8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 6, 2019

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

(Exact name of registrant as specified in its charter)

Federally chartered instrumentality of the United States		001-14951	52-1578738
(State or Other Jurisdiction of Incorporation)		(Commission File Number)	(IRS Employer Identification No.)
1999 K Street, N.W., 4th Floor,			20006
Washington,	DC
(Address of Principal Executive Offices)			(Zip Code)

Registrant’s telephone number, including area code (202) 872-7700

No change

(Former name or former address, if changed since last report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Exchange on which registered
Class A voting common stock	AGM.A	New York Stock Exchange
Class C non-voting common stock	AGM	New York Stock Exchange
5.875% Non-Cumulative Preferred Stock, Series A	AGM.PRA	New York Stock Exchange
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C	AGM.PRC	New York Stock Exchange
5.700% Non-Cumulative Preferred Stock, Series D	AGM.PRD	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition.

On November 6, 2019, the Federal Agricultural Mortgage Corporation (“Farmer Mac”) issued a press release to announce (1) its financial results for the fiscal quarter ended September 30, 2019 and (2) a conference call to discuss those results and Farmer Mac’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2019. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.1 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.

The information furnished in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

Item 7.01    Regulation FD Disclosure.

On November 6, 2019, Farmer Mac posted an investor slide presentation for equity investors to its website at www.farmermac.com under the tab “Investors — Events and Presentations.” Farmer Mac expects to use the slide presentation in connection with future investor presentations to analysts and investors. The slide presentation is attached as Exhibit 99.2 and is incorporated by reference into this report. All references to www.farmermac.com in Exhibit 99.2 are inactive textual references only, and the information contained on that website is not incorporated by reference into this report.

The information furnished in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor will any of such information or Exhibit be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

99.1    Press Release dated November 6, 2019

99.2    Equity investor slide presentation

104    Cover Page Inline Interactive Data File - the cover page interactive data file does not appear in the

    Interactive Data File because its XBRL tags are embedded within the Inline XBRL document included

as Exhibit 101

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION                    

By: /s/ Stephen P. Mullery            

Name: Stephen P. Mullery

Title: Executive Vice President – General Counsel

Dated: November 6, 2019

EX-99.1

Farmer Mac Reports Third Quarter 2019 Results

- Grew Outstanding Business Volume to $20.9 Billion -

-

WASHINGTON, November 6, 2019 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the availability and affordability of credit for the benefit of rural America, today announced its results for the fiscal quarter ended September 30, 2019.

Third Quarter 2019 Highlights

• Sequential net business volume growth of $185.6 million to total outstanding business volume of $20.9 billion, primarily driven by the Farm & Ranch and Rural Utilities lines of business

• Net income attributable to common stockholders of $14.4 million, or $1.33 per diluted common share

• Core earnings, a non-GAAP measure, grew 5% year-over-year to $23.4 million, or $2.17 per diluted common share

• Net interest income of $40.1 million, compared to $45.1 million for the prior-year period

• Net effective spread, a non-GAAP measure, increased 9% from the prior-year period to $42.5 million

• 90-day delinquencies were 0.81% of the $7.4 billion Farm & Ranch portfolio and 0.29% of total outstanding business volume as of September 30, 2019

"Our third quarter 2019 results continued our strong momentum from the first half of the year with another quarter of solid core earnings and portfolio growth in our core lines of business," said President and Chief Executive Officer Brad Nordholm. "Farmer Mac continues to be fundamentally healthy as we are in excellent financial condition in all facets of our operations, consistently leverage our inherent cost of funding advantage, and are seeing some early successes from organizational changes that allow us to be more commercially focused and enhance our emphasis on customer service. All these factors allow us to continue to succeed in filling our mission to increase the availability and affordability of credit for rural America while delivering value for our shareholders."

Third Quarter 2019 Results

Business Volume

Outstanding business volume was $20.9 billion as of September 30, 2019, which represents a sequential increase of $185.6 millionfrom June 30, 2019 after taking into account all new business, maturities, and paydowns on existing assets. This increase was driven by net growth of $102.4 million in Farm & Ranch, $76.9 million in Rural Utilities, and $46.4 million in USDA Guarantees, partially offset by a net decrease of $40.1 million in Institutional Credit.

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The $102.4 million net increase in Farm & Ranch was comprised of an $82.7 million net increase in outstanding loan purchase volume and a $19.7 million net increase in loans under long-term standby purchase commitments (LTSPCs). This growth outpaced the seasonally large amount of repayments that resulted from a July 1 payment date on most loans within the Farm & Ranch portfolio.

Net growth in Rural Utilities was primarily due to the purchase of multiple loans that totaled $117.3 million. These purchases were partially offset by repayments of $40.3 million during the quarter.

USDA Guarantees grew by $46.4 million in third quarter 2019, compared to net growth of $36.6 million in second quarter 2019. This increase in growth reflects Farmer Mac's ability to more effectively meet customer demands in an increasingly competitive environment.

Institutional Credit decreased by $40.1 million, primarily related to the maturity of one $75.0 million AgVantage security that did not renew. This maturity was partially offset by net growth of $52.6 million from two of Farmer Mac's financial fund counterparties.

Spreads

Net interest income was $40.1 million for third quarter 2019, compared to $45.1 million for third quarter 2018, primarily due to a $5.5 million decrease in net fair value changes from fair value hedge accounting relationships and a $2.2 million increase in funding and liquidity costs. These factors were partially offset by a $3.3 million increase in interest income generated from new business volume. Overall net interest yield was 0.78% for third quarter 2019, compared to 0.99% for third quarter 2018. The 21 basis point year-over-year decrease was primarily attributable to an 11 basis point decrease in net fair value changes from fair value hedge accounting relationships and a 9 basis point increase in funding and liquidity costs.

Net effective spread, a non-GAAP measure, grew 9% to $42.5 million in third quarter 2019, compared to $39.1 million in third quarter 2018, primarily due to a $3.8 million increase in net effective spread from new business volume. In percentage terms, net effective spread was 0.90% in third quarter 2019, compared to 0.93% in third quarter 2018.

Earnings

Net income attributable to common stockholders for third quarter 2019 was $14.4 million ($1.33 per diluted common share), compared to $26.5 million ($2.46 per diluted common share) for third quarter 2018. The difference was primarily due to a $6.3 million after-tax decrease in the fair value of undesignated financial derivatives, a $3.9 million after-tax decrease in net interest income, a $1.4 million after-tax increase in operating expenses, and a $0.5 million after-tax provision for total loan losses.

Non-GAAP core earnings for third quarter 2019 were $23.4 million ($2.17 per diluted common share), an increase of $1.0 million compared to $22.4 millionin third quarter 2018 ($2.08 per diluted common share). The year-over-year increase in core earnings was primarily due to a $2.7 million after-tax increase in net effective spread, partially offset by a $1.5 million after-tax increase in operating expenses.

See "Use of Non-GAAP Measures" below for more information about core earnings, core earnings per share, and net effective spread and for reconciliations of the comparable GAAP measures to these non-GAAP measures.

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Credit

As of September 30, 2019, Farmer Mac's allowance for losses was $9.8 million (0.13% of the Farm & Ranch portfolio), compared to $9.1 million (0.13% of the Farm & Ranch portfolio) as of June 30, 2019 and $9.0 million (0.13% of the Farm & Ranch portfolio) as of September 30, 2018. The increase in the total allowance for losses from second quarter 2019 was primarily related to idiosyncratic factors of a few large loans and less related to systemic, macroeconomic factors. Idiosyncratic factors include death, divorce, or health issues experienced by a borrower or the borrower’s family, or economic conditions unique to a single entity.

