• Total Revenue Growth: High single-digit growth in total revenue for Q1 2025.

• Gross New Business Volume: $1.8 billion in Q1 2025.

• Outstanding Business Volume Growth: Increased by $232 million, ending at $29.8 billion.

• Infrastructure Finance Growth: Increased by approximately $750 million in Q1 2025.

• Broadband Infrastructure Growth: 22% increase, reaching nearly $1 billion by end of Q1 2025.

• Renewable Energy Growth: Nearly $200 million increase, a 14% rise since year-end.

• Core Earnings: Increased by 6% to $46 million in Q1 2025.

• Net Effective Spread: Reached a record $90 million or 117 basis points.

• Operating Expenses: Increased 8% year-over-year.

• Operating Efficiency: 29% for Q1 2025.

• Total Allowance for Losses: $27 million as of March 31, 2025.

• 90-Day Delinquencies: 54 basis points as of March 31, 2025.

• Core Capital: $1.5 billion, exceeding statutory requirement by $601 million.

• Tier 1 Capital Ratio: 13.9% as of March 31, 2025.

• Liquidity: 289 days of liquidity with approximately $1 billion in cash and short-term instruments.

• Return on Equity: 17% for Q1 2025.

• Warning! GuruFocus has detected 3 Warning Sign with AGM.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Federal Agricultural Mortgage Corp (NYSE:AGM) achieved record quarterly revenue, net effective spread, and core earnings in Q1 2025.

• The company reported a high single-digit growth in total revenue, net effective spread, and core earnings.

• AGM's infrastructure finance line of business grew by approximately $750 million in Q1 2025, continuing strong growth momentum.

• The Broadband Infrastructure segment grew 22% since year-end, reaching nearly $1 billion by the end of Q1 2025.

• AGM's Renewable Energy segment grew by nearly $200 million in Q1 2025, a 14% increase since year-end.

Negative Points

• AGM experienced a $500 million in scheduled maturities with two large AgVantage counterparties, highlighting the volatility in AgVantage security volume.

• Operating expenses increased by 8% year-over-year due to investments in infrastructure technology and higher licensing fees.

• The company's Tier 1 capital ratio slightly declined to 13.9% as of March 31, 2025, from 14.2% at year-end 2024.

• 90-day delinquencies increased to 54 basis points across the portfolio as of March 31, 2025, compared to 37 basis points at the end of December.

• The Farm & Ranch segment faced a net increase of only $86 million in loan purchases despite a seasonally large number of scheduled repayments.

Q & A Highlights

Q: Could you provide insights on the impact of tariffs on agricultural shipments, particularly to China, and any government support measures? A: Bradford Nordholm, President and CEO, explained that the current tariffs have shifted trade, notably to Mexico, but agricultural commodities remain fungible. The U.S. Department of Agriculture announced a $10 billion program to support affected farmers, with potential additional subsidies of $20-$25 billion. Despite tariffs, net farm income is projected to be the third highest historically, with government payments playing a crucial role in mitigating impacts.