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IBDvalueinvestin (98.36)

Looks like its AGM turn to run like WFC, BAC, ZION have done the last 6 weeks.



May 12, 2009 – Comments (1)

Earnings of $33 Million Bring Capital Surplus to $67 Million

Related QuotesSymbolPriceChangeAGM7.35+3.73{"s" : "agm","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Core Earnings Improve to $4.8 Million

WASHINGTON, May 12 /PRNewswire-FirstCall/ -- The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) today reported first quarter net income of $33.5 million, or $3.31 per diluted common share. This compares to a net loss in fourth quarter 2008 of $61.1 million, or $6.03 per diluted common share and a net loss in first quarter 2008 of $8.3 million, or $0.84 per diluted common share. First quarter 2009 net income was primarily driven by gains on the values of financial derivatives and trading assets, offset somewhat by further provisions for losses principally related to credits in the ethanol sector.

Farmer Mac's core earnings were $4.8 million for first quarter 2009. This compares to a core earnings loss of $8.8 million for fourth quarter 2008, and core earnings of $10.5 million for first quarter 2008. Farmer Mac's core and GAAP earnings included provisions for losses of $6.1 million in first quarter 2009 and $17.2 million in fourth quarter 2008. There were no such provisions in first quarter 2008.

Farmer Mac President and Chief Executive Officer Michael Gerber stated, "Farmer Mac's capital surplus now exceeds $67 million, compared to $13 million at December 31, 2008. During first quarter Farmer Mac improved its capital position by raising an additional $10.8 million of capital in conjunction with new business and selling $354.5 million of loans at a gain of $1.6 million. Both GAAP and core earnings were positive for the quarter. As we look ahead, we expect any credit losses to remain within manageable levels. Lenders in both the agricultural and rural utilities sectors continue to face both capital markets and economic challenges. Farmer Mac continues to make progress in positioning itself to help lenders meet the increasing borrowing needs of their customers."

Loans underlying the Corporation's guarantees and commitments remained steady at just under $10.0 billion and, with the exception of ethanol loans, continued to perform well. Delinquencies on non-ethanol loans have remained near historically low levels consistent with the strength of the U.S. agricultural economy. Farmer Mac's 90day delinquencies, including ethanol loans, were $86.2 million, representing 1.90 percent of the portfolio as of March 31, 2009. Excluding the ethanol loans, 90-day delinquencies were $27.7 million, or 0.61 percent of the portfolio. The ethanol industry has suffered due to the volatility of commodity prices and while those prices have stabilized, the industry still faces significant challenges.

Farmer Mac's effective net interest spread was 101 basis points ($12.6 million) for first quarter 2009 and 106 basis points ($14.5 million) for first quarter 2008. Farmer Mac's short-term borrowing costs continued at historically low levels during first quarter 2009. Farmer Mac's interest rate sensitivity remained low during first quarter 2009 despite the continued volatility in the financial markets. As of March 31, 2009, Farmer Mac's effective duration gap was minus 0.7 months compared with minus 2.4 months as of December 31, 2008.

1 Comments – Post Your Own

#1) On May 12, 2009 at 10:02 AM, IBDvalueinvestin (98.36) wrote:

3.31 eps for this qtr and trading at $7.66 LMAO this low float bank could be at $20 by week's end..



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