As of September 30, 2019, Farmer Mac's 90-day delinquencies were $59.7 million (0.81% of the Farm & Ranch portfolio), compared to $28.0 million (0.38% of the Farm & Ranch portfolio) as of June 30, 2019 and $37.5 million (0.53% of the Farm & Ranch portfolio) as of September 30, 2018. The sequential increase in 90-day delinquencies is consistent with the seasonal pattern of Farmer Mac's 90-day delinquencies fluctuating from quarter to quarter, both in dollars and as a percentage of the outstanding Farm & Ranch portfolio. Higher levels are generally observed at the end of the first and third quarters and lower levels are generally observed at the end of the second and fourth quarters of each year.

As of September 30, 2019, Farmer Mac had no delinquent AgVantage securities or delinquent Rural Utilities loans held or underlying LTSPCs. USDA Securities are backed by the full faith and credit of the United States. Across all of Farmer Mac's lines of business, 90-day delinquencies represented 0.29% of total business volume as of September 30, 2019, compared to 0.14% as of June 30, 2019 and 0.19% as of September 30, 2018.

As of September 30, 2019, Farmer Mac's substandard assets were $290.5 million (3.9% of the Farm & Ranch portfolio), compared to $242.7 million (3.3% of the Farm & Ranch portfolio) as of June 30, 2019 and $216.0 million (3.1% of the Farm & Ranch portfolio) as of September 30, 2018. The $47.8 million sequential increase in substandard assets in third quarter 2019 was primarily due to the downgrade of more assets into the substandard category than those that were paid off or migrated to a more favorable category. Quarterly fluctuations in the total amount of substandard assets continue to be driven by idiosyncratic factors of a few large loans migrating into and out of the substandard asset pool and less related to systemic, macroeconomic factors.

Farmer Mac's 90-day delinquencies rate and substandard assets rate at the end of third quarter 2019 each remained below Farmer Mac's historical averages of 1.0% and 4.0%, respectively.

Capital

As of September 30, 2019, Farmer Mac's core capital level was $793.3 million, which was $184.9 million above the minimum capital level required by Farmer Mac's statutory charter.  Farmer Mac's Tier 1 capital ratio was 13.2% as of September 30, 2019.

Earnings Conference Call Information

The conference call to discuss Farmer Mac's third quarter 2019 financial results will be held beginning at 11:00 a.m. Eastern time on Wednesday, November 6, 2019 and can be accessed by telephone or live webcast as follows:

Telephone (Domestic): (888) 346-2616

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Telephone (International): (412) 902-4254

Webcast: https://www.farmermac.com/investors/events-presentations/

When dialing in to the call, please ask for the "Farmer Mac Earnings Conference Call." The call can be heard live and will also be available for replay on Farmer Mac’s website for two weeks following the conclusion of the call.

More complete information about Farmer Mac's performance for third quarter 2019 is in Farmer Mac's Quarterly Report on Form 10-Q for the period ended September 30, 2019 filed today with the SEC.

Use of Non-GAAP Measures

In the accompanying analysis of its financial information, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per share," and "net effective spread." Farmer Mac uses these non-GAAP measures to measure corporate economic performance and develop financial plans because, in management's view, they are useful alternative measures in understanding Farmer Mac's economic performance, transaction economics, and business trends. The non-GAAP financial measures that Farmer Mac uses may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of these non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.

Core earnings and core earnings per share principally differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected.

Core earnings and core earnings per share also differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding specified infrequent or unusual transactions that Farmer Mac believes are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business.

Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs of these assets. Net effective spread differs from net interest income and net interest yield because it excludes: (1) the amortization of premiums and discounts on assets consolidated at fair value that are amortized as adjustments to yield in interest income over the contractual or estimated remaining lives of the underlying assets; (2) interest income and interest expense related to consolidated trusts with beneficial interests owned by third parties, which are presented on Farmer Mac's consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost"; and (3) the fair value changes of financial derivatives and the corresponding assets or liabilities designated in a fair value hedge relationship.

Net effective spread also principally differs from net interest income and net interest yield becauseit includes: (1) the accrual of income and expense related to the contractual amounts due on financial derivativesthat are not designated in hedge relationships ("undesignated financial derivatives"); and (2) the net effects of terminations or net settlements on financial derivatives. More information about Farmer Mac’s use of non-GAAP measures is available in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations" in Farmer Mac's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 filed today with the SEC.

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For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, and net interest income and net interest yield to net effective spread, see "Reconciliations" below.

Forward-Looking Statements

Management's expectations for Farmer Mac's future necessarily involve assumptions and estimates and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause Farmer Mac's actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release, including uncertainties about:

• the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;

• legislative or regulatory developments that could affect Farmer Mac, its sources of business, or the agricultural or rural utilities industries;

• fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;

• the rate and direction of development of the secondary market for agricultural mortgage and rural utilities loans, including lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;

• the general rate of growth in agricultural mortgage and rural utilities indebtedness;

• the effect of economic conditions and geopolitics on agricultural mortgage lending or on borrower repayment capacity, including fluctuations in interest rates, changes in U.S. trade policies, and fluctuations in export demand for U.S. agricultural products;

• changes in the level and direction of interest rates, which could, among other things, affect the value of collateral securing Farmer Mac's agricultural mortgage loan assets;

• the degree to which Farmer Mac is exposed to basis risk, which results from fluctuations in Farmer Mac's borrowing costs relative to market indexes;

• developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;

• the effect of any changes in Farmer Mac's executive leadership; and

• other factors that could have a negative effect on agricultural mortgage lending or borrower repayment capacity, including volatility in commodity prices, the effects of flooding and other weather-related conditions, and fluctuations in agricultural real estate values.

Other risk factors are discussed in "Risk Factors" in Part I, Item 1A in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC on February 21, 2019. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. The forward-looking statements contained in this release represent management's expectations as of the date of this release. Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements included in this release to reflect new information or any future events or circumstances, except as otherwise required by applicable law or regulation. The information in this release is not necessarily indicative of future results.

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About Farmer Mac

Farmer Mac is a vital part of the agricultural credit markets and works to increase the availability and affordability of credit for the benefit of American agricultural and rural communities. As the nation’s secondary market for agricultural credit, we provide financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools. Farmer Mac's customers benefit from our low cost of funds, low overhead costs, and high operational efficiency. In fact, we are often able to provide the lowest cost of borrowing to agricultural and rural borrowers. For more than thirty years, Farmer Mac has been delivering the capital and commitment rural America deserves. More information about Farmer Mac (including the Quarterly Report on Form 10-Q and the Annual Report on Form 10-K referenced above) is available on Farmer Mac's website at www.farmermac.com.

CONTACT:     Jalpa Nazareth, Investor Relations

Megan Murray-Pelaez, Media Inquiries

(202) 872-7700

* * * *

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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

