WASHINGTON, May 11, 2015 /PRNewswire/ -- The Federal
Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A)
today announced its results for the quarter ended March 31, 2015, which included $14.7 billion in outstanding business volume and
continued strong asset quality in the portfolio. Farmer Mac's
first quarter 2015 core earnings, a non-GAAP measure, were
$9.1 million ($0.80 per diluted common share), compared to
$9.5 million ($0.84 per diluted common share) in fourth quarter
2014, and $11.0 million ($0.97 per diluted common share) for first quarter
2014.
"Farmer Mac maintained good fundamental trends in business
volumes and strong asset quality, and completed its capital
restructuring this quarter, positioning itself for continued
success in 2015," said President and Chief Executive Officer
Tim Buzby. "We grew our
outstanding business volume by $62.5
million during the quarter, driven by a new $200.0 million AgVantage funding with CFC and net
growth in Farm & Ranch loan purchases, despite first quarter
generally incurring significant loan repayments. Our credit quality
continues to be extremely favorable, with the modest uptick in
90-day delinquencies primarily attributable to a single loan and
not related to broader industry factors. Also during the
quarter, we completed our capital restructuring by fully redeeming
our more expensive preferred stock. Going forward, we expect
to save $14.1 million in after-tax
dividends annually, or $3.5 million
per quarter, beginning in second quarter 2015, thus providing
significant value to our common stockholders."
Earnings
Farmer Mac's net income attributable to common stockholders for
first quarter 2015 was $1.8 million ($0.16 per diluted common share), compared to
$0.8 million ($0.07 per diluted common share) for first quarter
2014. The increase compared to the previous year's quarter
was attributable, in part, to the effects of unrealized fair value
changes on financial derivatives and hedged assets, which was a
$0.6 million after-tax loss in first
quarter 2015, compared to a $2.4
million after-tax loss in first quarter 2014. First
quarter 2015 also included an $8.1
million ($6.2 million
after-tax) loss on retirement of preferred stock from the write-off
of deferred issuance costs upon the redemption of the Farmer Mac II
LLC Preferred Stock on March 30,
2015. Additionally, the issuance of preferred stock during
the first half of 2014, in advance of the time it was needed to
fund the redemption of the Farmer Mac II LLC Preferred Stock,
resulted in an increase of $2.3
million in preferred stock dividend payments in first
quarter 2015 compared to first quarter 2014. First quarter
2014 included two items that did not recur in first quarter 2015:
(1) $7.5 million after-tax of premium amortization as Farmer
Mac refinanced certain Rural Utilities loans and (2) $2.1
million ($1.9 million after-tax) of
dividend income on Farmer Mac's investment in CoBank preferred
stock, which was called on October 1,
2014.
Core earnings in first quarter 2015 were $9.1 million ($0.80
per diluted common share), compared to $9.5
million ($0.84 per diluted
common share) in fourth quarter 2014 and $11.0 million ($0.97 per diluted common share) in first quarter
2014. The decrease in first quarter 2015 core earnings
compared to fourth quarter 2014 was primarily attributable to the
recognition of a $0.8 million
after-tax benefit in fourth quarter 2014, which did not occur in
first quarter 2015, related to Farmer Mac's initiative to be
accepted as a counterparty in the Federal Reserve Bank of
New York reverse repurchase
facility. The decrease was partially offset by a $0.5 million after-tax increase in net effective
spread.
The decrease in core earnings for first quarter 2015 compared to
first quarter 2014 was primarily attributable to:
- a $2.3 million increase in
preferred stock dividend payments due to the issuance of preferred
stock during the first half of 2014 in advance of the time it was
needed to fund the redemption of the Farmer Mac II LLC Preferred
Stock;
- a $0.8 million after-tax increase
in compensation expense due primarily to higher incentive
compensation driven by meeting certain performance targets,
increased headcount, and annual salary adjustments;
- the loss of $1.4 million
after-tax of dividend income and $0.5
million of tax benefits associated with the October 2014 redemption of CoBank preferred
stock;
- partially offset by a $3.2
million after-tax increase in net effective spread,
excluding the loss of dividend income on the CoBank preferred
stock.
The loss on retirement of preferred stock from the write-off of
deferred issuance costs upon the redemption of the Farmer Mac II
LLC Preferred Stock does not affect core earnings because it is not
a frequently occurring transaction and not indicative of future
operating results. This treatment is consistent with Farmer
Mac's previous treatment of securities issuance costs that are
capitalized during the life of the securities and then written off
when the securities are redeemed.
See "Non-GAAP Earnings Measures" below for more information
about core earnings.
Business Volume Highlights
During first quarter 2015, Farmer Mac added $502.3 million of new business volume, with
Institutional Credit AgVantage securities and Farm & Ranch loan
purchases driving the volume. Specifically, Farmer Mac:
- purchased $214.9 million of
AgVantage securities;
- purchased $130.2 million of Farm
& Ranch loans;
- added $59.3 million of Farm &
Ranch loans under LTSPCs;
- purchased $89.2 million of USDA
Securities; and
- purchased $8.7 million of Rural
Utilities loans.
This total new business volume for first quarter 2015 was more
than the $439.8 million of maturities
and principal paydowns on existing business during the quarter,
resulting in Farmer Mac's outstanding business volume increasing a
net $62.5 million from
December 31, 2014 to $14.7 billion as of March 31, 2015. In Farmer Mac's
experience, the largest paydowns on the loans in its Farm &
Ranch line of business usually occur in first quarter of each year
because almost all loans have a required January 1 payment date, including most loans that
pay on a quarterly, semi-annual, or annual basis. This
seasonal effect can generally temper net loan growth in the first
quarter, however, with the reduction in prepayment rates in the
past year, this impact was less significant.
Farmer Mac has experienced continuing stable demand for its loan
products in the Farm & Ranch line of business. However,
as prepayment rates have slowed more than gross loan growth, net
growth in Farm & Ranch loans is expected to continue.
