SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2025

The following schedule reconciles basic and diluted EPS for the years ended December 31, 2025, 2024, and 2023:

Table 2.1


	For the Years Ended December 31,
	2025					2024					2023
	Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share		Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	182,493	10,911	$	16.73	$	180,428	10,874	$	16.59	$	172,838	10,829	$	15.97
Effect of dilutive securities(1)
SARs and restricted stock units	—		72	(0.11)		—		101	(0.15)		—		108	(0.16)
Diluted EPS	$	182,493	10,983	$	16.62	$	180,428	10,975	$	16.44	$	172,838	10,937	$	15.81

(1)For the years ended December 31, 2025, 2024, and 2023, average SARs and restricted stock units of 47,629, 30,891, and 32,683 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the years ended December 31, 2025, 2024, and 2023, contingent shares of unvested restricted stock units of 23,630, 28,670, and 30,648 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

Schedule of Accumulated Other Comprehensive Income, Net of Tax

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the years ended December 31, 2025, 2024, and 2023.

Table 2.2



	Available-for-Sale Securities		Held-to-Maturity Securities		Cash Flow Hedges		Total
	(in thousands)
Balance as of January 1, 2023	$	(115,561)	$	16,357	$	48,361	$	(50,843)
Other comprehensive income/(loss) before reclassifications	47,114		(25,199)		4,973		26,888
Amounts reclassified from AOCI	—		118		(16,308)		(16,190)
Net comprehensive income/(loss)	47,114		(25,081)		(11,335)		10,698
Balance as of December 31, 2023	$	(68,447)	$	(8,724)	$	37,026	$	(40,145)
Other comprehensive income/(loss) before reclassifications	31,715		—		13,947		45,662
Amounts reclassified from AOCI	(843)		(502)		(16,319)		(17,664)
Net comprehensive income/(loss)	30,872		(502)		(2,372)		27,998
Balance as of December 31, 2024	$	(37,575)	$	(9,226)	$	34,654	$	(12,147)
Other comprehensive income/(loss) before reclassifications	40,266		—		(3,666)		36,600
Amounts reclassified from AOCI	120		(20)		(11,171)		(11,071)
Net comprehensive income/(loss)	40,386		(20)		(14,837)		25,529
Balance as of December 31, 2025	$	2,811	$	(9,246)	$	19,817	$	13,382

Schedule of Reclassification out of Accumulated Other Comprehensive Income

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the years ended December 31, 2025, 2024, and 2023:

Table 2.3


	For the Years Ended December 31,
	2025						2024						2023
	Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax		Before Tax		Provision (Benefit)		After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale securities	$	50,971	$	10,705	$	40,266	$	40,145	$	8,430	$	31,715	$	59,640	$	12,526	$	47,114
Less reclassification adjustments included in:
Losses/(gains) on sale of available-for-sale investment securities(1)	163		34		129		(1,052)		(221)		(831)		—		—		—
Other income(2)	(11)		(2)		(9)		(15)		(3)		(12)		—		—		—
Total	$	51,123	$	10,737	$	40,386	$	39,078	$	8,206	$	30,872	$	59,640	$	12,526	$	47,114
Held-to-maturity securities:
Change in fair value(3)	$	—	$	—	$	—	$	—	$	—	$	—	$	(31,898)	$	(6,699)	$	(25,199)
Less reclassification adjustments included in:
Net interest income(4)	(26)		(6)		(20)		(636)		(134)		(502)		148		30		118
Total	$	(26)	$	(6)	$	(20)	$	(636)	$	(134)	$	(502)	$	(31,750)	$	(6,669)	$	(25,081)
Cash flow hedges
Unrealized (losses)/gains on cash flow hedges	$	(4,641)	$	(975)	$	(3,666)	$	17,655	$	3,708	$	13,947	$	6,295	$	1,322	$	4,973
Less reclassification adjustments included in:
Net interest income(5)	(14,140)		(2,969)		(11,171)		(20,657)		(4,338)		(16,319)		(20,643)		(4,335)		(16,308)
Total	$	(18,781)	$	(3,944)	$	(14,837)	$	(3,002)	$	(630)	$	(2,372)	$	(14,348)	$	(3,013)	$	(11,335)
Other comprehensive income	$	32,316	$	6,787	$	25,529	$	35,440	$	7,442	$	27,998	$	13,542	$	2,844	$	10,698

(1)Represents unrealized gains and losses on sales of available-for-sale securities.

