Business Description

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. Risk Factors 26 Item 1B. Unresolved Staff Comments 39 Item 1C. Cybersecurity 39 Item 2. Properties 41 Item 3. Legal Proceedings 41 Item 4. Mine Safety Disclosures 41 PART II 42 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 42 Item 6. [Reserved] 45 Item 7. 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. Quantitative and Qualitative Disclosures About Market Risk 94 Item 8. 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. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 152 Item 9A. Controls and Procedures 152 Item 9B. Other Information 153 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 153 PART III 154 Item 10. Directors, Executive Officers, and Corporate Governance 154 Item 11. Executive Compensation 154 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 154 Item 13. Certain Relationships and Related Transactions and Director Independence 154 Item 14. Principal Accountant Fees and Services 154 PART IV 154 Item 15. Exhibits 154 Item 16. Form 10-K Summary 157 Signatures 158 3 FORWARD-LOOKING STATEMENTS In this report, the words "Farmer Mac," "we," "our," and "us" refer to the Federal Agricultural Mortgage Corporation and its subsidiaries unless otherwise stated or unless the context otherwise requires. Some statements made in this report, such as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations ('MD&A')" section, are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 about management's current expectations for Farmer Mac's future financial results, business prospects, and business developments. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. These statements typically include terms such as "anticipates," "believes," "continues," "estimates," "expects," "forecasts," "likely," "intends," "often," "outlook," "plans," "potential," "project," "target," and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will," and "would." This report includes forward-looking statements addressing our: • prospects for earnings; • prospects for growth in business volume; • trends in net interest income and net effective spread; • trends in portfolio credit quality, delinquencies, substandard assets, credit losses, charge offs, and provisions for expected credit losses; • assessment of economic and market trends; • trends in expenses; • trends in investment securities; • prospects for asset impairments and allowance for losses; • changes in capital position; • future dividend payments; and • other business and financial matters. Management's expectations for Farmer Mac's future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties.…