Federal Agricultural Mortgage (AGM) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $410 million in 2025, up 13% year-over-year, and core earnings of $182.9 million, marking the 10th consecutive year of record core earnings and a 15% 10-year core earnings per share CAGR.

• Outstanding business volume reached $33.4 billion as of December 31, 2025, reflecting an 8% 10-year CAGR and a $3.8 billion increase year-over-year.

• Increased quarterly dividend by 7% to $1.60 per share, the 15th consecutive annual increase, and returned $78 million to shareholders via dividends and share repurchases.

• Maintains a mission-driven, diversified model supporting agriculture and rural infrastructure, with a portfolio spanning farm, corporate, infrastructure, and energy segments.

• Completed seventh farm securitization transaction, enhancing liquidity and capital efficiency.

Financial highlights

• Net effective spread reached a record $383 million for the year, up 13% from 2024; Q4 Net Effective Spread was $101.4 million, a 16% increase year-over-year.

• Core earnings per diluted share rose to $16.66 in 2025 from $15.64 in 2024.

• Net interest income grew 10% year-over-year to $390.7 million.

• Operating expenses rose 14% year-over-year, driven by higher business volume, legal, technology, and hiring costs.

• Provision for credit losses totaled $32.9 million, with $19.6 million from specific credit deteriorations in Corporate AgFinance and Broadband Infrastructure.

Outlook and guidance

• Expect continued strong growth in all segments, especially Infrastructure Finance and Farm and Ranch AgVantage, with robust pipelines into 2026.

• Anticipate ongoing expense growth to support business expansion, but remain committed to a 30% efficiency ratio target.

• Projected 2026 agricultural real estate mortgage demand to rise 5% year-over-year, with government payments supporting farm income.

• Expects continued business volume growth and consistent dividend increases, marking the 15th consecutive year of dividend growth in 2026.

• No systemic credit issues identified; credit provisions expected to reflect portfolio growth and isolated borrower events.