Group 1 - Joseph Jones is a professor with over fifteen years of experience studying the market, focusing on portfolio construction from a dividend growth investor's perspective [1] - The insights expressed in his research are solely his own and do not represent the views or financial interests of his employer [1] Group 2 - The article does not provide specific investment recommendations or advice regarding the suitability of investments for particular investors [3] - It emphasizes that past performance is not a guarantee of future results [3]

Group 1 - The concept of "widow and orphan investment" emphasizes extreme safety and low risk, appealing to conservative investors [1] - The focus is on high dividend opportunities that provide a hands-off investment approach [1] Group 2 - The portfolio strategy promotes generating strong returns without the need for selling assets, making retirement investing simpler [2] - The Model Portfolio targets a yield of 9-10%, highlighting the potential for significant income generation [2] - A month-long paid trial is offered at $49 with an additional 5% discount, encouraging participation in the investment group [2]

Financial Data and Key Metrics Changes - Total revenues in 2024 improved to $362 million compared to $349 million in 2023, primarily due to higher net effective spread [10] - Core earnings year to date improved to $172 million, modestly exceeding the prior year record [11] - Net effective spread improved by $12.6 million year over year, although it compressed by three basis points to 115 basis points due to loans moving into non-accrual status [29] Business Line Data and Key Metrics Changes - The company introduced a new segment reporting construct, rebranding the rural utility segment to power and utilities and introducing a broadband infrastructure segment [13] - In 2024, the broadband infrastructure segment grew over $300 million or 60% year over year [17] - The infrastructure finance line of business grew over $1 billion in 2024, largely driven by loan purchase volume within the renewable energy segment [15] Market Data and Key Metrics Changes - The company purchased $7 billion in gross volume with farm and ranch and renewable energy loan purchases significantly outpacing the prior year [15] - As of year-end, the company had nearly $1.5 billion in total renewable energy volume, reflecting strong demand for renewable energy power generation [16] - Ninety-day delinquencies were up from 37 basis points to 51 basis points at the end of September, showing a seasonal pattern [38] Company Strategy and Development Direction - The company plans to continue its focus on renewable energy and broadband infrastructure as key growth areas [17][22] - The company aims to maintain a strong capital position and uninterrupted access to debt capital markets to support growth [22] - The company is exploring new securitization products and asset classes, including renewable energy, to enhance liquidity [22][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, citing strong liquidity, capital levels, and a diversified business mix [47][49] - The company does not anticipate material changes to its business due to the change in administration in Washington, DC [48] - Management highlighted the importance of maintaining a disciplined approach to expense management and operational efficiency [34] Other Important Information - The company announced a 7% increase in quarterly common stock dividends to $1.50 per share, effective in the first quarter of 2025 [10][41] - The company incurred an aggregate economic loss of $2.5 million related to a single borrower exposure in 2024 [36] Q&A Session Summary Question: Update on transformational securitization product - Management is exploring the feasibility of securitizing loans similar to farm and ranch loans and renewable energy loans, with no pending announcements [56][57] Question: Elevated G&A expenses - Elevated operating expenses in Q4 were due to entry into new business lines and completion of the STARS program, with some volatility expected [60][63] Question: Outlook for spreads - Management anticipates spreads to remain stable, with growth in higher-margin segments like renewable energy and farm and ranch products [72][78] Question: Impact of credit on higher product spreads - Credit issues remain idiosyncratic, with no systemic problems expected, although some specific loans require attention [92][93] Question: Renewable energy business and political changes - Current projects are investment tax credit dependent, and existing credits are locked in, with management monitoring potential changes in tax law [101][102] Question: Loan loss reserve expectations - The increase in reserves was not a catch-up but related to specific idiosyncratic issues, with expectations for stability if no new issues arise [110][112]

