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Sep 30, 2021
Farmer Mac Q3 2021 Earnings Report
Delivered strong earnings and net effective spread, reflecting the consistency of the fundamental business model.
Key Takeaways
Farmer Mac reported strong earnings for the third quarter of 2021, with a net income of $24.3 million, compared to $18.7 million in the third quarter of 2020. Core Earnings were $27.6 million compared to $27.7 million in the same period last year. Outstanding business volume was $23.1 billion as of September 30, 2021, a net increase of $0.9 billion from June 30, 2021.
Added $2.5 billion of gross business volume, resulting in net growth of $921.6 million
Net income of $24.3 million compared to $18.7 million in third quarter 2020
Core Earnings of $27.6 million compared to $27.7 million in the same period last year
Completed a strategic acquisition that expanded the internal loan servicing function and acquired the loan servicing rights for a sizeable portion of our Farm & Ranch loan and USDA Guaranteed Securities portfolios
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
- Farmer Mac's customers benefit from our low cost of funds, low overhead costs, and high operational efficiency
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
- 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 and geopolitics on agricultural mortgage or rural utilities lending, borrower repayment capacity, or collateral values, including fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices
- other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather or fluctuations in agricultural real estate values