1ST HALF: FARMER MAC'S NET INTEREST INCOME UP 7%, EARNINGS DOWN 19%
Aug. 12, 2020
Source: Farmer Mac news release
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Washington, D.C. - The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the availability and affordability of credit for the benefit of rural America, today announced its results for the fiscal quarter ended June 30, 2020.
Second Quarter 2020 Highlights
• Provided $1.7 billion in liquidity and lending capacity in second quarter 2020, resulting in net outstanding business volume growth of $502.8 million;
• Net income attributable to common stockholders was $31.7 million, or $2.94 per diluted common share;
• Core earnings, a non-GAAP measure was $26.3 million, or $2.45 per diluted common share;
• Net interest income grew $5.3 million year-over-year to $48.3 million;
• Net effective spread, a non-GAAP measure, increased 12% from the prior-year period to $46.5
• 90-day delinquencies were 0.31% of total outstanding business volume as of June 30, 2020;
• Continued strong liquidity position, as evidenced by quarter-end cash position of $0.8 billion;
• Issued $79.5 million of Tier 1 capital through the public offering of 5.750% Series E non-
cumulative preferred stock; and
• Executed COVID-19 payment deferments for $241.7 million of unpaid principal balance related to
Farm & Ranch loans, Farm & Ranch LTSPCs, and USDA Securities to provide relief to borrowers.
"We are very pleased with our second quarter performance, generating strong earnings and asset growth across multiple lines of business, despite operating in these challenging times," said President and Chief Executive Officer Brad Nordholm. "Our outstanding business volume growth to $22.0 billion this quarter is a testament to our strategic initiatives and reflects our continued focus on fulfilling our mission by building on our customer relationships and product suite. We grew responsibly while also maintaining a robust liquidity position and consistent credit standards. I am proud of our entire team's tireless efforts in supporting agricultural and rural communities nationwide."