Revenue: As of FY2026 Q2, the actual value is USD 125.22 M.

EPS: As of FY2026 Q2, the actual value is USD 5.41, beating the estimate of USD 4.765.

EBIT: As of FY2026 Q2, the actual value is USD 81.7 M.

Federal Agricultural Mortgage Corporation announced its financial results for the quarterly period ended June 30, 2026, reporting record-setting results for the second quarter of 2026.

Operational Highlights

Business volume grew by 22% year-over-year, reaching $37.2 billion, with broad-based growth across all business operating segments. The operating efficiency ratio remained below the 30% strategic target. The company maintained a robust capital position with $1.9 billion of capital, exceeding minimum capital requirements by 64%, and a Tier 1 capital ratio of 13.2%. Shareholder returns included a 19% return on equity and $25 million returned to shareholders through dividends.

Revenue

Total revenue for Q2 2026 was $125.2 million, an increase from $100.5 million in Q2 2025, reflecting a 25% year-over-year growth. Approximately 99% of total revenue stemmed from recurring net effective spread (NES) and fees.

Net Effective Spread (NES)

Net effective spread (NES) was $117.4 million in Q2 2026, up from $93.9 million in Q2 2025. This growth was driven by accelerated business volume growth and the collection of $7.4 million in previously unrecognized default interest. The NES percentage for total business volume was 1.26% in Q2 2026, an increase from 1.19% in Q2 2025.

Core Earnings

Core earnings for Q2 2026 reached $58.8 million, showing a 24% year-over-year growth from $47.4 million in Q2 2025. This increase was attributed to sustained volume growth and an average adjusted operating efficiency ratio of 28.3%.

Business Volume by Segment (Q2 2026)

• Farm & Ranch: The portfolio grew by $1.7 billion, including a net new $1.1 billion increase in AgVantage securities, with $0.8 billion from a new counterparty. Total business volume for Farm & Ranch was $22.0 billion, with an NES percentage of 1.01%.
• Corporate AgFinance: The loan purchase portfolio grew modestly, reaching $2.1 billion in business volume, with a strong NES percentage of 3.76%. Excluding interest collection, the NES percentage would have been 2.08%.
• Infrastructure Finance: This segment grew by $0.6 billion.
  • Power & Utilities: Contributed nearly $0.3 billion of net growth, primarily due to the purchase of a $0.2 billion pool of loans from a single customer. Business volume was $8.3 billion, with an NES percentage of 0.36%.
  • Broadband Infrastructure: Business volume was $1.9 billion, with an NES percentage of 2.30%.
  • Renewable Energy: Business volume was $3.0 billion, with an NES percentage of 1.72%.

Balance Sheet Summary (as of June 30, 2026)

Total Assets increased by 19.1% year-over-year to $39.3 billion. Investment Securities were $19.4 billion, up 14.1% year-over-year, and Loans increased by 25.5% year-over-year to $18.2 billion. Total Liabilities rose by 18.7% year-over-year to $37.4 billion. Total Equity grew by 26.7% year-over-year to $1.9 billion. Book Value per Share was $116.86, an 11.0% increase year-over-year. The Tier 1 Capital Ratio stood at 13.2%.

Operating Expenses

Operating expenses, excluding regulatory fees, increased by 24% year-over-year. This was due to increased compensation and benefits expenses related to incremental headcount, higher bonus accruals, and timing of compensation expense recognition. General and administrative expenses also increased to support business development and enhance operational and technology platforms. The company continues to manage expenses within a long-term adjusted operating efficiency target of 30%.

Credit Quality

Ninety-day delinquencies decreased, reflecting typical seasonality. Substandard assets modestly declined in both agricultural and infrastructure portfolios due to positive credit migration. The 90-day delinquency rate was 0.37% for Q2 2026, down from 0.41% in Q2 2025. Provision for losses was $7.0 million in Q2 2026, compared to $7.7 million in Q2 2025. The allowance for losses increased to $47.4 million, reflecting the cumulative impact of portfolio growth. Net charge-offs were - $0.2 million in Q2 2026, including recoveries.

Capital and Liquidity

Capital levels remained well in excess of regulatory thresholds, exceeding statutory minimum requirements by 64%. The company issued $100 million of Series I preferred stock in May 2026 and has $30 million remaining under its existing share repurchase program. The liquidity portfolio, composed of cash and high-quality investment securities, totaled $8.2 billion as of June 30, 2026, with days of liquidity exceeding the regulatory minimum by 174 days.

Outlook / Guidance

The provided reference does not contain any forward-looking statements, outlook, or guidance regarding future financial performance.