ﾌｪﾃﾞﾗﾙｱｸﾞﾘｶﾙﾁｭｱﾙﾓｰｹﾞｰｼﾞCの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 9, 2023

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

(Exact name of registrant as specified in its charter)

Federally chartered instrumentality

of the United States

001-14951

52-1578738

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer Identification No.)

1999 K Street, N.W., 4th Floor,

20006

Washington,

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code (202) 872-7700

No change

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Exchange on which registered

Class A voting common stock

AGM.A

New York Stock Exchange

Class C non-voting common stock

AGM

New York Stock Exchange

6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C

AGM.PRC

New York Stock Exchange

5.700% Non-Cumulative Preferred Stock, Series D

AGM.PRD

New York Stock Exchange

5.750% Non-Cumulative Preferred Stock, Series E

AGM.PRE

New York Stock Exchange

5.250% Non-Cumulative Preferred Stock, Series F

AGM.PRF

New York Stock Exchange

4.875% Non-Cumulative Preferred Stock, Series G

AGM.PRG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 9, 2023, the Federal Agricultural Mortgage Corporation (“Farmer Mac”) issued a press release to announce (1) its financial results for the fiscal quarter ended March 31, 2023 and (2) a conference call to discuss those results and Farmer Mac’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.1 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.

The information furnished in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

On May 9, 2023, Farmer Mac posted an investor slide presentation for equity investors to its website at www.farmermac.com under the tab “Investors — Events and Presentations.” Farmer Mac expects to use the slide presentation in connection with future investor presentations to analysts and investors. The slide presentation is attached as Exhibit 99.2 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.2 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.

The information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release dated May 9 , 2023

99.2 Equity investor slide presentation

104 Cover Page Inline Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document included as Exhibit 101

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

By: /s/ Stephen P. Mullery

Name: Stephen P. Mullery

Title: Executive Vice President – General Counsel

Dated: May 9, 2023

EX-99.1 2 a2023q1pressrelease.htm EX-99.1 Document

Farmer Mac Reports First Quarter 2023 Results

- Outstanding Business Volume of $26.5 Billion -

WASHINGTON, D.C., May 9, 2023 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended March 31, 2023.

“We delivered another strong quarter, with new all-time records achieved for revenue, earnings, and net effective spread,” said President and CEO, Brad Nordholm. “Our results this quarter not only highlight the resiliency of our business model, our disciplined approach to asset liability management, and our successful efforts over the last few years to grow and diversify our revenue streams, but also the alignment of our team with our long-term strategic objectives and commitment to fulfilling our mission throughout changing market cycles.”

First Quarter 2023 Highlights

•Added $1.7 billion of gross business volume, resulting in net growth of $0.6 billion

•Net interest income grew 21% year-over-year to $79.1 million

•Net effective spread1 increased 33% from the prior-year period to a record $77.2 million

•Net income attributable to common stockholders was $40.2 million, compared to $44.7 million in the same period last year

•Record core earnings1 of $38.9 million, or $3.56 per diluted common share, reflecting 51% growth year-over-year

•90-day delinquencies were 0.27% across the entire $26.5 billion portfolio as of March 31, 2023

•Maintained strong capital position with total core capital of $1.4 billion, exceeding statutory requirement by 65% and a Tier 1 Capital Ratio of 15.7% as of March 31, 2023

•Closed the third structured securitization transaction involving approximately $300 million of agricultural mortgage loans


$ in thousands, except per share amounts	Quarter Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Sequential % Change	YoY % Change
Net Change in Business Volume	$562,036	$595,444	$628,947	N/A	N/A
Net Interest Income (GAAP)	$79,058	$73,635	$65,538	7%	21%
Net Effective Spread (Non-GAAP)	$77,173	$71,103	$57,839	9%	33%
Diluted EPS (GAAP)	$3.69	$3.36	$4.10	10%	(10)%
Core EPS (Non-GAAP)	$3.56	$3.16	$2.37	13%	50%

1 Non-GAAP Measure

Earnings Conference Call Information

The conference call to discuss Farmer Mac's first quarter 2023 financial results will be held beginning at 4:30 p.m. eastern time on Tuesday, May 9, 2023, 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/

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 2023 is in Farmer Mac's

Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, 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.

The main difference between core earnings and core earnings per share (non-GAAP measures) and net income attributable to common stockholders and earnings per common share (GAAP measures) is that those non-GAAP measures exclude 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. Another difference is that these two non-GAAP measures exclude specified infrequent or unusual transactions that we believe 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. As further explained below, net effective spread differs from net interest income and net interest yield by excluding certain items from net interest income and net interest yield and including certain other items that net interest income and net interest yield do not contain.

Farmer Mac excludes from net effective spread the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts to reflect management's view that the net interest income Farmer Mac earns on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees in determining Farmer Mac's core earnings.

Farmer Mac also excludes from net effective spread the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on Farmer Mac's financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.

Net effective spread also differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). Farmer Mac uses interest rate swaps to manage its interest rate risk exposure by synthetically modifying the interest rate reset or maturity characteristics of certain assets and liabilities. The accrual of the contractual amounts due on interest rate swaps designated in hedge accounting relationships is included as an adjustment to the yield or cost of the hedged item and is included in net interest income. For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "Gains on financial derivatives" on the consolidated statements of operations. However, the accrual of the contractual amounts due for undesignated financial derivatives are included in Farmer Mac's calculation of net effective spread.

Net effective spread also differs from net interest income and net interest yield because it includes the net effects of terminations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps. The inclusion of these items in net effective spread is intended to reflect our view of the complete net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.

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 Annual Report on Form 10-K for the year ended December 31, 2022, filed February 24, 2023 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 "Reconciliations" 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 agricultural or rural infrastructure industries;

•fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;

•the level of 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 infrastructure indebtedness;

•the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or rural infrastructure lending, borrower repayment capacity, or collateral values, including rapid inflation, fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, volatility from the recent commercial banking failures, and volatility in commodity prices;

•the degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indexes;

•developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;

•the effects of the Federal Reserve’s efforts to achieve monetary policy normalization and slow inflation; and

•other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, climate change, or fluctuations in agricultural real estate values.

