Farmer Mac Posts 13% Revenue Rise, $3.8B Volume and Dividend Hike
Federal Agricultural Mortgage generated a record $3.8B net new business volume in 2025, ending with $33.4B outstanding and achieving $410M revenue (up 13%) and $183M core earnings (consecutive record). The board raised its quarterly dividend by $0.10 to $1.60 while repurchasing $12.9M of shares and reporting $32.9M in credit provisions.
1. Record Volume and Revenue Growth
Federal Agricultural Mortgage delivered $3.8 billion in net new business volume in 2025, ending the year with $33.4 billion in total outstanding business volume. Revenue reached $410 million, up 13% year over year, while core earnings rose to $182.9 million, marking the tenth straight annual record.
2. Dividend Increase and Share Repurchases
The board approved a $0.10 increase in the quarterly dividend to $1.60 per share, marking the fifteenth consecutive annual hike. In the fourth quarter, the company repurchased $12.9 million of Class C common stock under its $50 million authorization, leaving $37.1 million available for further buybacks.
3. Segment Performance and Spread Expansion
Infrastructure Finance led the business with $11.8 billion in outstanding volume at year-end 2025, up $2.8 billion from the prior year, driven by data center, power utility and renewable energy projects. Net effective spread hit a quarterly record $101.4 million (122 basis points), a 16% increase, fueled by a shift toward higher-yield assets.
4. Credit Provisions and Capital Position
Provisions for credit losses totaled $32.9 million in 2025, including $19.6 million for significant individual loan deteriorations and $9.6 million tied to volume growth, with charge-offs of $20.9 million. Core capital climbed by $204 million to $1.7 billion, exceeding requirements by $678 million, while the Tier 1 capital ratio stood at 13.3%.