Federal Agricultural Mortgage (AGM) Q4 2025 earnings summary

Executive summary

• Achieved record core earnings of $182.9 million in 2025, or $16.66 per diluted share, up 7% year-over-year, marking the tenth consecutive year of record core earnings.

• 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.

• Quarterly dividend increased by 7% to $1.60 per share, the fifteenth consecutive annual increase, with total common stock dividends per share at $6.00 for the year.

• Provided $10.5 billion in liquidity and lending capacity to rural lenders, supporting agriculture and rural infrastructure.

• Returned $78 million to shareholders via dividends and share repurchases, with $12.9 million in Q4 repurchases and $37.1 million remaining under authorization.

Financial highlights

• Net effective spread reached a record $383 million for the year, up 13% from 2024; net interest income grew 10% to $390.7 million.

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

• Book value per share climbed to $112.77, and total assets increased to $35.4 billion from $31.3 billion year-over-year.

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

• Allowance for losses increased to $39.7 million (17% of nonaccrual assets), up from $25.3 million (15%) the prior year.

Outlook and guidance

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

• Management remains committed to strong shareholder returns, consistent dividend increases, and maintaining capital above requirements.

• Expense growth will continue in 2026 to support business expansion, but management remains committed to a 30% efficiency ratio target.

• No systemic credit issues identified; credit provisions expected to remain stable barring unforeseen borrower-specific events.

• Dividend increase supported by past and expected earnings growth and capital position.