Federal Agricultural Mortgage (NYSE:AGM) Announces Quarterly Earnings Results

Federal Agricultural Mortgage (NYSE:AGM) posted its quarterly earnings results on Thursday. The credit services provider reported $4.82 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.20 by ($0.38), FiscalAI reports. The company had revenue of $125.25 million during the quarter, compared to analyst estimates of $121.29 million. Federal Agricultural Mortgage had a net margin of 29.98% and a return on equity of 18.90%.

Here are the key takeaways from Federal Agricultural Mortgage’s conference call:

• Farmer Mac reported record business volume of $38.5 billion and first-nine-month revenue of $357.9 million and core earnings of $163.1 million, up 18.3% and 14.1%, respectively, year over year. Management said it is on track to reach $40 billion in business volume in 2026, two years ahead of its Investor Day timeline.
• Growth was broad-based, led by infrastructure finance, where outstanding volume rose $920 million in the quarter; Renewable Energy recorded its largest-ever quarterly net growth, and Farm & Ranch loan approvals reached a third-quarter record. Management reiterated expected annual business volume growth of approximately 8%–11% through 2030, while noting strong pipelines in several segments.
• Credit indicators showed some deterioration: the provision for credit losses was $11.1 million, including a $4.4 million provision on a troubled telecommunications exposure that entered bankruptcy, and substandard assets rose to 2.1% of the portfolio from 1.7% in the prior quarter. Management attributed the substandard increase mainly to regional and commodity-specific Farm & Ranch stress, and said collateral values remained strong.
• Operating efficiency remained strong, with a 27.5% quarterly efficiency ratio, below the company’s 30% long-term target; management expects a 27%–29% ratio for full-year 2026. Core capital exceeded the statutory minimum by $735 million, although the Tier 1 Capital Ratio declined to 12.9% as risk-weighted assets grew.
• Farmer Mac is developing risk-transfer transactions, including a potential credit-linked note as early as this quarter, to manage credit risk and potentially create regulatory capital capacity. Management said it is discussing capital treatment with its regulator and expects to provide more detail in coming quarters; execution and benefits remain uncertain.

Federal Agricultural Mortgage Stock Down 8.7%

Shares of NYSE:AGM traded down $17.23 on Friday, hitting $180.75. 49,859 shares of the company’s stock were exchanged, compared to its average volume of 118,935. The firm’s 50-day moving average is $212.49 and its 200 day moving average is $189.53. The company has a market capitalization of $1.96 billion, a PE ratio of 9.87, a P/E/G ratio of 0.76 and a beta of 1.02. Federal Agricultural Mortgage has a 1-year low of $136.57 and a 1-year high of $248.29. The company has a debt-to-equity ratio of 1.82, a quick ratio of 0.56 and a current ratio of 0.56.

Federal Agricultural Mortgage Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a dividend of $1.60 per share. This represents a $6.40 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend was Tuesday, September 15th. Federal Agricultural Mortgage’s payout ratio is 34.95%.

Wall Street Analysts Forecast Growth

AGM has been the subject of a number of analyst reports. Keefe, Bruyette & Woods boosted their price objective on Federal Agricultural Mortgage from $228.00 to $255.00 and gave the stock an “outperform” rating in a research report on Monday, August 3rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Federal Agricultural Mortgage in a report on Friday, September 25th. Finally, Zacks Research downgraded shares of Federal Agricultural Mortgage from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 29th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Federal Agricultural Mortgage presently has an average rating of “Hold” and a consensus price target of $255.00.

Federal Agricultural Mortgage Company Profile

Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a federally chartered corporation that provides a secondary market for agricultural and rural lending. Established by Congress in 1988, the company is intended to improve the availability of credit for American agriculture and rural communities.

Farmer Mac purchases, guarantees and finances agricultural real estate loans, rural housing loans and loans supporting rural utilities and infrastructure. Its products and services also include financing for agricultural production and equipment, as well as liquidity and credit support for lenders through loan purchases, guarantees and securitization programs.

The company serves agricultural lenders, rural utilities, cooperatives and other eligible financial institutions across the United States.