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, 2022, as filed with the SEC on February 24, 2023. 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. 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 was created to increase access to and reduce the cost of credit for the benefit of American agricultural and rural communities. As the nation’s 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. More information about Farmer Mac (including the Annual Report on Form 10-K referenced above) is available on Farmer Mac's website at www.farmermac.com.

CONTACT: Jalpa Nazareth, Investor Relations

Megan Murray-Pelaez, Media Inquiries

(202) 872-7700

* * * *

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)


	As of
	March 31, 2023		December 31, 2022
	(in thousands)
Assets:
Cash and cash equivalents	$	864,594	$	861,002
Investment securities:
Available-for-sale, at fair value (amortized cost of $4,788,254 and $4,769,426, respectively)	4,647,464		4,579,564
Held-to-maturity, at amortized cost	45,032		45,032
Other investments	3,672		3,672
Total Investment Securities	4,696,168		4,628,268
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value (amortized cost of $8,565,328 and $8,019,495, respectively)	8,225,454		7,607,226
Held-to-maturity, at amortized cost	993,966		1,021,154
Total Farmer Mac Guaranteed Securities	9,219,420		8,628,380
USDA Securities:
Trading, at fair value	1,405		1,767
Held-to-maturity, at amortized cost	2,358,928		2,409,834
Total USDA Securities	2,360,333		2,411,601
Loans:

Loans held for investment, at amortized cost	8,915,656		9,008,979
Loans held for investment in consolidated trusts, at amortized cost	1,468,357		1,211,576
Allowance for losses	(15,673)		(15,089)
Total loans, net of allowance	10,368,340		10,205,466

Financial derivatives, at fair value	25,099		37,409
Accrued interest receivable (includes $9,885 and $12,514, respectively, related to consolidated trusts)	196,368		229,061
Guarantee and commitment fees receivable	46,670		47,151
Deferred tax asset, net	7,961		18,004
Prepaid expenses and other assets	154,994		266,768
Total Assets	$	27,939,947	$	27,333,110

Liabilities and Equity:
Liabilities:


Notes payable	$	24,837,391	$	24,469,113
Debt securities of consolidated trusts held by third parties	1,374,332		1,181,948
Financial derivatives, at fair value	166,963		175,326
Accrued interest payable (includes $6,170 and $8,081, respectively, related to consolidated trusts)	141,938		117,887
Guarantee and commitment obligation	46,114		46,582
Accounts payable and accrued expenses	79,188		68,863

Reserve for losses	1,636		1,433
Total Liabilities	26,647,562		26,061,152
Commitments and Contingencies
Equity:
Preferred stock:
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,382		73,382
Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding	96,659		96,659
Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding	77,003		77,003
Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding	116,160		116,160
Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding	121,327		121,327
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, 9,288,482 shares and 9,270,265 shares outstanding, respectively	9,289		9,270
Additional paid-in capital	130,004		128,939
Accumulated other comprehensive loss, net of tax	(59,862)		(50,843)
Retained earnings	726,892		698,530
Total Equity	1,292,385		1,271,958
Total Liabilities and Equity	$	27,939,947	$	27,333,110

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


	For the Three Months Ended
	March 31, 2023		March 31, 2022
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	59,703	$	5,716
Farmer Mac Guaranteed Securities and USDA Securities	136,537		42,920
Loans	119,032		67,247
Total interest income	315,272		115,883
Total interest expense	236,214		50,345
Net interest income	79,058		65,538
Provision for losses	(547)		(56)
Net interest income after provision for losses	78,511		65,482
Non-interest income/(expense):
Guarantee and commitment fees	3,933		3,695
Gains on financial derivatives	399		16,988

Gains/(losses) on trading securities	25		(63)


(Provision for)/release of reserve for losses	(203)		110
Other income	1,201		675
Non-interest income	5,355		21,405
Operating expenses:
Compensation and employee benefits	15,351		13,298
General and administrative	7,527		7,278
Regulatory fees	835		812

Operating expenses	23,713		21,388
Income before income taxes	60,153		65,499
Income tax expense	13,118		14,046


Net income	47,035		51,453
Preferred stock dividends	(6,791)		(6,791)

Net income attributable to common stockholders	$	40,244	$	44,662

Earnings per common share:
Basic earnings per common share	$	3.73	$	4.15
Diluted earnings per common share	$	3.69	$	4.10

Reconciliations

Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings for the periods indicated:


Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Three Months Ended
	March 31, 2023		December 31, 2022		March 31, 2022
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	40,244	$	36,627	$	44,662
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes	916		1,596		2,612
(Losses)/gains on hedging activities due to fair value changes	(105)		(148)		5,687
Unrealized gains on trading assets	359		31		94
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	29		57		20
Net effects of terminations or net settlements on financial derivatives	523		1,268		15,512

Income tax effect related to reconciling items	(362)		(590)		(5,024)
Sub-total	1,360		2,214		18,901
Core earnings	$	38,884	$	34,413	$	25,761

Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	77,173	$	71,103	$	57,839
Guarantee and commitment fees(2)	4,654		4,677		4,557

Other(3)	1,067		390		514
Total revenues	82,894		76,170		62,910

Credit related expense (GAAP):
Provision for/(release of) losses	750		1,945		(54)
REO operating expenses	—		819		—

Total credit related expense	750		2,764		(54)

Operating expenses (GAAP):
Compensation and employee benefits	15,351		12,105		13,298
General and administrative	7,527		8,055		7,278
Regulatory fees	835		832		812
Total operating expenses	23,713		20,992		21,388

Net earnings	58,431		52,414		41,576
Income tax expense(4)	12,756		11,210		9,024
Preferred stock dividends (GAAP)	6,791		6,791		6,791
Core earnings	$	38,884	$	34,413	$	25,761