Farmer Mac continues to expand its lender network, customer base,
and product set, which may generate additional demand for Farmer
Mac's products from new sources. As an example, $14.9 million of the AgVantage securities new
business volume for first quarter 2015 was purchased under "Farm
Equity AgVantage" facilities, a variation of Farmer Mac's AgVantage
wholesale financing product. Although this product is in the
early stages of development, Farmer Mac believes there is
opportunity to expand this type of business as both the trend
toward institutional investment in agricultural assets and
awareness of the Farm Equity AgVantage product continues to
grow. Since this product was introduced in third quarter
2014, Farmer Mac's total outstanding business volume related to the
Farm Equity AgVantage product was $109.9
million as of March 31,
2015.
Net Effective Spread
Farmer Mac's net effective spread was $29.3 million (86 basis points) in first quarter
2015, compared to $28.4 million (91
basis points) in fourth quarter 2014 and $26.4 million (84 basis points) in first
quarter 2014. Beginning January
1, 2015, Farmer Mac classified all of the income from Farmer
Mac Guaranteed Securities that it holds in its portfolio as
interest income. Prior to January 1,
2015, Farmer Mac classified a portion of the income from
those securities as guarantee and commitment fees. This
immaterial change in classification does not affect the timing or
amount of income recognized from these securities, and all prior
periods have been reclassified.
The increase in net effective spread in dollar terms in first
quarter 2015 compared to fourth quarter 2014 was attributable to
higher average loan and securities balances and an increase in
nonaccrual income on Farm & Ranch loans. The decrease in
net effective spread in percentage terms in first quarter 2015
compared to fourth quarter 2014 was primarily attributable to an
increase in the average balance of lower spread cash and
investments within the liquidity investment portfolio (to meet
days-of-liquidity requirements) and to two fewer days for interest
accrual on certain assets in first quarter.
The increase in net effective spread in first quarter 2015
compared to first quarter 2014 was primarily attributable to lower
funding costs, higher average loan and securities balances, and
higher nonaccrual income on Farm & Ranch loans, which was
partially offset by the loss of $2.1
million in preferred dividend income (7 basis points) from
the October 2014 redemption of CoBank
preferred stock. The early refinance of certain Rural
Utilities loans and AgVantage securities in first quarter 2014
caused incremental financing costs of $1.3
million (4 basis points) in first quarter 2014 because the
related original funding remained outstanding until the end of that
quarter. Funding costs were also lower in first quarter 2015
compared to first quarter 2014 due to the maturity of older,
higher-cost debt and the issuance of new debt at lower market
spreads during the second half of 2014.
Credit Quality
Farmer Mac continues to maintain very favorable credit metrics
in its four lines of business. In the Farm & Ranch
portfolio, 90-day delinquencies were $32.1
million (0.60 percent of the Farm & Ranch portfolio) as
of March 31, 2015, compared to
$18.9 million (0.35 percent) as of
December 31, 2014, and $29.4 million (0.56 percent) as of March 31, 2014. The increase in the 90-day
delinquency rate in first quarter 2015 was primarily related to a
single borrower to which Farmer Mac had $9.8
million of exposure as of March 31,
2015, and whose delinquency was not related to industry
conditions or the profitability of the borrower's operation.
Farmer Mac believes that it remains well-collateralized on that
loan. However, Farmer Mac expects that over time its 90-day
delinquency rate will eventually revert closer to Farmer Mac's
historical averages due to macroeconomic and other potential
factors. Farmer Mac's average 90-day delinquency rate for the
Farm & Ranch line of business over the last fifteen years is
approximately one percent.
During first quarter 2015, Farmer Mac recorded net releases from
its allowance for losses of $0.7 million, primarily related to paydowns
of processing loans (e.g., ethanol and canola processing
facilities) underlying LTSPCs. Farmer Mac recorded no
charge-offs to its allowance for losses during first quarter
2015. During first quarter 2014, Farmer Mac recorded
provisions to its allowance for losses of $0.7 million primarily related to an increase in
the estimated probable losses inherent in non-ethanol related
agricultural storage and processing loans due to a change in the
potential loss assumptions related to those assets. Farmer
Mac also recorded $29,000 of
charge-offs to its allowance for loan losses during first quarter
2014.
For Farmer Mac's other lines of business, there are currently no
delinquent AgVantage securities or Rural Utilities loans, and USDA
Securities are backed by the full faith and credit of the United
States. As a result, across all of Farmer Mac's lines of
business, 90-day delinquencies represented 0.22 percent of total
business volume as of March 31, 2015,
compared to 0.13 percent as of December 31, 2014, and 0.21
percent as of March 31, 2014.
The western part of the United
States, including California, continues to experience drought
conditions, with the water level in many California reservoirs at historically low
levels. Although to date Farmer Mac has not observed any
material effect on its portfolio from drought conditions, the
persistence of extreme drought conditions in the western states
could have an adverse effect on Farmer Mac's delinquency rates or
loss experience. This is particularly true in the permanent
plantings sector, where the value of the related collateral is
closely tied to the production value and capability of the
permanent plantings, and in the dairy sector, which may experience
increased feed costs as water is diverted away from hay acreage
commonly relied upon by dairy producers and toward land supporting
other agricultural commodities. Farmer Mac continues to
remain informed about the drought and its effects on the
agricultural industries located in the western states and on Farmer
Mac's Farm & Ranch portfolio through regular discussions with
its loan servicers that service loans in drought-stricken
areas.
Lines of Business
Farmer Mac's operations consist of four reportable lines of
business, which are Farm & Ranch, USDA Guarantees, Rural
Utilities, and Institutional Credit. The Institutional Credit
business segment is comprised of all of Farmer Mac's wholesale
funding products for agricultural and rural utility counterparties,
and currently includes all of its AgVantage securities.
Beginning in first quarter 2015, Farmer Mac revised its methodology
for interest expense allocation among the Farm & Ranch, USDA
Guarantees, and Rural Utilities lines of business. As a
result of this revision, a greater percentage of interest expense
has been allocated to the longer-term assets (which are associated
with more expensive longer-term financing) included within the USDA
Guarantees and Rural Utilities lines of business. Net
effective spread for periods prior to the quarter ended
March 31, 2015 does not reflect this
revision. Net effective spread by business segment for first
quarter 2015 was $10.1 million (197
basis points) for Farm & Ranch, $4.2
million (95 basis points) for USDA Guarantees, $2.8 million (115 basis points) for Rural
Utilities, and $10.4 million (77
basis points) for Institutional Credit.
