EX-99.1 2 a2025q3pressrelease.htm EX-99.1
Farmer Mac Reports Third Quarter 2025 Results
- Outstanding Business Volume of $31.1 Billion -
WASHINGTON, D.C., November 3, 2025 — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), the nation's secondary market provider that increases the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure, today announced its results for the fiscal quarter ended September 30, 2025.
"I'm pleased to announce we've once again achieved record net effective spread and core earnings in the third quarter," said Chief Executive Officer, Brad Nordholm. "We delivered strong business volume growth, surpassing $31 billion for the quarter, building on the momentum established in our record first half of the year. Our total portfolio remains well-diversified by both commodity and geography, and we remain confident in the overall health of our portfolio. Our strengthened capital position further supports our balanced approach to invest in growth, maintain financial resilience, and deliver returns, all while remaining agile in a dynamic market environment."
Third Quarter 2025
•Provided $2.5 billion in liquidity and lending capacity to lenders serving rural America
•Net interest income grew 13% year-over-year to $98.5 million
•Net effective spread 1 increased 14% from the prior-year period to a record $97.8 million
•Net income attributable to common stockholders of $48.7 million
•Record core earnings 1 of $49.6 million, or $4.52 per diluted common share, reflecting 10% growth year-over-year
•Maintained strong capital position with total core capital of $1.7 billion, exceeding the statutory requirement by 75% and a Tier 1 Capital Ratio of 13.9% as of September 30, 2025
•As of September 30, 2025, Farmer Mac had 317 days of liquidity
•Issued $100.0 million of Tier 1 capital through the public offering of 6.500% Series H non-cumulative preferred stock

$ in thousands, except per share amounts | Quarter Ended
September 30, 2025 | June 30, 2025 | September 30, 2024 | Sequential % Change | YoY % Change
Net Change in Business Volume | $531,903 | $831,916 | $(290,036) | N/A | N/A
Net Interest Income (GAAP) | $98,477 | $96,797 | $86,791 | 2% | 13%
Net Effective Spread (Non-GAAP) | $97,769 | $93,893 | $85,396 | 4% | 14%
Diluted EPS (GAAP) | $4.44 | $4.48 | $3.86 | (1)% | 15%
Diluted Core EPS (Non-GAAP) | $4.52 | $4.32 | $4.10 | 5% | 10%

1 Non-GAAP Measure
1

Earnings Conference Call Information
The conference call to discuss Farmer Mac's third quarter 2025 financial results will be held beginning at 4:30 p.m. eastern time on Monday, November 3, 2025, and can be accessed by telephone or live webcast as follows:
Telephone (Domestic): (800) 836-8184
Telephone (International): (646) 357-8785
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 one week following the conclusion of the call.
More complete information about Farmer Mac's performance for third quarter 2025 is in Farmer Mac's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed today with the SEC.
Use of Non-GAAP Measures
In the accompanying analysis of its financial information, Farmer Mac uses "non-GAAP measures," which are measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per common 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
The main difference between core earnings and core earnings per common share ("Core EPS"), which are non-GAAP measures, and net income attributable to common stockholders and earnings per common share ("EPS"), which are GAAP measures, is that those non-GAAP measures exclude 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. Another difference is that these two non-GAAP measures exclude specified infrequent or unusual transactions that we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. For example, in third quarter 2024, we excluded the loss on the retirement of the Series C Preferred Stock from core earnings and Core EPS, which is consistent with Farmer Mac's historical treatment of any losses on the retirement of preferred stock.
Net Effective Spread
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 those assets. As further explained below, net effective
2

spread differs from net interest income by excluding certain items from net interest income and including certain other items that net interest income does not contain.
Net effective spread excludes the interest income and interest expense associated with consolidated trusts with beneficial interests owned by third parties (single-class) and the average balance of the loans underlying these trusts to reflect management's view that the net interest income earned on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees in determining Farmer Mac's core earnings. Net effective spread also excludes the fair value changes of financial derivatives and the corresponding average balances of assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on Farmer Mac's financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.
Farmer Mac uses net effective spread to show the complete net spread between its interest-earning assets and all related net funding costs, including any associated derivatives, whether or not they are designated in a hedge accounting relationship. Accordingly, the net effective spread includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives"). For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "Losses on financial derivatives" on the consolidated statements of operations.
Net effective spread also differs from net interest income because it includes the net effects of terminations or net settlements on undesignated financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other GSEs and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that Farmer Mac receives upon the inception of certain swaps.
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 Annual Report on Form 10-K for the year ended December 31, 2024, filed February 21, 2025 with the SEC. 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, 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, regulatory, or current or future political developments that could affect Farmer Mac, its sources of business, or agricultural or infrastructure industries;
•fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;
•the level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;
3

