Farmer mac reports second quarter 2021 results

Washington, aug. 5, 2021 /prnewswire/ -- the federal agricultural mortgage corporation (farmer mac; nyse: agm and agm.a), the nation's secondary market provider that increases the availability and affordability of credit for the benefit of rural america, today announced its results for the fiscal quarter ended june 30, 2021. second quarter 2021 highlights added $1.5 billion of gross business volume, resulting in net growth of $334.6 million; net interest income grew $6.8 million year-over-year to $55.1 million; net effective spread, a non-gaap measure, increased 22% from the prior-year period to $56.6 million and a high 1.01% of the overall portfolio, primarily due to portfolio growth and a continued shift in portfolio composition to higher spread loan purchase products; net income attributable to common stockholders was $25.4 million, or $2.35 per diluted common share; core earnings, a non-gaap measure, grew 14% from the prior-year period to $30.0 million, or $2.77 per diluted common share; second quarter 2021 efficiency ratio of 26%; return on equity improved to 18%, compared to 16% for the first quarter 2021; total allowance for credit losses reflected $1.0 million release driven by improving credit metrics and economic forecasts; and issued $125.0 million of tier 1 capital through the public offering of 4.875% series g non-cumulative preferred stock.
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