AGM-AHIGH SIGNALFINANCIAL10-K

Interest expense more than doubled to $1.1B while operating cash flow collapsed 87% to $80.1M, indicating severe deterioration in profitability and cash generation despite asset growth.

The dramatic spike in interest expense combined with the near-collapse of operating cash flow suggests Farmer Mac is facing significant margin compression and liquidity stress. While the company grew its balance sheet by 13%, the cost of funding this growth appears unsustainable, raising concerns about the institution's ability to generate adequate returns and maintain financial stability.

Comparing 2026-02-19 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

Farmer Mac expanded its balance sheet significantly with total assets growing 12.9% to $35.4B and total debt increasing 12% to $30.8B, while stockholders' equity rose 15.4% to $1.7B. However, this growth came at an enormous cost, with interest expense surging 139% to $1.1B and operating cash flow plummeting 87% to just $80.1M. The financial picture reveals a company that has grown its loan portfolio but at funding costs that are severely damaging profitability and cash generation, signaling potential distress in the agricultural lending market or poor asset-liability management.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+138.8%
$445.9M→$1.1B

Interest expense surged 138.8% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
-86.9%
$612.6M→$80.1M

Operating cash flow fell 86.9% — earnings quality concerns; investigate working capital changes and non-cash items.

Stockholders Equity
Balance Sheet
+15.4%
$1.5B→$1.7B

Equity base grew 15.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+12.9%
$31.3B→$35.4B

Asset base grew 12.9% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+12.8%
$29.8B→$33.7B

Liabilities increased 12.8% — monitor debt-to-equity ratio and interest coverage.

Total Debt
Balance Sheet
+12%
$27.5B→$30.8B

Debt rose 12% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-21
ADDED
As of February 5, 2026, the registrant had outstanding 1,030,780 shares of Class A voting common stock, 500,301 shares of Class B voting common stock, and 9,325,900 shares of Class C non-voting common stock.
Business 6 General 6 Farmer Mac's Lines of Business 8 Competition 13 Capital and Corporate Governance 14 Human Capital 15 Available Information 17 Financing 17 Debt Issuance 17 Equity Issuance 18 Farmer Mac's Authority to Borrow from the U.S.
Treasury 20 Government Regulation of Farmer Mac 21 General 21 Office of Secondary Market Oversight 21 Capital Standards 22 Liquidity Requirements 24 Item 1A.
Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Overview 46 Critical Accounting Estimates 49 Use of Non-GAAP Measures 50 Results of Operations 52 Outlook 64 Balance Sheet Review 69 Risk Management 70 Liquidity and Capital Resources 84 Other Matters 86 Supplemental Information 87 Item 7A.
Financial Statements 94 Management's Report on Internal Controls Over Financial Reporting 94 Report of Independent Registered Public Accounting Firm 95 2 Consolidated Balance Sheets 98 Consolidated Statements of Operations 99 Consolidated Statements of Comprehensive Income 100 Consolidated Statements of Equity 101 Consolidated Statements of Cash Flows 102 Notes to Consolidated Financial Statements 103 Item 9.
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REMOVED
As of February 7, 2025, the registrant had outstanding 1,030,780 shares of Class A voting common stock, 500,301 shares of Class B voting common stock, and 9,360,484 shares of Class C non-voting common stock.
Business 6 General 6 Farmer Mac's Line s of Business 8 Competition 18 Capital and Corporate Governance 19 Human Capital 21 Available Information 24 Funding of Guarantee and LTSPC Obligations 24 Financing 25 Debt Issuance 25 Equity Issuance 25 Farmer Mac's Authority to Borrow from the U.S.
Treasury 29 Government Regulation of Farmer Mac 30 General 30 Office of Secondary Market Oversight 30 Capital Standards 31 Liquidity Requirements 34 Item 1A.
Management's Discussion and Analysis of Financial Condition and Results of Operations 55 Overview 55 Critical Accounting Estimates 59 Use of Non-GAAP Measures 60 Results of Operations 62 Outlook 80 Balance Sheet Review 87 Risk Management 88 Liquidity and Capital Resources 104 Other Matters 107 Supplemental Information 108 Item 7A.
Financial Statements 113 Consolidated Balance Sheets 117 2 Consolidated Statements of Operations 118 Consolidated Statements of Comprehensive Income 119 Consolidated Statements of Equity 120 Consolidated Statements of Cash Flows 121 Notes to Consolidated Financial Statements 122 Item 9.
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