Business Volume and Financial Performance - As of December 31, 2024, Farmer Mac's total outstanding business volume was $29.5 billion, an increase from $28.5 billion in 2023, representing a growth of approximately 3.6%[36] - The Agricultural Finance line of business accounted for $20.5 billion of the total outstanding business volume, while Infrastructure Finance contributed $9.0 billion[36] - Farmer Mac's on-balance sheet loans in the Farm & Ranch segment increased to $5.4 billion in 2024 from $5.1 billion in 2023, reflecting a growth of 5.5%[36] - The Corporate AgFinance segment's loans rose to $1.4 billion in 2024, up from $1.3 billion in 2023, marking an increase of 9.7%[36] - In the Power & Utilities segment, loans increased to $2.9 billion in 2024 from $2.6 billion in 2023, showing a growth of 10.3%[36] - The Renewable Energy segment saw loans grow to $1.3 billion in 2024, up from $440 million in 2023, indicating a significant increase of 192.5%[36] Funding and Capital Structure - Farmer Mac had $2.2 billion of discount notes and $25.4 billion of medium-term notes outstanding as of December 31, 2024[28] - The issuance of long-term standby purchase commitments (LTSPCs) and unfunded loan commitments reached $3.1 billion and $426 million respectively, reflecting a stable source of funding for lenders[36] - As of December 31, 2024, the maximum loan size was $17.4 million, with a cumulative direct credit exposure limit of 10% of Farmer Mac's Tier 1 capital, which was $150.1 million[42] - Farmer Mac's risk-based capital requirement as of December 31, 2024 was $175.1 million, with regulatory capital of $1.5 billion exceeding this requirement by approximately $1.4 billion[132] - Farmer Mac is authorized to borrow up to $1.5 billion from the U.S. Treasury through the issuance of debt obligations, but has not utilized this authority as of December 31, 2024[120] Underwriting Standards and Loan Characteristics - Farmer Mac's underwriting standards for Agricultural Finance mortgage loans require a loan-to-value ratio not exceeding 80% and sufficient cash flow to service the loan[45] - Corporate AgFinance loans typically exceed $10 million and are secured by all business assets, with a focus on enterprise value and recurring positive cash flow[47] - The collateralization level for AgVantage securities secured by Agricultural Finance mortgage loans ranges from 103% to 125%, based on credit factors related to the issuer[58] - Farmer Mac's underwriting standards for Power & Utilities loans require lenders to take a security interest in substantially all of the borrower's assets[68] - Renewable Energy loans are typically financed on a non-recourse or limited recourse basis, with significant reliance on project analysis assumptions[70] Risk Management and Compliance - Farmer Mac's exposure to credit risk is heightened by concentrated loans, with large exposures of $25 million or more to individual borrowers, which could negatively impact its financial condition[153] - The company has $4.5 billion in contingent liabilities related to LTSPCs and securities guaranteed by Farmer Mac, which could exceed available funds for payment if defaults occur[156] - Farmer Mac's capital planning policy restricts Tier 1-eligible dividends if Tier 1 capital falls below specified thresholds[189] - Farmer Mac's board of directors oversees a policy requiring annual approval of a capital plan that addresses capital adequacy and projections under stress scenarios[138] - Farmer Mac's charter requires compliance with SEC periodic reporting requirements, including annual and quarterly financial reports[124] Employee and Organizational Structure - As of December 31, 2024, Farmer Mac employed 191 people, reflecting a net increase of 6 employees (3.24%) compared to year-end 2023[87] - Farmer Mac's workforce is geographically diverse, with 91 full-time employees in Washington, D.C., 30 in Johnston, Iowa, and 70 working remotely across the U.S.