Liquidity and Capital
Farmer Mac's core capital totaled $531.3
million as of March 31, 2015,
exceeding the statutory minimum capital requirement by $97.1 million, or 22 percent, compared to
$766.3 million as of December 31, 2014, which was $345.0 million, or 82 percent, above the
statutory minimum capital requirement. The decrease in core
capital was a direct result of the redemption of $250.0 million of Farmer Mac II LLC Preferred
Stock on March 30, 2015.
Farmer Mac issued an aggregate of $150
million of non-cumulative preferred stock during the first
half of 2014 and used the proceeds of these preferred stock
offerings and cash on hand to cause Farmer Mac II LLC to redeem all
of the outstanding shares of Farmer Mac II LLC Preferred
Stock. The preferred stock issued in 2014 qualifies as Tier 1
capital for Farmer Mac whereas the Farmer Mac II LLC Preferred
Stock that was redeemed did not qualify as Tier 1 capital.
As of March 31, 2015, Farmer Mac's
total stockholders' equity was $582.3
million, compared to $545.8
million as of December 31,
2014. The increase in total stockholder's equity was
primarily attributable to an increase in accumulated other
comprehensive income due to increases in fair value of
available-for-sale securities. These increases in the fair
value of available-for-sale securities were driven primarily by
lower U.S. Treasury rates.
As prescribed by FCA regulations, Farmer Mac is required to
maintain a minimum of 90 days of liquidity. In
accordance with the methodology prescribed by those regulations,
Farmer Mac maintained an average of 176 days of liquidity
during first quarter 2015 and had 183 days of liquidity
as of March 31, 2015.
Non-GAAP Earnings Measure
Farmer Mac uses core earnings to measure corporate economic
performance and develop financial plans because, in management's
view, core earnings is a useful alternative measure in
understanding Farmer Mac's economic performance, transaction
economics, and business trends. Core earnings principally
differs from net income attributable to common stockholders by
excluding the effects of fair value fluctuations, which are not
expected to have a cumulative net impact on financial condition or
results of operations reported in accordance with GAAP if the
related financial instruments are held to maturity, as is generally
expected. Core earnings also differs from net income
attributable to common stockholders by excluding specified
infrequent or unusual transactions that Farmer Mac believes are not
indicative of future operating results and that may not reflect the
trends and economic financial performance of Farmer Mac's core
business.
This non-GAAP financial measure may not be comparable to
similarly labeled non-GAAP financial measures disclosed by other
companies. Farmer Mac's disclosure of this non-GAAP measure
is intended to be supplemental in nature, and is not meant to be
considered in isolation from, as a substitute for, or as more
important than, the related financial information prepared in
accordance with GAAP. During 2014, Farmer Mac presented
core earnings excluding indicated items, a separate non-GAAP
measure that related to two short-term initiatives: the cash
management and liquidity initiative and the capital structure
initiative described in Farmer Mac's previous SEC filings.
The effects of these two initiatives had a minimal effect on Farmer
Mac's results for the first quarters of both 2014 and 2015.
Therefore, this separate non-GAAP measure is not provided for these
two quarters; however, the effects of the two initiatives are
discussed where applicable to facilitate an understanding of
changes in core earnings.
A reconciliation of Farmer Mac's net income attributable to
common stockholders to core earnings is presented in the following
table along with a breakdown of the composition of core
earnings:
Reconciliation of Net
Income Attributable to Common Stockholders to Core
Earnings
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
March 31,
2014
|
|
|
|
|
(in thousands,
except per share amounts)
|
Net income
attributable to common stockholders
|
|
$
|
1,818
|
|
|
$
|
5,647
|
|
|
$
|
813
|
|
Less the after-tax
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on
financial derivatives and hedging activities
|
|
|
(582)
|
|
|
|
(3,717)
|
|
|
|
(2,395)
|
|
|
Unrealized gains on
trading assets
|
|
|
236
|
|
|
|
679
|
|
|
|
426
|
|
|
Amortization of
premiums/discounts and deferred gains on assets
consolidated at fair value(1)
|
|
(529)
|
|
|
|
(811)
|
|
|
|
(8,027)
|
|
|
Net effects of
settlements on agency forward contracts
|
|
|
(164)
|
|
|
|
(30)
|
|
|
|
(176)
|
|
|
Loss on retirement of
Farmer Mac II LLC Preferred Stock(2)
|
|
|
(6,246)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Sub-total
|
|
|
(7,285)
|
|
|
|
(3,879)
|
|
|
|
(10,172)
|
|
Core
earnings
|
|
$
|
9,103
|
|
|
$
|
9,526
|
|
|
$
|
10,985
|
|
|
|
|
|
|
|
|
|
|
Composition of Core
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread
|
|
$
|
29,257
|
|
|
$
|
28,443
|
|
|
$
|
26,436
|
|
|
Guarantee and
commitment fees
|
|
|
4,012
|
|
|
|
4,096
|
|
|
|
4,315
|
|
|
Other(3)
|
|
|
(405)
|
|
|
|
(1,285)
|
|
|
|
(410)
|
|
|
|
Total
revenues
|
|
|
32,864
|
|
|
|
31,254
|
|
|
|
30,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
(income)/expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Release
of)/provision for losses
|
|
|
(696)
|
|
|
|
(479)
|
|
|
|
674
|
|
|
REO operating
expenses
|
|
|
(1)
|
|
|
|
48
|
|
|
|
2
|
|
|
Losses on sale of
REO
|
|
|
1
|
|
|
|
28
|
|
|
|
3
|
|
|
|
Total credit related
(income)/expenses
|
|
|
(696)
|
|
|
|
(403)
|
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation &
employee benefits
|
|
|
5,693
|
|
|
|
4,971
|
|
|
|
4,456
|
|
|
General &
administrative
|
|
|
2,823
|
|
|
|
2,992
|
|
|
|
2,794
|
|
|
Regulatory
fees
|
|
|
600
|
|
|
|
600
|
|
|
|
594
|
|
|
|
Total operating
expenses
|
|
|
9,116
|
|
|
|
8,563
|
|
|
|
7,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
24,444
|
|
|
|
23,094
|
|
|
|
21,818
|
|
|
Income tax
expense(4)
|
|
|
6,692
|
|
|
|
4,858
|
|
|
|
4,334
|
|
|
Non-controlling
interest
|
|
|
5,354
|
|
|
|
5,414
|
|
|
|
5,547
|
|
|
Preferred stock
dividends
|
|
|
3,295
|
|
|
|
3,296
|
|
|
|
952
|
|
|
|
Core
earnings
|
|
$
|
9,103
|
|
|
$
|
9,526
|
|
|
$
|
10,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.83
|
|
|
$
|
0.87
|
|
|
$
|
1.01
|
|
|
Diluted
|
|
|
0.80
|
|
|
|
0.84
|
|
|
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes $7.5 million related to the
acceleration of premium amortization in first quarter 2014 due to
refinancing activity in the Rural Utilities line of
business.
