Farmer Mac Reports Higher Earnings

The Federal Agricultural Mortgage Corporation (Farmer Mac) announced that it achieved record core earnings and program volume for the quarter ended September 30, 2012. Core earnings, a non-GAAP measure, was $13.4 million for third quarter 2012, up from $11.2 million for third quarter 2011. Core earnings for third quarter 2012 benefited from higher net effective spread of $27.3 million, compared to $22.8 million in third quarter 2011.

This higher net effective spread was partially offset by net provisions to the allowance for losses of $0.1 million, compared to net releases of $0.8 million for the prior year’s third quarter. Farmer Mac had GAAP net income attributable to common stockholders for third quarter 2012 of $16.4 million, compared to net loss of $23 million for the same period in 2011. The increase in Farmer Mac’s GAAP net income compared to the previous quarter was almost entirely attributable to the effects of fair value changes on financial derivatives.

Farmer Mac President and Chief Executive Officer Timothy Buzby said he is pleased to report all-time highs this quarter for core earnings and outstanding program volume.