Core earnings per share:
Basic	$	3.60	$	3.19	$	2.39
Diluted	$	3.56	$	3.16	$	2.37

(1)Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" 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 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, 2023		December 31, 2022		March 31, 2022
	(in thousands, except per share amounts)
GAAP - Basic EPS	$	3.73	$	3.39	$	4.15
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes	0.09		0.15		0.24
(Losses)/gains on hedging activities due to fair value changes	(0.01)		(0.01)		0.53
Unrealized gains on trading securities	0.03		0.01		0.01
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—		0.01		—
Net effects of terminations or net settlements on financial derivatives	0.05		0.11		1.44

Income tax effect related to reconciling items	(0.03)		(0.07)		(0.46)
Sub-total	0.13		0.20		1.76
Core Earnings - Basic EPS	$	3.60	$	3.19	$	2.39

Shares used in per share calculation (GAAP and Core Earnings)	10,802		10,801		10,767


Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share
	For the Three Months Ended
	March 31, 2023		December 31, 2022		March 31, 2022
	(in thousands, except per share amounts)
GAAP - Diluted EPS	$	3.69	$	3.36	$	4.10
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes	0.09		0.15		0.24
(Losses)/gains on hedging activities due to fair value changes	(0.01)		(0.01)		0.52
Unrealized gains on trading securities	0.03		0.01		0.01
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—		0.01		—
Net effects of terminations or net settlements on financial derivatives	0.05		0.11		1.42

Income tax effect related to reconciling items	(0.03)		(0.07)		(0.46)
Sub-total	0.13		0.20		1.73
Core Earnings - Diluted EPS	$	3.56	$	3.16	$	2.37

Shares used in per share calculation (GAAP and Core Earnings)	10,918		10,894		10,887

The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:


Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread
	For the Three Months Ended
	March 31, 2023				December 31, 2022				March 31, 2022
	Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
Net interest income/yield	$	79,058	1.14	%	$	73,635	1.08	%	$	65,538	1.06	%
Net effects of consolidated trusts	(1,055)		0.02	%	(1,195)		0.02	%	(1,018)		0.02	%
Expense related to undesignated financial derivatives	(1,626)		(0.02)	%	(2,122)		(0.03)	%	(994)		(0.02)	%
Amortization of premiums/discounts on assets consolidated at fair value	(23)		—	%	(53)		—	%	(16)		—	%
Amortization of losses due to terminations or net settlements on financial derivatives	714		0.01	%	688		—	%	356		0.01	%
Fair value changes on fair value hedge relationships	105		—	%	150		—	%	(6,027)		(0.10)	%
Net effective spread	$	77,173	1.15	%	$	71,103	1.07	%	$	57,839	0.97	%

The following table presents core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended March 31, 2023:


Core Earnings by Business Segment
For the Three Months Ended March 31, 2023
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	33,511	$	7,148	$	5,540	$	858	$	32,544	$	(543)	$	—	$	—		$	79,058
Less: reconciling adjustments(1)(2)(3)	(1,046)		—		(33)		—		(806)		—		—		1,885			—
Net effective spread	32,465		7,148		5,507		858		31,738		(543)		—		1,885			—
Guarantee and commitment fees	4,292		53		281		28		—		—		—		(721)			3,933

Other income/(expense)(3)	1,067		—		—		—		—		—		—		558			1,625
Total revenues	37,824		7,201		5,788		886		31,738		(543)		—		1,722			84,616

Release of/(provision for) losses	128		(4,301)		3,484		138		—		4		—		—			(547)

(Provision for)/release of reserve for losses	(577)		—		374		—		—		—		—		—			(203)
Operating expenses	—		—		—		—		—		—		(23,713)		—			(23,713)
Total non-interest expense	(577)		—		374		—		—		—		(23,713)		—			(23,916)
Core earnings before income taxes	37,375		2,900		9,646		1,024		31,738		(539)		(23,713)		1,722		(4)	60,153
Income tax (expense)/benefit	(7,849)		(609)		(2,026)		(215)		(6,665)		113		4,495		(362)			(13,118)
Core earnings before preferred stock dividends	29,526		2,291		7,620		809		25,073		(426)		(19,218)		1,360		(4)	47,035
Preferred stock dividends	—		—		—		—		—		—		(6,791)		—			(6,791)

Segment core earnings/(losses)	$	29,526	$	2,291	$	7,620	$	809	$	25,073	$	(426)	$	(26,009)	$	1,360	(4)	$	40,244

Total Assets	$	14,549,275	$	1,515,976	$	6,444,264	$	286,824	$	—	$	4,998,854	$	144,754	$	—		$	27,939,947
Total on- and off-balance sheet program assets at principal balance	$	17,685,961	$	1,599,982	$	6,889,682	$	308,493	$	—	$	—	$	—	$	—		$	26,484,118

(1)Includes 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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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 reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Supplemental Information

The following table sets forth information about outstanding volume in each of Farmer Mac's lines of business as of the dates indicated:


Outstanding Business Volume

	On or Off Balance Sheet	As of March 31, 2023		As of December 31, 2022
		(in thousands)
Agricultural Finance:
Farm & Ranch:
Loans	On-balance sheet	$	4,837,722	$	5,150,750
Loans held in consolidated trusts:
Beneficial interests owned by third-party investors (Pass-Through)(1)	On-balance sheet	895,257		914,918
Beneficial interests owned by third-party investors (Structured)(1)	On-balance sheet	573,100		296,658
IO-FMGS(2)	On-balance sheet	10,189		10,622
USDA Securities	On-balance sheet	2,356,695		2,407,302
AgVantage Securities(1)	On-balance sheet	5,675,000		5,605,000
LTSPCs and unfunded commitments	Off-balance sheet	2,830,071		2,822,309
Other Farmer Mac Guaranteed Securities(3)	Off-balance sheet	488,095		500,953
Loans serviced for others	Off-balance sheet	19,832		20,280
Total Farm & Ranch		$	17,685,961	$	17,728,792
Corporate AgFinance:
Loans	On-balance sheet	$	1,172,864	$	1,166,253
AgVantage Securities(1)	On-balance sheet	337,685		359,600
Unfunded commitments	Off-balance sheet	89,433		77,654
Total Corporate AgFinance		$	1,599,982	$	1,603,507
Total Agricultural Finance		$	19,285,943	$	19,332,299
Rural Infrastructure Finance:
Rural Utilities:
Loans	On-balance sheet	$	2,891,618	$	2,801,696
AgVantage Securities(1)	On-balance sheet	3,515,385		3,044,156
LTSPCs and unfunded commitments	Off-balance sheet	481,581		512,592
Other Farmer Mac Guaranteed Securities(3)	Off-balance sheet	1,098		1,169
Total Rural Utilities		$	6,889,682	$	6,359,613
Renewable Energy:
Loans	On-balance sheet	$	286,486	$	219,570
Unfunded commitments	Off-balance sheet	22,007		10,600
Total Renewable Energy		$	308,493	$	230,170
Total Rural Infrastructure Finance		$	7,198,175	$	6,589,783
Total		$	26,484,118	$	25,922,082

