Federal Agricultural Mortgage (AGM) investor relations material

Strategic vision and growth outlook

• Pursuing a "Drive to Scale" strategy to reach $50–$55 billion in business volume by 2030, targeting an 8–11% CAGR, building on a 13% CAGR from 2020–2025, and exceeding the original $40 billion by 2028 goal ahead of schedule.

• Growth is diversified across Farm & Ranch, Power & Utilities, Corporate AgFinance, Renewable Energy, Broadband Infrastructure, and Wholesale Finance, with infrastructure expected to comprise 35% of the portfolio by 2030.

• Focus on expanding market share, deepening penetration in core markets, innovating products, and entering new sectors such as rural homes and additional renewable energy types.

• Product innovation, including asset-backed securitizations and credit risk transfer, and technology investments such as AI, automation, and data analytics, will drive liquidity, capital efficiency, and operational excellence.

• Maintains a disciplined risk management framework and strong capital allocation to support scalable growth.

Financial performance and shareholder returns

• Achieved 8% CAGR in business volume since 2018, with revenue and core earnings growing at 13% and nearly 12% CAGR, respectively, and a strong Tier 1 capital ratio reaching $1.7 billion by 2025.

• Net Effective Spread (NES) increased from 91 bps in 2018 to 120 bps in 2025, supporting resilient earnings through market cycles.

• Operating efficiency ratio consistently below 30%, supporting investment in growth and long-term profitability.

• Dividend growth has averaged over 14% annually for eight years, with 15 consecutive annual increases, and dividends are expected to grow in line with earnings.

• Outperformed S&P 500 and financial sector peers in earnings growth and return on equity, with lower volatility.

Portfolio diversification and risk management

• Diversified portfolio includes Farm & Ranch, Corporate AgFinance, Power & Utilities, Renewable Energy, Broadband Infrastructure, and Wholesale Finance, with a focus on secured lending and strong collateral.

• Maintains rigorous underwriting, risk monitoring, and disciplined credit frameworks, with low credit losses and strong asset quality; non-accrual assets remain low at 1.4% of loans.

• Asset-liability management and use of derivatives mitigate interest rate risk, making earnings largely insensitive to rate movements.

• Portfolio risk is mitigated by over-collateralization, diversification, and proactive capital allocation strategies.

• No credit losses reported in Power & Utilities and Wholesale Finance segments.