Federally chartered instrumentality of the United States | ||||||||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading symbol | Exchange on which registered | ||||||||||||
As of | |||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||
(in thousands) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 604,381 | $ | 425,256 | |||||||
Investment securities: | |||||||||||
Available-for-sale, at fair value | 2,959,843 | 2,217,852 | |||||||||
Held-to-maturity, at amortized cost | 45,032 | 45,032 | |||||||||
Total Investment Securities | 3,004,875 | 2,262,884 | |||||||||
Farmer Mac Guaranteed Securities: | |||||||||||
Available-for-sale, at fair value | 7,143,025 | 5,974,497 | |||||||||
Held-to-maturity, at amortized cost | 1,447,451 | 2,096,618 | |||||||||
Total Farmer Mac Guaranteed Securities | 8,590,476 | 8,071,115 | |||||||||
USDA Securities: | |||||||||||
Trading, at fair value | 8,913 | 9,999 | |||||||||
Held-to-maturity, at amortized cost | 2,232,160 | 2,166,174 | |||||||||
Total USDA Securities | 2,241,073 | 2,176,173 | |||||||||
Loans: | |||||||||||
Loans held for investment, at amortized cost | 5,390,977 | 4,004,968 | |||||||||
Loans held for investment in consolidated trusts, at amortized cost | 1,600,917 | 1,517,101 | |||||||||
Allowance for loan losses | (10,454) | (7,017) | |||||||||
Total loans, net of allowance | 6,981,440 | 5,515,052 | |||||||||
Real estate owned, at lower of cost or fair value | 1,770 | 128 | |||||||||
Financial derivatives, at fair value | 10,519 | 7,487 | |||||||||
Interest receivable (includes $20,568 and $19,783, respectively, related to consolidated trusts) | 199,195 | 180,080 | |||||||||
Guarantee and commitment fees receivable | 38,442 | 40,366 | |||||||||
Deferred tax asset, net | 16,510 | 6,369 | |||||||||
Prepaid expenses and other assets | 20,693 | 9,418 | |||||||||
Total Assets | $ | 21,709,374 | $ | 18,694,328 | |||||||
Liabilities and Equity: | |||||||||||
Liabilities: | |||||||||||
Notes payable: | |||||||||||
Due within one year | $ | 10,019,082 | $ | 7,757,050 | |||||||
Due after one year | 9,079,566 | 8,486,647 | |||||||||
Total notes payable | 19,098,648 | 16,243,697 | |||||||||
Debt securities of consolidated trusts held by third parties | 1,616,504 | 1,528,957 | |||||||||
Financial derivatives, at fair value | 27,042 | 19,633 | |||||||||
Accrued interest payable (includes $18,018 and $17,125, respectively, related to consolidated trusts) | 106,959 | 96,743 | |||||||||
Guarantee and commitment obligation | 36,700 | 38,683 | |||||||||
Accounts payable and accrued expenses | 22,081 | 11,891 | |||||||||
Reserve for losses | 2,164 | 2,167 | |||||||||
Total Liabilities | 20,910,098 | 17,941,771 | |||||||||
Commitments and Contingencies | |||||||||||
Equity: | |||||||||||
Preferred stock: | |||||||||||
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding | 58,333 | 58,333 | |||||||||
Series B, par value $25 per share, 3,000,000 shares authorized, issued and outstanding as of December 31, 2018 (redemption value $75,000,000) | — | 73,044 | |||||||||
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding | 73,382 | 73,382 | |||||||||
Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,659 | — | |||||||||
Common stock: | |||||||||||
Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding | 1,031 | 1,031 | |||||||||
Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding | 500 | 500 | |||||||||