[88] - In 2024, Farmer Mac achieved a turnover rate of 6.8%, up from 6.4% in 2023[93] - The Farmer Mac LEARN program aims to enhance employee development through structured learning paths and leadership academies[91] - Farmer Mac's innovative workplace culture has been recognized with multiple awards, including the USA Today Top Workplaces national award in 2024[89] Dividends and Stock Performance - Dividends declared on common stock in 2024 were consistently $1.40 per share for each quarter, with a scheduled increase to $1.50 per share in 2025[109] - Farmer Mac declared a quarterly dividend of $1.50 per share for Q1 2025, representing a 7% increase from the previous year's dividend of $1.40 per share[214] - The board of directors considered Farmer Mac's strong capital position and consistent earnings outlook when deciding to increase the dividend payout[214] - Farmer Mac's Class A voting common stock is listed on the New York Stock Exchange under the symbol AGM.A[79] Cybersecurity and Operational Risks - Farmer Mac has implemented a comprehensive cybersecurity risk management program, including annual assessments and regular training for employees[196] - The Chief Information Security Officer (CISO) manages the cybersecurity program, which aligns with industry standards and is reviewed annually by the board[203] - The company relies heavily on technology and information systems, increasing vulnerability to cybersecurity threats and operational disruptions[167] - Farmer Mac's reliance on third-party service providers for data management exposes it to potential cybersecurity risks, which could significantly impact its operations[170] Market and Economic Conditions - In 2024, the U.S. experienced 27 separate billion-dollar weather disasters, impacting agricultural producers and infrastructure[148] - Approximately 70% of the United States was classified as experiencing some level of drought or dryness at the end of 2024[148] - Economic stress from global events may adversely affect Farmer Mac's borrowers' ability to repay loans, increasing credit risk[145] - Political and external factors could impair borrowers' profitability, affecting Farmer Mac's financial condition[149] Regulatory and Legislative Risks - The organization is subject to legislative and regulatory risks that could materially impact its business operations and financial condition[190] - Regulatory changes could impose additional compliance costs and limit business opportunities for Farmer Mac, adversely affecting its profitability[185]

Financial Performance - Farmer Mac reported an outstanding business volume of $29.5 billion for the fiscal year ended December 31, 2024[1][2]. - Net interest income increased by 8% year-over-year to $353.9 million[6]. - Diluted EPS (GAAP) rose by 24% to $4.63 compared to $3.73 in the previous year[5]. - Core earnings per share (Non-GAAP) remained stable at $15.64, with a slight decrease of 3% from the previous year[6]. - Farmer Mac's net income attributable to common stockholders was $180.4 million, up from $172.8 million in the same period last year[6]. - Net income attributable to common stockholders for the year ended December 31, 2024, was $180,428 thousand, a 4.5% increase from $172,838 thousand in 2023[26]. - Total revenues for the year ended December 31, 2024, reached $361,990,000, up from $349,207,000 in 2023, indicating a year-over-year increase of 3.9%[30]. - Core earnings for the year ended December 31, 2024, were $171,630,000, slightly up from $171,156,000 in 2023, reflecting a marginal increase of 0.3%[30]. - Basic earnings per common share for the year ended December 31, 2024, were $16.59, compared to $15.97 in 2023, reflecting a growth of 3.9%[26]. - The diluted earnings per share for the year ended December 31, 2024, was $16.44, compared to $15.81 in 2023, reflecting an increase of 4.0%[33]. Capital and Liquidity - Total core capital stood at $1.5 billion, with a Tier 1 Capital Ratio of 14.2% as of December 31, 2024[6]. - Farmer Mac maintained 264 days of liquidity as of December 31, 2024[6]. - Total assets increased to $31,324,742 thousand as of December 31, 2024, up from $29,524,382 thousand in 2023, representing a growth of 6.1%[25]. - Total liabilities increased to $29,835,716 thousand as of December 31, 2024, from $28,112,519 thousand in 2023, a rise of 6.1%[25]. - Total equity as of December 31, 2024, was $1,489,026 thousand, up from $1,411,863 thousand in 2023, representing an increase of 5.5%[25]. Expenses and Provisions - Total operating expenses for the year ended December 31, 2024, amounted to $105,386,000, up from $97,099,000 in 2023, representing an increase of 8.4%[30]. - Provision for losses for the year ended December 31, 2024, was $11,490,000, significantly higher than $1,136,000 in 2023, indicating a substantial increase in credit-related expenses[30]. - The company reported a total credit-related expense of $11,686,000 for the year ended