FINANCIAL DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements. The table below includes accrued interest on cleared swaps, but excludes $24.2 million and $15.8 million of accrued interest receivable and $2.4 million and $4.9 million of accrued interest payable on uncleared swaps as of December 31, 2025 and 2024, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable and Accrued Interest Payable on the Consolidated Balance Sheets.

Table 5.1


	As of December 31, 2025
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable	$	6,388,935	$	330	$	(2,954)	4.08%	3.56%		1.12
Pay fixed non-callable	10,681,418		16,685		(168)		2.79%	3.93%		8.66
Receive fixed callable	5,446,883		19,322		(19,911)		3.96%	3.73%		3.14
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	452,000		9,335		(1)		1.92%	4.22%		3.00
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	159,684		613		(1)		2.88%	4.13%		3.61
Receive fixed non-callable	1,963,363		66		(9)		3.89%	3.93%		0.28

Basis swaps	382,811		1		(190)		4.13%	3.89%		5.03
Treasury futures	102,000		154		(15)				112.57
Netting adjustments(1)	—		(1,631)		1,631
Total financial derivatives	$	25,577,094	$	44,875	$	(21,618)

(1)Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent.


	As of December 31, 2024
			Fair Value				Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Term (in years)
	Notional Amount		Asset		(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Receive fixed non-callable	$	7,460,685	$	174	$	(12,165)	4.71%	3.40%		1.53
Pay fixed non-callable	9,657,181		5,134		(97)		2.67%	4.56%		9.12
Receive fixed callable	4,592,077		5,119		(65,167)		4.54%	3.67%		2.65
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	540,000		16,903		(2)		1.92%	4.87%		3.43
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	157,776		819		(1)		2.92%	4.75%		3.40
Receive fixed non-callable	1,803,328		48		(2)		4.52%	4.43%		0.30

Basis swaps	655,384		8		(354)		4.69%	4.52%		3.83
Treasury futures	29,900		46		—				108.91

Netting adjustments(1)	—		(462)		462
Total financial derivatives	$	24,896,331	$	27,789	$	(77,326)

Schedule of Net Income/(Expense) Recognized

The following tables summarize the net income/(expense) recognized in the Consolidated Statements of Operations related to derivatives for the years ended December 31, 2025, 2024, and 2023:

Table 5.2


	For the Year Ended December 31, 2025
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Losses on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations	$	846,441	$	765,806	$	(1,221,513)	$	(5,120)	$	385,614
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	113,183		48,551		(104,089)		—		57,645
Recognized on hedged items	284,605		83,603		(410,306)		—		(42,098)
Premium/discount amortization recognized on hedged items	2,551		—		(2,606)		—		(55)
Income/(expense) related to interest settlements on fair value hedging relationships	$	400,339	$	132,154	$	(517,001)	$	—	$	15,492

(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(188,941)	$	(38,209)	$	159,983	$	—	$	(67,167)
Recognized on hedged items	188,506		41,128		(155,689)		—		73,945
(Losses)/gains on fair value hedging relationships	$	(435)	$	2,919	$	4,294	$	—	$	6,778

Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	14,140	$	—	$	14,140
Recognized on hedged items	—		—		(23,454)		—		(23,454)
Discount amortization recognized on hedged items	—		—		(68)		—		(68)
Expense recognized on cash flow hedges	$	—	$	—	$	(9,382)	$	—	$	(9,382)

Losses on financial derivatives not designated in hedging relationships:
Losses on interest rate swaps	$	—	$	—	$	—	$	(2,784)	$	(2,784)
Interest expense on interest rate swaps	—		—		—		(441)		(441)
Treasury futures	—		—		—		(1,895)		(1,895)
Losses on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	(5,120)	$	(5,120)


	For the Year Ended December 31, 2024
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations:	$	974,329	$	629,187	$	(1,249,649)	$	2,636	$	356,503
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	188,146		68,346		(275,387)		—		(18,895)
Recognized on hedged items	258,062		69,516		(423,428)		—		(95,850)
Premium/discount amortization recognized on hedged items	2,134		—		(3,197)		—		(1,063)
Income/(expense) related to interest settlements on fair value hedging relationships	$	448,342	$	137,862	$	(702,012)	$	—	$	(115,808)

Gains/(losses) on fair value hedging relationships:
Recognized on derivatives	$	81,675	$	71,213	$	105,355	$	—	$	258,243
Recognized on hedged items	(78,424)		(66,852)		(101,419)		—		(246,695)
Gains/(losses) on fair value hedging relationships	$	3,251	$	4,361	$	3,936	$	—	$	11,548

Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	20,657	$	—	$	20,657
Recognized on hedged items	—		—		(31,241)		—		(31,241)
Discount amortization recognized on hedged items	—		—		(34)		—		(34)
Expense recognized on cash flow hedges	$	—	$	—	$	(10,618)	$	—	$	(10,618)

Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	2,424	$	2,424
Interest expense on interest rate swaps	—		—		—		(1,377)		(1,377)
Treasury futures	—		—		—		1,589		1,589
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	2,636	$	2,636


	For the Year Ended December 31, 2023
	Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
	Net Interest Income						Non-Interest Income		Total
	Interest Income Investments and Cash Equivalents		Interest Income Loans		Total Interest Expense		Gains on financial derivatives
	(in thousands)
Total amounts presented in the Consolidated Statement of Operations:	$	877,394	$	514,894	$	(1,064,741)	$	2,882	$	330,429
Income/(expense) related to interest settlements on fair value hedging relationships:
Recognized on derivatives	181,404		64,648		(345,852)		—		(99,800)
Recognized on hedged items	216,884		63,133		(341,523)		—		(61,506)
Premium/discount amortization recognized on hedged items	1,860		—		(2,865)		—		(1,005)
Income/(expense) related to interest settlements on fair value hedging relationships	$	400,148	$	127,781	$	(690,240)	$	—	$	(162,311)

