Federal Agricultural Mortgage Corporation Q2 FY2025 earnings call

• Achieved record results in Q2 2025 with core earnings up 19% YOY, net effective spread up over 12%, and total outstanding business volume surpassing $30 billion for the first time. - Diversified loan portfolio into renewable energy, broadband infrastructure, and corporate agribusiness. - Purchased $35.6 million of renewable energy investment tax credits resulting in a $3.2 million benefit. - Operating expenses increased due to headcount, technology investments, and legal fees. - Credit expense: $7.8 million net provision with $2.8 million charge-off, recoveries, downgrades in infrastructure loans, and CECL allowances for new segments. - Board modified share repurchase program to $50 million authorized, term extended to August 2027. - Sixth Farm securitization transaction closed in June; working on second transaction. - Core capital increased to $1.6 billion, Tier 1 ratio 13.6%. - Impact of HR1 legislation on Farmer Mac and stakeholders.

Infrastructure Finance segment: Grew $644 million in the second quarter to $10.4 billion. Renewable Energy segment grew $332 million in Q2 2025, a 122% year-over-year increase, ending the quarter at nearly $2 billion. Broadband Infrastructure segment grew $200 million this quarter to $1.2 billion. Power and Utilities segment grew $112 million this quarter. Agricultural Finance segment: Volume increased by $188 million in the second quarter to $20.2 billion as of quarter end. Farm & Ranch segment business volume increased by a net $123 million in the second quarter to $18.2 billion as of quarter end. Corporate Ag Finance segment grew $64 million in the second quarter to $2 billion at quarter end.

• Continue to evaluate capital management tools to optimize capital position. - Expect strong pipeline and business composition in newer segments to support growth. - Monitor impact of HR1 provisions on Farmer Mac and industries served.

• Volatility in agricultural cycle and market uncertainty. - Credit risks in newer segments with different risk profiles. - Impact of government actions/policy changes on portfolio. - Uncertainty around tariffs and trade policy impacts on farmers and agribusiness. - Permitting challenges and policy changes affecting renewable energy projects.

Q: About spread outlook and Farm & Ranch spreads A: Discussion on mix of new segments and AgVantage bonds.

Q: About HR1 tax benefits and renewable energy production A: Explanation of ACRE provision and impact of policy changes on renewable energy.

Q: About renewable energy tax credits phase-out A: Discussion on timing of phase-out and project finance opportunities.

Q: About $7.8 million credit provision A: Details on charge-offs and downgrades in loans.

Q: About share repurchase authorization A: Explanation of capital allocation priorities and timing of repurchases