December 31, 2024, compared to $1,136,000 in 2023, highlighting a significant rise in credit-related costs[30]. Dividends - The Board of Directors declared a quarterly dividend of $1.50 per share, representing a 7% increase year-over-year[7]. Future Outlook - The company expressed optimism about future growth and its ability to fulfill its mission efficiently and profitably[3]. - The company plans to continue focusing on expanding its market presence and enhancing its product offerings in the upcoming fiscal year[30]. Segment Performance - Outstanding business volume in Agricultural Finance as of December 31, 2024, was $20,494,673,000, slightly down from $20,502,780,000 in 2023[35]. - Loans held for investment increased to $11,183,408 thousand in 2024, compared to $9,623,119 thousand in 2023, marking a growth of 16.2%[25]. - Loans in the Power & Utilities segment increased to $2,886,576,000 from $2,616,359,000 year-over-year, reflecting a growth of approximately 10.3%[35]. - The Renewable Energy segment saw loans rise to $1,265,700,000, up from $440,286,000, indicating a significant increase[35]. - Total Infrastructure Finance volume reached $9,028,357,000, compared to $7,968,244,000 in the previous year, marking an increase of approximately 13.3%[35]. - Unfunded loan commitments in the Corporate AgFinance segment rose to $225,734,000 from $145,377,000, showing a growth of about 55.3%[35]. Quarterly Performance - For the three months ended December 31, 2024, total core earnings amounted to $56,210,000, with segment core earnings from Agricultural Finance at $23,977,000 and Infrastructure Finance at $32,233,000[34]. - Interest income for the period was $395,765,000, while interest expense totaled $302,397,000, resulting in a net effective spread of $87,528,000[34]. - Core earnings for December 2024 were reported at $43,554, compared to $44,907 in September 2024, indicating a slight decline[39]. - Total revenues for December 2024 amounted to $92,123, up from $91,526 in September 2024[39]. - The provision for losses in December 2024 was $3,872, an increase from $3,258 in September 2024[39]. - Operating expenses for December 2024 totaled $29,093, compared to $24,587 in September 2024, reflecting a rise in costs[39]. - Net earnings for December 2024 were $59,158, down from $63,485 in September 2024[39]. - Guarantee and commitment fees for December 2024 were $5,086, slightly higher than $4,997 in September 2024[39]. - The total credit-related expense for December 2024 was $3,872, compared to $3,454 in September 2024[39]. - Preferred stock dividends remained consistent at $5,666 for December 2024, unchanged from September 2024[39].

Core Insights - Farmer Mac announced a 7% increase in its quarterly dividend, raising it to $1.50 per share, marking the fourteenth consecutive year of dividend increases [5][10] - The company reported an outstanding business volume of $29.5 billion as of December 31, 2024, reflecting strong operational performance [1][22] - Farmer Mac's net income attributable to common stockholders for the year ended December 31, 2024, was $180.4 million, an increase from $172.8 million in the previous year [10][24] Financial Performance - For the fiscal year 2024, net interest income grew by 8% year-over-year to $353.9 million, while net effective spread increased by 4% to $339.6 million [10][24] - Diluted earnings per share (EPS) rose by 24% year-over-year to $4.63, with core EPS showing a slight decline of 3% to $3.97 [4][10] - Total core capital reached $1.5 billion, with a Tier 1 Capital Ratio of 14.2% as of December 31, 2024 [10] Business Strategy and Outlook - The company expressed optimism about its future, citing strong liquidity, capital levels, and a diversified business mix as key strengths [2][21] - Farmer Mac aims to enhance the economic framework supporting Rural America, focusing on efficient, innovative, and profitable operations [2][21] Dividend Information - The quarterly dividend of $1.50 per share will be payable on March 31, 2025, to shareholders of record as of March 14, 2025 [5][6] - Preferred stock dividends were also declared for various classes, with specific amounts detailed for each series [6] Operational Highlights - Farmer Mac's total assets increased to $31.3 billion as of December 31, 2024, compared to $29.5 billion a year earlier [22][23] - The company maintained 264 days of liquidity as of the end of 2024, indicating a solid liquidity position [10]

