Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2024
The financial report filed with the Securities and Exchange Commission on May 6, 2024, provides a quarterly update on the company’s performance for the period ended March 31, 2024. The report highlights key financial developments and events, offering a concise overview of the company’s financial health and progress.
Overview
Farmer Mac is a secondary market provider that increases access to credit for agriculture and rural infrastructure. In Q1 2024, Farmer Mac delivered solid financial results despite economic challenges like high inflation and interest rates.
Key Results
- Net income was $47 million, up 18% from Q1 2023, driven by higher net interest income and lower provision for credit losses
- Core earnings were $43 million, up 12% due to higher net interest income
- Net interest income rose 9% to $86 million due to business growth and higher interest rates
- Outstanding business volume was $28.8 billion, up 8.9% year-over-year
Business Performance
- Added $0.4 billion in new business volume across all lines of business
- Farm & Ranch volume increased due to loan purchases and higher AgVantage Securities issuance
- Renewable Energy volume rose over 50% year-over-year due to strong demand
- Credit quality remained strong; delinquencies still below historical average
Financial Position
- Total assets rose 3% to $29.8 billion due to loan portfolio growth
- Capital levels well above regulatory minimums
- Maintained excellent liquidity and funding access
Outlook
The agriculture sector faces some headwinds like lower commodity prices, but the farming outlook remains positive overall. Farmer Mac is positioned to benefit from agriculture lenders’ increased focus on capital efficiency and interest rate volatility. Investments in infrastructure and technology will support future portfolio expansion. While expenses are likely to increase to support growth initiatives, Farmer Mac expects continued solid financial performance.