Class C Non-Voting, $1 par value, no maximum authorization, 9,180,744 shares and 9,137,550 shares outstanding, respectively | 9,181 | 9,138 | |||||||||
Additional paid-in capital | 119,304 | 118,822 | |||||||||
Accumulated other comprehensive (loss)/income, net of tax | (16,161) | 24,956 | |||||||||
Retained earnings | 457,047 | 393,351 | |||||||||
Total Equity | 799,276 | 752,557 | |||||||||
Total Liabilities and Equity | $ | 21,709,374 | $ | 18,694,328 |
For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Investments and cash equivalents | $ | 19,804 | $ | 16,498 | $ | 81,522 | $ | 55,179 | |||||||||||||||
Farmer Mac Guaranteed Securities and USDA Securities | 81,267 | 77,474 | 333,896 | 290,953 | |||||||||||||||||||
Loans | 61,883 | 52,481 | 229,675 | 198,152 | |||||||||||||||||||
Total interest income | 162,954 | 146,453 | 645,093 | 544,284 | |||||||||||||||||||
Total interest expense | 113,584 | 104,237 | 471,958 | 369,848 | |||||||||||||||||||
Net interest income | 49,370 | 42,216 | 173,135 | 174,436 | |||||||||||||||||||
Provision for loan losses | (2,430) | (146) | (3,504) | (238) | |||||||||||||||||||
Net interest income after provision for loan losses | 46,940 | 42,070 | 169,631 | 174,198 | |||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||
Guarantee and commitment fees | 3,401 | 3,506 | 13,666 | 13,976 | |||||||||||||||||||
Gains/(losses) on financial derivatives | 4,089 | (2,999) | 5,282 | (3,687) | |||||||||||||||||||
Gains on trading securities | 172 | 57 | 326 | 81 | |||||||||||||||||||
Losses on sale of available-for-sale investment securities | (236) | — | (236) | — | |||||||||||||||||||
Losses on sale of real estate owned | — | — | — | (7) | |||||||||||||||||||
Other income | 526 | 118 | 1,904 | 1,377 | |||||||||||||||||||
Non-interest income | 7,952 | 682 | 20,942 | 11,740 | |||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||
Compensation and employee benefits | 6,732 | 7,167 | 28,762 | 27,534 | |||||||||||||||||||
General and administrative | 5,773 | 5,829 | 20,311 | 19,707 | |||||||||||||||||||
Regulatory fees | 725 | 687 | 2,788 | 2,562 | |||||||||||||||||||
Real estate owned operating costs, net | — | — | 64 | 16 | |||||||||||||||||||
Provision for/(release of) reserve for losses | 421 | 20 | (3) | 97 | |||||||||||||||||||
Non-interest expense | 13,651 | 13,703 | 51,922 | 49,916 | |||||||||||||||||||
Income before income taxes | 41,241 | 29,049 | 138,651 | 136,022 | |||||||||||||||||||
Income tax expense | 8,743 | 6,193 | 29,105 | 27,942 | |||||||||||||||||||
Net income attributable to Farmer Mac | 32,498 | 22,856 | 109,546 | 108,080 | |||||||||||||||||||
Preferred stock dividends | (3,432) | (3,296) | (13,940) | (13,182) | |||||||||||||||||||
Loss on retirement of preferred stock | — | — | (1,956) | — | |||||||||||||||||||
Net income attributable to common stockholders | $ | 29,066 | $ | 19,560 | $ | 93,650 | $ | 94,898 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic earnings per common share | $ | 2.72 | $ | 1.84 | $ | 8.76 | $ | 8.91 | |||||||||||||||
Diluted earnings per common share | $ | 2.70 | $ | 1.82 | $ | 8.69 | $ | 8.83 |
Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Net income attributable to common stockholders | $ | 29,066 | $ | 14,406 | $ | 19,560 | |||||||||||
Less reconciling items: | |||||||||||||||||
Gains/(losses) on undesignated financial derivatives due to fair value changes | 4,469 | (7,117) | (96) | ||||||||||||||