Core Viewpoint - Farmer Mac will release its financial results for the fiscal quarter and year ended December 31, 2024, on February 21, 2025, before the equity markets open [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for February 21, 2025, at 8:30 a.m. eastern time [1] - The conference call can be accessed via telephone or webcast, with specific dial-in numbers provided for domestic and international participants [2] Group 2: Company Overview - Farmer Mac's mission is to enhance the accessibility of financing to provide essential liquidity for American agriculture and rural infrastructure [3] - The company operates a secondary market that supports agricultural and infrastructure businesses, contributing to a robust rural economy [3] - Farmer Mac offers a variety of financial solutions to meet the needs of financial institutions across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy [3]

Financial Data and Key Metrics Changes - Total revenues year-to-date improved over $10 million to $270 million compared to the same period last year, primarily due to higher net effective spread [8] - Core earnings year-to-date improved $1.8 million to $128 million compared to the prior year period, with a nearly $7 million improvement or over 5% year-over-year when excluding credit expense [9][34] - Operating efficiency has been better than the long-term target of 30% throughout 2024, achieving 26% for Q3 2024 and 27% year-to-date [10][37] - Core earnings were $44.9 million or $4.10 per share in Q3 2024, reflecting a $5.1 million sequential increase and a $300,000 decrease year-over-year [30] Business Line Data and Key Metrics Changes - Closed $2 billion of new business volume in Q3 and $4.9 billion year-to-date, driven largely by loan purchase volume in Renewable Energy and Farm & Ranch segments [15] - Surpassed $1 billion in total renewable energy volume in Q3, reflecting strong demand for renewable power generation and storage [15] - Closed nearly $1 billion of new Farm & Ranch loan purchase volume year-to-date compared to $780 million in the full year 2023 [17] Market Data and Key Metrics Changes - Outstanding business volume was $28.5 billion as of September 30, a net decrease of $290 million from June 30, 2024, due to scheduled maturities and repayments [26] - 90-day delinquencies increased to 51 basis points as of September 30, 2024, compared to 22 basis points at the end of June 30, 2024, primarily driven by a single permanent planting loan [44] Company Strategy and Development Direction - Company is focused on diversifying its loan portfolio into newer lines of business, such as Renewable Energy and Corporate AgFinance, which have been key priorities over the last several years [16] - The implementation of the Securities Treasury Accounting Reporting System (STARS) is a significant capital investment aimed at scaling the business over the next decade [12] - The company is exploring opportunities to introduce a new securitization product that could transform the agricultural mortgage market [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainty and potential regulatory policy changes, positioning itself to create opportunities for enhanced shareholder value [24] - The company is optimistic about continued strong growth in the Renewable Energy segment, supported by a robust pipeline and significant investment in infrastructure [71] - Management is closely monitoring election results and potential policy changes that may affect the business but does not foresee any material changes at this time [54] Other Important Information - The company redeemed $75 million of Series C Preferred Stock in July, which contributed to a decrease in the Tier 1 capital ratio from 15.3% to 14.2% [48] - The company maintains a strong capital position, with $1.5 billion of core capital exceeding statutory requirements by $580 million [48] Q&A Session Summary Question: What drove the increase in the Farm & Ranch yields? - The increase in Farm & Ranch yields was driven by the purchase of a pool of loans with strong accretive spreads and a greater increase in loan purchase opportunities due to tightening in the ag cycle [58] Question: Do you expect a similar earnings profile if rates remain range-bound? - Yes, if rates trend down, the company expects to see increased loan purchase volume and margin expansion due to proactive management of callable bonds [61][63] Question: Can you provide details on the new securitization program? - The new securitization program aims to pivot from a financing strategy to a product strategy, enhancing capital efficiency and potentially lowering borrowing costs for end borrowers [67][68] Question: How does the capital ratio impact growth strategies? - The company has a significant cushion of capital that allows for growth in capital-intensive businesses without needing to raise additional capital, providing flexibility for future strategies [86]

