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Mar 31, 2021
Farmer Mac Q1 2021 Earnings Report
Farmer Mac's financial performance was strong, marked by substantial growth in core earnings and net effective spread.
Key Takeaways
Farmer Mac reported a strong first quarter in 2021, with net income attributable to common stockholders at $28.0 million, or $2.58 per diluted common share. Core earnings grew 29% year-over-year to $25.9 million, or $2.39 per diluted common share, and net interest income increased by $12.0 million to $53.3 million.
Provided $1.5 billion in liquidity and lending capacity.
Net income attributable to common stockholders was $28.0 million, or $2.58 per diluted common share.
Core earnings grew 29% from the prior-year period to $25.9 million, or $2.39 per diluted common share.
Net interest income grew $12.0 million year-over-year to $53.3 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
- Farmer Mac's low cost of funds
- Farmer Mac's low overhead costs
- Farmer Mac's high operational efficiency
- access to flexible, low-cost financing
- risk management tools
Challenges Ahead
- the duration, spread, and severity of the COVID-19 pandemic and its effects on the business operations of agricultural and rural borrowers, the capital markets, and Farmer Mac's business operations
- the actions taken to address the COVID-19 pandemic, including government actions to mitigate the economic impact of the pandemic, how quickly and to what extent normal economic and operating conditions can resume, the possibility of future disruptions to economic recovery caused by any future outbreaks, regulatory measures or voluntary actions to limit the spread of COVID-19, and the duration and efficacy of any restrictions that may be imposed
- 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