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.

• Net income attributable to common stockholders was $51.8 million, or $4.75 per diluted share, with core return on equity at 17%.

• 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, with $30 million remaining under the repurchase program.

• 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 net new business volume of $1.5 billion in Q1.

• Total revenues increased 14% year-over-year to $109.9 million, driven by strong business volume growth and stable asset credit quality.

• Net effective spread reached a record $102.0 million (1.16% yield), up $12 million year-over-year.

• Core earnings per diluted share were $4.74, up 13% year-over-year.

• 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 increased liquidity needs and market opportunities 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.

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

• Confident in maintaining strong asset quality and capital position for the remainder of 2026.