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $42.3 million, a sequential increase of $2.0 million from Q2 2024 but a year-over-year decrease of $9.0 million [190][191]. - Core earnings for Q3 2024 were $44.9 million, reflecting a sequential increase of $5.1 million but a year-over-year decrease of $0.3 million [190][193]. - Total revenues for the quarter were $91.5 million, an increase from $89.3 million year-over-year [220]. - Core earnings for the nine months ended September 30, 2024, increased to $128,076,000 from $126,234,000 year-over-year [224]. - Net income attributable to common stockholders for the nine months ended September 30, 2024, was $129,580,000, a slight decrease from $132,010,000 in the same period of 2023 [224]. Income and Expenses - Net interest income for Q3 2024 was $86.8 million, a slight sequential decrease of $0.5 million and a year-over-year decrease of $0.9 million [197][199]. - Total operating expenses rose to $24.6 million, compared to $24.0 million in the previous year [220]. - Operating expenses for the nine months ended September 30, 2024, totaled $76,293,000, an increase from $71,935,000 in the same period of 2023 [224]. - The provision for losses was $3.3 million, compared to a release of $0.2 million in the same quarter last year [220]. Asset and Liability Management - As of September 30, 2024, total assets increased to $30.62 billion, up 4% from $29.52 billion as of December 31, 2023, primarily due to new loan volume and a larger investment portfolio [312]. - Total liabilities rose to $29.15 billion, a 4% increase from $28.11 billion, mainly driven by an increase in notes payable to fund loan volume [313]. - Total equity reached $1.46 billion, reflecting a 4% increase from $1.41 billion, attributed to higher retained earnings and accumulated other comprehensive income [313]. Loan and Business Volume - Outstanding business volume as of September 30, 2024, was $28.5 billion, a net decrease of $290.0 million from June 30, 2024 [202]. - The $0.4 billion net decrease in Farm & Ranch during Q3 2024 resulted from $1.2 billion of scheduled maturities and repayments, partially offset by $0.8 billion of new purchases, commitments, and guarantees [257]. - Loans, Farmer Mac Guaranteed Securities, and USDA Securities reached $22.93 billion for the three months ended September 30, 2024, up from $21.86 billion in the same period of 2023, marking an increase of 4.9% [237]. Delinquencies and Credit Quality - 90-day delinquencies for on-balance sheet portfolios surged to $138.0 million, or 1.67%, from $57.8 million (0.71%) in the previous quarter [208]. - The total amount of 90-day delinquencies increased to $144.4 million, up from $62.1 million as of June 30, 2024, with 84 delinquent loans reported [315]. - The increase in delinquencies was primarily driven by issues in permanent plantings, crops, livestock, and agricultural storage and processing [315]. Capital and Liquidity - Core capital as of September 30, 2024, was $1.46 billion, with capital in excess of the minimum capital level required at $579.9 million [204]. - Farmer Mac maintained strong liquidity in its investment portfolio, well above regulatory requirements [188]. - Cash and investments amounted to $6.49 billion for the three months ended September 30, 2024, compared to $5.97 billion for the same period in 2023, indicating a growth of 8.7% [237]. Market and Economic Conditions - The USDA estimates that net cash farm income dropped by 21% in 2023 and is expected to decrease another 7% in 2024, impacting the agricultural sector [290]. - Commodity prices are expected to experience increased volatility in 2024 and 2025 due to a rebound in global supply levels [291]. - U.S. agricultural exports are projected to decline to $169.5 billion in 2025, which is 2% lower than 2024 and down 14% from peak levels in 2022 [297]. Risk Management - Farmer Mac's primary strategy for managing interest rate risk involves issuing debt securities across various maturities to align cash flows with forecasted asset cash flows [360]. - The company has established guidelines for interest rate risk management, overseen by its Asset and Liability Committee (ALCO) [357]. - Farmer Mac's interest rate risk metrics are derived from asset/liability models and are based on estimates of implied forward interest rates and interest rate volatility [370].

