
|
|
|
2,044
|
|
|
0.30
|
%
|
|
|
39,077
|
|
|
0.93
|
%
|
|
June 30,
2018
|
|
13,347
|
|
|
1.86
|
%
|
|
|
4,398
|
|
|
0.83
|
%
|
|
|
2,923
|
|
|
1.15
|
%
|
|
|
15,220
|
|
|
0.76
|
%
|
|
|
274
|
|
|
0.04
|
%
|
|
|
36,162
|
|
|
0.86
|
%
|
|
March 31,
2018(2)
|
|
12,540
|
|
|
1.80
|
%
|
|
|
4,400
|
|
|
0.82
|
%
|
|
|
2,950
|
|
|
1.12
|
%
|
|
|
14,824
|
|
|
0.78
|
%
|
|
|
2,387
|
|
|
0.36
|
%
|
|
|
37,101
|
|
|
0.91
|
%
|
|
December 31,
2017
|
|
12,396
|
|
|
1.80
|
%
|
|
|
4,979
|
|
|
0.93
|
%
|
|
|
3,057
|
|
|
1.14
|
%
|
|
|
14,800
|
|
|
0.78
|
%
|
|
|
2,235
|
|
|
0.35
|
%
|
|
|
37,467
|
|
|
0.93
|
%
|
|
September 30,
2017
|
|
11,303
|
|
|
1.73
|
%
|
|
|
4,728
|
|
|
0.90
|
%
|
|
|
2,765
|
|
|
1.07
|
%
|
|
|
14,455
|
|
|
0.78
|
%
|
|
|
2,725
|
|
|
0.41
|
%
|
|
|
35,976
|
|
|
0.91
|
%
|
|
June 30,
2017
|
|
11,158
|
|
|
1.77
|
%
|
|
|
4,551
|
|
|
0.87
|
%
|
|
|
2,669
|
|
|
1.06
|
%
|
|
|
14,467
|
|
|
0.81
|
%
|
|
|
2,489
|
|
|
0.36
|
%
|
|
|
35,334
|
|
|
0.91
|
%
|
|
March 31,
2017
|
|
10,511
|
|
|
1.77
|
%
|
|
|
4,561
|
|
|
0.89
|
%
|
|
|
2,568
|
|
|
1.04
|
%
|
|
|
12,615
|
|
|
0.82
|
%
|
|
|
2,271
|
|
|
0.32
|
%
|
|
|
32,526
|
|
|
0.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
above for a reconciliation of GAAP net interest income by line of
business to net effective spread by line of business for the three
months ended March 31, 2019.
|
Core Earnings by
Quarter Ended
|
|
|
|
|
|
March
2019
|
|
December
2018
|
|
September
2018
|
|
June
2018
|
|
March
2018
|
|
December
2017
|
|
September
2017
|
|
June
2017
|
|
March
2017
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread
|
|
$
|
38,801
|
|
|
$
|
38,855
|
|
|
$
|
39,077
|
|
|
$
|
36,162
|
|
|
$
|
37,101
|
|
|
$
|
37,467
|
|
|
$
|
35,976
|
|
|
$
|
35,334
|
|
|
$
|
32,526
|
|
|
Guarantee and
commitment fees
|
|
|
5,419
|
|
|
|
5,309
|
|
|
|
5,170
|
|
|
|
5,171
|
|
|
|
5,083
|
|
|
|
5,157
|
|
|
|
4,935
|
|
|
|
4,942
|
|
|
|
5,316
|
|
|
Other
|
|
|
509
|
|
|
|
(129)
|
|
|
|
110
|
|
|
|
111
|
|
|
|
428
|
|
|
|
69
|
|
|
|
274
|
|
|
|
107
|
|
|
|
485
|
|
|
|
Total
revenues
|
|
|
44,729
|
|
|
|
44,035
|
|
|
|
44,357
|
|
|
|
41,444
|
|
|
|
42,612
|
|
|
|
42,693
|
|
|
|
41,185
|
|
|
|
40,383
|
|
|
|
38,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
(income)/expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Release
of)/provision for losses
|
|
|
(393)
|
|
|
|
166
|
|
|
|
(3)
|
|
|
|
582
|
|
|
|
(410)
|
|
|
|
464
|
|
|
|
384
|
|
|
|
466
|
|
|
|
444
|
|
|
REO operating
expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
16
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23
|
|
|
|
-
|
|
|
Losses/(gains) on
sale of REO
|
|
|
-
|
|
|
|
-
|
|
|
|
41
|
|
|
|
(34)
|
|
|
|
—
|
|
|
|
(964)
|
|
|
|
(32)
|
|
|
|
(757)
|
|
|
|
5
|
|
|
|
Total credit related
(income)/expense
|
|
|
(393)
|
|
|
|
166
|
|
|
|
38
|
|
|
|
548
|
|
|
|
(394)
|
|
|
|
(500)
|
|
|
|
352
|
|
|
|
(268)
|
|
|
|
449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
|
7,606
|
|
|
|
7,167
|
|
|
|
6,777
|
|
|
|
6,936
|
|
|
|
6,654
|
|
|
|
5,247
|
|
|
|
5,987
|
|
|
|
6,682
|
|
|
|
6,317
|
|
|
General and
administrative
|
|
|
4,596
|
|
|
|
5,829
|
|
|
|
4,350
|
|
|
|
5,202
|
|
|
|
4,326
|
|
|
