Summary of AGM-PE Q1 2026 Earnings Call

1Key Financial Results and Metrics

Outstanding Business Volume: Approximately $35 billion, a record high.

Revenue: Approximately $110 million, up 14% year-over-year.

Core Earnings: Approximately $52 million, translating to $4.74 per diluted share.

Net Effective Spread: Reached $102 million, slightly below previous quarters due to a mix shift towards lower spread assets.

Credit Quality: 90-day delinquencies increased to 52 basis points from 40 basis points in Q4 2025, reflecting seasonal patterns.

Allowance for Losses: Increased to $40.1 million, representing 15.4% of nonaccrual assets.

2Strategic Updates and Business Highlights

Business Volume Growth: Achieved $1.5 billion in net new business volume, with significant contributions from the Farm & Ranch segment, which saw loan approvals nearing $1 billion.

Diversification: Strong performance across segments, including Renewable Energy and Broadband Infrastructure, with notable growth in data center-related financing.

Operational Efficiency: Revenue growth outpaced expense growth by nearly 4 percentage points, reflecting disciplined cost management.

Tax Credits: Recognized a $4.2 million income tax benefit from renewable energy investment tax credits.

3Forward Guidance and Outlook

Continued Growth: Management expressed optimism for sustained growth in business volume and revenue, supported by a strong pipeline across all segments.

Capital Management: Plans to maintain a balanced approach to capital deployment, focusing on organic capital generation and selective capital issuance.

Market Conditions: Anticipated continued demand for energy and infrastructure financing, despite potential headwinds from geopolitical tensions and rising input costs.

4Bad News, Challenges, or Points of Concern

Credit Risk: Increased provision for credit losses ($4.3 million) due to new volume growth and credit migration, particularly in agricultural storage and processing.

Geopolitical Volatility: Concerns regarding the impact of global tensions on agricultural input costs and margins, which could affect loan activity and borrower liquidity.

Delinquency Rates: Seasonal increase in delinquencies and substandard assets, particularly in the agricultural finance segment, indicating potential credit stress.

5Notable Q&A Insights

Return on Equity (ROE): Management aims to maintain a ROE around 17%, focusing on capital deployment and asset purchases.

Impact of Geopolitical Events: Management acknowledged the potential for increased liquidity needs among borrowers due to rising input costs from geopolitical tensions, while expressing confidence in the strength of their loan applications.

Data Center Construction: Management reported minimal delays in data center projects, emphasizing their focus on high-quality counterparties and structured transactions to mitigate risks.

Tax Credit Utilization: Expected to fully utilize $30 million of investment tax credits in Q2 2026, transitioning to a current-year basis for future tax credit opportunities. Overall, Farmer Mac reported a strong start to 2026, with record financial results and a positive outlook, while remaining vigilant about potential risks in the agricultural sector and broader economic conditions.