Federal Agricultural Mortgage (AGM) Financials

Federal Agricultural Mortgage’s (NYSE:AGM) latest statements show continued expansion and improving profitability, although the company remains highly dependent on debt funding. In Q2 2026, net income rose to $66.9 million from $59.1 million in Q1 2026 and $54.8 million in Q2 2025. Net income attributable to common shareholders increased to $58.9 million, while diluted EPS reached $5.41, up from $4.75 in Q1 2026 and $4.48 in Q2 2025.

Revenue growth has been driven primarily by net interest income. Q2 2026 net interest income increased to $118.1 million, compared with $101.4 million in Q1 2026 and $96.8 million in Q2 2025. Loan and lease interest income has expanded steadily, reaching $235.0 million in Q2 2026 versus $185.0 million in Q2 2025 and $153.1 million in Q2 2024. Investment banking income has also remained a recurring, though relatively small, contributor at $6.1 million in the latest quarter.

The balance sheet has grown substantially. Total assets reached $39.3 billion at June 30, 2026, up from $36.7 billion at March 31, 2026 and $33.0 billion at June 30, 2025. Net loans and leases increased to $18.2 billion, compared with $17.2 billion in Q1 2026 and $14.5 billion a year earlier. However, total liabilities of $37.4 billion represented approximately 95% of total assets, highlighting the company’s substantial leverage. The allowance for loan and lease losses also increased to $47.2 million from $39.9 million in Q1 2026 and $30.0 million in Q2 2025.

• Improving earnings momentum: Q2 2026 net income increased approximately 13% from Q2 2025, while diluted EPS rose approximately 21% year over year to $5.41.
• Net interest income is expanding: Net interest income rose from $86.4 million in Q1 2024 to $118.1 million in Q2 2026, supported by growth in loan and investment interest income.
• Loan portfolio growth: Net loans and leases increased approximately 25% from $14.5 billion in Q2 2025 to $18.2 billion in Q2 2026, creating a larger base for future interest income.
• Common equity is strengthening: Total common equity reached $1.25 billion in Q2 2026, up from $1.13 billion in Q2 2025 and $1.02 billion in Q2 2024, helped by rising retained earnings.
• Dividend support remains visible: The company paid approximately $24.7 million in dividends during Q2 2026, and common dividends per share rose from $1.10 in 2023 to $1.60 in Q1 2026.
• Investment banking provides diversification: Investment banking income has generally increased from roughly $3.5 million to $6.1 million per quarter over the period, but it remains small relative to net interest income.
• Cash increased in the latest quarter: Cash and due from banks rose to $1.04 billion at June 30, 2026 from $774 million at March 31, 2026, although quarterly cash balances have fluctuated considerably.
• High leverage remains a central risk: Q2 2026 long-term debt stood at $34.7 billion and total liabilities were about 20 times total common equity, leaving results sensitive to funding costs and credit conditions.
• Cash flow relies heavily on financing: Q2 2026 operating cash flow was only $40.4 million, while financing activities generated $2.51 billion after $23.3 billion of debt repayments and $25.8 billion of new debt issuance.
• Credit-loss provisions are rising: The Q2 2026 provision for credit losses was $7.0 million, up from $4.3 million in Q1 2026, while the balance-sheet allowance for loan losses has increased alongside loan growth.

Overall, AGM’s statements point to a growing lending platform, stronger net interest income and improving earnings per share. The key issue for investors is whether loan growth and higher interest income can continue to outpace funding costs and credit-loss pressure. Because the company finances much of its asset base with debt, changes in interest rates, capital-market access and agricultural credit quality could have an outsized effect on future results.