(2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

(3)Represents the accumulated unrealized loss on the AgVantage Securities transferred from available-for-sale to held-to-maturity.

(4)Represents amortization of unrealized gain/loss reported in AOCI prior to the reclassification of certain securities from available-for-sale to held-to-maturity, which occurred at fair value.

(5)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

Schedule of Consolidation of Variable Interest Entities

The following table provides a summary of unconsolidated VIEs with which Farmer Mac has significant continuing involvement but is not the primary beneficiary. The balances presented in the table below excludes certain transactions with unconsolidated VIEs where Farmer Mac's continuing involvement is insignificant. Farmer Mac considers continuing involvement to be insignificant when it relates to a VIE

where Farmer Mac only invests in securities issued by the VIE and where Farmer Mac was not involved in the design of the VIE or where no transfers have occurred between Farmer Mac and the VIE.

Table 2.4


	Unconsolidated Variable Interest Entities
	As of December 31, 2025	As of December 31, 2024
	(in thousands)
On-Balance Sheet:

Farmer Mac Guaranteed Securities:
Carrying value	80,570	59,317
Maximum exposure to loss (1)	80,384	58,985
Off-Balance Sheet:

Farmer Mac Guaranteed Securities:
Maximum exposure to loss (1)(2)(3)	386,057	426,310

(1)Farmer Mac uses the guaranteed portion of unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

(2)The amount relates to unconsolidated trusts where Farmer Mac is not the primary beneficiary, either due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.

(3)Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the Consolidated Balance Sheets, which was $5.0 million and $5.6 million as of December 31, 2025 and 2024, respectively. The weighted average remaining maturity of the loans underlying the guarantee was 20.7 years and 21.2 years as of December 31, 2025 and 2024, respectively.

Schedule of Recently Adopted Accounting Guidance

Recently Adopted Accounting Guidance


Standard	Description	Date of Adoption	Effect on Consolidated Financial Statements
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures	The Update provides guidance on improvements to annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additionally, public entities must provide a separate disclosure for any reconciling item that meets a quantitative threshold.	January 1, 2025	Farmer Mac adopted the new standard on a retrospective basis. The adoption of this Update did not have a material impact on Farmer Mac's financial position, results of operations, or cash flows. See Note 9 to the financial statements.

Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements

Farmer Mac is still assessing the impact of the new accounting standards in the table below but does not expect that adoption of the new guidance will have a material impact on Farmer Mac's financial position, results of operations, or cash flows.


Standard			Description
ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses			In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted.
ASU 2025-06, Intangibles - Goodwill and Other - Internal-use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software			The Update amends certain aspects of the accounting for and disclosure of software costs under ASC 350-40. It removes all references to "development stages" and establishes new criteria to be met for the entity to begin capitalizing software costs. New guidance is then given for how to evaluate whether the probable-to-complete recognition threshold has been met. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted.
ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans			This Update expands the scope of the "gross-up" approach from applicable only to purchased credit-deteriorated ("PCD") assets to include financial assets acquired without credit deterioration and deemed "seasoned." Non-PCD loans are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans. Under this model, an allowance for expected credit losses is recognized at acquisition, offsetting the loan's amortized cost basis, thereby eliminating the day-one credit-loss expense previously required for non-PCD assets. ASU 2025-08 is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted.
ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements			ASU 2025-09 amends ASC 815 to align hedge accounting more closely with the economics of an entity's risk management practices. Among other things, key amendments include: similar risk assessment for cash flow hedges, hedging interest payments on choose-your-rate debt, cash flow hedges of nonfinancial forecasted transactions, and net written options as hedging instruments. ASU 2025-09 is effective for annual periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted.
ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements			This Update clarifies interim disclosure requirements, including providing a comprehensive list of interim disclosure requirements under U.S. GAAP and a disclosure principle that requires entities to disclose events since the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods, with early adoption permitted.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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