•the general rate of growth in agricultural mortgage and infrastructure indebtedness;
•the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or infrastructure lending, borrower repayment capacity, or collateral values, including inflation, fluctuations in interest rates, changes in U.S. trade policies (including tariffs and trade restrictions), fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices;
•the degree to which Farmer Mac is exposed to interest rate risk resulting 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 effects of the Federal Reserve’s efforts to achieve monetary policy normalization to respond to inflation and employment levels; and
•other factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, or 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, 2024, filed with the SEC on February 21, 2025. 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. The information in this release is not necessarily indicative of future results.
About Farmer Mac
Farmer Mac is driven by its mission to increase the accessibility of financing to provide vital
liquidity for American agriculture and rural infrastructure. Our secondary market provides liquidity
to our nation’s agricultural and infrastructure businesses, supporting a vibrant and strong rural
America. We offer a wide range of solutions to help meet financial institutions’ growth, liquidity,
risk management, and capital relief needs across diverse markets, including agriculture,
agribusiness, broadband infrastructure, power and utilities, and renewable energy. We are
uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and
prosperity in America’s rural and agricultural communities. Additional information about Farmer
Mac is available on our website at www.farmermac.com.
CONTACT: Jalpa Nazareth, Investor Relations
Lisa Meyer, Media Inquiries
(202) 872-7700
* * * *
4

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)

| As of
| September 30, 2025 |  | December 31, 2024
| (in thousands)
Assets: |  |  |
Cash and cash equivalents (includes restricted cash of $16,579 and $16,190, respectively) | $ | 901,023 |  |  | $ | 1,024,007 |
Investment securities: |  |  |
Available-for-sale, at fair value (amortized cost of $6,714,777 and $6,105,116, respectively) | 6,655,946 |  |  | 5,953,014 |
Held-to-maturity, at amortized cost | 8,815 |  |  | 9,270 |
Other investments | 14,343 |  |  | 11,017 |
Total Investment Securities | 6,679,104 |  |  | 5,973,301 |
Farmer Mac Guaranteed Securities: |  |  |
Available-for-sale, at fair value (amortized cost of $6,042,789 and $5,835,658, respectively) | 5,854,098 |  |  | 5,514,546 |
Held-to-maturity, at amortized cost | 1,692,601 |  |  | 2,717,688 |
Total Farmer Mac Guaranteed Securities | 7,546,699 |  |  | 8,232,234 |
USDA Securities: |  |  |
Trading, at fair value | 456 |  |  | 818 |
Held-to-maturity, at amortized cost | 2,389,180 |  |  | 2,370,534 |
Total USDA Securities | 2,389,636 |  |  | 2,371,352 |
Loans: |  |  |
Loans held for sale, at lower of cost or fair value | — |  |  | 6,170 |
Loans held for investment, at amortized cost | 13,192,117 |  |  | 11,183,408 |
Loans held for investment in consolidated trusts, at amortized cost | 2,205,213 |  |  | 2,038,283 |
Allowance for losses | (35,340) |  |  | (23,223) |
Total loans, net of allowance | 15,361,990 |  |  | 13,204,638 |
Financial derivatives, at fair value | 32,667 |  |  | 27,789 |
Accrued interest receivable (includes $22,373 and $28,563, respectively, related to consolidated trusts) | 284,786 |  |  | 310,592 |
Guarantee and commitment fees receivable | 50,775 |  |  | 50,499 |
Deferred tax asset, net | 3,225 |  |  | 1,544 |
Prepaid expenses and other assets | 129,655 |  |  | 128,786 |
Total Assets | $ | 33,379,560 |  |  | $ | 31,324,742 |
Liabilities and Equity: |  |  |
Liabilities: |  |  |
Notes payable | $ | 29,196,780 |  |  | $ | 27,371,174 |
Debt securities of consolidated trusts held by third parties | 2,089,042 |  |  | 1,929,628 |
Financial derivatives, at fair value | 29,161 |  |  | 77,326 |
Accrued interest payable (includes $11,945 and $12,387, respectively, related to consolidated trusts) | 238,582 |  |  | 195,113 |
Guarantee and commitment obligation | 48,426 |  |  | 48,326 |
Accounts payable and accrued expenses | 88,910 |  |  | 212,527 |
Reserve for losses | 1,576 |  |  | 1,622 |
Total Liabilities | 31,692,477 |  |  | 29,835,716 |
Commitments and Contingencies |  |  |
Equity: |  |  |
Preferred stock: |  |  |
Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,659 |  |  | 96,659 |
Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding | 77,003 |  |  | 77,003 |
Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding | 116,160 |  |  | 116,160 |
Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding | 121,327 |  |  | 121,327 |
Series H, par value $25 per share, 4,000,000 shares authorized, issued and outstanding | 96,889 |  |  | — |
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, 9,403,453 shares and 9,360,083 shares outstanding, respectively | 9,403 |  |  | 9,360 |
Additional paid-in capital | 137,602 |  |  | 135,894 |
Accumulated other comprehensive loss, net of tax | (5,431) |  |  | (12,147) |
Retained earnings | 1,035,940 |  |  | 943,239 |
Total Equity | 1,687,083 |  |  | 1,489,026 |
Total Liabilities and Equity | $ | 33,379,560 |  |  | $ | 31,324,742 |

