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Jun 30, 2020
Farmer Mac Q2 2020 Earnings Report
Reported strong earnings and asset growth across multiple lines of business, with outstanding business volume growth to $22.0 billion.
Key Takeaways
Farmer Mac reported a net income attributable to common stockholders of $31.7 million, or $2.94 per diluted common share, and core earnings of $26.3 million, or $2.45 per diluted common share. The company experienced net outstanding business volume growth of $502.8 million, reaching $22.0 billion.
Provided $1.7 billion in liquidity and lending capacity in Q2 2020, resulting in net outstanding business volume growth of $502.8 million.
Net income attributable to common stockholders was $31.7 million, or $2.94 per diluted common share.
Core earnings, a non-GAAP measure was $26.3 million, or $2.45 per diluted common share.
Net interest income grew $5.3 million year-over-year to $48.3 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
- 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 utilities indebtedness
- Degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indexes
- Effect of any changes in Farmer Mac's executive leadership
Challenges Ahead
- Duration, spread, and severity of the COVID-19 pandemic
- 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 additional outbreaks, regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, and the duration and efficacy of such restrictions
- Effects of the COVID-19 pandemic on the business operations of agricultural and rural borrowers, the capital markets, and Farmer Mac's business operations
- 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