|
(2)Relates
to the write-off of deferred issuance costs as a result of the
retirement of Farmer Mac II LLC Preferred Stock.
|
(3)Fourth
quarter 2014 include $13.6 million of interest expense related to
securities purchased under agreements to resell and securities
sold, not yet
purchased and $12.8 million of gains on securities
sold, not yet purchased.
|
(4)Fourth
quarter 2014 reflects a reduction of $1.4 million in the tax
valuation allowance against capital loss carryforwards related to
capital gains on
securities sold, not yet purchased. First
quarter 2014 includes the reduction in tax valuation allowance of
$0.8 million associated with certain gains on
investment portfolio assets.
|
More complete information about Farmer Mac's performance for
first quarter 2015 is set forth in Farmer Mac's Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2015 filed today with the SEC.
Forward-Looking Statements
Management's expectations for Farmer Mac's future necessarily
involve a number of assumptions and estimates and the evaluation of
risks and uncertainties. Various factors or events could
cause Farmer Mac's actual results to differ materially from the
expectations as expressed or implied by the forward-looking
statements, including uncertainties regarding:
- the availability to Farmer Mac of debt and equity financing
and, if available, the reasonableness of rates and terms;
- legislative or regulatory developments that could affect Farmer
Mac or its sources of business;
- fluctuations in the fair value of assets held by Farmer Mac and
its subsidiaries;
- the rate and direction of development of the secondary market
for agricultural mortgage and rural utilities loans, including
lender interest in Farmer Mac credit products and the secondary
market provided by Farmer Mac;
- the general rate of growth in agricultural mortgage and rural
utilities indebtedness;
- the impact of economic conditions, including the effects of
drought and other weather-related conditions and fluctuations in
agricultural real estate values, on agricultural mortgage lending
and borrower repayment capacity;
- developments in the financial markets, including possible
investor, analyst, and rating agency reactions to events involving
government-sponsored enterprises, including Farmer Mac;
- changes in the level and direction of interest rates, which
could, among other things, affect the value of collateral securing
Farmer Mac's agricultural mortgage loan assets; and
- volatility in commodity prices relative to costs of production
and/or export demand for U.S. agricultural products.
Other risk factors are discussed in "Risk Factors" in Part I,
Item 1A of in Farmer Mac's Annual Report on Form 10-K for the year
ended December 31, 2014 filed with
the U.S. Securities and Exchange Commission ("SEC") on March 16, 2015 and in the Quarterly Report on
Form 10-Q for the quarter ended March 31,
2015 filed with the SEC earlier today. In light of
these potential risks and uncertainties, no undue reliance should
be placed on any forward-looking statements expressed in this
release. The forward-looking statements contained in
this release represent management's expectations as of the date of
this release. Farmer Mac undertakes no obligation to release
publicly the results of revisions to any forward-looking statements
included in this release to reflect new information or any future
events or circumstances, except as the SEC otherwise
requires. The information contained in this release is not
necessarily indicative of future results.
Earnings Conference Call Information
The conference call to discuss Farmer Mac's first quarter 2015
financial results and Form 10-Q will be held beginning at
11:00 a.m. eastern time on Monday, May
11, 2015 and can be accessed by telephone or live webcast as
follows:
Telephone (Domestic): (888) 346-2616
Telephone (International): (412) 902-4254
Webcast: http://www.farmermac.com/Investors/ConferenceCall/
If you are dialing in to the call, please ask for the conference
chairman Tim Buzby. You will
receive additional instructions when you join the call. The
call can be heard live and will also be available for replay on
Farmer Mac's website at the link provided above for two weeks
following the conclusion of the call.
About Farmer Mac
Farmer Mac is the stockholder-owned company created to deliver
capital and increase lender competition for the benefit of American
agriculture and rural communities. Additional information
about Farmer Mac (including the Annual Report on Form 10-K and
Quarterly Report on Form 10-Q referenced above) is available on
Farmer Mac's website at www.farmermac.com. Farmer Mac II
LLC is a subsidiary of Farmer Mac that operates the USDA Guarantees
line of business of purchasing and holding USDA-guaranteed
loans. Information about Farmer Mac II LLC is available on
its website at www.farmermac2.com.