5

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024
| (in thousands, except per share amounts)
Interest income: |  |  |  |  |  |  |
Investments and cash equivalents | $ | 93,398 |  |  | $ | 88,879 |  |  | $ | 265,691 |  |  | $ | 258,341 |
Farmer Mac Guaranteed Securities and USDA Securities | 123,484 |  |  | 156,602 |  |  | 374,824 |  |  | 489,478 |
Loans | 198,459 |  |  | 162,247 |  |  | 555,262 |  |  | 459,932 |
Total interest income | 415,341 |  |  | 407,728 |  |  | 1,195,777 |  |  | 1,207,751 |
Total interest expense | 316,864 |  |  | 320,937 |  |  | 909,564 |  |  | 947,252 |
Net interest income | 98,477 |  |  | 86,791 |  |  | 286,213 |  |  | 260,499 |
Provision for losses | (7,477) |  |  | (3,428) |  |  | (16,874) |  |  | (7,806) |
Net interest income after provision for losses | 91,000 |  |  | 83,363 |  |  | 269,339 |  |  | 252,693 |
Non-interest income/(expense): |  |  |  |  |  |  |
Guarantee and commitment fees | 5,021 |  |  | 4,015 |  |  | 14,316 |  |  | 11,729 |
Losses on financial derivatives | (1,062) |  |  | (1,934) |  |  | (3,618) |  |  | (1,654) |
Losses on sale of mortgage loans | — |  |  | — |  |  | — |  |  | (1,147) |
Gains on sale of available-for-sale investment securities | — |  |  | — |  |  | — |  |  | 1,052 |
Release of reserve for losses | 44 |  |  | 170 |  |  | 46 |  |  | 188 |
Other income | 1,482 |  |  | 1,222 |  |  | 3,958 |  |  | 3,145 |
Non-interest income | 5,485 |  |  | 3,473 |  |  | 14,702 |  |  | 13,313 |
Operating expenses: |  |  |  |  |  |  |
Compensation and employee benefits | 17,743 |  |  | 15,237 |  |  | 53,126 |  |  | 48,334 |
General and administrative | 11,052 |  |  | 8,625 |  |  | 32,669 |  |  | 25,784 |
Regulatory fees | 1,000 |  |  | 725 |  |  | 3,000 |  |  | 2,175 |
Operating expenses | 29,795 |  |  | 24,587 |  |  | 88,795 |  |  | 76,293 |
Income before income taxes | 66,690 |  |  | 62,249 |  |  | 195,246 |  |  | 189,713 |
Income tax expense | 11,687 |  |  | 12,421 |  |  | 35,755 |  |  | 39,034 |
Net income | 55,003 |  |  | 49,828 |  |  | 159,491 |  |  | 150,679 |
Preferred stock dividends | (6,303) |  |  | (5,897) |  |  | (17,636) |  |  | (19,480) |
Loss on retirement of preferred stock | — |  |  | (1,619) |  |  | — |  |  | (1,619) |
Net income attributable to common stockholders | $ | 48,700 |  |  | $ | 42,312 |  |  | $ | 141,855 |  |  | $ | 129,580 |
Earnings per common share: |  |  |  |  |  |  |
Basic earnings per common share | $ | 4.45 |  |  | $ | 3.89 |  |  | $ | 12.99 |  |  | $ | 11.93 |
Diluted earnings per common share | $ | 4.44 |  |  | $ | 3.86 |  |  | $ | 12.93 |  |  | $ | 11.82 |

6

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, 2025 |  | June 30, 2025 |  | September 30, 2024
| (in thousands, except per share amounts)
Net income attributable to common stockholders | $ | 48,700 |  |  | $ | 49,170 |  |  | $ | 42,312 |
Less reconciling items: |  |  |  |  |
Gains/(losses) on undesignated financial derivatives due to fair value changes | 882 |  |  | (639) |  |  | (1,064) |
(Losses)/gains on hedging activities due to fair value changes | (137) |  |  | 2,709 |  |  | 205 |
Unrealized (losses)/gains on trading assets | (4) |  |  | (65) |  |  | 99 |
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 26 |  |  | 25 |  |  | 27 |
Net effects of terminations or net settlements on financial derivatives | (1,934) |  |  | 255 |  |  | (503) |
Issuance costs on the retirement of preferred stock | — |  |  | — |  |  | (1,619) |
Income tax effect related to reconciling items | 245 |  |  | (480) |  |  | 260 |
Sub-total | (922) |  |  | 1,805 |  |  | (2,595) |
Core earnings | $ | 49,622 |  |  | $ | 47,365 |  |  | $ | 44,907 |
Composition of Core Earnings: |  |  |  |  |
Revenues: |  |  |  |  |
Net effective spread(1) | $ | 97,769 |  |  | $ | 93,893 |  |  | $ | 85,396 |
Guarantee and commitment fees(2) | 6,132 |  |  | 5,874 |  |  | 4,997 |
Other(3) | 1,185 |  |  | 742 |  |  | 1,133 |
Total revenues | 105,086 |  |  | 100,509 |  |  | 91,526 |
Credit related expense/(income) (GAAP): |  |  |  |  |
Provision for losses | 7,433 |  |  | 7,812 |  |  | 3,258 |
REO operating expenses | — |  |  | 148 |  |  | 196 |
Gain on sale of REO | — |  |  | (87) |  |  | — |
Total credit related expense/(income) | 7,433 |  |  | 7,873 |  |  | 3,454 |
Operating expenses (GAAP): |  |  |  |  |
Compensation and employee benefits | 17,743 |  |  | 17,631 |  |  | 15,237 |
General and administrative | 11,052 |  |  | 10,859 |  |  | 8,625 |
Regulatory fees | 1,000 |  |  | 1,000 |  |  | 725 |
Total operating expenses | 29,795 |  |  | 29,490 |  |  | 24,587 |
Net earnings | 67,858 |  |  | 63,146 |  |  | 63,485 |
Income tax expense(4) | 11,933 |  |  | 10,114 |  |  | 12,681 |
Preferred stock dividends (GAAP) | 6,303 |  |  | 5,667 |  |  | 5,897 |
Core earnings | $ | 49,622 |  |  | $ | 47,365 |  |  | $ | 44,907 |
Core earnings per share: |  |  |  |  |
Basic | $ | 4.54 |  |  | $ | 4.33 |  |  | $ | 4.13 |
Diluted | $ | 4.52 |  |  | $ | 4.32 |  |  | $ | 4.10 |

