NYSE$AGM

Federal Agricultural Mortgage Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Delivered a strong quarter with record revenue, earnings, and net effective spread.

Farmer Mac reported a strong first quarter in 2023, achieving new all-time records for revenue, earnings, and net effective spread. Net income attributable to common stockholders was $40.2 million and core earnings reached $38.9 million.

  • Added $1.7 billion of gross business volume, resulting in net growth of $0.6 billion.
  • Net interest income grew 21% year-over-year to $79.1 million.
  • Net effective spread increased 33% from the prior-year period to a record $77.2 million.
  • Record core earnings of $38.9 million, or $3.56 per diluted common share, reflecting 51% growth year-over-year.

Headline financials

Total Revenue

$84.4M

Previous: $82.4M+2.5%
EPS (adj)

$3.56

Previous: $2.37+50.2%
Net Interest Income (GAAP)

$79.1M

Previous: $61.9M+27.8%
Core Earnings

$38.9M

Previous: $25.8M+50.9%
Net Effective Spread (Non-GAAP)

$77.2M

Previous: $57.8M+33.4%
Free Cash Flow

$47M

Previous: $47.8M-1.7%
Net Income

$47M

Previous: $47.8M-1.7%
Operating Income

$77.3M

Previous: $75.7M+2.2%
Gross Profit

$83.7M

Previous: $82.3M+1.6%
Cash & Equivalents

$865M

Previous: $890M-2.9%
Total Assets

$27.9B

Previous: $25.8B+8.3%
Stock-Based Comp

$2.26M

Previous: $2.11M+6.7%

Revenue & EPS history

Farmer Mac · Revenue · Quarterly

$84.4M

Q1 2023+2.5%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Management's expectations for Farmer Mac's future necessarily involve assumptions and estimates and the evaluation of risks and uncertainties.

Tailwinds

  • availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms
  • level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac
  • general rate of growth in agricultural mortgage and rural infrastructure indebtedness
  • Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indexes
  • Farmer Mac's customers benefit from our low cost of funds, low overhead costs, and high operational efficiency

Headwinds

  • legislative or regulatory developments that could affect Farmer Mac, its sources of business, or agricultural or rural infrastructure industries
  • fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries
  • effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or rural infrastructure lending, borrower repayment capacity, or collateral values, including rapid inflation, fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, volatility from the recent commercial banking failures, and volatility in commodity prices
  • developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac
  • effects of the Federal Reserve’s efforts to achieve monetary policy normalization and slow inflation

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+1.5%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+13.9%

Q3 2016

Best reaction

-14.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+6.4%+6.9%
Q4 2025-14.5%-8.0%-19.4%
Q3 2025+4.6%+3.7%+11.3%
Q1 2025+4.6%+10.4%+8.4%
Q4 2024+6.3%+3.7%-2.1%
Q3 2024+5.0%+12.7%+17.2%
Q2 2024-9.5%-10.3%-3.2%
Q1 2024-10.8%-7.6%-9.5%
Q4 2023-5.0%-5.9%+1.6%
Q3 2023-3.8%-2.9%+2.5%
Q2 2023+4.7%+8.1%-0.3%
Q1 2023-4.9%-1.0%+15.7%
Q4 2022+4.2%+7.0%-7.5%
Q3 2022+1.7%+5.4%+3.0%
Q2 2022+2.2%+6.2%-1.4%
Q1 2022-3.8%-5.5%-4.3%
Q4 2021-5.8%-4.8%-10.5%
Q3 2021-3.7%-1.6%-6.8%
Q2 2021+3.6%+4.4%+6.7%
Q1 2021-5.6%-7.5%-7.5%
Q4 2020+1.3%+4.2%+18.9%
Q3 2020+9.3%+4.5%+16.7%
Q2 2020+8.7%+11.1%+7.3%
Q1 2020-9.3%-8.4%+10.7%
Q4 2019+4.9%+5.1%-20.8%
Q3 2019-4.7%-6.2%-5.5%
Q2 2019+1.3%-2.5%+6.6%
Q1 2019+4.4%+1.4%-11.6%
Q4 2018+10.7%+13.1%-5.3%
Q3 2018+0.5%-0.3%-16.0%
Q2 2018-12.5%-17.2%-15.8%
Q1 2018-0.7%+0.6%+3.0%
Q4 2017+3.9%+4.9%+5.4%
Q3 2017-0.7%+4.1%+5.2%
Q2 2017-2.1%-0.1%-4.4%
Q1 2017+12.1%+11.8%+18.4%
Q4 2016+10.0%+10.1%-0.7%
Q3 2016+13.9%+18.8%+38.5%
Q2 2016+4.5%+2.7%+5.7%
Q1 2016-8.1%
Q4 2015+11.2%
Q3 2015+0.7%
Q2 2015+0.5%
Q1 2015+1.9%
Q4 2014-11.3%
Q3 2014-3.6%
Q2 2014+12.5%
Q1 2014-12.4%
Q4 2013+0.7%
Q3 2013+0.5%
Q2 2013+7.1%
Q1 2013-1.4%
Q2 2012-0.8%
Q4 2012-0.8%
Q3 2012+2.9%
Q4 2011+2.9%
Q1 2011+2.9%
Q1 2012+2.9%
Q4 2009+3.9%
Q2 2011+3.9%
Q3 2011-7.4%
Q3 2010-7.4%
Q2 2010+7.4%
Q4 2010+7.4%
Q1 2010-8.6%

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