Losses on hedging activities due to fair value changes | (220) | (4,535) | (853) | ||||||||||||||
Unrealized gains on trading securities | 172 | 49 | 57 | ||||||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 40 | (7) | 67 | ||||||||||||||
Net effects of terminations or net settlements on financial derivatives | 1,339 | 232 | (312) | ||||||||||||||
Issuance costs on the retirement of preferred stock | — | — | — | ||||||||||||||
Income tax effect related to reconciling items | (1,218) | 2,389 | 238 | ||||||||||||||
Sub-total | 4,582 | (8,989) | (899) | ||||||||||||||
Core earnings | $ | 24,484 | $ | 23,395 | $ | 20,459 | |||||||||||
Composition of Core Earnings: | |||||||||||||||||
Revenues: | |||||||||||||||||
Net effective spread(1) | $ | 45,991 | $ | 42,461 | $ | 38,855 | |||||||||||
Guarantee and commitment fees(2) | 5,432 | 5,208 | 5,309 | ||||||||||||||
Other(3) | 100 | 389 | (129) | ||||||||||||||
Total revenues | 51,523 | 48,058 | 44,035 | ||||||||||||||
Credit related expense/(income) (GAAP): | |||||||||||||||||
Provision for losses | 2,851 | 623 | 166 | ||||||||||||||
REO operating expenses | — | — | — | ||||||||||||||
Losses/(gains) on sale of REO | — | — | — | ||||||||||||||
Total credit related expense/(income) | 2,851 | 623 | 166 | ||||||||||||||
Operating expenses (GAAP): | |||||||||||||||||
Compensation and employee benefits | 6,732 | 7,654 | 7,167 | ||||||||||||||
General and administrative | 5,773 | 5,253 | 5,829 | ||||||||||||||
Regulatory fees | 725 | 688 | 687 | ||||||||||||||
Total operating expenses | 13,230 | 13,595 | 13,683 | ||||||||||||||
Net earnings | 35,442 | 33,840 | 30,186 | ||||||||||||||
Income tax expense(4) | 7,526 | 7,018 | 6,431 | ||||||||||||||
Preferred stock dividends (GAAP) | 3,432 | 3,427 | 3,296 | ||||||||||||||
Core earnings | $ | 24,484 | $ | 23,395 | $ | 20,459 | |||||||||||
Core earnings per share: | |||||||||||||||||
Basic | $ | 2.29 | $ | 2.19 | $ | 1.92 | |||||||||||
Diluted | 2.27 | 2.17 | 1.90 |
Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings | |||||||||||
For the Year Ended | |||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||
(in thousands, except per share amounts) | |||||||||||
Net income attributable to common stockholders | $ | 93,650 | $ | 94,898 | |||||||
Less reconciling items: | |||||||||||
Gains on undesignated financial derivatives due to fair value changes | 10,077 | 7,959 | |||||||||
(Losses)/gains on hedging activities due to fair value changes | (9,010) | 4,449 | |||||||||
Unrealized gains/(losses) on trading securities | 326 | 81 | |||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | (122) | (461) | |||||||||
Net effects of terminations or net settlements on financial derivatives | 1,089 | 1,708 | |||||||||
Issuance costs on the retirement of preferred stock | (1,956) | — | |||||||||
Income tax effect related to reconciling items | (496) | (2,885) | |||||||||
Sub-total | (92) | 10,851 | |||||||||
Core earnings | $ | 93,742 | $ | 84,047 | |||||||
Composition of Core Earnings: | |||||||||||
Revenues: | |||||||||||
Net effective spread(1) | $ | 168,608 | $ | 151,195 | |||||||
Guarantee and commitment fees(2) | 21,335 | 20,733 | |||||||||
Other(3) | 1,775 | 520 | |||||||||
Total revenues | 191,718 | 172,448 | |||||||||
Credit related expense (GAAP): | |||||||||||
Provision for losses | 3,501 | 335 | |||||||||
REO operating expenses | 64 | 16 | |||||||||