(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 net interest income of $1.1 million for both the three months ended September 30, 2025 and 2024, 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.
7

(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, 2025 |  | September 30, 2024
| (in thousands, except per share amounts)
Net income attributable to common stockholders | $ | 141,855 |  |  | $ | 129,580 |
Less reconciling items: |  |  |
(Losses)/gains on undesignated financial derivatives due to fair value changes | (2,330) |  |  | 260 |
Gains on hedging activities due to fair value changes | 3,671 |  |  | 5,811 |
Unrealized losses on trading assets | (60) |  |  | (2) |
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 79 |  |  | 84 |
Net effects of terminations or net settlements on financial derivatives | (2,749) |  |  | (2,200) |
Issuance costs on the retirement of preferred stock | — |  |  | (1,619) |
Income tax effect related to reconciling items | 291 |  |  | (830) |
Sub-total | (1,098) |  |  | 1,504 |
Core earnings | $ | 142,953 |  |  | $ | 128,076 |
Composition of Core Earnings: |  |  |
Revenues: |  |  |
Net effective spread(1) | $ | 281,652 |  |  | $ | 252,036 |
Guarantee and commitment fees(2) | 17,494 |  |  | 15,235 |
Gain on sale of investment securities (GAAP) | — |  |  | 1,052 |
Loss on sale of mortgage loan (GAAP) | — |  |  | (1,147) |
Other(3) | 3,242 |  |  | 2,691 |
Total revenues | 302,388 |  |  | 269,867 |
Credit related expense/(income) (GAAP): |  |  |
Provision for losses | 16,828 |  |  | 7,618 |
REO operating expenses | 148 |  |  | 196 |
Gain on sale of REO | (19) |  |  | — |
Total credit related expense/(income) | 16,957 |  |  | 7,814 |
Operating expenses (GAAP): |  |  |
Compensation and employee benefits | 53,126 |  |  | 48,334 |
General and administrative | 32,669 |  |  | 25,784 |
Regulatory fees | 3,000 |  |  | 2,175 |
Total operating expenses | 88,795 |  |  | 76,293 |
Net earnings | 196,636 |  |  | 185,760 |
Income tax expense(4) | 36,047 |  |  | 38,204 |
Preferred stock dividends (GAAP) | 17,636 |  |  | 19,480 |
Core earnings | $ | 142,953 |  |  | $ | 128,076 |
Core earnings per share: |  |  |
Basic | $ | 13.09 |  |  | $ | 11.79 |
Diluted | $ | 13.03 |  |  | $ | 11.69 |

(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.
8

(2)Includes net interest income of $3.1 million and $3.5 million for the nine months ended September 30, 2025 and 2024, respectively, 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.
9

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, 2025 |  | June 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024
| (in thousands, except per share amounts)
GAAP - Basic EPS | $ | 4.45 |  |  | $ | 4.50 |  |  | $ | 3.89 |  |  | $ | 12.99 |  |  | $ | 11.93 |
Less reconciling items: |  |  |  |  |  |  |  |  |
Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.08 |  |  | (0.06) |  |  | (0.09) |  |  | (0.21) |  |  | 0.02 |
(Losses)/gains on hedging activities due to fair value changes | (0.01) |  |  | 0.25 |  |  | 0.02 |  |  | 0.33 |  |  | 0.54 |
Unrealized (losses)/gains on trading securities | — |  |  | (0.01) |  |  | 0.01 |  |  | (0.01) |  |  | — |
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — |  |  | — |  |  | — |  |  | 0.01 |  |  | 0.01 |
Net effects of terminations or net settlements on financial derivatives | (0.18) |  |  | 0.03 |  |  | (0.05) |  |  | (0.25) |  |  | (0.20) |
Issuance costs on the retirement of preferred stock | — |  |  | — |  |  | (0.15) |  |  | — |  |  | (0.15) |
Income tax effect related to reconciling items | 0.02 |  |  | (0.04) |  |  | 0.02 |  |  | 0.03 |  |  | (0.08) |
Sub-total | (0.09) |  |  | 0.17 |  |  | (0.24) |  |  | (0.10) |  |  | 0.14 |
Core Earnings - Basic EPS | $ | 4.54 |  |  | $ | 4.33 |  |  | $ | 4.13 |  |  | $ | 13.09 |  |  | $ | 11.79 |
Shares used in per share calculation (GAAP and Core Earnings) | 10,934 |  |  | 10,933 |  |  | 10,883 |  |  | 10,921 |  |  | 10,869 |