|
4,348
|
|
|
|
3,890
|
|
|
|
3,921
|
|
|
|
3,800
|
|
|
Regulatory
fees
|
|
|
688
|
|
|
|
687
|
|
|
|
625
|
|
|
|
625
|
|
|
|
625
|
|
|
|
625
|
|
|
|
625
|
|
|
|
625
|
|
|
|
625
|
|
|
|
Total operating
expenses
|
|
|
12,890
|
|
|
|
13,683
|
|
|
|
11,752
|
|
|
|
12,763
|
|
|
|
11,605
|
|
|
|
10,220
|
|
|
|
10,502
|
|
|
|
11,228
|
|
|
|
10,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
32,232
|
|
|
|
30,186
|
|
|
|
32,567
|
|
|
|
28,133
|
|
|
|
31,401
|
|
|
|
32,973
|
|
|
|
30,331
|
|
|
|
29,423
|
|
|
|
27,136
|
|
Income tax
expense
|
|
|
6,715
|
|
|
|
6,431
|
|
|
|
6,891
|
|
|
|
5,477
|
|
|
|
6,259
|
|
|
|
11,796
|
|
|
|
10,268
|
|
|
|
10,307
|
|
|
|
8,844
|
|
Net loss attributable
to non-controlling interest(1)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
—
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(150)
|
|
|
|
(15)
|
|
Preferred stock
dividends
|
|
|
3,296
|
|
|
|
3,296
|
|
|
|
3,295
|
|
|
|
3,296
|
|
|
|
3,295
|
|
|
|
3,296
|
|
|
|
3,295
|
|
|
|
3,296
|
|
|
|
3,295
|
|
|
|
Core
earnings
|
|
$
|
22,221
|
|
|
$
|
20,459
|
|
|
$
|
22,381
|
|
|
$
|
19,360
|
|
|
$
|
21,847
|
|
|
$
|
17,881
|
|
|
$
|
16,768
|
|
|
$
|
15,970
|
|
|
$
|
15,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/(losses) on
undesignated financial derivatives due to fair
value changes
|
|
|
2,240
|
|
|
|
(96)
|
|
|
|
3,625
|
|
|
|
6,709
|
|
|
|
(2,279)
|
|
|
|
(261)
|
|
|
|
995
|
|
|
|
801
|
|
|
|
8,683
|
|
|
|
(Losses)/gains on
hedging activities due to fair value changes
|
|
|
(2,817)
|
|
|
|
(853)
|
|
|
|
1,051
|
|
|
|
1,687
|
|
|
|
2,564
|
|
|
|
(3)
|
|
|
|
1,742
|
|
|
|
1,420
|
|
|
|
(3,878)
|
|
|
|
Unrealized
gains/(losses) on trading assets
|
|
|
44
|
|
|
|
57
|
|
|
|
(3)
|
|
|
|
11
|
|
|
|
16
|
|
|
|
60
|
|
|
|
-
|
|
|
|
(2)
|
|
|
|
(82)
|
|
|
|
Amortization of
premiums/discounts and deferred gains on
assets consolidated at fair value
|
|
|
(16)
|
|
|
|
67
|
|
|
|
(38)
|
|
|
|
196
|
|
|
|
(686)
|
|
|
|
(129)
|
|
|
|
(954)
|
|
|
|
(117)
|
|
|
|
(127)
|
|
|
|
Net effects of
terminations or net settlements on financial
derivatives
|
|
|
110
|
|
|
|
(312)
|
|
|
|
546
|
|
|
|
232
|
|
|
|
1,242
|
|
|
|
632
|
|
|
|
862
|
|
|
|
232
|
|
|
|
948
|
|
|
|
Re-measurement of net
deferred tax asset due to enactment of
new tax legislation
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,365)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
Income tax effect
related to reconciling items
|
|
|
92
|
|
|
|
238
|
|
|
|
(1,088)
|
|
|
|
(1,855)
|
|
|
|
(180)
|
|
|
|
(105)
|
|
|
|
(926)
|
|
|
|
(816)
|
|
|
|
(1,941)
|
|
|
|
|
Net income
attributable to common stockholders
|
|
$
|
21,874
|
|
|
$
|
19,560
|
|
|
$
|
26,474
|
|
|
$
|
26,340
|
|
|
$
|
22,524
|
|
|
$
|
16,710
|
|
|
$
|
18,487
|
|
|
$
|
17,488
|
|
|
$
|
18,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of
May 1, 2017, Farmer Mac transferred its entire 65% ownership
interest in Contour Valuation Services, LLC (also known as
AgVisory) back to the limited liability company.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/farmer-mac-reports-first-quarter-2019-results--grew-outstanding-business-volume-782-million-to-20-5-billion-300842215.html
SOURCE Farmer Mac