Federal Agricultural Mortgage Corporation (Farmer Mac) has just released its 10-K report for the year ended December 31, 2023. The company operates as a secondary market for various loans made to borrowers in the United States, with segments including Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. Farmer Mac provides financial solutions to lenders supporting flexible low-cost financing to farmers, ranchers, agribusinesses, renewable energy projects, rural utilities, and related rural businesses.
Financial Metrics and Business Changes/Challenges: Net income attributable to common stockholders for 2023 was $172.8 million, showing a year-over-year increase of $21.9 million from 2022 and $61.4 million from 2021. Core earnings for 2023 were $171.2 million, reflecting a year-over-year increase of $46.8 million from 2022 and $57.6 million from 2021. Net interest income for 2023 was $327.5 million, marking a year-over-year increase of $56.6 million from 2022 and $105.0 million from 2021. Net effective spread for 2023 was $327.0 million, showing a year-over-year increase of $71.5 million from 2022 and $106.3 million from 2021. Outstanding business volume as of December 31, 2023, was $28.5 billion, reflecting a net increase of $2.5 billion from December 31, 2022. Core capital as of December 31, 2023, amounted to $1.45 billion, showing an increase from $1.32 billion as of December 31, 2022. On-balance sheet substandard assets as of December 31, 2023, were $152.9 million, representing 2.0% of the portfolio, a decrease from $169.7 million and 2.3% as of December 31, 2022. 90-day delinquencies for on-balance sheet Agricultural Finance assets as of December 31, 2023, were $32.9 million, accounting for 0.42% of the portfolio, a decrease from $39.7 million and 0.53% as of December 31, 2022.
Following these announcements, the company's shares moved 2.9%, and are now trading at a price of $191.97. For more information, read the company's full 10-K submission here.