(1)A Farmer Mac Guaranteed Security.

(2)An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization.

(3)Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties

The following table presents the quarterly net effective spread (a non-GAAP measure) by segment:


	Net Effective Spread(1)
	Agricultural Finance								Rural Infrastructure Finance								Treasury
	Farm & Ranch				Corporate AgFinance				Rural Utilities				Renewable Energy				Funding				Investments				Net Effective Spread
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
For the quarter ended:
March 31, 2023(2)	$	32,465	0.97	%	$	7,148	1.94	%	$	5,507	0.36	%	$	858	1.53	%	$	31,738	0.47	%	$	(543)	(0.04)	%	$	77,173	1.15	%
December 31, 2022	32,770		0.98	%	7,471		1.94	%	4,960		0.34	%	935		1.76	%	27,656		0.42	%	(2,689)		(0.19)	%	71,103		1.07	%
September 30, 2022	33,343		1.04	%	7,600		1.99	%	4,220		0.30	%	705		1.97	%	22,564		0.36	%	(2,791)		(0.21)	%	65,641		1.03	%
June 30, 2022	32,590		1.05	%	6,929		1.87	%	3,733		0.27	%	468		1.78	%	18,508		0.30	%	(1,282)		(0.10)	%	60,946		0.99	%
March 31, 2022	30,354		1.02	%	7,209		1.96	%	3,159		0.23	%	375		1.69	%	16,738		0.28	%	4		—	%	57,839		0.97	%
December 31, 2021	28,998		0.99	%	6,321		1.84	%	2,521		0.19	%	356		1.53	%	15,979		0.28	%	158		0.01	%	54,333		0.94	%
September 30, 2021	28,914		1.06	%	7,163		1.80	%	2,067		0.16	%	236		1.09	%	17,386		0.31	%	159		0.01	%	55,925		0.99	%
June 30, 2021	29,163		1.06	%	6,676		1.65	%	1,759		0.14	%	378		1.80	%	18,449		0.33	%	126		0.01	%	56,551		1.01	%
March 31, 2021	26,461		0.98	%	6,921		1.67	%	1,720		0.14	%	249		1.28	%	18,394		0.33	%	114		0.01	%	53,859		0.97	%

(1)Farmer Mac excludes the Corporate segment in the presentation above because the segment does not have any interest-earning assets.

(2)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, 2023.

The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:


Core Earnings by Quarter Ended
	March 2023		December 2022		September 2022		June 2022		March 2022		December 2021		September 2021		June 2021		March 2021
			(in thousands)
Revenues:
Net effective spread	$	77,173	$	71,103	$	65,641	$	60,946	$	57,839	$	54,333	$	55,925	$	56,551	$	53,859
Guarantee and commitment fees	4,654		4,677		4,201		4,709		4,557		4,637		4,322		4,334		4,240
Gains on sale of mortgage loans	—		—		—		—		—		6,539		—		—		—
Other	1,067		390		473		307		514		241		687		301		451
Total revenues	82,894		76,170		70,315		65,962		62,910		65,750		60,934		61,186		58,550

Credit related expense/(income):
Provision for/(release of) losses	750		1,945		450		(1,535)		(54)		(1,428)		255		(983)		(31)
REO operating expenses	—		819		—		—		—		—		—		—		—
Losses on sale of REO	—		—		—		—		—		—		—		—		—
Total credit related expense/(income)	750		2,764		450		(1,535)		(54)		(1,428)		255		(983)		(31)

Operating expenses:
Compensation and employee benefits	15,351		12,105		11,648		11,715		13,298		11,246		10,027		9,779		11,795
General and administrative	7,527		8,055		6,919		7,520		7,278		8,492		6,330		6,349		6,336
Regulatory fees	835		832		812		813		812		812		750		750		750
Total operating expenses	23,713		20,992		19,379		20,048		21,388		20,550		17,107		16,878		18,881

Net earnings	58,431		52,414		50,486		47,449		41,576		46,628		43,572		45,291		39,700
Income tax expense	12,756		11,210		10,303		9,909		9,024		9,809		9,152		9,463		8,520

Preferred stock dividends	6,791		6,791		6,791		6,792		6,791		6,792		6,774		5,842		5,269
Core earnings	$	38,884	$	34,413	$	33,392	$	30,748	$	25,761	$	30,027	$	27,646	$	29,986	$	25,911

Reconciling items:
Gains/(losses) on undesignated financial derivatives due to fair value changes	$	916	$	1,596	$	6,441	$	2,846	$	2,612	$	(1,242)	$	(405)	$	(3,020)	$	3,236
(Losses)/gains on hedging activities due to fair value changes	(105)		(148)		(624)		428		5,687		(2,079)		1,818		(5,866)		4,317
Unrealized gains/(losses) on trading assets	359		31		(757)		(285)		94		(76)		36		(61)		(14)
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value	29		57		24		(62)		20		71		23		20		16
Net effects of terminations or net settlements on financial derivatives	523		1,268		(3,522)		2,536		15,512		(429)		(351)		109		1,165