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, 2025 |  | June 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024
| (in thousands, except per share amounts)
GAAP - Diluted EPS | $ | 4.44 |  |  | $ | 4.48 |  |  | $ | 3.86 |  |  | $ | 12.93 |  |  | $ | 11.82 |
Less reconciling items: |  |  |  |  |  |  |  |  |
Gains/(losses) on undesignated financial derivatives due to fair value changes | 0.08 |  |  | (0.06) |  |  | (0.09) |  |  | (0.21) |  |  | 0.02 |
(Losses)/gains on hedging activities due to fair value changes | (0.01) |  |  | 0.25 |  |  | 0.02 |  |  | 0.33 |  |  | 0.53 |
Unrealized (losses)/gains on trading securities | — |  |  | (0.01) |  |  | 0.01 |  |  | (0.01) |  |  | — |
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — |  |  | — |  |  | — |  |  | 0.01 |  |  | 0.01 |
Net effects of terminations or net settlements on financial derivatives | (0.17) |  |  | 0.02 |  |  | (0.05) |  |  | (0.25) |  |  | (0.20) |
Issuance costs on the retirement of preferred stock | — |  |  | — |  |  | (0.15) |  |  | — |  |  | (0.15) |
Income tax effect related to reconciling items | 0.02 |  |  | (0.04) |  |  | 0.02 |  |  | 0.03 |  |  | (0.08) |
Sub-total | (0.08) |  |  | 0.16 |  |  | (0.24) |  |  | (0.10) |  |  | 0.13 |
Core Earnings - Diluted EPS | $ | 4.52 |  |  | $ | 4.32 |  |  | $ | 4.10 |  |  | $ | 13.03 |  |  | $ | 11.69 |
Shares used in per share calculation (GAAP and Core Earnings) | 10,972 |  |  | 10,963 |  |  | 10,966 |  |  | 10,973 |  |  | 10,968 |

10

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, 2025 |  | June 30, 2025 |  | September 30, 2024 |  | September 30, 2025 |  | September 30, 2024
| Dollars |  | Yield |  | Dollars |  | Yield |  | Dollars |  | Yield |  | Dollars |  | Yield |  | Dollars |  | Yield
| (dollars in thousands)
Net interest income | $ | 98,477 |  |  | 1.18 | % |  | $ | 96,797 |  |  | 1.20 | % |  | $ | 86,791 |  |  | 1.15 | % |  | $ | 286,213 |  |  | 1.17 | % |  | $ | 260,499 |  |  | 1.15 | %
Net effects of consolidated trusts | (1,102) |  |  | 0.02 | % |  | (987) |  |  | 0.02 | % |  | (1,065) |  |  | 0.02 | % |  | (3,100) |  |  | 0.02 | % |  | (3,488) |  |  | 0.02 | %
Expense related to undesignated financial derivatives | (707) |  |  | (0.01) | % |  | (208) |  |  | — | % |  | (858) |  |  | (0.01) | % |  | (597) |  |  | — | % |  | (1,379) |  |  | (0.01) | %
Amortization of premiums/discounts on assets consolidated at fair value | (23) |  |  | — | % |  | (22) |  |  | — | % |  | (24) |  |  | — | % |  | (69) |  |  | — | % |  | (72) |  |  | — | %
Amortization of losses due to terminations or net settlements on financial derivatives | 987 |  |  | 0.01 | % |  | 1,022 |  |  | 0.01 | % |  | 757 |  |  | 0.01 | % |  | 2,876 |  |  | 0.01 | % |  | 2,287 |  |  | 0.01 | %
Fair value changes on fair value hedge relationships | 137 |  |  | — | % |  | (2,709) |  |  | (0.04) | % |  | (205) |  |  | (0.01) | % |  | (3,671) |  |  | (0.01) | % |  | (5,811) |  |  | (0.02) | %
Net effective spread | $ | 97,769 |  |  | 1.20 | % |  | $ | 93,893 |  |  | 1.19 | % |  | $ | 85,396 |  |  | 1.16 | % |  | $ | 281,652 |  |  | 1.19 | % |  | $ | 252,036 |  |  | 1.15 | %

11

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, 2025:

Core Earnings by Business Segment
For the Three Months Ended September 30, 2025
| Agricultural Finance |  | Infrastructure Finance |  | Treasury |  |
| Farm & Ranch |  | Corporate AgFinance |  | Power & Utilities |  | Broadband Infrastructure |  | Renewable Energy |  | Funding |  | Investments |  | Total
| (in thousands)
Interest income | $ | 154,020 |  |  | $ | 26,662 |  |  | $ | 69,746 |  |  | $ | 13,375 |  |  | $ | 28,616 |  |  | $ | 36,139 |  |  | $ | 86,783 |  |  | $ | 415,341 |
Interest expense(1) | (118,081) |  |  | (17,615) |  |  | (63,810) |  |  | (8,996) |  |  | (20,886) |  |  | (1,686) |  |  | (85,790) |  |  | (316,864) |
Less: reconciling adjustments(2)(3) | (1,099) |  |  | — |  |  | (26) |  |  | — |  |  | — |  |  | 324 |  |  | 93 |  |  | (708) |
Net effective spread | 34,840 |  |  | 9,047 |  |  | 5,910 |  |  | 4,379 |  |  | 7,730 |  |  | 34,777 |  |  | 1,086 |  |  | 97,769 |
Guarantee and commitment fees(3) | 4,572 |  |  | 218 |  |  | 212 |  |  | 701 |  |  | 429 |  |  | — |  |  | — |  |  | 6,132 |
Other income/(expense) | 1,080 |  |  | 111 |  |  | (7) |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | 1,183 |
(Provision for)/release of losses | (4,050) |  |  | (2,787) |  |  | 424 |  |  | (410) |  |  | (616) |  |  | — |  |  | 6 |  |  | (7,433) |
Operating expenses(1) | (6,721) |  |  | (3,131) |  |  | (1,122) |  |  | (1,362) |  |  | (1,649) |  |  | (2,712) |  |  | (760) |  |  | (17,457) |
Income tax (expense)/benefit | (6,240) |  |  | (727) |  |  | (1,137) |  |  | (695) |  |  | (1,238) |  |  | (6,734) |  |  | (70) |  |  | (16,841) |
Segment core earnings | $ | 23,481 |  |  | $ | 2,731 |  |  | $ | 4,280 |  |  | $ | 2,613 |  |  | $ | 4,656 |  |  | $ | 25,331 |  |  | $ | 261 |  |  | $ | 63,353 |
Reconciliation to net income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net effects of derivatives and trading securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (1,193) |
Unallocated (expenses)/income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (12,311) |
Income tax effect related to reconciling items |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,154 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 55,003 |
Total Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total on- and off-balance sheet segment assets at principal balance | $ | 18,218,755 |  |  | $ | 1,891,228 |  |  | $ | 7,426,517 |  |  | $ | 1,299,097 |  |  | $ | 2,283,565 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,119,162 |
Off-balance sheet assets under management |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,264,616) |
Unallocated assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,525,014 |
Total assets on the consolidated balance sheets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 33,379,560 |