	As of
	September 30, 2019			December 31, 2018
	(in thousands)
Assets:
Cash and cash equivalents	$	587,941		$	425,256
Investment securities:
Available-for-sale, at fair value	3,111,632			2,217,852
Held-to-maturity, at amortized cost	45,032			45,032
Total Investment Securities	3,156,664			2,262,884
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value	7,182,541			5,974,497
Held-to-maturity, at amortized cost	1,452,616			2,096,618
Total Farmer Mac Guaranteed Securities	8,635,157			8,071,115
USDA Securities:
Trading, at fair value	8,943			9,999
Held-to-maturity, at amortized cost	2,164,064			2,166,174
Total USDA Securities	2,173,007			2,176,173
Loans:
Loans held for investment, at amortized cost	4,998,526			4,004,968
Loans held for investment in consolidated trusts, at amortized cost	1,526,718			1,517,101
Allowance for loan losses	(8,024		)	(7,017		)
Total loans, net of allowance	6,517,220			5,515,052
Real estate owned, at lower of cost or fair value	1,770			128
Financial derivatives, at fair value	5,589			7,487
Interest receivable (includes $13,385 and $19,783, respectively, related to consolidated trusts)	158,720			180,080
Guarantee and commitment fees receivable	39,136			40,366
Deferred tax asset, net	23,803			6,369
Prepaid expenses and other assets	16,227			9,418
Total Assets	$	21,315,234		$	18,694,328
Liabilities and Equity:
Liabilities:
Notes payable:
Due within one year	$	9,885,633		$	7,757,050
Due after one year	8,940,989			8,486,647
Total notes payable	18,826,622			16,243,697
Debt securities of consolidated trusts held by third parties	1,532,401			1,528,957
Financial derivatives, at fair value	30,542			19,633
Accrued interest payable (includes $11,462 and $17,125, respectively, related to consolidated trusts)	104,340			96,743
Guarantee and commitment obligation	37,449			38,683
Accounts payable and accrued expenses	31,878			11,891
Reserve for losses	1,743			2,167
Total Liabilities	20,564,975			17,941,771
Commitments and Contingencies (Note 6)
Equity:
Preferred stock:
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding	58,333			58,333
Series B, par value $25 per share, 3,000,000 shares authorized, issued and outstanding as of December 31, 2018 (redemption value $75,000,000)	—			73,044
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,382			73,382
Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding	96,659			—
Common stock:
Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding	1,031			1,031
Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding	500			500
Class C Non-Voting, $1 par value, no maximum authorization, 9,179,053 shares and 9,137,550 shares outstanding, respectively	9,179			9,138
Additional paid-in capital	118,720			118,822
Accumulated other comprehensive income, net of tax	(43,024		)	24,956
Retained earnings	435,479			393,351
Total Equity	750,259			752,557
Total Liabilities and Equity	$	21,315,234		$	18,694,328

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FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	22,855		$	15,123		$	61,718		$	38,681
Farmer Mac Guaranteed Securities and USDA Securities	81,649			76,870			252,629			213,479
Loans	56,992			50,622			167,792			145,671
Total interest income	161,496			142,615			482,139			397,831
Total interest expense	121,384			97,557			358,374			265,611
Net interest income	40,112			45,058			123,765			132,220
Provision for loan losses	(760		)	(99		)	(1,074		)	(92		)
Net interest income after provision for loan losses	39,352			44,959			122,691			132,128
Non-interest income:
Guarantee and commitment fees	3,349			3,490			10,265			10,470
(Losses)/gains on financial derivatives	(7,360		)	628			1,193			(688		)
Gains/(losses) on trading securities	49			(3		)	154			24
Losses on sale of real estate owned	—			(41		)	—			(7		)
Other income	530			365			1,378			1,259
Non-interest (loss)/income	(3,432		)	4,439			12,990			11,058
Non-interest expense:
Compensation and employee benefits	7,654			6,777			22,030			20,367
General and administrative	5,253			4,350			14,538			13,878
Regulatory fees	688			625			2,063			1,875
Real estate owned operating costs, net	—			—			64			16
(Release of)/provision for reserve for losses	(137		)	(102		)	(424		)	77
Non-interest expense	13,458			11,650			38,271			36,213
Income before income taxes	22,462			37,748			97,410			106,973
Income tax expense	4,629			7,979			20,362			21,749
Net income attributable to Farmer Mac	17,833			29,769			77,048			85,224
Preferred stock dividends	(3,427		)	(3,295		)	(10,508		)	(9,886		)
Loss on retirement of preferred stock	—			—			(1,956		)	—
Net income attributable to common stockholders	$	14,406		$	26,474		$	64,584		$	75,338
Earnings per common share:
Basic earnings per common share	$	1.34		$	2.48		$	6.04		$	7.07
Diluted earnings per common share	$	1.33		$	2.46		$	5.99		$	7.01

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Reconciliations

Reconciliations of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings for the periods indicated:

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Three Months Ended
	September 30, 2019			June 30, 2019			September 30, 2018
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	14,406		$	28,304		$	26,474
Less reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes	(7,117		)	10,485			3,625
(Losses)/gains on hedging activities due to fair value changes	(4,535		)	(1,438		)	1,051
Unrealized gains/(losses) on trading securities	49			61			(3		)
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(7		)	(139		)	(38		)
Net effects of terminations or net settlements on financial derivatives	232			(592		)	546
Issuance costs on the retirement of preferred stock	—			(1,956		)	—
Income tax effect related to reconciling items	2,389			(1,759		)	(1,088		)
Sub-total	(8,989		)	4,662			4,093
Core earnings	$	23,395		$	23,642		$	22,381
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	42,461		$	41,355		$	39,077
Guarantee and commitment fees(2)	5,208			5,276			5,170
Other(3)	389			777			110
Total revenues	48,058			47,408			44,357
Credit related expense/(income) (GAAP):
Provision for/(release of) losses	623			420			(3		)
REO operating expenses	—			64			—
Losses on sale of REO	—			—			41
Total credit related expense/(income)	623			484			38
Operating expenses (GAAP):
Compensation and employee benefits	7,654			6,770			6,777
General and administrative	5,253			4,689			4,350
Regulatory fees	688			687			625
Total operating expenses	13,595			12,146			11,752
Net earnings	33,840			34,778			32,567
Income tax expense(4)	7,018			7,351			6,891
Preferred stock dividends (GAAP)	3,427			3,785			3,295
Core earnings	$	23,395		$	23,642		$	22,381
Core earnings per share:
Basic	$	2.19		$	2.21		$	2.10
Diluted	2.17			2.20			2.08

⁽¹⁾  Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.

⁽²⁾  Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

9

⁽³⁾  Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁴⁾  Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Nine Months Ended
	September 30, 2019			September 30, 2018
Net income attributable to common stockholders	$	64,584		$	75,338
Less reconciling items:
Gains on undesignated financial derivatives due to fair value changes	5,608			8,055
(Losses)/gains on hedging activities due to fair value changes	(8,790		)	5,302
Unrealized gains on trading securities	154			24
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(162		)	(528		)
Net effects of terminations or net settlements on financial derivatives	(250		)	2,020
Issuance costs on the retirement of preferred stock	(1,956		)	—
Income tax effect related to reconciling items	722			(3,123		)
Sub-total	(4,674		)	11,750
Core earnings	$	69,258		$	63,588
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	122,617		$	112,340
Guarantee and commitment fees(2)	15,903			15,424
Other(3)	1,675			649
Total revenues	140,195			128,413
Credit related expense (GAAP):
Provision for losses	650			169
REO operating expenses	64			16
Losses on sale of REO	—			7
Total credit related expense	714			192
Operating expenses (GAAP):
Compensation and employee benefits	22,030			20,367
General and administrative	14,538			13,878
Regulatory fees	2,063			1,875
Total operating expenses	38,631			36,120
Net earnings	100,850			92,101
Income tax expense(4)	21,084			18,627
Preferred stock dividends (GAAP)	10,508			9,886
Core earnings	$	69,258		$	63,588
Core earnings per share:
Basic	$	6.48		$	5.97
Diluted	6.43			5.92

⁽¹⁾  Net effective spread is a non-GAAP measure. See "Use of Non-GAAP Measures" above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.