(Losses)/gains on fair value hedging relationships:
Recognized on derivatives	$	(110,596)	$	(23,528)	$	279,803	$	—	$	145,679
Recognized on hedged items	107,909		21,686		(280,668)		—		(151,073)
(Losses)/gains on fair value hedging relationships	$	(2,687)	$	(1,842)	$	(865)	$	—	$	(5,394)

Expense related to interest settlements on cash flow hedging relationships:
Interest settlements reclassified from AOCI into net income on derivatives	$	—	$	—	$	20,643	$	—	$	20,643
Recognized on hedged items	—		—		(31,610)		—		(31,610)
Discount amortization recognized on hedged items	—		—		(55)		—		(55)
Expense recognized on cash flow hedges	$	—	$	—	$	(11,022)	$	—	$	(11,022)

Gains on financial derivatives not designated in hedge relationships:
Gains on interest rate swaps	$	—	$	—	$	—	$	4,395	$	4,395
Interest expense on interest rate swaps	—		—		—		(4,845)		(4,845)
Treasury futures	—		—		—		3,332		3,332
Gains on financial derivatives not designated in hedge relationships	$	—	$	—	$	—	$	2,882	$	2,882

Schedule of Hedged Items in Fair Value Hedging Relationships

The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of December 31, 2025 and 2024:

Table 5.3


	Hedged Items in Fair Value Relationship
	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities)
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
	(in thousands)
Investment securities, Available-for-Sale, at fair value(1)	$	7,818,278	$	6,956,364	$	(235,989)	$	(424,495)
Loans held for investment, at amortized cost	2,278,212		1,816,738		(331,315)		(372,444)
Notes Payable(2)	(11,837,713)		(11,899,049)		(6,690)		148,999

(1)Amortized cost of $8.0 billion and $7.4 billion as of December 31, 2025 and 2024, respectively.

(2)Carrying amount represents amortized cost.

Offsetting Assets

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of December 31, 2025 and 2024:

Table 5.4


	December 31, 2025
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(2)
	(in thousands)
Assets:
Uncleared derivatives	$	29,179	$	—	$	29,179	$	(15,601)	$	—	$	(11,684)	$	1,894
Cleared derivatives	17,242		(1,631)		15,611		—		(15,611)		—		—
Total	$	46,421	$	(1,631)	$	44,790	$	(15,601)	$	(15,611)	$	(11,684)	$	1,894

Liabilities:
Uncleared derivatives	$	(21,512)	$	—	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)
Cleared derivatives	(1,631)		1,631		—		—		—		—		—
Total	$	(23,143)	$	1,631	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.

(2)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2025, Farmer Mac had additional net exposure of $235.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $16.9 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.


	December 31, 2024
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(1)
	(in thousands)
Assets:
Uncleared derivatives	$	22,759	$	—	$	22,759	$	(22,061)	$	—	$	(652)	$	46
Cleared derivatives	5,492		(462)		5,030		—		(5,030)		—		—
Total	$	28,251	$	(462)	$	27,789	$	(22,061)	$	(5,030)	$	(652)	$	46

Liabilities:
Uncleared derivatives	$	(77,326)	$	—	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)
Cleared derivatives	(462)		462		—		—		—		—		—
Total	$	(77,788)	$	462	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)

(1)Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2024, Farmer Mac had additional net exposure of $209.0 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position and $4.7 million due to instances where Farmer Mac's collateral from a counterparty exceeded the net derivative position.

Offsetting Liabilities

The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of December 31, 2025 and 2024:

Table 5.4


	December 31, 2025
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet(1)		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(2)
	(in thousands)
Assets:
Uncleared derivatives	$	29,179	$	—	$	29,179	$	(15,601)	$	—	$	(11,684)	$	1,894
Cleared derivatives	17,242		(1,631)		15,611		—		(15,611)		—		—
Total	$	46,421	$	(1,631)	$	44,790	$	(15,601)	$	(15,611)	$	(11,684)	$	1,894

Liabilities:
Uncleared derivatives	$	(21,512)	$	—	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)
Cleared derivatives	(1,631)		1,631		—		—		—		—		—
Total	$	(23,143)	$	1,631	$	(21,512)	$	15,601	$	—	$	2,093	$	(3,818)

(1)Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements.


	December 31, 2024
	Gross Amount Recognized		Gross Amounts offset in the Consolidated Balance Sheet		Net Amount Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Netting Adjustments		Financial instruments pledged		Cash Collateral		Net Amount(1)
	(in thousands)
Assets:
Uncleared derivatives	$	22,759	$	—	$	22,759	$	(22,061)	$	—	$	(652)	$	46
Cleared derivatives	5,492		(462)		5,030		—		(5,030)		—		—
Total	$	28,251	$	(462)	$	27,789	$	(22,061)	$	(5,030)	$	(652)	$	46

Liabilities:
Uncleared derivatives	$	(77,326)	$	—	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)
Cleared derivatives	(462)		462		—		—		—		—		—
Total	$	(77,788)	$	462	$	(77,326)	$	22,061	$	—	$	44,299	$	(10,966)

FEDERAL AGRICULTURAL MORTGAGE CORP 10-K