FEDERAL
AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
2015
|
2014
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,556,246
|
|
|
$
|
1,363,387
|
|
|
|
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
2,139,544
|
|
|
|
1,938,499
|
|
|
|
|
Trading, at fair
value
|
|
638
|
|
|
|
689
|
|
|
|
|
|
Total investment
securities
|
|
2,140,182
|
|
|
|
1,939,188
|
|
|
|
Farmer Mac Guaranteed
Securities
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
3,842,209
|
|
|
|
3,659,281
|
|
|
|
|
Held-to-maturity, at
amortized cost
|
|
1,767,096
|
|
|
|
1,794,620
|
|
|
|
|
|
Total Farmer Mac
Guaranteed Securities
|
|
5,609,305
|
|
|
|
5,453,901
|
|
|
|
USDA
Securities
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
1,794,844
|
|
|
|
1,731,222
|
|
|
|
|
Trading, at fair
value
|
|
37,593
|
|
|
|
40,310
|
|
|
|
|
|
Total USDA
Securities
|
|
1,832,437
|
|
|
|
1,771,532
|
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment, at amortized cost
|
|
3,082,378
|
|
|
|
2,833,461
|
|
|
|
|
Loans held for
investment in consolidated trusts, at amortized cost
|
|
457,117
|
|
|
|
692,478
|
|
|
|
|
Allowance for loan
losses
|
|
(5,940)
|
|
|
|
(5,864)
|
|
|
|
|
|
Total loans, net of
allowance
|
|
3,533,555
|
|
|
|
3,520,075
|
|
|
|
Real estate owned, at
lower of cost or fair value
|
|
421
|
|
|
|
421
|
|
|
|
Financial
derivatives, at fair value
|
|
4,808
|
|
|
|
4,177
|
|
|
|
Interest receivable
(includes $3,422 and $9,509, respectively, related to consolidated
trusts)
|
|
66,312
|
|
|
|
106,874
|
|
|
|
Guarantee and
commitment fees receivable
|
|
38,342
|
|
|
|
39,462
|
|
|
|
Deferred tax asset,
net
|
|
14,750
|
|
|
|
33,391
|
|
|
|
Prepaid expenses and
other assets
|
|
53,327
|
|
|
|
55,413
|
|
|
|
|
|
|
Total
Assets
|
$
|
14,849,685
|
|
|
$
|
14,287,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Notes
Payable:
|
|
|
|
|
|
|
|
|
|
|
Due within one
year
|
$
|
7,957,193
|
|
|
$
|
7,353,953
|
|
|
|
|
Due after one
year
|
|
5,648,752
|
|
|
|
5,471,186
|
|
|
|
|
|
Total notes
payable
|
|
13,605,945
|
|
|
|
12,825,139
|
|
|
|
Debt securities of
consolidated trusts held by third parties
|
|
457,903
|
|
|
|
424,214
|
|
|
|
Financial
derivatives, at fair value
|
|
95,493
|
|
|
|
84,844
|
|
|
|
Accrued interest
payable (includes $2,740 and $5,145, respectively, related to
consolidated trusts)
|
|
36,383
|
|
|
|
48,355
|
|
|
|
Guarantee and
commitment obligation
|
|
36,537
|
|
|
|
37,925
|
|
|
|
Accounts payable and
accrued expenses
|
|
31,433
|
|
|
|
81,252
|
|
|
|
Reserve for
losses
|
|
3,491
|
|
|
|
4,263
|
|
|
|
|
|
|
Total
Liabilities
|
|
14,267,185
|
|
|
|
13,505,992
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock:
|
|
|
|
|
|
|
|
|
|
|
Series A, par value
$25 per share, 2,400,000 shares authorized, issued and
outstanding
|
|
58,333
|
|
|
|
58,333
|
|
|
|
|
Series B, par value
$25 per share, 3,000,000 shares authorized, issued and
outstanding
|
|
73,044
|
|
|
|
73,044
|
|
|
|
|
Series C, par value
$25 per share, 3,000,000 shares authorized, issued and
outstanding
|
|
73,382
|
|
|
|
73,382
|
|
|
|
Common
stock:
|
|
|
|
|
|
|
|
|
|
|
Class A Voting, $1
par value, no maximum authorization, 1,030,780 shares
outstanding
|
|
1,031
|
|
|
|
1,031
|
|
|
|
|
Class B Voting, $1
par value, no maximum authorization, 500,301 shares
outstanding
|
|
500
|
|
|
|
500
|
|
|
|
|
Class C Non-Voting,
$1 par value, no maximum authorization, 9,406,392 shares
and 9,406,267 shares outstanding, respectively
|
|
9,406
|
|
|
|
9,406
|
|
|
|
Additional paid-in
capital
|
|
114,364
|
|
|
|
113,559
|
|
|
|
Accumulated other
comprehensive income, net of tax
|
|
51,184
|
|
|
|
15,533
|
|
|
|
Retained
earnings
|
|
201,081
|
|
|
|
201,013
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
|
582,325
|
|
|
|
545,801
|
|
|
|
Non-controlling
interest
|
|
175
|
|
|
|
236,028
|
|
|
|
|
|
|
Total
Equity
|
|
582,500
|
|
|
|
781,829
|
|
|
|
|
|
|
|
Total Liabilities and
Equity
|
$
|
14,849,685
|
|
|
$
|
14,287,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
|
|
For the Three Months
Ended
|
|
|
|
March 31,
2015
|
|
March 31,
2014
|
|
|
|
(in thousands, except per share amounts)
|
Interest
income:
|
|
|
|
|
Investments and cash
equivalents
|
$
|
2,865
|
|
|
$
|
5,237
|
|
|
Farmer Mac Guaranteed
Securities and USDA Securities
|
|
33,122
|
|
|
|
32,846
|
|
|
Loans
|
|
27,964
|
|
|
|
14,369
|
|
|
|
Total interest
income
|
|
63,951
|
|
|
|
52,452
|
|
|
Total interest
expense
|
|
33,162
|
|
|
|
34,726
|
|
|
|
Net interest
income
|
|
30,789
|
|
|
|
17,726
|
|
|
Provision for loan
losses
|
|