⁽²⁾  Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

⁽³⁾  Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁴⁾  Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

10

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share
	For the Three Months Ended									For the Nine Months Ended
	September 30, 2019			June 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	(in thousands, except per share amounts)
GAAP - Basic EPS	$	1.34		$	2.65		$	2.48		$	6.04		$	7.07
Less reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes	(0.66		)	0.98			0.34			0.52			0.76
(Losses)/gains on hedging activities due to fair value changes	(0.42		)	(0.13		)	0.10			(0.82		)	0.50
Unrealized gains on trading securities	—			0.01			—			0.01			—
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—			(0.01		)	—			(0.02		)	(0.05		)
Net effects of terminations or net settlements on financial derivatives	0.02			(0.06		)	0.05			(0.02		)	0.19
Issuance costs on the retirement of preferred stock	—			(0.18		)	—			(0.18		)	—
Income tax effect related to reconciling items	0.21			(0.17		)	(0.11		)	0.07			(0.30		)
Sub-total	(0.85		)	0.44			0.38			(0.44		)	1.10
Core Earnings - Basic EPS	$	2.19		$	2.21		$	2.10		$	6.48		$	5.97
Shares used in per share calculation (GAAP and Core Earnings)	10,706			10,698			10,668			10,691			10,650

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share
	For the Three Months Ended									For the Nine Months Ended
	September 30, 2019			June 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	(in thousands, except per share amounts)
GAAP - Diluted EPS	$	1.33		$	2.63		$	2.46		$	5.99		$	7.01
Less reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes	(0.66		)	0.96			0.33			0.52			0.75
(Losses)/gains on hedging activities due to fair value changes	(0.42		)	(0.14		)	0.10			(0.82		)	0.49
Unrealized gains on trading securities	—			0.01			—			0.01			—
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	—			(0.01		)	—			(0.02		)	(0.05		)
Net effects of terminations or net settlements on financial derivatives	0.02			(0.05		)	0.05			(0.02		)	0.19
Issuance costs on the retirement of preferred stock	—			(0.18		)	—			(0.18		)	—
Income tax effect related to reconciling items	0.22			(0.16		)	(0.10		)	0.07			(0.29		)
Sub-total	(0.84		)	0.43			0.38			(0.44		)	1.09
Core Earnings - Diluted EPS	$	2.17		$	2.20		$	2.08		$	6.43		$	5.92
Shares used in per share calculation (GAAP and Core Earnings)	10,776			10,770			10,744			10,774			10,743

11

The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:

Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread
	For the Three Months Ended															For the Nine Months Ended
	September 30, 2019					June 30, 2019					September 30, 2018					September 30, 2019					September 30, 2018
	Dollars			Yield		Dollars			Yield		Dollars			Yield		Dollars			Yield		Dollars			Yield
	(dollars in thousands)
Net interest income/yield	$	40,112		0.78	%	$	43,054		0.87	%	$	45,058		0.99	%	$	123,765		0.84	%	$	132,220		0.98	%
Net effects of consolidated trusts	(1,859		)	0.02	%	(1,873		)	0.03	%	(1,681		)	0.05	%	(5,638		)	0.03	%	(4,953		)	0.04	%
Expense related to undesignated financial derivatives	(268		)	—	%	(1,557		)	(0.03	)%	(3,223		)	(0.08	)%	(4,370		)	(0.03	)%	(9,523		)	(0.08	)%
Amortization of premiums/discounts on assets consolidated at fair value	28			—	%	289			0.01	%	49			—	%	341			—	%	555			0.01	%
Amortization of losses due to terminations or net settlements on financial derivatives	(42		)	—	%	14			—	%	(75		)	—	%	(98		)	—	%	(207		)	—	%
Fair value changes on fair value hedge relationships	4,490			0.10	%	1,428			0.03	%	(1,051		)	(0.03	)%	8,617			0.06	%	(5,752		)	(0.05	)%
Net effective spread	$	42,461		0.90	%	$	41,355		0.91	%	$	39,077		0.93	%	$	122,617		0.90	%	$	112,340		0.90	%

12

The following table presents core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended September 30, 2019:

Core Earnings by Business Segment
For the Three Months Ended September 30, 2019
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	15,345		$	4,491		$	2,602		$	14,853		$	2,821		$	—			$	40,112
Less: reconciling adjustments(1)(2)(3)	(2,164		)	(177		)	1,900			2,954			(164		)	(2,349		)		—
Net effective spread	13,181			4,314			4,502			17,807			2,657			(2,349		)		—
Guarantee and commitment fees(2)	4,523			250			348			87			—			(1,859		)		3,349
Other income/(expense)(3)	390			92			17			—			(110		)	(7,170		)		(6,781		)
Non-interest income/(loss)	4,913			342			365			87			(110		)	(9,029		)		(3,432		)
Provision for loan losses	(760		)	—			—			—			—			—				(760		)
Release of reserve for losses	137			—			—			—			—			—				137
Other non-interest expense	(5,062		)	(1,506		)	(913		)	(2,277		)	(3,837		)	—				(13,595		)
Non-interest expense(4)	(4,925		)	(1,506		)	(913		)	(2,277		)	(3,837		)	—				(13,458		)
Core earnings before income taxes	12,409			3,150			3,954			15,617			(1,290		)	(11,378		)	(5)	22,462
Income tax (expense)/benefit	(2,606		)	(662		)	(830		)	(3,280		)	360			2,389				(4,629		)
Core earnings before preferred stock dividends	9,803			2,488			3,124			12,337			(930		)	(8,989		)	(5)	17,833
Preferred stock dividends	—			—			—			—			(3,427		)	—				(3,427		)
Segment core earnings/(losses)	$	9,803		$	2,488		$	3,124		$	12,337		$	(4,357	)	$	(8,989	)	(5)	$	14,406
Total assets at carrying value	$	4,934,887		$	2,238,558		$	1,692,835		$	8,651,264		$	3,797,690		$	—			$	21,315,234
Total on- and off-balance sheet program assets at principal balance	$	7,393,728		$	2,567,763		$	2,232,602		$	8,738,266		$	—		$	—			$	20,932,359

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.

⁽⁵⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

13

Supplemental Information

The following table sets forth information about outstanding volume in each of Farmer Mac's four lines of business as of the dates indicated:

Lines of Business - Outstanding Business Volume
	As of September 30, 2019		As of December 31, 2018
	(in thousands)
Farm & Ranch:
Loans	$	3,310,248	$	3,071,222
Loans held in trusts:
Beneficial interests owned by third party investors	1,526,718		1,517,101
LTSPCs	2,441,456		2,509,787
Guaranteed Securities	115,306		135,862
USDA Guarantees:
USDA Securities	2,131,066		2,120,553
Farmer Mac Guaranteed USDA Securities	436,697		395,067
Rural Utilities:
Loans	1,612,773		938,843
LTSPCs(1)	619,829		653,272
Institutional Credit
AgVantage Securities	8,438,266		8,082,817
Revolving floating rate AgVantage facility(2)	300,000		300,000
Total	$	20,932,359	$	19,724,524

⁽¹⁾  Includes $20.0 million and $17.0 million related to one-year loan purchase commitments on which Farmer Mac receives a nominal unused commitment fee as of September 30, 2019 and December 31, 2018, respectively.

⁽²⁾  During first nine months of both 2019 and 2018, $100.0 million of this facility was drawn and subsequently repaid. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. If the counterparty draws on the facility, the amounts drawn will be in the form of AgVantage securities, and Farmer Mac will earn interest income on those securities.