Losses/(gains) on sale of REO | — | 7 | |||||||||
Total credit related expense | 3,565 | 358 | |||||||||
Operating expenses (GAAP): | |||||||||||
Compensation and employee benefits | 28,762 | 27,534 | |||||||||
General and administrative | 20,311 | 19,707 | |||||||||
Regulatory fees | 2,788 | 2,562 | |||||||||
Total operating expenses | 51,861 | 49,803 | |||||||||
Net earnings | 136,292 | 122,287 | |||||||||
Income tax expense(4) | 28,610 | 25,058 | |||||||||
Preferred stock dividends (GAAP) | 13,940 | 13,182 | |||||||||
Core earnings | $ | 93,742 | $ | 84,047 | |||||||
Core earnings per share: | |||||||||||
Basic | $ | 8.76 | $ | 7.89 | |||||||
Diluted | 8.70 | 7.82 |
Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share | |||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||
GAAP - Basic EPS | $ | 2.72 | $ | 1.34 | $ | 1.84 | $ | 8.76 | $ | 8.91 | |||||||||||||||||||
Less reconciling items: | |||||||||||||||||||||||||||||
Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.42 | (0.66) | (0.01) | 0.94 | 0.75 | ||||||||||||||||||||||||
(Losses)/gains on hedging activities due to fair value changes | (0.02) | (0.42) | (0.08) | (0.83) | 0.41 | ||||||||||||||||||||||||
Unrealized gains on trading securities | 0.02 | — | 0.01 | 0.03 | 0.01 | ||||||||||||||||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | — | 0.01 | (0.01) | (0.04) | ||||||||||||||||||||||||
Net effects of terminations or net settlements on financial derivatives | 0.13 | 0.02 | (0.03) | 0.10 | 0.16 | ||||||||||||||||||||||||
Issuance costs on the retirement of preferred stock | — | — | — | (0.18) | — | ||||||||||||||||||||||||
Income tax effect related to reconciling items | (0.12) | 0.21 | 0.02 | (0.05) | (0.27) | ||||||||||||||||||||||||
Sub-total | 0.43 | (0.85) | (0.08) | — | 1.02 | ||||||||||||||||||||||||
Core Earnings - Basic EPS | $ | 2.29 | $ | 2.19 | $ | 1.92 | $ | 8.76 | $ | 7.89 | |||||||||||||||||||
Shares used in per share calculation (GAAP and Core Earnings) | 10,711 | 10,706 | 10,669 | 10,696 | 10,654 |
Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share | |||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||
GAAP - Diluted EPS | $ | 2.70 | $ | 1.33 | $ | 1.82 | $ | 8.69 | $ | 8.83 | |||||||||||||||||||
Less reconciling items: | |||||||||||||||||||||||||||||
Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.42 | (0.66) | (0.01) | 0.93 | 0.74 | ||||||||||||||||||||||||
(Losses)/gains on hedging activities due to fair value changes | (0.02) | (0.42) | (0.08) | (0.83) | 0.41 | ||||||||||||||||||||||||
Unrealized gains on trading securities | 0.02 | — | 0.01 | 0.03 | 0.01 | ||||||||||||||||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | — | 0.01 | (0.01) | (0.04) | ||||||||||||||||||||||||
Net effects of terminations or net settlements on financial derivatives | 0.12 | 0.02 | (0.03) | 0.10 | 0.16 | ||||||||||||||||||||||||
Issuance costs on the retirement of preferred stock | — | — | — | (0.18) | — | ||||||||||||||||||||||||
Income tax effect related to reconciling items | (0.11) | 0.22 | 0.02 | (0.05) | (0.27) | ||||||||||||||||||||||||
Sub-total | 0.43 | (0.84) | (0.08) | (0.01) | 1.01 | ||||||||||||||||||||||||
Core Earnings - Diluted EPS | $ | 2.27 | $ | 2.17 | $ | 1.90 | $ | 8.70 | $ | 7.82 | |||||||||||||||||||
Shares used in per share calculation (GAAP and Core Earnings) | 10,784 | 10,776 | 10,745 | 10,778 | 10,746 |
Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/yield | $ | 49,370 | 0.95 | % | $ | 40,112 | 0.78 | % | $ | 42,216 | 0.93 | % | $ | 173,135 | 0.87 | % | $ | 174,436 | 0.96 | % | |||||||||||||||||||||||||||||||||||||||
Net effects of consolidated trusts | (2,031) | 0.03 | % | (1,859) | 0.02 | % | (1,804) | 0.04 | % | (7,669) | 0.03 | % | (6,757) | 0.04 | % | ||||||||||||||||||||||||||||||||||||||||||||
Expense related to undesignated financial derivatives | (725) | (0.02) | % | (268) | — | % | (2,161) | (0.06) | % | (5,095) | (0.03) | % | (11,685) | (0.07) | % | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of premiums/discounts on assets consolidated at fair value | 58 | — | % | 28 | — | % | (138) | — | % | 398 | — | % | 417 | 0.01 | % | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of losses due to terminations or net settlements on financial derivatives | 30 | — | % | (42) | — | % | (69) | — | % | (68) | — | % | (275) | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Fair value changes on fair value hedge relationships | (711) | (0.01) | % | 4,490 | 0.10 | % | 811 | 0.02 | % | 7,907 | 0.04 | % | (4,941) | (0.03) | % | ||||||||||||||||||||||||||||||||||||||||||||
Net effective spread | $ | 45,991 | 0.95 | % | $ | 42,461 | 0.90 | % | $ | 38,855 | 0.93 | % | $ | 168,608 | 0.91 | % | $ | 151,195 | 0.91 | % |
Core Earnings by Business Segment | |||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Reconciling Adjustments | Consolidated Net Income | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 18,674 | $ | 4,425 | $ | 4,195 | $ | 19,614 | $ | 2,462 | $ | — | $ | 49,370 | |||||||||||||||||||||||||||
Less: reconciling adjustments(1)(2)(3) | (2,300) | (62) | 676 | (1,606) | (87) | 3,379 | — | ||||||||||||||||||||||||||||||||||
Net effective spread | 16,374 | 4,363 | 4,871 | 18,008 | 2,375 | 3,379 | |||||||||||||||||||||||||||||||||||
Guarantee and commitment fees(2) | 4,732 | 246 | 343 | 111 | — | (2,031) | 3,401 | ||||||||||||||||||||||||||||||||||
Other income/(expense)(3) | 339 | 82 | 7 | — | (328) | 4,451 | 4,551 | ||||||||||||||||||||||||||||||||||
Non-interest income/(loss) | 5,071 | 328 | 350 | 111 | (328) | 2,420 | 7,952 | ||||||||||||||||||||||||||||||||||
Provision for loan losses | (2,430) | — | — | — | — | — | (2,430) | ||||||||||||||||||||||||||||||||||
Release of reserve for losses | (421) | — | — | — | — | — | (421) | ||||||||||||||||||||||||||||||||||
Other non-interest expense | (4,927) | (1,478) | (1,303) | (1,920) | (3,602) | — | (13,230) | ||||||||||||||||||||||||||||||||||
Non-interest expense(4) | (5,348) | (1,478) | (1,303) | (1,920) | (3,602) | — | (16,081) | ||||||||||||||||||||||||||||||||||
Core earnings before income taxes | 13,667 | 3,213 | 3,918 | 16,199 | (1,555) | 5,799 | (5) | 41,241 | |||||||||||||||||||||||||||||||||
Income tax (expense)/benefit | (2,870) | (675) | (823) | (3,402) | 244 | (1,217) | (8,743) | ||||||||||||||||||||||||||||||||||
Core earnings before preferred stock dividends | 10,797 | 2,538 | 3,095 | 12,797 | (1,311) | 4,582 | (5) | 32,498 | |||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (3,432) | — | (3,432) | ||||||||||||||||||||||||||||||||||
Segment core earnings/(losses) | $ | 10,797 | $ | 2,538 | $ | 3,095 | $ | 12,797 | $ | (4,743) | $ | 4,582 | (5) | $ | 29,066 | ||||||||||||||||||||||||||
Total assets at carrying value | $ | 5,408,302 | $ | 2,311,932 | $ | 1,717,405 | $ | 8,606,912 | $ | 3,664,823 | $ | — | $ | 21,709,374 | |||||||||||||||||||||||||||
Total on- and off-balance sheet program assets at principal balance | $ | 7,776,950 | $ | 2,620,175 | $ | 2,280,571 | $ | 8,440,246 | $ | — | $ | — | $ | 21,117,942 |
Lines of Business - Outstanding Business Volume | |||||||||||
As of December 31, 2019 | As of December 31, 2018 | ||||||||||
(in thousands) | |||||||||||
Farm & Ranch: | |||||||||||
Loans | $ | 3,675,640 | $ | 3,071,222 | |||||||
Loans held in trusts: | |||||||||||
Beneficial interests owned by third party investors | 1,600,917 | 1,517,101 | |||||||||
LTSPCs | 2,393,071 | 2,509,787 | |||||||||
Guaranteed Securities | 107,322 | 135,862 | |||||||||
USDA Guarantees: | |||||||||||
USDA Securities | 2,199,072 | 2,120,553 | |||||||||
Farmer Mac Guaranteed USDA Securities | 421,103 | 395,067 | |||||||||
Rural Utilities: | |||||||||||
Loans | 1,671,293 | 938,843 | |||||||||
LTSPCs(1) | 609,278 | 653,272 | |||||||||
Institutional Credit | |||||||||||
AgVantage Securities | 8,440,246 | 8,082,817 | |||||||||
Revolving floating rate AgVantage facility(2) | — | 300,000 | |||||||||
Total | $ | 21,117,942 | $ | 19,724,524 |
Net Effective Spread by Line of Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Net Effective Spread | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the quarter ended: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019(1) | $ | 16,374 | 1.90 | % | $ | 4,363 | 0.78 | % | $ | 4,871 | 1.17 | % | $ | 18,008 | 0.85 | % | $ | 2,375 | 0.27 | % | $ | 45,991 | 0.95 | % | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | 13,181 | 1.66 | % | 4,314 | 0.79 | % | 4,502 | 1.16 | % | 17,807 | 0.84 | % | 2,657 | 0.30 | % | 42,461 | 0.90 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | 13,335 | 1.72 | % | 4,097 | 0.76 | % | 3,996 | 1.10 | % | 17,371 | 0.82 | % | 2,556 | 0.34 | % | 41,355 | 0.91 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | 12,737 | 1.70 | % | 3,964 | 0.74 | % | 3,233 | 1.12 | % | 16,373 | 0.79 | % | 2,494 | 0.35 | % | 38,801 | 0.89 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | 13,288 | 1.79 | % | 4,630 | 0.85 | % | 2,833 | 1.19 | % | 15,751 | 0.80 | % | 2,353 | 0.36 | % | 38,855 | 0.93 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | 13,887 | 1.91 | % | 4,627 | 0.86 | % | 2,877 | 1.18 | % | 15,642 | 0.78 | % | 2,044 | 0.30 | % | 39,077 | 0.93 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | 13,347 | 1.86 | % | 4,398 | 0.83 | % | 2,923 | 1.15 | % | 15,220 | 0.76 | % | 274 | 0.04 | % | 36,162 | 0.86 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2018 | 12,540 | 1.80 | % | 4,400 | 0.82 | % | 2,950 | 1.12 | % | 14,824 | 0.78 | % | 2,387 | 0.36 | % | 37,101 | 0.91 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2017 | 12,396 | 1.80 | % | 4,979 | 0.93 | % | 3,057 | 1.14 | % | 14,800 | 0.78 | % | 2,235 | 0.35 | % | 37,467 | 0.93 | % |
Core Earnings by Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 2019 | September 2019 | June 2019 | March 2019 | December 2018 | September 2018 | June 2018 | March 2018 | December 2017 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net effective spread | $ | 45,991 | $ | 42,461 | $ | 41,355 | $ | 38,801 | $ | 38,855 | $ | 39,077 | $ | 36,162 | $ | 37,101 | $ | 37,467 | |||||||||||||||||||||||||||||||||||
Guarantee and commitment fees | 5,432 | 5,208 | 5,276 | 5,419 | 5,309 | 5,170 | 5,171 | 5,083 | 5,157 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 100 | 389 | 777 | 509 | (129) | 110 | 111 | 428 | 69 | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 51,523 | 48,058 | 47,408 | 44,729 | 44,035 | 44,357 | 41,444 | 42,612 | 42,693 | ||||||||||||||||||||||||||||||||||||||||||||
Credit related expense/(income): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for/(release of) losses | 2,851 | 623 | 420 | (393) | 166 | (3) | 582 | (410) | 464 | ||||||||||||||||||||||||||||||||||||||||||||
REO operating expenses | — | — | 64 | — | — | — | — | 16 | — | ||||||||||||||||||||||||||||||||||||||||||||
Losses/(gains) on sale of REO | — | — | — | — | — | 41 | (34) | — | (964) | ||||||||||||||||||||||||||||||||||||||||||||
Total credit related expense/(income) | 2,851 | 623 | 484 | (393) | 166 | 38 | 548 | (394) | (500) | ||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 6,732 | 7,654 | 6,770 | 7,606 | 7,167 | 6,777 | 6,936 | 6,654 | 5,247 | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 5,773 | 5,253 | 4,689 | 4,596 | 5,829 | 4,350 | 5,202 | 4,326 | 4,348 | ||||||||||||||||||||||||||||||||||||||||||||
Regulatory fees | 725 | 688 | 687 | 688 | 687 | 625 | 625 | 625 | 625 | ||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 13,230 | 13,595 | 12,146 | 12,890 | 13,683 | 11,752 | 12,763 | 11,605 | 10,220 | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | 35,442 | 33,840 | 34,778 | 32,232 | 30,186 | 32,567 | 28,133 | 31,401 | 32,973 | ||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 7,526 | 7,018 | 7,351 | 6,715 | 6,431 | 6,891 | 5,477 | 6,259 | 11,796 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | 3,432 | 3,427 | 3,785 | 3,296 | 3,296 | 3,295 | 3,296 | 3,295 | 3,296 | ||||||||||||||||||||||||||||||||||||||||||||
Core earnings | $ | 24,484 | $ | 23,395 | $ | 23,642 | $ | 22,221 | $ | 20,459 | $ | 22,381 | $ | 19,360 | $ | 21,847 | $ | 17,881 | |||||||||||||||||||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains/(losses) on undesignated financial derivatives due to fair value changes | 4,469 | (7,117) | 10,485 | 2,240 | (96) | 3,625 | 6,709 | (2,279) | (261) | ||||||||||||||||||||||||||||||||||||||||||||
(Losses)/gains on hedging activities due to fair value changes | (220) | (4,535) | (1,438) | (2,817) | (853) | 1,051 | 1,687 | 2,564 | (3) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains/(losses) on trading assets | 172 | 49 | 61 | 44 | 57 | (3) | 11 | 16 | 60 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 40 | (7) | (139) | (16) | 67 | (38) | 196 | (686) | (129) | ||||||||||||||||||||||||||||||||||||||||||||
Net effects of terminations or net settlements on financial derivatives | 1,339 | 232 | (592) | 110 | (312) | 546 | 232 | 1,242 | 632 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance costs on the retirement of preferred stock | — | — | (1,956) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Re-measurement of net deferred tax asset due to enactment of new tax legislation | — | — | — | — | — | — | — | — | (1,365) | ||||||||||||||||||||||||||||||||||||||||||||
Income tax effect related to reconciling items | (1,218) | 2,389 | (1,759) | 92 | 238 | (1,088) | (1,855) | (180) | (105) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 29,066 | $ | 14,406 | $ | 28,304 | $ | 21,874 | $ | 19,560 | $ | 26,474 | $ | 26,340 | $ | 22,524 | $ | 16,710 |
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