Income tax effect related to reconciling items	(362)		(590)		(327)		(1,148)		(5,024)		789		(236)		1,852		(1,831)
Net income attributable to common stockholders	$	40,244	$	36,627	$	34,627	$	35,063	$	44,662	$	27,061	$	28,531	$	23,020	$	32,800

EX-99.2 3 a1q23equitypresentation.htm EX-99.2 a1q23equitypresentation

Equity Investor Presentation First Quarter 2023

FARMER MAC Forward-Looking Statements In addition to historical information, this presentation includes forward- looking statements that reflect management’s current expectations for Farmer Mac’s future financial results, business prospects, and business developments. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. Management’s expectations for Farmer Mac’s future necessarily involve assumptions, 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. Some of these factors are identified and discussed in Farmer Mac’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 24, 2023, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on May 9, 2023. These reports are also available on Farmer Mac’s website (www.farmermac.com). Considering these potential risks and uncertainties, no undue reliance should be placed on any forward- looking statements expressed in this presentation. Any forward-looking statements made in this presentation are current only as of March 31, 2023, except as otherwise indicated. Farmer Mac undertakes no obligation to release publicly the results of revisions to any such forward-looking statements that may be made to reflect new information or any future events or circumstances, except as otherwise mandated by the SEC. The information in this presentation is not necessarily indicative of future results. NO OFFER OR SOLICITATION OF SECURITIES This presentation does not constitute an offer to sell or a solicitation of an offer to buy any Farmer Mac security. Farmer Mac securities are offered only in jurisdictions where permissible by offering documents available through qualified securities dealers. Any investor who is considering purchasing a Farmer Mac security should consult the applicable offering documents for the security and their own financial and legal advisors for information about and analysis of the security, the risks associated with the security, and the suitability of the investment for the investor’s particular circumstances. Copyright © 2023 by Farmer Mac. No part of this document may be duplicated, reproduced, distributed, or displayed in public in any manner or by any means without the written permission of Farmer Mac. 02

FARMER MAC Use of Non-GAAP Financial Measures This presentation is for general informational purposes only, is current only as of March 31, 2023 and should be read in conjunction with Farmer Mac’s Quarterly Report on Form 10-Q filed with the SEC on May 9, 2023. In the accompanying analysis of its financial information, Farmer Mac uses the following non-GAAP financial 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 financial 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 interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts; and (2) the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships. Net effective spread also principally differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives") and the net effects of terminations or net settlements on financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps. 03

FARMER MAC Investment Highlights •90-Day delinquencies of only 0.27% across all lines of business •Cumulative Agricultural Finance Mortgage Loans lifetime losses of only 0.11% Quality Assets •Issue at narrow, Government Sponsored Enterprise (GSE) spreads to U.S. Treasuries •E.g., 10-year U.S. Treasury +0.73% as of March 31, 2023Funding Advantage •Ag productivity must double to meet expected global demand •U.S. ag mortgage market is ~$349 billion and growing •Renewable electricity capacity is expected to grow by 48% in the next five years Growth Prospects •Overhead / outstanding business volume ~30 bps •~$800,000 earnings per employee in 2022 Operational Efficiency •Greater than 95% of total revenues is recurring net effective spread and fees •Outstanding business volume CAGR of 10% (2000 to 2022) Quality, Recurring Earnings •Core earnings ROE ~16% in 2022 and consistent net effective spread •Increased quarterly dividend payments for 12 consecutive years Strong Returns, Responsible Growth 04

FARMER MAC Farmer Mac initially chartered by Congress as an instrumentality of the United States Initial public offering First listed on NASDAQ (FAMCU & FAMCL) First major charter revision and expansion of authority (direct loan purchases) First listed on NYSE (AGM & AGM.A) Second major charter revision and expansion of authority (Rural Infrastructure) A Mission-Driven, For-Profit Company Our Mission Farmer Mac is committed to help build a strong and vital rural America by increasing the availability and affordability of credit for the benefit of American agricultural and rural communities Our Stakeholders • Farmers, ranchers and rural communities • Employees • Stockholders • Financial Institutions & Cooperatives • Congress • Regulators Our Corporate Social Responsibility • To help create sustainable, vibrant rural American communities • We achieve this by conducting our business – With absolute integrity – By holding ourselves to high ethical standards – By promoting a diverse, respectful, and inclusive culture – By adopting an Environmental, Social, Governance (ESG) policy statement 05 1987 1988 1996 1999 2008

FARMER MAC Aparna Ramesh Executive Vice President – Chief Financial Officer & Treasurer • 20+ years of experience in mission-oriented finance roles • Joined Farmer Mac in January 2020 from Federal Reserve Bank of Boston, where she previously served as Senior Vice President and Chief Financial Officer • Prior experience includes roles spanning product management, asset-liability management and profitability within Cambridge Savings Bank and M&T Bank Bradford T. Nordholm President & Chief Executive Officer • 40+ years of agricultural and energy finance experience • Joined Farmer Mac in October 2018 from Starwood Energy Group, a leading private investment firm where he served as CEO and later as Vice Chairman • Prior experience includes CEO of US Central and management positions at National Cooperative and within the Farm Credit System Executive Leadership 06 Zachary N. Carpenter Executive Vice President – Chief Business Officer • 15+ years of experience in agribusiness banking, capital markets, finance, and corporate strategy • Joined Farmer Mac in May 2019 from CoBank, where he previously served as Managing Director and Sector Vice President of its Corporate Agribusiness Banking Group • Prior experience includes Executive Director in CoBank’s Capital Markets division and Vice President in Finance and Corporate Strategy at Goldman Sachs

FARMER MAC U.S. Agricultural Balance Sheet 07 Investments, $132,748,868 Inventories, $204,517,960 Real Estate $3,188,219,412 Machinery & Vehicles, $322,698,486 $3,848,184,726 Real Estate, $349,067,861 Nonreal Estate, $154,826,805 $503,894,666 $0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 $3,500,000,000 $4,000,000,000 Farm Sector Assets 2022 Forecast Farm Sector Debt 2022 Forecast $ i n t h o u s a n d s Ag Real Estate Debt-to-Asset Ratio: 10.9% (1)