The following table presents the quarterly net effective spread by segment:

	Net Effective Spread by Line of Business
	Farm & Ranch				USDA Guarantees				Rural Utilities				Institutional Credit				Corporate				Net Effective Spread
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
For the quarter ended:
September 30, 2019 (1)	$	13,181	1.66	%	$	4,314	0.79	%	$	4,502	1.16	%	$	17,807	0.84	%	$	2,657	0.30	%	$	42,461	0.90	%
June 30, 2019	13,335		1.72	%	4,097		0.76	%	3,996		1.10	%	17,371		0.82	%	2,556		0.34	%	41,355		0.91	%
March 31, 2019	12,737		1.70	%	3,964		0.74	%	3,233		1.12	%	16,373		0.79	%	2,494		0.35	%	38,801		0.89	%
December 31, 2018	13,288		1.79	%	4,630		0.85	%	2,833		1.19	%	15,751		0.80	%	2,353		0.36	%	38,855		0.93	%
September 30, 2018	13,887		1.91	%	4,627		0.86	%	2,877		1.18	%	15,642		0.78	%	2,044		0.30	%	39,077		0.93	%
June 30, 2018	13,347		1.86	%	4,398		0.83	%	2,923		1.15	%	15,220		0.76	%	274		0.04	%	36,162		0.86	%
March 31, 2018	12,540		1.80	%	4,400		0.82	%	2,950		1.12	%	14,824		0.78	%	2,387		0.36	%	37,101		0.91	%
December 31, 2017	12,396		1.80	%	4,979		0.93	%	3,057		1.14	%	14,800		0.78	%	2,235		0.35	%	37,467		0.93	%
September 30, 2017	11,303		1.73	%	4,728		0.90	%	2,765		1.07	%	14,455		0.78	%	2,725		0.41	%	35,976		0.91	%

⁽¹⁾  See above for a reconciliation of GAAP net interest income by line of business to net effective spread by line of business for the three months ended September 30, 2019.

14

The following table presents quarterly core earnings reconciled to net income attributable to common stockholders:

Core Earnings by Quarter Ended
	September 2019			June 2019			March 2019			December 2018			September 2018			June 2018			March 2018			December 2017			September 2017
	(in thousands)
Revenues:
Net effective spread	$	42,461		$	41,355		$	38,801		$	38,855		$	39,077		$	36,162		$	37,101		$	37,467		$	35,976
Guarantee and commitment fees	5,208			5,276			5,419			5,309			5,170			5,171			5,083			5,157			4,935
Other	389			777			509			(129		)	110			111			428			69			274
Total revenues	48,058			47,408			44,729			44,035			44,357			41,444			42,612			42,693			41,185
Credit related expense/(income):
Provision for/(release of) losses	623			420			(393		)	166			(3		)	582			(410		)	464			384
REO operating expenses	—			64			—			—			—			—			16			—			—
Losses/(gains) on sale of REO	—			—			—			—			41			(34		)	—			(964		)	(32		)
Total credit related expense/(income)	623			484			(393		)	166			38			548			(394		)	(500		)	352
Operating expenses:
Compensation and employee benefits	7,654			6,770			7,606			7,167			6,777			6,936			6,654			5,247			5,987
General and administrative	5,253			4,689			4,596			5,829			4,350			5,202			4,326			4,348			3,890
Regulatory fees	688			687			688			687			625			625			625			625			625
Total operating expenses	13,595			12,146			12,890			13,683			11,752			12,763			11,605			10,220			10,502
Net earnings	33,840			34,778			32,232			30,186			32,567			28,133			31,401			32,973			30,331
Income tax expense	7,018			7,351			6,715			6,431			6,891			5,477			6,259			11,796			10,268
Preferred stock dividends	3,427			3,785			3,296			3,296			3,295			3,296			3,295			3,296			3,295
Core earnings	$	23,395		$	23,642		$	22,221		$	20,459		$	22,381		$	19,360		$	21,847		$	17,881		$	16,768
Reconciling items:
(Losses)/gains on undesignated financial derivatives due to fair value changes	(7,117		)	10,485			2,240			(96		)	3,625			6,709			(2,279		)	(261		)	995
(Losses)/gains on hedging activities due to fair value changes	(4,535		)	(1,438		)	(2,817		)	(853		)	1,051			1,687			2,564			(3		)	1,742
Unrealized gains/(losses) on trading assets	49			61			44			57			(3		)	11			16			60			—
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(7		)	(139		)	(16		)	67			(38		)	196			(686		)	(129		)	(954		)
Net effects of terminations or net settlements on financial derivatives	232			(592		)	110			(312		)	546			232			1,242			632			862
Issuance costs on the retirement of preferred stock	—			(1,956		)	—			—			—			—			—			—			—
Re-measurement of net deferred tax asset due to enactment of new tax legislation	—			—			—			—			—			—			—			(1,365		)	—
Income tax effect related to reconciling items	2,389			(1,759		)	92			238			(1,088		)	(1,855		)	(180		)	(105		)	(926		)
Net income attributable to common stockholders	$	14,406		$	28,304		$	21,874		$	19,560		$	26,474		$	26,340		$	22,524		$	16,710		$	18,487

15

EX-99.2

Third Quarter Equity Investor Presentation 2019

FARMER MAC Forward-Looking Statements In addition to historical information, this presentation includes forward- NO OFFER OR SOLICITATION OF SECURITIES looking statements that reflect management’s current expectations for This presentation does not constitute an offer to sell or a solicitation of Farmer Mac’s future financial results, business prospects, and business an offer to buy any Farmer Mac security. Farmer Mac securities are developments. Forward-looking statements include, without limitation, offered only in jurisdictions where permissible by offering documents any statement that may predict, forecast, indicate, or imply future available through qualified securities dealers. Any investor who is results, performance, or achievements. Management’s expectations for considering purchasing a Farmer Mac security should consult the Farmer Mac’s future necessarily involve assumptions, estimates, and applicable offering documents for the security and their own financial the evaluation of risks and uncertainties. Various factors or events, both and legal advisors for information about and analysis of the security, the known and unknown, could cause Farmer Mac’s actual results to differ risks associated with the security, and the suitability of the investment materially from the expectations as expressed or implied by the forward- for the investor’s particular circumstances. looking statements. Some of these factors are identified and discussed in Farmer Mac’s Annual Report on Form 10-K for the year ended Copyright © 2019 by Farmer Mac. No part of this document may be December 31, 2018, filed with the U.S. Securities and Exchange duplicated, reproduced, distributed, or displayed in public in any manner Commission (“SEC”) on February 21, 2019, Quarterly Report on Form or by any means without the written permission of Farmer Mac. 10-Q for the quarter ended March 31, 2019, filed with the SEC on May 2, 2019, Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, filed with the SEC on August 1, 2019, and Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, filed with the SEC on November 6, 2019. These reports are also available on Farmer Mac’s website (www.farmermac.com). Considering these potential risks and uncertainties, no undue reliance should be placed on any forward- looking statements expressed in this presentation. Any forward-looking statements made in this presentation are current only as of September 30, 2019, except as otherwise indicated. Farmer Mac undertakes no obligation to release publicly the results of revisions to any such forward-looking statements that may be made to reflect new information or any future events or circumstances, except as otherwise mandated by the SEC. The information in this presentation is not necessarily indicative of future results. 02

