Farmer Mac reported a higher second-quarter profit, citing an increase in the value of financial derivatives and hedged assets.
The $15.1 billion-asset Farmer Mac's net income rose 9.7% to $22.2 million, or $1.94 per share, from a year earlier. Farmer Mac recorded a $10.4 million after-tax gain in this year's quarter, to account for unrealized fair value changes on financial derivatives and hedged assets, compared to a $3.1 million loss, a year earlier.
Farmer Mac recorded $470 million of net business volume growth in the quarter, raising its total outstanding business volume to $15.1 billion.
Total revenue rose 3.4% to $33.8 million. Operating expense rose 10.7% to $9.7 million on higher compensation and employee benefits.
Farmer Mac, officially known as Federal Agricultural Mortgage Corp., is a government-sponsored enterprise established by Congress to create a secondary market for agricultural and rural utility loans.