Welcome to our dedicated page for Federal Agricultural Mortgage Corporation news (Ticker: AGM), a resource for investors and traders seeking the latest updates and insights on Federal Agricultural Mortgage Corporation stock.
The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac (NYSE: AGM), is a stockholder-owned, government-sponsored enterprise (GSE) established by Congress to enhance the availability of long-term credit for America’s farmers, ranchers, rural homeowners, businesses, and communities. Farmer Mac achieves its mission by providing a secondary market for agricultural mortgage loans, rural housing mortgage loans, rural utilities loans, and USDA-guaranteed portions of agricultural and rural development loans.
Farmer Mac operates through seven segments: Farm & Ranch, Corporate AgFinance, Rural Utilities, Renewable Energy, Funding, Investments, and Corporate. The company purchases qualified mortgage loans secured by first liens on agricultural real estate and rural housing under its Farm & Ranch segment. Its subsidiary also acquires USDA-guaranteed portions of agricultural, rural development, business and industry, and community facilities loans.
Recently, Farmer Mac reported an outstanding business volume of $28.8 billion for the fiscal quarter ended March 31, 2024, demonstrating its critical role in providing liquidity to lenders serving rural America. The corporation's latest financial results highlight its robust performance, with net interest income growing by 9% year-over-year to $86.4 million and net effective spread increasing by 8% to $83.0 million.
Farmer Mac is known for its consistent performance, strategic growth, and disciplined asset-liability management. Its strong capital base and uninterrupted access to capital markets underscore its resilience and long-term commitment to supporting American agriculture and rural infrastructure. The company's strategic initiatives also include innovations in the agricultural mortgage-backed securities (AMBS) market to enhance credit accessibility in rural America.
As a GSE, Farmer Mac's operations and financial strength are pivotal in ensuring the continued growth and sustainability of America's rural and agricultural communities, making it an essential component of the nation's agricultural credit market.
Farmer Mac (NYSE: AGM) announced plans to redeem all 3,000,000 shares of its 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C. The redemption price is set at $25.00 per share, plus any declared and unpaid dividends until the redemption date of July 18, 2024. Post-redemption, dividends will cease to accrue on these shares. The shares are held in book-entry form through The Depository Trust Company (DTC), and the redemption process will follow DTC's procedures. Equiniti Trust Company will act as the transfer agent for the redemption.
On May 16, 2024, Farmer Mac (NYSE: AGM and AGM.A) announced the election of Jeffrey L. Plagge and Kevin G. Riel to its board of directors. Plagge, with extensive banking experience, and Riel, a hop farmer and financial institution board member, replace Dennis Brack and Everett Dobrinski. Board Chair Lowell L. Junkins emphasized their contributions to Farmer Mac's mission of enhancing rural America's financial accessibility. Plagge and Riel expressed enthusiasm for their roles, aiming to leverage their expertise to support Farmer Mac's objectives. Additional details are in Farmer Mac's 2024 proxy statement on their website.
Farmer Mac's board of directors has announced a second quarter dividend of $1.40 per share for its common stockholders, payable on June 28, 2024. The dividend pertains to Class A Voting Common Stock (NYSE: AGM.A), Class B Voting Common Stock, and Class C Non-Voting Common Stock (NYSE: AGM). Additionally, dividends for five classes of preferred stock have been declared, with payments scheduled for July 17, 2024.
Farmer Mac also plans to redeem all 3,000,000 shares of its Series C Preferred Stock (NYSE: AGM.PR.C) valued at $75 million. Holders will receive a written notice between 30 and 60 days before the redemption date, which will not affect the dividend payments declared for July 17, 2024.
Farmer Mac continues its mission to provide accessible financing to American agriculture and rural infrastructure, supporting various customers including agricultural lenders and rural electric cooperatives.
Farmer Mac reported strong first-quarter 2024 results with outstanding business volume of $28.8 billion. The company provided $1.4 billion in liquidity, saw a 9% increase in net interest income, and achieved 17% growth in net income. Farmer Mac maintained a solid capital position and core earnings grew by 12%. The company's performance reflects its commitment to rural America and stockholder value.
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