Federal Agricultural Mortgage (NYSE:AGM) Announces Earnings Results

Federal Agricultural Mortgage (NYSE:AGM) posted its quarterly earnings results on Thursday. The credit services provider reported $4.82 earnings per share 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 the consensus estimate 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 Performance

Shares of NYSE AGM traded down $7.21 during midday trading on Thursday, hitting $198.37. 163,060 shares of the company’s stock were exchanged, compared to its average volume of 114,397. The company has a quick ratio of 0.56, a current ratio of 0.56 and a debt-to-equity ratio of 1.82. The firm has a market capitalization of $2.15 billion, a PE ratio of 10.83, a price-to-earnings-growth ratio of 0.76 and a beta of 1.02. Federal Agricultural Mortgage has a 12 month low of $136.57 and a 12 month high of $248.29. The company’s 50 day moving average price is $212.49 and its 200 day moving average price is $189.53.

Federal Agricultural Mortgage Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a dividend of $1.60 per share. This represents a $6.40 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Tuesday, September 15th. Federal Agricultural Mortgage’s payout ratio is currently 34.95%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AGM. Weiss Ratings reiterated a “hold (c)” rating on shares of Federal Agricultural Mortgage in a research note on Friday, September 25th. Keefe, Bruyette & Woods raised their target price on shares of Federal Agricultural Mortgage from $228.00 to $255.00 and gave the company an “outperform” rating in a research note on Monday, August 3rd. Finally, Zacks Research downgraded shares of Federal Agricultural Mortgage from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 29th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price 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.