Farmer Mac Raises Dividend 7% to $1.60 After Record 13% Spread Growth
Farmer Mac reported net income of $182.5 million ($16.62 per share) and record net effective spread up 13% to $383.0 million in fiscal 2025. The board increased the quarterly dividend 7% to $1.60, marking fifteen consecutive annual raises.
1. Fiscal 2025 Results
Farmer Mac reported net income of $182.5 million ($16.62 per diluted share) and record core earnings of $182.9 million ($16.66 per share) for the year ended December 31, 2025. Outstanding business volume reached $33.4 billion, a 13% increase year-over-year, while the company provided $10.5 billion in liquidity to rural lenders.
2. Fourth-Quarter Performance
In Q4, net interest income rose 12% to $104.5 million and net effective spread jumped 16% to $101.4 million, although borrower-specific credit events trimmed non-GAAP core earnings per share by 8% to $3.66.
3. Capital Strength and Dividends
Total core capital stood at $1.7 billion with a Tier 1 capital ratio of 13.3% as of December 31, 2025. The board approved a 7% increase in the quarterly common stock dividend to $1.60 per share, marking the fifteenth consecutive annual raise.