Farmer Mac Q2 2026: Record Earnings, $96.8M Preferred Issuance, and Growing Loan Book
AGM sits 61% above its 52-week low of $136.57.
Summary
Farmer Mac posted record Q2 2026 earnings with net income of $66.95 million, a 22% increase, and completed a $96.8 million preferred stock issuance. The loan portfolio grew to $18.2 billion, while credit metrics showed modest deterioration.
Key Events · Earnings and Guidance · AGM
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Record Q2 Earnings
Net income attributable to common stockholders rose 19.7% year-over-year to $58.9 million, with diluted EPS of $5.41. Driving the performance, net interest income increased 22% to $118.1 million, fueled by volume growth and a $7.4 million recovery of default interest.
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Balance Sheet Expansion
Total assets grew 11% from year-end to $39.3 billion. Net loans increased to $18.2 billion, supported by $4.0 billion in new business volume during the quarter, led by Farm & Ranch and Renewable Energy.
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Preferred Stock Issuance
The company issued 4.0 million shares of 6.875% Series I non-cumulative preferred stock, raising $96.8 million in net proceeds. As a result, core capital now exceeds the regulatory minimum by $730.7 million.
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Credit Quality Trends
The allowance for losses rose to $47.2 million, reflecting a $7.0 million provision in Q2. Substandard assets increased to $635.2 million, or 3.9% of agricultural loans, while 90-day delinquencies improved to 0.93% from 1.25% in Q1.
Analysis · AGM · Finance
A 22% surge in net interest income propelled Farmer Mac to record second-quarter net income of $66.95 million, up 22% year-over-year. The balance sheet expanded materially, with total assets surpassing $39 billion and net loans climbing 11% to $18.2 billion. The quarter also featured a $96.8 million Series I preferred stock offering that bolstered regulatory capital. On the credit front, substandard assets edged up to 3.9% of the agricultural portfolio, and the allowance for losses rose to $47.2 million, though 90-day delinquencies remain manageable at 0.93%. Trading near its 52-week high, the stock reflects the market's favorable view of the earnings momentum and capital position.
At the time of this filing, AGM was trading at $220.30 on NYSE in the Finance sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $136.57 to $221.22. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.