FARMER MAC Use of Non-GAAP Financial Measures This presentation is for general informational purposes only, is current Core earnings and core earnings per share also differ from net income only as of September 30, 2019, and should be read in conjunction with attributable to common stockholders and earnings per common share, Farmer Mac’s Quarterly Report on Form 10-Q filed with the SEC on respectively, by excluding specified infrequent or unusual transactions November 6, 2019. In the accompanying analysis of its financial that Farmer Mac believes are not indicative of future operating results and information, Farmer Mac uses the following non-GAAP financial that may not reflect the trends and economic financial performance of measures: core earnings, core earnings per share, and net effective Farmer Mac's core business. spread. Farmer Mac uses these non-GAAP measures to measure Farmer Mac uses net effective spread to measure the net spread Farmer corporate economic performance and develop financial plans because, Mac earns between its interest-earning assets and the related net funding in management's view, they are useful alternative measures in costs of these assets. Net effective spread differs from net interest understanding Farmer Mac's economic performance, transaction income and net interest yield because it excludes: (1) the amortization of economics, and business trends. The non-GAAP financial measures premiums and discounts on assets consolidated at fair value that are that Farmer Mac uses may not be comparable to similarly labeled non- amortized as adjustments to yield in interest income over the contractual GAAP financial measures disclosed by other companies. Farmer Mac's or estimated remaining lives of the underlying assets; (2) interest income disclosure of these non-GAAP financial measures is intended to be and interest expense related to consolidated trusts with beneficial supplemental in nature and is not meant to be considered in isolation interests owned by third parties, which are presented on Farmer Mac's from, as a substitute for, or as more important than, the related financial consolidated balance sheets as “Loans held for investment in information prepared in accordance with GAAP. consolidated trusts, at amortized cost;” and (3) beginning January 1, Core earnings and core earnings per share principally differ from net 2018, the fair value changes of financial derivatives and the corresponding income attributable to common stockholders and earnings per assets and liabilities designated in a fair value hedge relationship. Net common share, respectively, by excluding the effects of fair value effective spread also principally differs from net interest income and net fluctuations. These fluctuations are not expected to have a cumulative interest yield because it includes: (1) the accrual of income and expense net impact on Farmer Mac's financial condition or results of operations related to the contractual amounts due on financial derivatives that are not reported in accordance with GAAP if the related financial instruments designated in hedge relationships; and (2) effective in fourth quarter 2017, are held to maturity, as is expected. the net effects of terminations or net settlements on financial derivatives. 03

FARMER MAC Investment Highlights •90-Day delinquencies of only 0.29% across all lines of business Quality Assets •Cumulative Farm & Ranch lifetime losses of only 0.13% •Issue at narrow, GSE spreads to U.S. Treasuries Funding Advantage •E.g., 10-year U.S. Treasury +0.51% •Ag productivity must double to meet expected global demand Growth Prospects •6% share of an ~$245 billion and growing U.S. ag mortgage market •Overhead / outstanding business volume ~20 bps Operational Efficiency •~$900,000 earnings per employee in 2018 Quality, Recurring •99% of total revenues is recurring net effective spread and fees Earnings •Outstanding business volume CAGR of 10.8% (2000 to 2018) Strong Returns, •Core earnings ROE ~17% throughout 2018 Responsible Growth •~30% annual core earnings growth during 2018 04

FARMER MAC A Mission-Driven, For-Profit Company Our Mission Farmer Mac initially chartered Farmer Mac is committed to help build a strong and vital by Congress as an instrumentality rural America by increasing the availability and 1987 of the United States affordability of credit for the benefit of American agricultural and rural communities Initial public offering First listed on NASDAQ Our Stakeholders 1988 (FAMCU & FAMCL) • Farmers, ranchers and rural Americans • Stockholders • Financial Institutions First major charter revision • Employees and expansion of authority 1996 (direct loan purchases) • Congress • Regulator First listed Our Corporate Social Responsibility 1999 on NYSE (AGM & AGM.A) • To help create sustainable, vibrant rural American communities • We achieve this by conducting our business Second major charter revision – With absolute integrity 2008 and expansion of authority – By holding ourselves to high ethical standards (Rural Utilities) – By promoting a diverse, respectful, and inclusive culture 05

FARMER MAC Executive Leadership Bradford T. Nordholm Zachary N. Carpenter John C. Covington President and Chief Executive Officer Executive Vice President – Chief Business Executive Vice President – Chief Credit Officer Officer • 13+ years of experience in agribusiness • 40+ years of experience in agricultural • 40+ years of agricultural and energy finance banking, capital markets, finance, and lending experience corporate strategy • Joined Farmer Mac in 2015 from Bank of the • Joined Farmer Mac in October 2018 from • Joined Farmer Mac in 2019 from CoBank, West, where he previously served as Starwood Energy Group, a leading private where he previously served as Managing Managing Director for the Ag and Rural investment firm where he served as CEO Director and Sector Vice President of its Banking Division and later as Vice Chairman Corporate Agribusiness Banking Group • Prior experience includes various • Prior experience includes CEO of US Central • Prior experience includes Executive Director management positions within the Farm and management positions at National in CoBank’s Capital Markets division and Credit System and Rabobank Cooperative and within the Farm Credit Vice President in Finance and Corporate System Strategy at Goldman Sachs 06

FARMER MAC U.S. Agricultural Balance Sheet (1) $ IN THOUSANDS $3,020,960,111 $3,000,000,000 Machinery & Vehicles, $265,265,247 $2,500,000,000 $2,000,000,000 Ag Real Estate Debt-to-Asset Ratio: Real Estate 9.8% $1,500,000,000 $2,510,163,458 $ in thousands in $ $1,000,000,000 Farmer Mac Market Share: 6.3% $500,000,000 $401,992,481 Nonreal Estate, $156,329,378 Inventories, $172,947,941 Real Estate, $245,663,103 $15,431,050 $0 Investments, $72,583,465 (2) Farm Sector Assets Farm Sector Debt Farmer Mac 07

FARMER MAC Central to a Large Addressable Ag Mortgage Market (3) (4) (FCS Secondary Market GSE) $15.4 Billion (6.3% Market Share) Loan Purchase Wholesale Funding Credit Protection Farm Credit System Non-FCS Ag (FCS) Lenders (Cooperative GSE) BANKS AG Addressable • Insurance$61B Companies • Four FCS Banks Agriculture Mortgage Mortgage Market Mortgage • Ag Banks Financing Financing • 73 Retail Agricultural $245 Billion(4) Credit Associations • Non-Bank Lenders NON {Farmers & Ranchers} LENDERS $13B - BANK 08

FARMER MAC Growth Opportunities Broaden Farmer Mac’s Market = Relative Size Evaluating opportunities not of Volume Opportunity currently being pursued by Farmer Renewable Mac Energy Project Finance • New lines of business = Broaden • New products Securitization Deepen Farmer Mac’s Market Syndications = Deepen Improving processes and operating practices • Customer interaction = Both • Transaction processes Loan • Existing loan features and pricing Process Rural Improvement Broadband Broaden Farmer Mac’s MarketMac’s Farmer Broaden Timber Borrower Retention Deepen Farmer Mac’s Market 09

FARMER MAC Lines of Business and Products AS OF SEPTEMBER 30, 2019 Product Type Target Customers Lines of Business $ IN BILLIONS AND PERCENTAGE OF TOTAL VOLUME LOAN PURCHASES • Ag Banks F & R USDA RU IC Total • FCS Institutions $4.8 $2.6 $1.6 -- $9.0 • Insurance Companies 23% 12% 8% 43% • Rural Utilities Cooperatives WHOLESALE FINANCING • Ag Banks -- -- -- $8.7 $8.7 • Ag Investment Funds • AgVantage 42% 42% • Insurance Companies • Farm Equity AgVantage • Rural Utilities Cooperatives CREDIT PROTECTION • FCS Institutions $2.6 -- $0.6 -- $3.2 • Ag Banks • Long-term Standby Purchase 12% 3% 15% Commitments (LTSPCs)/ • Insurance Companies AMBS Guarantees • Ag Investment Funds • Rural Utilities Cooperatives Total $7.4 $2.6 $2.2 $8.7 $20.9 = Allowances and provisions recorded on these assets Note: Table may not sum to total due to rounding 10

FARMER MAC Growing, Recurring, High-Quality Earnings Outstanding Business Volume $20.0 7.5% CAGR (2015-2018) $15.0 $10.0 $ IN IN $ BILLIONS $5.0 $15.9 $17.4 $19.0 $19.7 $20.9 $0.0 2015 2016 2017 2018 3Q19 Outstanding Business Volume Net Effective Spread & Core Earnings $160.0 8.8% CAGR 21.4% CAGR $100.0 $140.0 (2015-2018) (2015-2018) $80.0 EARNINGS CORE $120.0 MILLIONS IN $ $100.0 $60.0 $80.0 $60.0 $40.0 $40.0 $ IN IN $ MILLIONS $20.0 $20.0 $119.4 $47.0 $123.1 $53.5 $141.3 $65.6 $151.2 $84.0 $122.6 $69.3 NET NET EFFECTIVE SPREAD $0.0 $0.0 2015 2016 2017 2018 3Q19 YTD Net Effective Spread Core Earnings Core earnings and net effective spread are non-GAAP measures. For more information on the use of these non-GAAP measures, please see page 3. 11 For a reconciliation of core earnings to GAAP net income attributable to common stockholders and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 23-24 of the Appendix.