FARMER MAC (FCS Secondary Market GSE) Agricultural Finance Line of Business (Farm & Ranch and Corporate AgFinance) Farm Credit System (FCS) (Cooperative GSE) • Four FCS Banks • 69 Retail Agricultural Credit Associations Central to a Large Agricultural Mortgage Market 08 Agricultural Mortgage Market {Farmers & Ranchers} Mortgage Financing Mortgage Financing $349 Billion A G B A N K S $ 6 1 B N O N -B A N K L E N D E R S $ 1 3 B (2) Non-FCS Ag Lenders • Insurance Companies • Ag Banks • Non-Bank Lenders

FARMER MAC Farmer Mac’s Operating Model 09 Farmer Mac’s Regulatory/Congressional Oversight • Regulated by the Farm Credit Administration (FCA) through its Office of Secondary Market Oversight (OSMO) • Congressional oversight through Senate and House Agricultural Committees Operating model excludes issued agricultural mortgage-backed securities and long-term standby purchase commitment credit protection components of our business.

FARMER MAC Securitization Program Update • Closed $299.4 million agricultural mortgage-backed securitization transaction on Oct. 14, 2021 • Closed $301.1 million agricultural mortgage-backed securitization transaction on Aug. 11, 2022 • Closed $283.6 million agricultural mortgage-backed securitization transaction on February 23, 2023 • Exemplifies Farmer Mac’s core mission to lower costs for the end borrower and improve credit availability in rural America Growth Opportunities 10 Deepen Farmer Mac’s Market B ro a d e n F a rm e r M a c ’s M a rk e t Loan Process Efficiency Rural Broadband Borrower Retention Renewable Energy, Project Finance Timber Securitization = Relative Size of Volume Opportunity = Broaden = Deepen = Both Syndications Broaden Farmer Mac’s Market Evaluating opportunities not currently being pursued by Farmer Mac • New lines of business • New products Deepen Farmer Mac’s Market Improving processes and operating practices • Customer interaction • Transaction processes • Existing loan features and pricing

FARMER MAC Line of Business Segment Spread Income Products Fee Income Products Volume ($ IN BILLIONS) Q1 Net Effective Spread (%) Agricultural Finance Farm & Ranch • Loans • AgVantage Securities • Guaranteed Securities • USDA • LTSPCs • Guaranteed Securities • Loans Serviced for Others $17.7 0.97% Corporate AgFinance • Loans • AgVantage Securities • Unfunded loan commitments $1.6 1.94% Rural Infrastructure Finance Rural Utilities • Loans • AgVantage Securities • LTSPCs • Unfunded Commitments • Guaranteed Securities $6.9 0.36% Renewable Energy • Loans • Unfunded Loan Commitments $0.3 1.53% Treasury Funding 0.47% Investments (0.04%) $26.5 1.15% Lines of Business 11 AS OF MARCH 31, 2023

FARMER MAC Northwest 13% Southwest 30% Mid-North 27% Mid-South 17% Northeast 4% Southeast 9% By Geographic Region Crops 50% Permanent Plantings 22% Livestock 18% Part-time Farm 5% Ag. Storage and Processing 5% By Commodity Type Agricultural Finance Loan Portfolio Diversification 12 AS OF MARCH 31, 2023 Agricultural Update • USDA’s Economic Research Service estimates $189.9 billion in net cash incomes in 2022, a significant increase from 2021 and 2020 incomes and a new record in both real and nominal terms. • Net cash income in 2023 is forecast to fall by 21% due to elevated input costs and moderating commodity prices. However, forecast 2023 levels are still well above the 10-year average for farm profitability. (3)

FARMER MAC Treasury/Investments Segment Treasury segment includes the financial results of the company’s funding, liquidity, and capital allocation strategies and operations. Liquidity & Investment Portfolio Maintain investment portfolio to provide back-up source of liquidity in excess of regulatory requirements • $5.6 billion as of March 31, 2023 • Investments net effective spread of (0.04%) Benefits from Asset-Liability Management Strategies Leverage a funds transfer pricing process to allocate interest expense to each segment, and allocate the costs and benefits of hedging strategies to the Treasury segment 13 Cash & Equiv. 15.6% Guar. by GSEs and U.S. Gov't Agencies 84.1% Asset-Backed Securities 0.3% Liquidity Portfolio AS OF MARCH 31, 2023

FARMER MAC $168.6 $197.0 $220.7 $255.5 $77.2$93.7 $100.6 $113.6 $124.3 $38.9 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2019 2020 2021 2022 YTD Q1 2023 C O R E E A R N IN G S $ IN M IL L IO N S N E T E F F E C T IV E S P R E A D $ I N M IL L IO N S Net Effective Spread & Core Earnings Net Effective Spread Core Earnings Growing, Recurring, High-Quality Earnings $21.1 $21.9 $23.6 $25.9 $26.5 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2019 2020 2021 2022 Q1 2023 $ I N B IL L IO N S Outstanding Business Volume Outstanding Business Volume 14 7% CAGR (2019-2022) 15% CAGR (2019-2022) 10% CAGR (2019-2022) CAGR is defined as Compound Annual Growth Rate Core earnings and net effective spread are non-GAAP measures. For more information on the use of these non-GAAP measures, please see page 3. For a reconciliation of core earnings to GAAP net income attributable to common stockholders and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 27-28 of the Appendix.

