Federal Agricultural Mortgage (AGM) Q1 2026 earnings summary

Executive summary

• Achieved record-setting first quarter 2026 with outstanding business volume of $34.8 billion, record revenue of $109.9 million, and core earnings of $51.7 million, reflecting robust growth and strong execution across all segments.

• Core return on equity was 17% for the quarter, with core earnings per diluted share of $4.74–$4.75.

• Maintained a strong capital position, exceeding statutory requirements by $663 million and a Tier 1 Capital Ratio of 13.0%.

• Returned $32 million to shareholders through dividends and share repurchases in Q1.

• Provided $3.4 billion in liquidity and lending capacity to rural lenders.

Financial highlights

• Business volume grew 17% year-over-year to $34.8 billion, with broad-based growth across all segments.

• Net effective spread reached a record $102 million, up 13% year-over-year, with 99% of total revenue recurring.

• Diluted EPS was $4.75, up from $4.01 in Q1 2025.

• Operating efficiency ratio remained below the 30% strategic target.

• Book value per share increased 11% year-over-year to $112.67.

Outlook and guidance

• Management expects continued growth in Farm & Ranch and Infrastructure Finance portfolios, supported by strong liquidity needs and robust demand in broadband and renewable energy.

• Anticipate sustained net growth in AgVantage securities and ongoing robust deal flow in Renewable Energy and Broadband Infrastructure.

• Project stable growth in Renewable Energy beyond 2027, driven by market demand rather than policy incentives.

• Confident in maintaining return on equity in the 17% range going forward.

• Operating expenses are anticipated to rise as investments in technology and servicing capabilities continue.