How does the company's profitability and margins compare to peers like Agri‑Finance Corp. or other secondary market providers?
Short answer:
The press‑release you referenced does not include any specific figures on Farmer Mac’s (AGM) profitability or margin metrics, nor does it provide comparable numbers for peers such as Agri‑Finance Corp. or other secondary‑market lenders.
What the news actually tells us
| Item from the press release | What we can (and cannot) infer |
|---|---|
| Outstanding business volume – “exceeds $30 billion” | This tells us the scale of Farmer Mac’s loan‑sale activity in the quarter, but it does not translate directly into profit, net income, or margin percentages. |
| Quarterly earnings release (Q2 2025) | The release indicates that Farmer Mac has filed a full earnings report (likely containing income‑statement data), but that data was not included in the excerpt you provided. |
| Company positioning – “secondary market provider that increases the accessibility of financing” | This is a qualitative description of the business model, not a quantitative measure of profitability. |
| No mention of net income, earnings‑per‑share (EPS), return‑on‑equity (ROE), net‑interest margin, or other profitability ratios | Without those numbers we cannot compute or compare profit margins. |
What this means for a comparison with peers
No direct profitability numbers – To assess how Farmer Mac’s profitability stacks up against Agri‑Finance Corp., Farm Credit, or other G‑securitization / secondary‑market firms, we would need at least one of the following from the earnings release (or from a more detailed filing such as a 10‑Q/10‑K):
- Net income (or net loss) for the quarter and/or year‑to‑date.
- Earnings‑per‑share (basic and diluted).
- Net‑interest income vs. net‑interest expense (to derive net‑interest margin).
- Non‑interest income and expense breakdowns.
- Operating expenses (including compensation and technology costs).
- Ratio metrics: Net profit margin, operating margin, return on assets (ROA), return on equity (ROE), and cost‑to‑income ratios.
- Net income (or net loss) for the quarter and/or year‑to‑date.
Typical industry benchmarks (as a context, not from the news)
- Secondary‑market lenders (e.g., Farmer Mac, Fannie Mae’s “Enterprise” (a different business line), and other G‑securitization companies) historically report net profit margins in the 10‑15 % range, with operating margins often a few percentage points higher.
- Agri‑Finance Corp. (if we assume a typical agricultural‑finance specialty lender) usually posts net margins around 8‑12 %, depending on loan‑loss provisions and funding costs.
- Non‑interest income (securitization fees, guarantee fees, etc.) typically contributes a high‑margin component, so firms that have a larger share of fee‑income tend to enjoy higher overall margins.
- Secondary‑market lenders (e.g., Farmer Mac, Fannie Mae’s “Enterprise” (a different business line), and other G‑securitization companies) historically report net profit margins in the 10‑15 % range, with operating margins often a few percentage points higher.
What you should look for in the full Q2 2025 release
- Net Income (or Net Loss): Compare the absolute amount and the percentage change from Q2 2024.
- EPS: Gives a quick per‑share profitability view.
- Net‑interest margin: Net‑interest income divided by average assets. This helps gauge how efficiently the firm’s financing activities generate earnings.
- Operating expenses / Revenue ratio: A lower ratio indicates better cost control—critical when comparing secondary‑market providers that have similar cost structures.
- Provision for credit losses: A high provision can drag down profitability; compare the provision as a percent of loan volume.
- ROE & ROA: Indicate overall efficiency of capital utilization.
- Net Income (or Net Loss): Compare the absolute amount and the percentage change from Q2 2024.
How to do a quick peer‑comparison (once you have the numbers)
| Metric | Farmer Mac (2025 Q2) | Agri‑Finance Corp (2025 Q2) | Other Secondary‑Market Provider (2025 Q2) |
|---|---|---|---|
| Net Income (US$ m) | ?? | ?? | ?? |
| Net Profit Margin | ??% | ??% | ??% |
| Net‑Interest Margin | ??% | ??% | ??% |
| ROE | ??% | ??% | ??% |
| Operating Expense Ratio | ??% | ??% | ??% |
Replace the “??” placeholders with the actual numbers from the complete filing.
Bottom line:
The news excerpt you provided does not contain the quantitative profitability or margin data needed to directly compare Farmer Mac’s performance to Agri‑Finance Corp. or other secondary‑market providers. To answer the question fully, you’ll need to review the full Q2 2025 earnings release (or the accompanying 10‑Q filing) for the specific financial metrics listed above. Once you have those numbers, you can calculate net profit margins, compare net‑interest margins, and evaluate operating efficiency against the peers you mentioned. If you have access to the full earnings release or a detailed financial statement, feel free to share those numbers and I can walk you through the precise comparison.