FARMER MAC Proven, Rigorous Underwriting Industry-leading Credits are less Losses less likely credit requirements likely to default even in default – Total debt coverage ratio – Focus on repayment – Average LTV of 44% as of at least 1.25x capacity through of September 30, 2019 stressed inputs – LTVs average 40% to – Land values need to 45% on mortgages – Not a “lender of last decline >55% to purchased resort” generate losses – Minimum borrower net – Farm Credit – “Stress scenario” losses equity of 50% Administration is a of 17% to 48% safety and soundness regulator – 1980s crisis saw land value declines of ~23% (5) 12

FARMER MAC Credit Consistently Outperforms 90-Day Delinquencies 2.50% 2.33% 2.21% 2.00% 2.00% 1.59% 1.63% 1.56% 1.50% 1.16% 1.13% 1.14% 1.35% 1.16% 1.04%1.10%1.12% 1.25% 1.00% 1.21% 0.59% 1.00% 0.75% 0.54%0.59% 0.71% 0.93% 0.87% 0.79% 0.81% 0.50% 0.70% 0.60%0.55%0.58% 0.55% 0.56% 0.41% 0.35% 0.34% 0.37% 0.00% 0.21% FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 3Q19 Industry 90-Day Delinquencies(6) Farmer Mac 90-Day Delinquencies (Farm & Ranch Portfolio Only)(7) Agricultural Lender Charge-off Rates 0.60% Banks Average 0.19% 0.50% All Commercial Banks Loans and Leases(3) 0.40% Farm Credit System Average 0.96% Average 0.11% 0.30% Farmer Mac 0.20% Average 0.02% OFFS OFFS AS % OF ASSETS - 0.10% CHARGE 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 13 -0.10% Banks(8) (9) Farm Credit System(10) Farmer Mac (11)

FARMER MAC Historical Credit Losses Ag Storage & Processing Crops Permanent Plantings Livestock Part-Time Farm / Rural Housing $12 $10 $8 $6 $ IN IN $ MILLIONS NET NET LOSS (GAIN) / $4 $2 $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -$2 & Prior BY YEAR OF ORIGINATION Farm & Ranch line of business has historical cumulative losses of 0.13%, or less than 1bp per year • Cumulative F&R losses of $33 million on $26 billion of cumulative F&R historical business volume Farmer Mac’s Rural Utilities, USDA Guarantees, and Institutional Credit lines of business have not had any credit losses to date 14

FARMER MAC Strong and Growing Equity Capital Base $793 $800 25.0% $728 $657 $185 $610 $183 20.0% $600 $564 $137 $143 $102 15.0% 13.4% 13.2% 12.7% 12.6% $400 10.5% $ IN IN $ MILLIONS CORE CORE CAPITAL 10.0% TIER TIER CAPITAL 1 RATIO (%) $200 5.0% $462 $467 $520 $545 $608 $0 0.0% 2015 2016 2017 2018 3Q19 Statutory Minimum Core Capital Core Capital Amount Above Statutory Minimum Capital Tier 1 Capital Ratio Statutory Minimum Core Capital defined as total stockholders’ equity less accumulated other comprehensive income. 15

FARMER MAC Quality Earnings Drives Strong Dividends Increased Target Payout Ratio of Core Earnings to ~35% $0.80 $0.70 $0.70 $0.60 $0.58 $0.50 Initiated New Dividend Policy: Target ~30% Payout Ratio of Core Earnings $0.40 $0.36 $ PER $ SHARE $0.30 $0.26 $0.20 $0.16 $0.14 $0.12 $0.10 $0.10 $0.05 $0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 Quarterly Dividend per Common Share 16

FARMER MAC Investment Highlights •90-Day delinquencies of only 0.29% across all lines of business Quality Assets •Cumulative Farm & Ranch lifetime losses of only 0.13% •Issue at narrow, GSE spreads to U.S. Treasuries Funding Advantage •E.g., 10-year U.S. Treasury +0.51% •Ag productivity must double to meet expected global demand Growth Prospects •6% share of an ~$245 billion and growing U.S. ag mortgage market •Overhead / outstanding business volume ~20 bps Operational Efficiency •~$900,000 earnings per employee in 2018 Quality, Recurring •99% of total revenues is recurring net effective spread and fees Earnings •Outstanding business volume CAGR of 10.8% (2000 to 2018) Strong Returns, •Core earnings ROE ~17% throughout 2018 Responsible Growth •~30% annual core earnings growth during 2018 17

Appendix

FARMER MAC Key Company Metrics ($ in thousands, except per share amounts) 3Q19 YTD 2018 2017 2016 2015 Core Earnings $69,258 $84,047 $65,631 $53,481 $47,035 Core Earnings per Diluted Share $6.43 $7.82 $6.08 $4.98 $4.16 Net Effective Spread ($) $122,617 $151,195 $141,303 $123,072 $117,428 Net Effective Spread (%) 0.90% 0.91% 0.91% 0.84% 0.85% Guarantee & Commitment Fees $15,903 $20,733 $20,350 $19,170 $17,155 Core Capital Above Statutory Minimum $184,900 $182,600 $136,800 $143,200 $102,400 Common Stock Dividends per Share $2.10 $2.32 $1.44 $1.04 $0.64 Outstanding Business Volume $20,932,359 $19,724,525 $19,007,311 $17,399,475 $15,898,820 90-Day Delinquencies – Farm & Ranch 0.81% 0.37% 0.71% 0.34% 0.56% Charge-Offs $67 $17 $327 $130 $3,772 Book Value per Share $52.75 $49.01 $42.59 $38.42 $33.66 Core Earnings Return on Equity 16% 17% 15% 13% 13% • Core earnings, core earnings per share, and net effective spread are non-GAAP measures. For more information on the use of these non- GAAP measures, please see page 3. For a reconciliation of core earnings to GAAP net income attributable to common stockholders and core earnings per share to earnings per common share, and a reconciliation of net effective spread to GAAP net interest income, please refer to pages 23-24 of the Appendix. • Periods prior to fourth quarter 2017 have been recast to reflect the revised methodology for calculating net effective spread that became effective in fourth quarter 2017, as further described on page 3. • Book Value per Share excludes accumulated other comprehensive income. 19

FARMER MAC Equity Capital Structure NYSE Dividend Shares Ticker Yield Outstanding CLASS A VOTING COMMON STOCK AGM.A 3.81% 1.0 million • Ownership restricted to non-Farm Credit System financial institutions STOCK CLASS B VOTING COMMON STOCK -- -- 0.5 million • Ownership restricted to Farm Credit System institutions CLASS C NON-VOTING COMMON STOCK AGM 3.43% 9.2 million • No ownership restrictions COMMON SERIES A NON-CUMULATIVE PREFERRED STOCK AGM.PR.A 5.875% 2.4 million • Option to redeem at any time on or after January 17, 2018 • Redemption Value: $25 per share STOCK SERIES C FIXED-TO-FLOATING RATE NON-CUMULATIVE AGM.PR.C 6.000% 3.0 million PREFERRED STOCK • Option to redeem at any time on or after July 18, 2024 • Redemption Value: $25 per share SERIES D NON-CUMULATIVE PREFERRED STOCK AGM.PR.D 5.700% 4.0 million PREFERRED • Option to redeem at any time on or after July 17, 2024 • Redemption Value: $25 per share • Common stock dividend annualized divided by quarter-end closing price 20 • Par value of annual dividend for preferred stock