FARMER MAC Quality Earnings Drives Strong Dividends $0.05 $0.10 $0.12 $0.14 $0.16 $0.26 $0.36 $0.58 $0.70 $0.80 $0.88 $0.95 $1.10 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $ P E R S H A R E Quarterly Dividend per Common Share 15 Increased quarterly dividend payments for 12 consecutive years

FARMER MAC Losses less likely even in default – Average portfolio LTV of 45% as of March 31, 2023 – Land values need to decline >55% to generate material losses across Agricultural Finance mortgage loans portfolio – “Stress scenario” losses of 17% to 48% – 1980s crisis saw land value declines of ~23% Farmer Mac Uses Proven, Rigorous Underwriting Industry-leading credit requirements – Total debt coverage ratio of at least 1.25x – LTVs average 40% to 45% on mortgages purchased – Minimum borrower net equity of 50% 16 Credits are less likely to default – Focus on repayment capacity through stressed inputs – Not a “lender of last resort” – Farm Credit Administration is our safety and soundness regulator (4)

FARMER MAC Credit Consistently Outperforms 17 0.51% 0.66% 0.27% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY221Q23 90-Day Delinquencies Industry 90-Day Delinquencies Farmer Mac 90-Day Delinquencies (Agricultural Finance Mortgage Loans Portfolio Only) Farmer Mac 90-Day Delinquences (Total Portfolio) -0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 C H A R G E -O F F S A S % O F A S S E T S Agricultural Lender Charge-off Rates Banks Farm Credit System Farmer Mac Farmer Mac Average 0.02% Farm Credit System Average 0.09% Banks Average 0.17% All Commercial Banks Loans and Leases Average 0.96% (8) (5) (6) (7) (8) (9) (10)

FARMER MAC Historical Credit Losses Agricultural Finance Mortgage Loans have historical cumulative losses of 0.11%, or less than 1bp per year • Cumulative Agricultural Finance Mortgage Loan losses of $38 million on $36 billion of cumulative Agricultural Finance Mortgage Loans historical business volume Farmer Mac has not reported any credit losses to date in any products other than Agricultural Finance Mortgage Loans 18 -$2 $0 $2 $4 $6 $8 $10 $12 1995 & Prior 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 N E T L O S S / ( G A IN ) $ I N M IL L IO N S BY YEAR OF ORIGINATION Ag Storage & Processing Crops Permanent Plantings Livestock Part-Time Farm / Rural Housing

FARMER MAC Allowance for Losses – Quarterly 19 The total allowance for losses increased $0.8 million to $17.9 million in first quarter 2023 • $4.0 million release to the allowance for the Rural Infrastructure Finance portfolio was primarily attributable to an updated estimate of expected losses based on newly available industry data. • $4.8 million provision to the allowance for the Agricultural Finance portfolio was primarily attributable to the declining valuation of a single agricultural storage and processing loan, due to its ongoing bankruptcy proceedings and an updated estimate of expected losses based on additional availability of industry data.

FARMER MAC $619 $681 $713 $806 $818 $197 $331 $497 $517 $534 $815 $1,012 $1,210 $1,323 $1,352 12.9% 14.2% 14.8% 14.9% 15.7% -2.0% 3.0% 8.0% 13.0% 18.0% 23.0% 28.0% 33.0% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2019 2020 2021 2022 Q1 2023 T IE R 1 C A P IT A L R A T IO ( % ) C O R E C A P IT A L $ I N M IL L IO N S Statutory Minimum Core Capital Core Capital Amount Above Statutory Minimum Capital Tier 1 Capital Ratio Strong and Growing Equity Capital Base 20Statutory Minimum Core Capital defined as total stockholders’ equity less accumulated other comprehensive income.

Appendix

FARMER MAC • Core earnings, core earnings per share, and net effective spread are non-GAAP measures. For more information on the use of these non- GAAP measures, please see page 3. For a reconciliation of core earnings to GAAP net income attributable to common stockholders and core earnings per share to earnings per common share, and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 27-28 of the Appendix. • Book Value per Share excludes accumulated other comprehensive income. Key Company Metrics 23 ($ in thousands, except per share amounts) 2023 YTD 2022 2021 2020 2019 Core Earnings $38,884 $124,314 $113,570 $100,612 $93,742 Core Earnings per Diluted Share $3.56 $11.42 $10.47 $9.33 $8.70 Net Effective Spread ($) $77,173 $255,529 $220,668 $196,956 $168,608 Net Effective Spread (%) 1.15% 1.02% 0.98% 0.93% 0.91% Guarantee & Commitment Fees $4,654 $18,144 $17,533 $19,150 $21,335 Core Capital Above Statutory Minimum $534,400 $516,900 $496,800 $331,400 $196,700 Common Stock Dividends per Share $1.10 $3.80 $3.52 $3.20 $2.80 Outstanding Business Volume $26,484,118 $25,922,082 $23,614,463 $21,929,095 $21,117,942 90-Day Delinquencies 0.27% 0.17% 0.20% 0.21% 0.29% (Credit Losses)/Recovery $0 ($903) $1,054 ($5,759) ($67) Book Value per Share $80.20 $77.61 $67.37 $60.41 $54.80 Core Earnings Return on Equity 18% 16% 16% 16% 17%

FARMER MAC Equity Capital Structure 24 NYSE Ticker Dividend Yield Shares Outstanding C O M M O N S T O C K CLASS A VOTING COMMON STOCK • Ownership restricted to non-Farm Credit System financial institutions AGM.A 4.10% 1.0 million CLASS B VOTING COMMON STOCK • Ownership restricted to Farm Credit System institutions -- -- 0.5 million CLASS C NON-VOTING COMMON STOCK • No ownership restrictions AGM 3.30% 9.3 million P R E F E R R E D S T O C K SERIES C FIXED-TO-FLOATING RATE NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 18, 2024 • Redemption Value: $25 per share AGM.PR.C 6.000% 3.0 million SERIES D NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 17, 2024 • Redemption Value: $25 per share AGM.PR.D 5.700% 4.0 million SERIES E NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 17, 2025 • Redemption Value: $25 per share AGM.PR.E 5.750% 3.2 million SERIES F NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after October 17, 2025 • Redemption Value: $25 per share AGM.PR.F 5.250% 4.8 million SERIES G NON-CUMULATIVE PREFERRED STOCK • Option to redeem on any payment date on or after July 17, 2026 • Redemption Value: $25 per share AGM.PR.G 4.875% 5.0 million • Common stock dividend annualized divided by quarter-end closing price • Par value of annual dividend for preferred stock