(76)
|
|
|
|
(573)
|
|
|
|
Net interest income
after provision for loan losses
|
|
30,713
|
|
|
|
17,153
|
|
Non-interest
income:
|
|
|
|
|
Guarantee and
commitment fees
|
|
3,377
|
|
|
|
3,784
|
|
|
Losses on financial
derivatives and hedging activities
|
|
(3,882)
|
|
|
|
(7,578)
|
|
|
Gains on trading
securities
|
|
362
|
|
|
|
655
|
|
|
Gains on sale of
available-for-sale investment securities
|
|
6
|
|
|
|
15
|
|
|
Losses on sale of
real estate owned
|
|
(1)
|
|
|
|
(3)
|
|
|
Other
income
|
|
613
|
|
|
|
92
|
|
|
|
Non-interest
income/(loss)
|
|
475
|
|
|
|
(3,035)
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
5,693
|
|
|
|
4,456
|
|
|
General and
administrative
|
|
2,823
|
|
|
|
2,794
|
|
|
Regulatory
fees
|
|
600
|
|
|
|
594
|
|
|
Real estate owned
operating costs, net
|
|
(1)
|
|
|
|
2
|
|
|
(Release
of)/provision for reserve for losses
|
|
(772)
|
|
|
|
101
|
|
|
|
Non-interest
expense
|
|
8,343
|
|
|
|
7,947
|
|
|
|
Income before income
taxes
|
|
22,845
|
|
|
|
6,171
|
|
Income tax
expense/(benefit)
|
|
4,231
|
|
|
|
(1,141)
|
|
|
|
Net income
|
|
18,614
|
|
|
|
7,312
|
|
Less: Net income
attributable to non-controlling interest
|
|
(5,354)
|
|
|
|
(5,547)
|
|
|
Net income
attributable to Farmer Mac
|
|
13,260
|
|
|
|
1,765
|
|
Preferred stock
dividends
|
|
(3,295)
|
|
|
|
(952)
|
|
Loss on retirement of
preferred stock
|
|
(8,147)
|
|
|
|
-
|
|
|
|
Net income
attributable to common stockholders
|
$
|
1,818
|
|
|
$
|
813
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share and dividends:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.17
|
|
|
$
|
0.07
|
|
|
|
Diluted earnings per
common share
|
$
|
0.16
|
|
|
$
|
0.07
|
|
|
|
Common stock
dividends per common share
|
$
|
0.16
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
The following table sets forth information regarding outstanding
volume in each of Farmer Mac's four lines of business as of the
dates indicated:
Lines of Business -
Outstanding Business Volume
|
|
|
|
|
|
As of March 31,
2015
|
|
As of December 31,
2014
|
|
|
|
|
|
(in thousands)
|
On-balance
sheet:
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
Loans
|
$
|
2,113,795
|
|
|
$
|
2,118,867
|
|
|
|
Loans held in
trusts:
|
|
|
|
|
|
|
|
|
|
|
Beneficial interests
owned by third party investors
|
|
457,117
|
|
|
|
421,355
|
|
|
USDA
Guarantees:
|
|
|
|
|
|
|
|
|
|
USDA
Securities
|
|
1,778,973
|
|
|
|
1,756,224
|
|
|
|
Farmer Mac Guaranteed
USDA Securities
|
|
23,098
|
|
|
|
27,832
|
|
|
Rural
Utilities:
|
|
|
|
|
|
|
|
|
|
Loans(1)
|
|
968,117
|
|
|
|
718,213
|
|
|
|
Loans held in
trusts:
|
|
|
|
|
|
|
|
|
|
|
Beneficial interests
owned by Farmer Mac(1)
|
|
-
|
|
|
|
267,396
|
|
|
Institutional
Credit:
|
|
|
|
|
|
|
|
|
|
AgVantage
Securities
|
|
5,543,405
|
|
|
|
5,410,413
|
|
|
|
|
Total on-balance
sheet
|
$
|
10,884,505
|
|
|
$
|
10,720,300
|
|
Off-balance
sheet:
|
|
|
|
|
Farm &
Ranch:
|
|
|
|
|
|
LTSPCs
|
$
|
2,178,100
|
|
|
$
|
2,240,866
|
|
|
|
Guaranteed
Securities
|
|
598,236
|
|
|
|
636,086
|
|
|
USDA
Guarantees:
|
|
|
|
|
|
|
|
|
|
Farmer Mac Guaranteed
USDA Securities
|
|
12,847
|
|
|
|
13,978
|
|
|
Institutional
Credit:
|
|
|
|
|
|
|
|
|
|
AgVantage
Securities
|
|
986,529
|
|
|
|
986,528
|
|
|
|
|
Total off-balance
sheet
|
$
|
3,775,712
|
|
|
$
|
3,877,458
|
|
|
|
|
|
Total
|
$
|
14,660,217
|
|
|
$
|
14,597,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Reflects the unwinding of certain consolidated trusts with the
effect that loans previously consolidated on the balance sheet as
"Loans held in trusts"
currently are included within
"Loans."
|
The following table presents the quarterly net effective spread
by segment:
|
|
Net Effective Spread
by Line of Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farm &
Ranch
|
|
USDA
Guarantees
|
|
Rural
Utilities
|
|
Institutional
Credit(1)
|
|
Corporate
|
|
Net Effective
Spread
|
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
|
(dollars in
thousands)
|
For the quarter
ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2015(2)
|
$
|
10,114
|
|
|
1.97
|
%
|
|
$
|
4,225
|
|
|
0.95
|
%
|
|
$
|
2,804
|
|
|
1.15
|
%
|
|
$
|
10,425
|
|
|
0.77
|
%
|
|
$
|
1,689
|
|
|
0.20
|
%
|
|
$
|
29,257
|
|
|
0.86
|
%
|
|
December 31,
2014(3)
|
|
8,682
|
|
|
1.71
|
%
|
|
|
5,250
|
|
|
1.19
|
%
|
|
|
2,908
|
|
|
1.18
|
%
|
|
|
9,871
|
|
|
0.78
|
%
|
|
|
1,732
|
|
|
0.26
|
%
|
|
|
28,443
|
|
|
0.91
|
%
|
|
September 30,
2014
|
|
8,207
|
|
|
1.68
|
%
|
|
|
5,073
|
|
|
1.18
|
%
|
|
|
2,890
|
|
|
1.16
|
%
|
|
|
9,822
|
|
|
0.78
|
%
|
|
|
3,773
|
|
|
0.59
|
%