(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker ("CODM") .
(2)Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Losses on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.
(3)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.
12

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

Outstanding Business Volume |  |
|  | On or Off Balance Sheet |  | As of September 30, 2025 |  | As of December 31, 2024 |  |
|  |  |  | (in thousands) |  |
Agricultural Finance: |  |  |  |  |  |  |  |
Farm & Ranch: |  |  |  |  |  |  |  |
Loans |  | On-balance sheet |  | $ | 5,915,220 |  |  | $ | 5,414,732 |  |  |
Loans held in consolidated trusts: |  |  |  |  |  |  |  |
Beneficial interests owned by third-party investors (single-class)(1) |  | On-balance sheet |  | 840,636 |  |  | 885,295 |  |  |
Beneficial interests owned by third-party investors (structured)(1) |  | On-balance sheet |  | 1,364,577 |  |  | 1,152,988 |  |  |
IO-FMGS(2) |  | On-balance sheet |  | 8,206 |  |  | 8,710 |  |  |
USDA Securities |  | On-balance sheet |  | 2,443,583 |  |  | 2,402,423 |  |  |
AgVantage Securities(1) |  | On-balance sheet |  | 3,745,000 |  |  | 4,720,000 |  |  |
LTSPCs and unfunded loan commitments |  | Off-balance sheet |  | 3,100,205 |  |  | 3,070,554 |  |  |
Other Farmer Mac Guaranteed Securities(3) |  | Off-balance sheet |  | 392,358 |  |  | 426,310 |  |  |
Loans serviced for others |  | Off-balance sheet |  | 408,970 |  |  | 525,956 |  |  |
Total Farm & Ranch |  |  |  | $ | 18,218,755 |  |  | $ | 18,606,968 |  |  |
Corporate AgFinance: |  |  |  |  |  |  |  |
Loans |  | On-balance sheet |  | $ | 1,452,398 |  |  | $ | 1,381,674 |  |  |
AgVantage Securities(1) |  | On-balance sheet |  | 202,561 |  |  | 280,297 |  |  |
Unfunded loan commitments |  | Off-balance sheet |  | 236,269 |  |  | 225,734 |  |  |
Total Corporate AgFinance |  |  |  | $ | 1,891,228 |  |  | $ | 1,887,705 |  |  |
Total Agricultural Finance |  |  |  | $ | 20,109,983 |  |  | $ | 20,494,673 |  |  |
Infrastructure Finance: |  |  |  |  |  |  |  |
Power & Utilities: |  |  |  |  |  |  |  |
Loans |  | On-balance sheet |  | $ | 3,337,176 |  |  | $ | 2,886,576 |  |  |
AgVantage Securities(1) |  | On-balance sheet |  | 3,734,085 |  |  | 3,521,143 |  |  |
LTSPCs and unfunded loan commitments |  | Off-balance sheet |  | 355,256 |  |  | 401,647 |  |  |
Total Power & Utilities |  |  |  | $ | 7,426,517 |  |  | $ | 6,809,366 |  |  |
Broadband Infrastructure: |  |  |  |  |  |  |  |
Loans |  | On-balance sheet |  | $ | 817,587 |  |  | $ | 622,207 |  |  |
Unfunded loan commitments |  | Off-balance sheet |  | 481,510 |  |  | 180,259 |  |  |
Total Broadband Infrastructure |  |  |  | $ | 1,299,097 |  |  | $ | 802,466 |  |  |
Renewable Energy: |  |  |  |  |  |  |  |
Loans |  | On-balance sheet |  | $ | 1,993,517 |  |  | $ | 1,265,700 |  |  |
Unfunded loan commitments |  | Off-balance sheet |  | 290,048 |  |  | 150,825 |  |  |
Total Renewable Energy |  |  |  | $ | 2,283,565 |  |  | $ | 1,416,525 |  |  |
Total Infrastructure Finance |  |  |  | $ | 11,009,179 |  |  | $ | 9,028,357 |  |  |
Total |  |  |  | $ | 31,119,162 |  |  | $ | 29,523,030 |  |  |

