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Mar 31, 2020
Farmer Mac Q1 2020 Earnings Report
Farmer Mac's first quarter 2020 results were announced, highlighted by a business volume growth and response to COVID-19 challenges.
Key Takeaways
Farmer Mac reported a net income attributable to common stockholders of $9.4 million, or $0.87 per diluted common share, and core earnings of $20.1 million, or $1.87 per diluted common share for the first quarter of 2020. The company provided $1.3 billion in liquidity and lending capacity, resulting in net outstanding business volume growth of $421.4 million.
Provided $1.3 billion in liquidity and lending capacity in first quarter 2020, resulting in net outstanding business volume growth of $421.4 million.
Net income attributable to common stockholders was $9.4 million, or $0.87 per diluted common share.
Core earnings, a non-GAAP measure was $20.1 million, or $1.87 per diluted common share.
Net interest income grew $0.7 million year-over-year to $41.3 million.
Farmer Mac
Farmer Mac
Farmer Mac Revenue by Geographic Location
Revenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
Management's expectations for Farmer Mac's future necessarily involve assumptions and estimates and the evaluation of risks and uncertainties.
Positive Outlook
- Maintaining uninterrupted access to the debt capital markets.
- Continued strong liquidity position, as evidenced by quarter-end cash position of $1.2 billion.
- Our consistent first quarter results underscored by strong business volume and continued access to capital markets, illustrate our ability to respond dynamically to customer needs during this time of market volatility and increased uncertainty.
- We have a resilient business model based on our consistent, conservative underwriting approach, as well as robust liquidity, that we believe will allow us to navigate through these challenging times and be well-positioned to deliver value to our shareholders and customers over the long-term.
- Farmer Mac's customers benefit from our low cost of funds, low overhead costs, and high operational efficiency.
Challenges Ahead
- the effects of the novel coronavirus disease 2019 ("COVID-19") pandemic on the business operations of agricultural and rural borrowers, the capital markets, and Farmer Mac's business operations
- 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, its sources of business, or the agricultural or rural utilities industries
- fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries
- the level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac