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Federal Agricultural Mortgage

Financials

Price	82.12	EPS	9
Shares	11	P/E	9
MCap	885	P/FCF	-6
Net Debt	8,353	EBIT	589
TEV	9,238	TEV/EBIT	16
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-02-25
10-Q	2019-09-30	Filed 2019-11-06
10-Q	2019-06-30	Filed 2019-08-01
10-Q	2019-03-31	Filed 2019-05-02
10-K	2018-12-31	Filed 2019-02-21
10-Q	2018-09-30	Filed 2018-11-08
10-Q	2018-06-30	Filed 2018-08-09
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-08
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-09
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-10
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-16
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-12
10-K	2013-12-31	Filed 2014-03-13
10-Q	2013-06-30	Filed 2013-08-08
10-Q	2013-03-31	Filed 2013-05-09
10-K	2012-12-31	Filed 2013-03-18
10-Q	2012-09-30	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-03-15
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-03-31	Filed 2011-05-10
10-K	2010-12-31	Filed 2011-03-16
10-Q	2010-09-30	Filed 2010-11-09
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-16

Reports

8-K	2020-05-27
8-K	2020-05-20
8-K	2020-05-13
8-K	2020-05-12
8-K	2020-05-11
8-K	2020-05-06
8-K	2020-04-30
8-K	2020-04-06
8-K	2020-03-26
8-K	2020-03-03
8-K	2020-02-25
8-K	2020-02-18
8-K	2020-02-10
8-K	2020-02-03
8-K	2020-01-22
8-K	2020-01-16
8-K	2019-12-20
8-K	2019-12-13
8-K	2019-12-05
8-K	2019-11-14
8-K	2019-11-13
8-K	2019-11-06
8-K	2019-11-04
8-K	2019-10-30
8-K	2019-10-04
8-K	2019-09-18
8-K	2019-08-07
8-K	2019-08-01
8-K	2019-07-25
8-K	2019-07-08
8-K	2019-05-17
8-K	2019-05-09
8-K	2019-05-09
8-K	2019-05-08
8-K	2019-05-02
8-K	2019-04-25
8-K	2019-03-14
8-K	2019-02-27
8-K	2019-02-21
8-K	2019-02-14
8-K	2019-02-13
8-K	2018-11-08
8-K	2018-10-31
8-K	2018-10-31
8-K	2018-09-26
8-K	2018-08-09
8-K	2018-07-30
8-K	2018-07-23
8-K	2018-05-10
8-K	2018-05-02
8-K	2018-05-02
8-K	2018-03-13
8-K	2018-03-08
8-K	2018-02-26

Federal Agricultural Mortgage Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

agm-20200331

As filed with the Securities and Exchange Commission on May 11, 2020

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

Commission File Number 001-14951


FEDERAL AGRICULTURAL MORTGAGE CORPORATION
(Exact name of registrant as specified in its charter)

Federally chartered instrumentality

of the United States

52-1578738

(State or other jurisdiction of

incorporation or organization)

(I.R.S. employer identification number)

1999 K Street, N.W., 4th Floor,

Washington,

20006

(Address of principal executive offices)

(Zip code)


(202)			872-7700
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Exchange on which registered

Class A voting common stock

AGM.A

New York Stock Exchange

Class C non-voting common stock

AGM

New York Stock Exchange

5.875% Non-Cumulative Preferred Stock, Series A

AGM.PRA

New York Stock Exchange

6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C

AGM.PRC

New York Stock Exchange

5.700% Non-Cumulative Preferred Stock, Series D

AGM.PRD

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: Class B voting common stock

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes o No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of April 30, 2020, the registrant had outstanding 1,030,780 shares of Class A voting common stock, 500,301 shares of Class B voting common stock, and 9,197,805 shares of Class C non-voting common stock.

Table of Contents



PART I			4
Item 1 .	Financial Statements	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Equity	7
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2 .	Management's Discussion and Analysis of Financial Condition and Results of Operations	51
	Forward-Looking Statements	51
	Overview	52
	Use of Non-GAAP Measures	59
	Results of Operations	60
	Outlook	74
	Balance Sheet Review	79
	Risk Management	80
	Liquidity and Capital Resources	97
	Regulatory Matters	98
	Other Matters	99
	Supplemental Information	100
Item 3 .	Quantitative and Qualitative Disclosures About Market Risk	105
Item 4 .	Controls and Procedures	105
PART II			106
Item 1 .	Legal Proceedings	106
Item 1A .	Risk Factors	106
Item 2 .	Unregistered Sales of Equity Securities and Use of Proceeds	112
Item 3.	Default Upon Senior Securities	112
Item 4.	Mine Safety Disclosures	112
Item 5 .	Other Information	112
Item 6 .	Exhibits	113
Signatures		114

PART I

Item 1.Financial Statements

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)


	As of
	March 31, 2020		December 31, 2019
	(in thousands)
Assets:
Cash and cash equivalents	$	1,231,585	$	604,381
Investment securities:
Available-for-sale, at fair value (amortized cost of $2,959,694 and $2,961,430, respectively)	2,961,157		2,959,843
Held-to-maturity, at amortized cost	45,032		45,032
Total Investment Securities	3,006,189		3,004,875
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value (amortized cost of $7,273,303 and $7,016,971, respectively)	7,587,186		7,143,025
Held-to-maturity, at amortized cost	1,447,883		1,447,451
Total Farmer Mac Guaranteed Securities	9,035,069		8,590,476
USDA Securities:
Trading, at fair value	8,408		8,913
Held-to-maturity, at amortized cost	2,269,611		2,232,160
Total USDA Securities	2,278,019		2,241,073
Loans:
Loans held for investment, at amortized cost	5,789,391		5,390,977
Loans held for investment in consolidated trusts, at amortized cost	1,540,689		1,600,917
Allowance for losses	(14,856)		(10,454)
Total loans, net of allowance	7,315,224		6,981,440

Financial derivatives, at fair value	12,692		10,519
Interest receivable (includes $11,944 and $20,568, respectively, related to consolidated trusts)	154,836		199,195
Guarantee and commitment fees receivable	37,521		38,442
Deferred tax asset, net	47,842		16,510
Prepaid expenses and other assets	61,133		22,463
Total Assets	$	23,180,110	$	21,709,374

Liabilities and Equity:
Liabilities:


Notes payable	20,665,020		19,098,648
Debt securities of consolidated trusts held by third parties	1,549,527		1,616,504
Financial derivatives, at fair value	53,795		27,042
Accrued interest payable (includes $9,588 and $18,018, respectively, related to consolidated trusts)	104,380		106,959
Guarantee and commitment obligation	35,939		36,700
Accounts payable and accrued expenses	74,412		22,081

Reserve for losses	3,420		2,164
Total Liabilities	22,486,493		20,910,098
Commitments and Contingencies (Note 6)
Equity:
Preferred stock:
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding	58,333		58,333
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		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, 9,192,047 shares and 9,180,744 shares outstanding, respectively	9,192		9,181
Additional paid-in capital	120,412		119,304
Accumulated other comprehensive loss, net of tax	(121,437)		(16,161)
Retained earnings	455,545		457,047
Total Equity	693,617		799,276
Total Liabilities and Equity	$	23,180,110	$	21,709,374

The accompanying notes are an integral part of these consolidated financial statements.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)


	For the Three Months Ended
	March 31, 2020		March 31, 2019
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	17,741	$	18,707
Farmer Mac Guaranteed Securities and USDA Securities	71,517		85,411
Loans	60,596		51,397
Total interest income	149,854		155,515
Total interest expense	108,542		114,916
Net interest income	41,312		40,599
(Provision for)/release of losses	(3,438)		264
Net interest income after (provision for)/release of losses	37,874		40,863
Non-interest (expense)/income:
Guarantee and commitment fees	3,196		3,513
Losses on financial derivatives	(9,298)		(360)
Gains on trading securities	106		44

Gains on sale of real estate owned	485		—
(Provision for)/release of reserve for losses	(393)		129
Other income	816		493
Non-interest (expense)/income	(5,088)		3,819
Operating expenses:
Compensation and employee benefits	10,127		7,606
General and administrative	5,363		4,596
Regulatory fees	725		688

Operating expenses	16,215		12,890
Income before income taxes	16,571		31,792
Income tax expense	3,741		6,622


Net income attributable to Farmer Mac	12,830		25,170
Preferred stock dividends	(3,431)		(3,296)

Net income attributable to common stockholders	$	9,399	$	21,874

Earnings per common share:
Basic earnings per common share	$	0.88	$	2.05
Diluted earnings per common share	$	0.87	$	2.03

The accompanying notes are an integral part of these consolidated financial statements.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)


	For the Three Months Ended
	March 31, 2020		March 31, 2019
	(in thousands)
Net income	$	12,830	$	25,170
Other comprehensive income before taxes:
Net unrealized (losses)/gains on available-for-sale securities	(99,316)		3,241
Net changes in held-to-maturity securities	(5,688)		(2,262)
Net unrealized losses on cash flow hedges	(28,256)		(5,665)
Other comprehensive loss before tax	(133,260)		(4,686)
Income tax benefit related to other comprehensive loss	27,984		984
Other comprehensive loss net of tax	(105,276)		(3,702)


Comprehensive (loss)/income attributable to Farmer Mac	$	(

EX-31.1	ex311agm-03312020.htm
EX-31.2	ex312agm-03312020.htm
EX-32	ex32agm-03312020.htm

AGM 10Q Quarterly Report

Federal Agricultural Mortgage Earnings 2020-03-31