Mar 31, 2024

Farmer Mac Q1 2024 Earnings Report

Delivered strong earnings driven by well-disciplined asset-liability management, development of new markets, and investments to modernize infrastructure.

Key Takeaways

Farmer Mac reported strong first quarter earnings with a 9% year-over-year increase in net interest income, a 17% year-over-year increase in net income attributable to common stockholders, and core earnings of $43.4 million.

Provided $1.4 billion in liquidity and lending capacity to lenders serving rural America

Net interest income grew 9% year-over-year to $86.4 million

Net effective spread increased 8% from the prior-year period to $83.0 million

Net income attributable to common stockholders grew 17% year-over-year to $47.0 million

Total Revenue
$206M
Previous year: $82.9M
+148.8%
EPS
$3.96
Previous year: $3.56
+11.2%
Net Interest Income
$86.4M
Previous year: $79.1M
+9.2%
Core Earnings
$43.4M
Previous year: $38.9M
+11.6%
Net Effective Spread
$83M
Previous year: $77.2M
+7.6%
Cash and Equivalents
$745M
Previous year: $865M
-13.8%
Free Cash Flow
$232M
Total Assets
$29.8B
Previous year: $27.9B
+6.6%

Farmer Mac

Farmer Mac

Farmer Mac Revenue by Geographic Location

Forward Guidance

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

Positive Outlook

  • Availability of debt and equity financing
  • Level of lender interest in Farmer Mac's products
  • General rate of growth in agricultural mortgage and rural infrastructure indebtedness
  • Facilitate competitive access to financing
  • Fuels growth, innovation, and prosperity in America’s rural and agricultural communities

Challenges Ahead

  • Legislative or regulatory developments
  • Fluctuations in the fair value of assets
  • Economic conditions stemming from disruptive global events
  • Exposure to interest rate risk
  • Developments in the financial markets