FARMER MAC Funding Finance asset purchases with proceeds of debt issuances • 20+ dealers • Match-funding provides for stable net effective spread and immaterial interest rate risk Farmer Mac’s debt securities carry privileges for certain holders • 20% capital risk weighting • Eligible collateral for Fed advances • Legal investments for federally supervised financial institutions (banks, etc.) Debt Securities Trade at Narrow Spreads to Comparable Maturity Treasuries MATURITY (YEARS) 3 5 7 10 SPREAD TO TREASURY 12 bps 14 bps 31 bps 51 bps (AS OF SEPTEMBER 30, 2019) 21

FARMER MAC “Demand Pull” Provides Sustained Growth Opportunity(12) (13) 12.0 0.50 0.43 0.45 CAPITA PER LAND ARABLE 10.0 0.40 person) per use in (hectare 8.0 0.35 0.30 6.0 0.25 0.18 (in billions) (in 0.20 4.0 0.15 WORLD WORLD POPULATION 2.0 0.10 3.0 9.8 0.05 0.0 0.00 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 World Population Arable Land per capita World population is expected to grow to 9.8 billion by 2050 • Arable land per person is expected to decline over 40% from 2005 to 2050 USDA projects a 75% increase in total production and consumption of major field crops in the same period • 43% increase in world population • Higher protein diets as incomes in developing countries increase Productivity would need to nearly double by 2050 to feed the world 22

FARMER MAC Reconciliation of Net Income to Core Earnings Core Earnings by Period Ended (in thousands) 3Q19 YTD 2018 2017 2016 2015 Net income attributable to common stockholders $ 64,584 $ 94,898 $ 71,300 $ 64,152 $ 47,371 Less reconciling items: Gains on undesignated financial derivatives due to fair value changes 5,608 7,959 10,218 8,585 1,859 (Losses)/gains on hedging activities due to fair value changes (8,790) 4,449 (719) 5,043 9,065 Unrealized gains/(losses) on trading assets 154 81 (24) 1,460 1,220 Amortization of premiums/discounts and deferred gains on assets consolidated at fair value (162) (461) (1,327) (849) (1,319) Net effects of terminations or net settlements on financial derivatives and hedging activities (250) 1,708 2,674 2,178 (699) Issuance costs on retirement of preferred stock (1,956) - - - (8,147) Re-measurement of net deferred tax asset due to enactment of new tax legislation - - (1,365) - - Income tax effect related to reconciling items 722 (2,885) (3,788) (5,746) (1,643) Sub-total (4,674) 10,851 5,669 10,671 336 Core earnings $ 69,258 $ 84,047 $ 65,631 $ 53,481 $ 47,035 • Periods prior to 2017 have been recast to reflect the revised methodology for calculating net effective spread that became effective in fourth quarter 2017, as further described on page 3. • Issuance costs on retirement of preferred stock relates to the write-off of deferred issuance costs as a result of the retirement of Series B Preferred Stock and Farmer Mac II LLC Preferred Stock. 23

FARMER MAC Reconciliation of Net Interest Income to Net Effective Spread For the Year Ended December 31, 3Q19 YTD 2018 2017 2016 2015 $ in thousands Dollars Yield Dollars Yield Dollars Yield Dollars Yield Dollars Yield Net interest income/yield $ 123,765 0.84% $ 174,436 0.96% $ 157,647 0.94% $ 140,274 0.90% $ 125,807 0.88% Net effects of consolidated trusts (5,638) 0.03% (6,757) 0.04% (6,236) 0.04% $ (4,302) 0.03% $ (3,078) 0.01% Expense related to undesignated financial derivatives (4,370) -0.03% (11,685) -0.07% (10,261) -0.07% (11,480) -0.07% (5,649) -0.04% Amortization of premiums/discounts on assets consolidated at fair value 341 0.00% 417 0.01% 1,191 0.01% 610 0.00% 2,300 0.02% Amortization of losses due to terminations or net settlements on financial derivatives and hedging activities (98) 0.00% (275) 0.00% (1,038) -0.01% (2,030) -0.02% (1,952) -0.02% Fair Value Changes on fair value hedge relationships 8,617 0.06% (4,941) -0.03% 0 0.00% 0 0.00% 0 0.00% Net Effective Spread $ 122,617 0.90% $ 151,195 0.91% $ 141,303 0.91% $ 123,072 0.84% $ 117,428 0.85% 24

FARMER MAC Resources Footnote 1: USDA Economic Research Service year end 2018 balance sheet as of September 9, 2019. Footnote 2: Farmer’s Mac’s total excludes loan purchases, LTSPCs, and AgVantage business with rural utilities customers. Market share represents Farmer Mac’s percentage of only Farm Sector Real Estate Debt outstanding. Footnote 3: Eligible ag real estate mortgage market structure shown includes the forecast for outstanding unpaid principal balance of first lien ag mortgage assets as of December 31, 2018 Footnote 4: USDA, Economic Research Service forecast for remaining non-bank lenders for year-end 2018 on a prorated basis. Footnote 5: USDA, National Agricultural Statistics Service (as of August 2015). Historic values are not necessarily predictive of future results or outcomes. Footnote 6: FDIC Call Report Data & Farm Credit Funding Corp Annual Information Statements – Non-accrual real estate loans and accruing loans that are 90 days or more past due made by commercial and Farm Credit System banks (as of June 2019). Footnote 7: Delinquencies include loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan. Footnote 8: Board of Governors of the Federal Reserve System charge-off rates - https://www.federalreserve.gov/releases/chargeoff/ Footnote 9: Banks’ charge-off rate is a percentage of agricultural loan assets. Footnote 10: Farm Credit Banks Funding Corporation Annual Information Statements; Farm Credit System’s charge-off rate is the percentage of total loans and guarantees Footnote 11: Farmer Mac’s charge-off rate is the percentage of total loans and guarantees. Footnote 12: USDA, Economic Research Service Global Drivers of Agricultural Demand and Supply, September 2014. Footnote 13: Food and Agriculture Organization of the United Nations, “World Agriculture Towards 2030/2050,” June 2012 25

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Cover Page	Nov. 06, 2019
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Nov. 06, 2019
Entity Registrant Name	FEDERAL AGRICULTURAL MORTGAGE CORPORATION
City Area Code	202
Local Phone Number	872-7700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity File Number	001-14951
Entity Central Index Key	0000845877
Entity Tax Identification Number	52-1578738
Entity Address, Address Line One	1999 K Street, N.W., 4th Floor,
Entity Address, Postal Zip Code	20006
Amendment Flag	false
Entity Incorporation, State or Country Code	X1
Entity Address, City or Town	Washington,
Entity Address, State or Province	DC
Entity Emerging Growth Company	false
Common Class A [Member]
Entity Information [Line Items]
Title of 12(b) Security	Class A voting common stock
Trading Symbol	AGM.A
Security Exchange Name	NYSE
Common Class C [Member]
Entity Information [Line Items]
Title of 12(b) Security	Class C non-voting common stock
Trading Symbol	AGM
Security Exchange Name	NYSE
Series A Preferred Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	5.875% Non-Cumulative Preferred Stock, Series A
Trading Symbol	AGM.PRA
Security Exchange Name	NYSE
Series C Preferred Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C
Trading Symbol	AGM.PRC
Security Exchange Name	NYSE
Series D Preferred Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	5.700% Non-Cumulative Preferred Stock, Series D
Trading Symbol	AGM.PRD
Security Exchange Name	NYSE