|
|
|
29,765
|
|
|
0.97
|
%
|
|
June 30,
2014
|
|
7,820
|
|
|
1.64
|
%
|
|
|
4,159
|
|
|
0.99
|
%
|
|
|
2,953
|
|
|
1.16
|
%
|
|
|
9,957
|
|
|
0.78
|
%
|
|
|
4,160
|
|
|
0.57
|
%
|
|
|
29,049
|
|
|
0.92
|
%
|
|
March 31,
2014(4)
|
|
7,114
|
|
|
1.53
|
%
|
|
|
3,784
|
|
|
0.91
|
%
|
|
|
1,990
|
|
|
0.73
|
%
|
|
|
9,406
|
|
|
0.74
|
%
|
|
|
4,142
|
|
|
0.56
|
%
|
|
|
26,436
|
|
|
0.84
|
%
|
|
December 31,
2013(4)
|
|
10,113
|
|
|
2.20
|
%
|
|
|
4,022
|
|
|
0.97
|
%
|
|
|
2,379
|
|
|
0.89
|
%
|
|
|
9,088
|
|
|
0.72
|
%
|
|
|
4,420
|
|
|
0.58
|
%
|
|
|
30,022
|
|
|
0.94
|
%
|
|
September 30,
2013
|
|
7,980
|
|
|
1.86
|
%
|
|
|
4,505
|
|
|
1.09
|
%
|
|
|
2,974
|
|
|
1.12
|
%
|
|
|
9,117
|
|
|
0.72
|
%
|
|
|
4,117
|
|
|
0.57
|
%
|
|
|
28,693
|
|
|
0.93
|
%
|
|
June 30,
2013
|
|
8,228
|
|
|
2.08
|
%
|
|
|
4,508
|
|
|
1.12
|
%
|
|
|
3,056
|
|
|
1.14
|
%
|
|
|
8,805
|
|
|
0.71
|
%
|
|
|
4,294
|
|
|
0.63
|
%
|
|
|
28,891
|
|
|
0.97
|
%
|
|
March 31,
2013
|
|
8,083
|
|
|
2.20
|
%
|
|
|
4,694
|
|
|
1.17
|
%
|
|
|
3,183
|
|
|
1.20
|
%
|
|
|
8,576
|
|
|
0.73
|
%
|
|
|
4,440
|
|
|
0.61
|
%
|
|
|
28,976
|
|
|
0.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)See
Note 1(d) to the consolidated financial statements in Farmer Mac's
Quarterly Report on Form 10-Q filed with the SEC on May 11,
2015 for more information about the reclassification of
certain amounts in prior periods from guarantee
and commitment fees to interest income related
to on-balance sheet Farmer Mac Guaranteed Securities.
|
(2)Beginning in first quarter 2015, Farmer
Mac revised its methodology for interest expense allocation among
the Farm & Ranch, USDA Guarantees, and
Rural Utilities lines of business. As a
result of this revision, a greater percentage of interest expense
has been allocated to the longer-term assets included
within the USDA Guarantees and Rural Utilities
lines of business. Net effective spread for periods prior to
the quarter ended March 31, 2015 does not reflect this
revision.
|
(3)On
October 1, 2014, $78.5 million of preferred stock issued by CoBank
was called, resulting in a loss of net effective spread of $2.1
million or 30 basis
points in the corporate segment. The impact on
consolidated net effective spread for first quarter 2015 and fourth
quarter 2014 was 7 basis points.
|
(4)First
quarter 2014 includes the impact of spread compression in the Rural
Utilities line of business from the early refinancing of loans (41
basis points).
Fourth quarter 2013 includes the impact in net
effective spread in the Farm & Ranch line of business of
one-time adjustments for recovered buyout
interest and yield maintenance (40 basis points
in aggregate) and the impact of spread compression in the Rural
Utilities line of business from the early refinancing of loans (26
basis points).
|
The following table presents quarterly core earnings reconciled
to net income attributable to common stockholders:
Core Earnings by
Quarter Ended
|
|
|
|
|
March
2015
|
|
December
2014
|
|
September
2014
|
|
June
2014
|
|
March
2014
|
|
December
2013
|
|
September
2013
|
|
June
2013
|
|
March
2013
|
|
|
|
|
(in
thousands)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net effective
spread(1)
|
$
|
29,257
|
|
|
$
|
28,443
|
|
|
$
|
29,765
|
|
|
$
|
29,049
|
|
|
$
|
26,436
|
|
|
$
|
30,022
|
|
|
$
|
28,693
|
|
|
$
|
28,891
|
|
|
$
|
28,976
|
|
|
Guarantee and
commitment fees
|
|
4,012
|
|
|
|
4,096
|
|
|
|
4,153
|
|
|
|
4,216
|
|
|
|
4,315
|
|
|
|
4,252
|
|
|
|
4,134
|
|
|
|
4,126
|
|
|
|
4,079
|
|
|
Other(2)
|
|
(405)
|
|
|
|
(1,285)
|
|
|
|
(2,001)
|
|
|
|
(520)
|
|
|
|
(410)
|
|
|
|
427
|
|
|
|
(466)
|
|
|
|
3,274
|
|
|
|
186
|
|
|
|
Total
revenues
|
|
32,864
|
|
|
|
31,254
|
|
|
|
31,917
|
|
|
|
32,745
|
|
|
|
30,341
|
|
|
|
34,701
|
|
|
|
32,361
|
|
|
|
36,291
|
|
|
|
33,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit related
(income)/expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Release
of)/provision for losses
|
|
(696)
|
|
|
|
(479)
|
|
|
|
(804)
|
|
|
|
(2,557)
|
|
|
|
674
|
|
|
|
12
|
|
|
|
(36)
|
|
|
|
(704)
|
|
|
|
1,176
|
|
|
REO operating
expenses
|
|
(1)
|
|
|
|
48
|
|
|
|
1
|
|
|
|
59
|
|
|
|
2
|
|
|
|
3
|
|
|
|
35
|
|
|
|
259
|
|
|
|
126
|
|
|
Losses/(gains) on
sale of REO
|
|
1
|
|
|
|
28
|
|
|
|
-
|
|
|
|
(168)
|
|
|
|
3
|
|
|
|
(26)
|
|
|
|
(39)
|
|
|
|
(1,124)
|
|
|
|
(47)
|
|
|
|
Total credit
related
(income)/expense
|
|
(696)
|
|
|
|
(403)
|
|
|
|
(803)
|
|
|
|
(2,666)
|
|
|
|
679
|
|
|
|
(11)
|
|
|
|
(40)
|
|
|
|
(1,569)
|
|
|
|
1,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee
benefits
|
|
5,693
|
|
|
|
4,971
|
|
|
|
4,693
|
|
|
|
4,889
|
|
|
|
4,456
|
|
|
|
4,025
|
|
|
|
4,523
|
|
|
|
4,571
|
|
|
|
4,698
|
|
|
General and
administrative
|
|
2,823
|
|
|
|
2,992
|
|
|
|
3,123
|
|
|
|
3,288
|
|
|
|
2,794
|
|
|
|
3,104
|
|
|
|
2,827
|
|
|
|
2,715
|
|
|
|
2,917
|
|
|
Regulatory
fees
|
|
600
|
|
|
|
600
|
|
|
|
593
|
|
|
|
594
|
|
|
|
594
|
|
|
|
594
|
|
|
|
593
|
|
|
|
594
|
|
|
|
594
|
|
|
|
Total operating
expenses
|
|
9,116
|
|
|
|
8,563
|
|
|
|
8,409
|
|
|
|
8,771
|
|
|
|
7,844
|
|
|
|
7,723
|
|
|
|
7,943
|
|
|
|
7,880
|
|
|
|
8,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
24,444
|
|
|
|
23,094
|
|
|
|
24,311
|
|
|
|
26,640
|
|
|
|
21,818
|
|
|
|
26,989
|
|
|
|
24,458
|
|
|
|
29,980
|
|
|
|
23,777
|
|
Income tax
expense/(benefit)(3)
|
|
6,692
|
|
|
|
4,858
|
|
|
|
6,327
|
|
|
|
(4,734)
|
|
|
|
4,334
|
|
|
|
5,279
|
|
|
|
6,263
|
|
|
|
7,007
|
|
|
|
6,081
|
|
Non-controlling
interest
|
|
5,354
|
|
|
|
5,414
|
|
|
|
5,412
|
|
|
|
5,819
|
|
|
|
5,547
|
|
|
|
5,546
|
|
|
|
5,547
|
|
|
|
5,547
|
|
|
|
5,547
|
|
Preferred stock
dividends
|
|
3,295
|
|
|
|
3,296
|
|
|
|
3,283
|
|
|
|
2,308
|
|
|
|
952
|
|
|
|
882
|
|
|
|
881
|
|
|
|
881
|
|
|
|
851
|
|
|
|
Core
earnings
|
$
|
9,103
|
|
|
$
|
9,526
|
|
|
$
|
9,289
|
|
|
$
|
23,247
|
|
|
$
|
10,985
|
|
|
$
|
15,282
|
|
|
$
|
11,767
|
|
|
$
|
16,545
|
|
|
$
|
11,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items
(after-tax effects):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
(losses)/gains on
financial derivatives and hedging
activities
|
|
(582)
|
|
|
|
(3,717)
|
|
|
|
2,685
|
|
|
|
(3,053)
|
|
|
|
(2,395)
|
|
|
|
8,003
|
|
|
|
4,632
|
|
|
|
11,021
|
|
|
|
5,712
|
|
|
|
Unrealized
gains/(losses) on
trading assets
|
|
236
|
|
|
|
679
|
|
|
|
(21)
|
|
|
|
(46)
|
|
|
|
426
|
|
|
|
(50)
|
|
|
|
(407)
|
|
|
|
(212)
|
|
|
|
136
|
|
|
|
Amortization of
premiums/discounts and deferred
gains on assets consolidated at
fair value
|
|
(529)
|
|
|
|
(811)
|
|
|
|
(440)
|
|
|
|
(179)
|
|
|
|
(8,027)
|
|
|
|
(10,864)
|
|
|
|
(421)
|
|
|
|
(564)
|
|
|
|
(618)
|
|
|
|
Net effects of
settlements on
agency forwards
|
|
(164)
|
|
|
|
(30)
|
|
|
|
73
|
|
|
|
236
|
|
|
|
(176)
|
|
|
|
114
|
|
|
|
(158)
|
|
|
|
955
|
|
|
|
(338)
|
|
|
|
Loss on retirement of
Farmer
Mac II LLC Preferred Stock
|
|
(6,246)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Net income
attributable to
common stockholders
|
$
|
1,818
|
|
$
|
|
5,647
|
|
|
$
|
11,586
|
|
|
$
|
20,205
|
|
|
$
|
813
|
|
|
$
|
12,485
|
|
|
$
|
15,413
|
|
|
$
|
27,745
|
|
|
$
|
16,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)The
difference between first quarter 2014 and fourth quarter 2013 net
effective spread was due to the impact of one-time adjustments for
recovered
buyout interest and yield maintenance of $1.8
million in fourth quarter 2013, $0.6 million associated with the
early refinancing of AgVantage securities
and the recasting of certain Rural Utilities loans,
and a lower day count in first quarter 2014.
|
(2)Fourth
quarter 2014 and third quarter 2014 include $13.6 million and $17.9
million, respectively, of interest expense related to securities
purchased under
agreements to resell and securities sold, not yet
purchased and $12.8 million and $16.4 million, respectively of
gains on securities sold, not yet purchased.
First quarter 2014 includes additional hedging costs
of $0.6 million. Fourth quarter 2013 includes gains on the
repurchase of debt of $1.5 million,
partially offset by realized losses on the sale of
available-for-sale securities of $0.9 million and additional
hedging costs of $0.2 million. Second quarter
2013 includes $3.1 million of realized gains from the
sale of an available-for-sale investment security.
|
(3)Fourth
quarter 2014 and second quarter 2014 reflect a reduction of $1.4
million and $11.6 million, respectively, in the tax valuation
allowance against
capital loss carryforwards related to capital gains on
securities sold, not yet purchased. First quarter 2014 and
fourth quarter 2013 reflect a reduction in
tax valuation allowance of $0.8 million and $2.1
million, respectively, associated with certain gains on investment
portfolio assets. Second quarter 2013
includes the reduction of $1.1 million of tax
valuation allowance against capital loss carryforwards related to
realized gains from the sale of an available-
for-sale investment security.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/farmer-mac-reports-first-quarter-financial-results-300080804.html
SOURCE Farmer Mac