(1)A type of Farmer Mac Guaranteed Security.
(2)An interest-only Farmer Mac Guaranteed Security retained as part of a structured securitization.
(3)Other categories of Farmer Mac Guaranteed Securities that were sold by Farmer Mac to third parties
13

The following table presents the quarterly net effective spread (a non-GAAP measure) by segment:

| Net Effective Spread
| Agricultural Finance |  | Infrastructure Finance |  | Treasury |  |
| Farm & Ranch |  | Corporate AgFinance |  | Power & Utilities |  | Broadband Infrastructure |  | Renewable Energy |  | Funding |  | Investments |  | Net Effective Spread
| Dollars Yield |  | Dollars Yield |  | Dollars Yield |  | Dollars Yield |  | Dollars Yield |  | Dollars Yield |  | Dollars Yield |  | Dollars Yield
| (dollars in thousands)
For the quarter ended: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2025 | $ | 34,840 |  |  | $ | 9,047 |  |  | $ | 5,910 |  |  | $ | 4,379 |  |  | $ | 7,730 |  |  | $ | 34,777 |  |  | $ | 1,086 |  |  | $ | 97,769 |
| 1.04 | % |  | 2.16 | % |  | 0.34 | % |  | 2.30 | % |  | 1.75 | % |  | 0.43 | % |  | 0.05 | % |  | 1.20 | %
June 30, 2025 | 35,710 |  |  | 8,609 |  |  | 5,636 |  |  | 3,932 |  |  | 6,227 |  |  | 31,668 |  |  | 2,111 |  |  | 93,893 |
| 1.07 | % |  | 2.07 | % |  | 0.33 | % |  | 2.24 | % |  | 1.68 | % |  | 0.40 | % |  | 0.11 | % |  | 1.19 | %
March 31, 2025 | 33,885 |  |  | 8,640 |  |  | 5,329 |  |  | 3,566 |  |  | 5,112 |  |  | 31,604 |  |  | 1,854 |  |  | 89,990 |
| 1.01 | % |  | 2.09 | % |  | 0.32 | % |  | 2.27 | % |  | 1.55 | % |  | 0.41 | % |  | 0.10 | % |  | 1.17 | %
December 31, 2024 | 32,556 |  |  | 7,891 |  |  | 5,059 |  |  | 3,414 |  |  | 4,859 |  |  | 31,242 |  |  | 2,507 |  |  | 87,528 |
| 0.96 | % |  | 1.95 | % |  | 0.32 | % |  | 2.34 | % |  | 1.76 | % |  | 0.42 | % |  | 0.15 | % |  | 1.16 | %
September 30, 2024 | 35,755 |  |  | 6,397 |  |  | 4,785 |  |  | 2,794 |  |  | 3,810 |  |  | 30,912 |  |  | 943 |  |  | 85,396 |
| 1.05 | % |  | 1.56 | % |  | 0.30 | % |  | 2.21 | % |  | 1.78 | % |  | 0.42 | % |  | 0.05 | % |  | 1.16 | %
June 30, 2024 | 34,156 |  |  | 7,866 |  |  | 5,253 |  |  | 2,393 |  |  | 2,999 |  |  | 30,268 |  |  | 661 |  |  | 83,596 |
| 0.98 | % |  | 1.91 | % |  | 0.32 | % |  | 2.16 | % |  | 1.86 | % |  | 0.41 | % |  | 0.04 | % |  | 1.14 | %
March 31, 2024 | 32,843 |  |  | 7,971 |  |  | 4,890 |  |  | 2,342 |  |  | 2,049 |  |  | 32,474 |  |  | 475 |  |  | 83,044 |
| 0.95 | % |  | 2.05 | % |  | 0.30 | % |  | 2.08 | % |  | 1.75 | % |  | 0.45 | % |  | 0.03 | % |  | 1.14 | %
December 31, 2023 | 33,329 |  |  | 8,382 |  |  | 4,916 |  |  | 2,426 |  |  | 1,540 |  |  | 33,361 |  |  | 597 |  |  | 84,551 |
| 0.98 | % |  | 2.06 | % |  | 0.31 | % |  | 2.06 | % |  | 1.69 | % |  | 0.47 | % |  | 0.04 | % |  | 1.19 | %
September 30, 2023 | 32,718 |  |  | 8,250 |  |  | 3,979 |  |  | 2,383 |  |  | 1,150 |  |  | 34,412 |  |  | 532 |  |  | 83,424 |
| 0.97 | % |  | 2.05 | % |  | 0.26 | % |  | 2.15 | % |  | 1.46 | % |  | 0.49 | % |  | 0.04 | % |  | 1.20 | %