Financial Performance - Net income attributable to common stockholders was $42.3 million[3] - Core earnings were $44.9 million, translating to $4.10 per diluted common share[3] - Net income attributable to common stockholders decreased to $42,312 from $51,345, reflecting a decline of 17.5% year-over-year[21] - Basic earnings per common share decreased to $3.89 from $4.74, a decline of 17.9%[21] - For the nine months ended September 30, 2024, net income attributable to common stockholders was $129,580,000, down from $132,010,000 year-over-year[27] - Total revenues for the three months ended September 30, 2024, were $91,526,000, up from $89,238,000 in the previous quarter and slightly up from $89,308,000 year-over-year[23] - Total revenues for the nine months ended September 30, 2024, were $269,867,000, compared to $259,024,000 in the previous year[27] Assets and Liabilities - Total assets increased to $30,615,221, up from $29,524,382, representing a growth of 3.7%[20] - Total liabilities rose to $29,152,877, an increase of 3.7% from $28,112,519[20] - Total investment securities increased to $5,895,793, up from $4,979,504, a growth of 18.4%[20] - Retained earnings increased to $907,639 from $823,716, reflecting a growth of 10.2%[20] Income and Expenses - Net interest income was $86.8 million, a slight decrease of 1% from $87.6 million in Q3 2023[3] - Total interest income for the three months ended September 30, 2024, was $407,728, an increase of 6.5% compared to $381,811 for the same period in 2023[21] - Total interest expense for the three months ended September 30, 2024, was $320,937, an increase of 9.1% compared to $294,168 in the prior year[21] - Operating expenses for the three months ended September 30, 2024, totaled $24,587,000, slightly up from $24,469,000 in the previous quarter[23] - Total credit-related expenses for the three months ended September 30, 2024, were $3,454,000, down from $6,230,000 in the previous quarter[23] Capital and Liquidity - Total core capital stood at $1.5 billion, exceeding statutory requirements by 66%[3] - Tier 1 Capital Ratio was 14.2% as of September 30, 2024[3] - Farmer Mac maintained 309 days of liquidity as of September 30, 2024[3] Revenue Streams and Business Volume - Outstanding business volume reached $28.5 billion as of September 30, 2024[1] - The company continues to focus on diversifying revenue streams and managing its balance sheet proactively[2] - The total outstanding business volume across all segments is $28,468,303 thousand as of September 30, 2024, a marginal decrease from $28,471,024 thousand as of December 31, 2023[35] Loan Performance - Loans held for investment increased to $10,668,844, up 10.8% from $9,623,119[20] - Loans in the Rural Infrastructure Finance segment increased to $8,535,149 thousand as of September 30, 2024, up from $7,968,244 thousand as of December 31, 2023, indicating a growth of approximately 7.1%[35] - The total outstanding loans for Corporate AgFinance reached $1,842,780 thousand as of September 30, 2024, an increase from $1,693,979 thousand as of December 31, 2023, reflecting a growth of about 8.8%[35] - The total outstanding loans for Renewable Energy increased significantly to $1,095,008 thousand as of September 30, 2024, compared to $487,521 thousand as of December 31, 2023, marking a substantial growth of approximately 125%[35] - The total outstanding loans for Rural Utilities reached $7,440,141 thousand as of September 30, 2024, slightly down from $7,480,723 thousand as of December 31, 2023, indicating a decrease of approximately 0.5%[35] Effective Spread - Net effective spread improved by 2% year-over-year to $85.4 million[3] - The net effective spread for the three months ended September 30, 2024, was $85,396,000, compared to $83,596,000 in the previous quarter and $83,424,000 year-over-year[23] - The net effective spread for Agricultural Finance (Farm & Ranch) for the quarter ended September 30, 2024, is $35,755 thousand, with a yield of 1.05%, compared to $34,156 thousand and 0.98% in the previous quarter[36] - The net effective spread for Renewable Energy for the quarter ended September 30, 2024, is $3,810 thousand with a yield of 1.78%[36]