Second Quarter 2026
Filed Jul 30, 2026Farmer Mac Reports Second Quarter 2026 Results - Outstanding Business Volume of $37.2 Billion -
Record outstanding business volume, net interest income, net effective spread, and core earnings were accompanied by broad-based portfolio growth, double-digit year-over-year EPS growth, and strengthened Tier 1 capital.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Outstanding Business Volumeother | $37.2 billion | – | 22% |
| Net Change in Business Volumeother | $2,351.1 million | N/A | N/A |
| Liquidity and lending capacity provided to lenders serving rural Americaother | $4.0 billion | – | – |
| Net Interest IncomeGAAP | $118.1 million | 16% | 22% |
| Net Effective Spreadnon-GAAP | $117.4 million | 15% | 25% |
| Net income attributable to common stockholdersGAAP | $58.9 million | – | – |
| Diluted EPSGAAP | $5.41 | 14% | 21% |
| Core earningsnon-GAAP | $58.8 million | – | 24% |
| Diluted Core EPSnon-GAAP | $5.40 | 14% | 25% |
| Core return on equitynon-GAAP | 19% | – | – |
| Tax credits purchasedother | $21.4 million | – | – |
| Benefit from tax credits purchasedother | $2.0 million | – | – |
| Total core capitalother | $1.9 billion | – | – |
| Tier 1 Capital Ratioother | 13.2% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Farm & Ranch business volumeThe portfolio grew by $1.7 billion, primarily due to $1.1 billion of net growth in AgVantage securities, including a $0.8 billion AgVantage security from a new counterparty, and net loan purchase volume of $483.4 million. | $22.0 billion | – | 21% |
| Corporate AgFinance business volumeThe portfolio grew modestly by $30.5 million due to loan purchases and AgVantage securities activity with several counterparties. | $2.1 billion | – | 7% |
| Power & Utilities business volumeNet growth of $291.0 million included the purchase of a $197 million pool of loans from a single customer. | $8.3 billion | – | 13% |
| Renewable Energy business volumeBusiness volume increased $120.2 million due to strong deal flow and continued project finance momentum. | $3.0 billion | – | 55% |
| Broadband Infrastructure business volumeBusiness volume grew $161.8 million, reflecting steady demand for rural telecommunications and data connectivity. | $1.9 billion | – | 58% |
What drove it
- Broad-based, net portfolio growth of $2.4 billion reflected strong customer demand across all segments.
- Net effective spread increased primarily due to robust net volume growth and the collection of $7.4 million of recovery of interest on a delinquent permanent planting exposure.
- Purchased $21.4 million of tax credits, resulting in a benefit of $2.0 million.
- Farmer Mac launched Farmer Mac Loan Exchange, or FLX, its new Farm & Ranch loan platform.
Concerns
- Credit provisions primarily related to new volume growth across all segments and portfolio credit migration trends.
- Management cited uncertainties regarding debt and equity financing availability and rates and terms, legislative, regulatory, political developments, asset fair-value fluctuations, lender interest, and agricultural and infrastructure market growth.
What to watch
- Portfolio growth across Farm & Ranch, Corporate AgFinance, Power & Utilities, Renewable Energy, and Broadband Infrastructure.
- The durability of net effective spread following the $7.4 million recovery of interest on a delinquent permanent planting exposure.
- Credit provisions associated with new volume growth and portfolio credit migration trends.
- Execution and adoption of Farmer Mac Loan Exchange, or FLX.
- The expense efficiency ratio relative to the below 30% strategic target.
Balance sheet and cash flow
- Total core capital of $1.9 billion as of June 30, 2026.
- Tier 1 Capital Ratio of 13.2% as of June 30, 2026.
- Issued $100.0 million of Tier 1 capital through the public offering of 6.875% Series I non-cumulative preferred stock.
Analysis
Farmer Mac reported record second-quarter operating results. Outstanding business volume reached $37.2 billion, up 22% year-over-year, while net change in business volume was $2,351.1 million, compared with $831.9 million in the prior-year period and $1,494.5 million in the prior quarter. The company provided $4.0 billion in liquidity and lending capacity to lenders serving rural America, and management characterized portfolio expansion as broad-based across all segments.
GAAP net interest income was $118.1 million, up 22% year-over-year and 16% quarter-over-quarter. Non-GAAP net effective spread reached a record $117.4 million, up 25% year-over-year and 15% sequentially. Management attributed the increase primarily to robust net volume growth and the collection of $7.4 million of recovery of interest on a delinquent permanent planting exposure. GAAP diluted EPS was $5.41, up 21% year-over-year and 14% sequentially, while non-GAAP diluted core EPS was $5.40, up 25% year-over-year and 14% sequentially.
The portfolio mix remained weighted toward Agricultural Finance, which represented 65% of outstanding business volume. Farm & Ranch business volume was $22.0 billion and grew 21% year-over-year, supported by $1.1 billion of net AgVantage-securities growth and $483.4 million of net loan-purchase volume. Infrastructure Finance represented 35% of outstanding business volume. Renewable Energy and Broadband Infrastructure posted the fastest reported year-over-year volume growth at 55% and 58%, respectively, while Power & Utilities business volume grew 13%.
Profitability was reinforced by record non-GAAP core earnings of $58.8 million, up 24% year-over-year, and a 19% core return on equity. GAAP net income attributable to common stockholders was $58.9 million. The company also purchased $21.4 million of tax credits, resulting in a benefit of $2.0 million. Credit provisions were associated primarily with new volume growth across all segments and portfolio credit migration trends, making credit performance an important consideration alongside continued expansion.
Capital was strengthened through a $100.0 million public offering of 6.875% Series I non-cumulative preferred stock. Total core capital was $1.9 billion and the Tier 1 Capital Ratio was 13.2% as of June 30, 2026. The release did not provide quantitative forward guidance. Management highlighted FLX, the Farmer Mac Loan Exchange Farm & Ranch loan platform, as an initiative intended to deliver liquidity more efficiently and at scale.
Management, verbatim
Farmer Mac delivered record second quarter results, with business volume, revenue, and core earnings all reaching all-time highs, a testament to the strength of our mission-driven franchise and the disciplined execution of our strategy across every part of our business.
Zachary Carpenter, President and Chief Executive Officer
Broad-based volume growth carried us past $37 billion in outstanding business volume, reinforcing our role as a vital source of liquidity for American agriculture and rural infrastructure. We also strengthened our already robust capital base through a successful preferred stock issuance and maintained our expense efficiency ratio below our 30% strategic target, while continuing to invest for future growth.”
Zachary Carpenter, President and Chief Executive Officer
Our commitment to innovation reached an important milestone this week with the launch of Farmer Mac Loan Exchange, or FLX, our new Farm & Ranch loan platform, a significant step in modernizing our technology to deliver liquidity more efficiently and at scale, and a strong example of the innovation that will continue to differentiate Farmer Mac and transform the agricultural mortgage market,
Zachary Carpenter, President and Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue was not reported.
- Segment revenue was not reported. The filing reported segment business volume instead.
- GAAP gross margin and non-GAAP gross margin were not reported.
- GAAP operating income, non-GAAP operating income, and operating expenses were not reported.
- GAAP net income attributable to common stockholders prior-year and prior-quarter values were not reported on that metric's own line.
- Operating cash flow and free cash flow were not reported.
- Cash, debt, and net debt were not reported.
- Share repurchases and common-stock dividends were not reported.
- Quantitative forward guidance was not reported.
- Previous-release outlook was not provided.
- Segment quarter-over-quarter business-volume growth was not reported.
- Segment net effective spread percentages were reported, but segment revenue was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.