14

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

Core Earnings by Quarter Ended
| September 2025 |  | June 2025 |  | March 2025 |  | December 2024 |  | September 2024 |  | June 2024 |  | March 2024 |  | December 2023 |  | September 2023
| (in thousands)
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net effective spread | $ | 97,769 |  |  | $ | 93,893 |  |  | $ | 89,990 |  |  | $ | 87,528 |  |  | $ | 85,396 |  |  | $ | 83,596 |  |  | $ | 83,044 |  |  | $ | 84,551 |  |  | $ | 83,424 |
Guarantee and commitment fees | 6,132 |  |  | 5,874 |  |  | 5,488 |  |  | 5,086 |  |  | 4,997 |  |  | 5,256 |  |  | 4,982 |  |  | 4,865 |  |  | 4,828 |
Gain on sale of investment securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,052 |  |  | — |  |  | — |  |  | — |
Loss on sale of mortgage loan | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,147) |  |  | — |  |  | — |  |  | — |
Other | 1,185 |  |  | 742 |  |  | 1,315 |  |  | (491) |  |  | 1,133 |  |  | 481 |  |  | 1,077 |  |  | 767 |  |  | 1,056 |
Total revenues | 105,086 |  |  | 100,509 |  |  | 96,793 |  |  | 92,123 |  |  | 91,526 |  |  | 89,238 |  |  | 89,103 |  |  | 90,183 |  |  | 89,308 |
Credit related expense/(income): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for/(release of) losses | 7,433 |  |  | 7,812 |  |  | 1,583 |  |  | 3,872 |  |  | 3,258 |  |  | 6,230 |  |  | (1,870) |  |  | (575) |  |  | (181) |
REO operating expenses | — |  |  | 148 |  |  | — |  |  | — |  |  | 196 |  |  | — |  |  | — |  |  | — |  |  | — |
(Gain)/loss on REO | — |  |  | (87) |  |  | 68 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total credit related expense/(income) | 7,433 |  |  | 7,873 |  |  | 1,651 |  |  | 3,872 |  |  | 3,454 |  |  | 6,230 |  |  | (1,870) |  |  | (575) |  |  | (181) |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Compensation and employee benefits | 17,743 |  |  | 17,631 |  |  | 17,752 |  |  | 15,641 |  |  | 15,237 |  |  | 14,840 |  |  | 18,257 |  |  | 15,523 |  |  | 14,103 |
General and administrative | 11,052 |  |  | 10,859 |  |  | 10,758 |  |  | 12,452 |  |  | 8,625 |  |  | 8,904 |  |  | 8,255 |  |  | 8,916 |  |  | 9,100 |
Regulatory fees | 1,000 |  |  | 1,000 |  |  | 1,000 |  |  | 1,000 |  |  | 725 |  |  | 725 |  |  | 725 |  |  | 725 |  |  | 831 |
Total operating expenses | 29,795 |  |  | 29,490 |  |  | 29,510 |  |  | 29,093 |  |  | 24,587 |  |  | 24,469 |  |  | 27,237 |  |  | 25,164 |  |  | 24,034 |
Net earnings | 67,858 |  |  | 63,146 |  |  | 65,632 |  |  | 59,158 |  |  | 63,485 |  |  | 58,539 |  |  | 63,736 |  |  | 65,594 |  |  | 65,455 |
Income tax expense | 11,933 |  |  | 10,114 |  |  | 14,000 |  |  | 9,938 |  |  | 12,681 |  |  | 11,970 |  |  | 13,553 |  |  | 13,881 |  |  | 13,475 |
Preferred stock dividends | 6,303 |  |  | 5,667 |  |  | 5,666 |  |  | 5,666 |  |  | 5,897 |  |  | 6,792 |  |  | 6,791 |  |  | 6,791 |  |  | 6,792 |
Core earnings | $ | 49,622 |  |  | $ | 47,365 |  |  | $ | 45,966 |  |  | $ | 43,554 |  |  | $ | 44,907 |  |  | $ | 39,777 |  |  | $ | 43,392 |  |  | $ | 44,922 |  |  | $ | 45,188 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains/(losses) on undesignated financial derivatives due to fair value changes | $ | 882 |  |  | $ | (639) |  |  | $ | (2,573) |  |  | $ | 3,084 |  |  | $ | (1,064) |  |  | $ | (359) |  |  | $ | 1,683 |  |  | $ | (836) |  |  | $ | 2,921 |
(Losses)/gains on hedging activities due to fair value changes | (137) |  |  | 2,709 |  |  | 1,099 |  |  | 5,737 |  |  | 205 |  |  | 2,604 |  |  | 3,002 |  |  | (3,598) |  |  | 3,210 |
Unrealized (losses)/gains on trading assets | (4) |  |  | (65) |  |  | 9 |  |  | (83) |  |  | 99 |  |  | (87) |  |  | (14) |  |  | (37) |  |  | 1,714 |
Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at fair value | 26 |  |  | 25 |  |  | 28 |  |  | (39) |  |  | 27 |  |  | 26 |  |  | 31 |  |  | 88 |  |  | 29 |
Net effects of terminations or net settlements on financial derivatives | (1,934) |  |  | 255 |  |  | (1,070) |  |  | 534 |  |  | (503) |  |  | (1,505) |  |  | (192) |  |  | (800) |  |  | (79) |
Issuance costs on the retirement of preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | (1,619) |  |  | — |  |  | — |  |  | — |  |  | — |
Income tax effect related to reconciling items | 245 |  |  | (480) |  |  | 526 |  |  | (1,939) |  |  | 260 |  |  | (143) |  |  | (947) |  |  | 1,089 |  |  | (1,638) |
Net income attributable to common stockholders | $ | 48,700 |  |  | $ | 49,170 |  |  | $ | 43,985 |  |  | $ | 50,848 |  |  | $ | 42,312 |  |  | $ | 40,313 |  |  | $ | 46,955 |  |  | $ | 40,828 |  |  | $ | 51,345 |

15