FARMER MAC Funding Finance asset purchases with proceeds of debt issuances • 32 dealers • Match-funding provides for stable net effective spread and immaterial interest rate risk Farmer Mac’s debt securities carry privileges for certain holders • 20% capital risk weighting • Eligible collateral for Fed advances • Legal investments for many federally supervised financial institutions (banks, etc.) 25 Debt Securities Trade at Narrow Spreads to Comparable Maturity Treasuries MATURITY (YEARS) 3 5 7 10 SPREAD TO TREASURY (AS OF MARCH 31, 2023) 28 bps 29 bps 57 bps 73 bps

FARMER MAC World population is expected to grow to 9.8 billion by 2050 • Arable land per person is expected to decline over 40% from 2005 to 2050 USDA projects a 75% increase in total production and consumption of major field crops in the same period • 43% increase in world population • Higher protein diets as incomes in developing countries increase Productivity would need to nearly double by 2050 to feed the world “Demand Pull” Provides Sustained Growth Opportunity 3.0 9.8 0.43 0.18 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.0 2.0 4.0 6.0 8.0 10.0 12.0 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 A R A B L E L A N D P E R C A P IT A (h e c ta re in u s e p e r p e rs o n )W O R L D P O P U L A T IO N (i n b ill io n s ) World Population Arable Land per capita 26 (11) (12)

FARMER MAC Reconciliation of Net Income to Core Earnings 27 (in thousands) 2023 YTD 2022 2021 2020 2019 Net income attributable to common stockholders 40,244$ 150,979$ 111,413$ 94,904$ 93,650$ Less reconciling items: Gains/(losses) on undesignated financial derivatives due to fair value changes 916 13,495 (1,430) (1,701) 10,077 (Losses)/gains on hedging activities due to fair value changes (105) 5,343 (1,809) (4,759) (9,010) Unrealized gains/(losses) on trading assets 359 (917) (115) 51 326 Amortization of premiums/discounts and deferred gains on assets consolidated at fair value 29 39 130 58 (122) Net effects of terminations or net settlements on financial derivatives and hedging activities 523 15,794 494 1,236 1,089 Issuance costs on retirement of preferred stock - - - (1,667) (1,956) Income tax effect related to reconciling items (362) (7,089) 573 1,074 (496) Sub-total 1,360 26,665 (2,157) (5,708) (92) Core earnings 38,884$ 124,314$ 113,570$ 100,612$ 93,742$ Core Earnings by Period Ended • Issuance costs on retirement of preferred stock relates to the write-off of deferred issuance costs as a result of the retirement of Series A Preferred Stock and Series B Preferred Stock.

FARMER MAC Reconciliation of Net Interest Income to Net Effective Spread 28 2019 $ in thousands Dollars Yield Dollars Yield Dollars Yield Dollars Yield Dollars Yield Net interest income/yield 79,058$ 1.14% 270,940$ 1.04% 221,951$ 0.94% 195,848$ 0.87% 173,135$ 0.87% Net effects of consolidated trusts (1,055) 0.02% (4,239) 0.02% (4,864) 0.02% (6,601) 0.02% (7,669) 0.03% Expense related to undesignated financial derivatives (1,626) -0.02% (7,756) -0.03% 2,841 0.02% 3,468 0.02% (5,095) -0.03% Amortization of premiums/discounts on assets consolidated at fair value (23) 0.00% (24) 0.00% (45) 0.00% 197 0.00% 398 0.00% Amortization of losses due to terminations or net settlements on financial derivatives and hedging activities 714 0.01% 2,413 0.01% 446 0.00% 120 0.00% (68) 0.00% Fair Value Changes on fair value hedge relationships 105 0.00% (5,805) -0.02% 339 0.00% 3,924 0.02% 7,907 0.04% Net Effective Spread 77,173$ 1.15% 255,529$ 1.02% 220,668$ 0.98% 196,956$ 0.93% 168,608$ 0.91% 2023 YTD For the Year Ended December 31, 2022 2021 2020

FARMER MAC Resources Footnote 1: USDA Economic Research Service year end 2021F balance sheet (https://data.ers.usda.gov/reports.aspx?ID=17835). Farm Sector Assets and Farm Sector Debt values are forecasted values for 2021 from USDA Economic Research Service. Footnote 2: Eligible ag real estate mortgage market structure shown includes the forecast for outstanding unpaid principal balance of first lien ag mortgage assets for December 31, 2022. Footnote 3: USDA, Economic Research Service U.S. and State-Level Farm Income and Wealth Statistic (https://www.ers.usda.gov/data- products/farm-income-and-wealth-statistics/data-files-us-and-state-level-farm-income-and-wealth-statistics/). Footnote 4: USDA, National Agricultural Statistics Service (as of August 2015). Historic values are not necessarily predictive of future results or outcomes. Footnote 5: FDIC Call Report Data & Farm Credit Funding Corp Annual Information Statements – Non-accrual real estate loans and accruing loans that are 90 days or more past due made by commercial and Farm Credit System banks (as of December 2022). Footnote 6: Delinquencies reflect Farmer Mac’s Agricultural Finance mortgage loan portfolio that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan. Footnote 7: Kansas City Federal Reserve Agriculture Finance Databook (https://www.kansascityfed.org/agriculture/agfinance-updates/). Footnote 8: Banks’ charge-off rate is a percentage of agricultural loan assets. Footnote 9: Farm Credit Banks Funding Corporation Annual Information Statements; Farm Credit System’s charge-off rate is the percentage of total loans and guarantees. Footnote 10: Farmer Mac’s charge-off rate is the percentage of total loans and guarantees. Footnote 11: USDA, Economic Research Service Global Drivers of Agricultural Demand and Supply, September 2014. Footnote 12: Food and Agriculture Organization of the United Nations, “World Agriculture Towards 2030/2050,” June 2012. 29