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    Gary Gordon • Unaffiliated Analyst

    Gary Gordon's questions to Federal Agricultural Mortgage Corp (AGM) leadership

    Gary Gordon's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q2 2025

    Question

    Gary Gordon, an analyst, asked for clarification on the share repurchase program, questioning if it falls under the company's dividend payout ratio target or is a separate capital allocation. He also inquired about the timing and rationale for increasing the repurchase authorization now.

    Answer

    President & CEO Bradford Nordholm clarified that the share repurchase program is separate from and opportunistic to the company's consistent and disciplined dividend policy. He explained that the authorization was increased now because it hadn't been reviewed in a while, the company is larger, and it provides a tool to respond to recent, unwarranted softness in the stock price.

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    Gary Gordon's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q1 2025

    Question

    Gary Gordon, a private investor, asked about the potential impact of changing energy policy on the rural infrastructure business and the company's current strategy regarding the application of Artificial Intelligence (AI).

    Answer

    President and CEO Bradford Nordholm addressed the energy policy question by stating that the investment tax credits for their renewable projects are well-supported and that project financing contracts lock in these credits at funding, mitigating risk from future legislative changes. On AI, he explained that Farmer Mac's current focus is on leveraging the technology for internal process improvements, such as automating the extraction of information from loan documents to boost efficiency, rather than using it for credit decisioning at this time.

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    Gary Gordon's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q4 2024

    Question

    Gary Gordon asked for clarity on the increase in the loan loss reserve, questioning if it represented a 'catch-up' or if it signals a new trend of steadier increases going forward.

    Answer

    Executive Marc Crady clarified the increase was not a 'catch-up,' attributing the majority of the full-year $11 million increase to specific provisions for three idiosyncratic loans and the remainder to volume growth in new segments. CEO Bradford Nordholm added that the allowance is highly formula-driven and scrutinized by auditors and regulators, not subject to management discretion, and would not materially change absent new idiosyncratic issues or portfolio growth.

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    Gary Gordon's questions to Federal Agricultural Mortgage Corp (AGM) leadership • Q3 2024

    Question

    Gary Gordon asked for clarification on the 'transformative' nature of the new securitization product, its potential benefits, and the difference in capital requirements. He also questioned the adequacy of the capital cushion following the recent preferred stock buyback.

    Answer

    CFO Aparna Ramesh explained the securitization program aims to create a capital-efficient product for partners, shifting Farmer Mac's revenue to fee income. She also confirmed the current capital buffer is robust, providing 'degrees of freedom' for growth in capital-intensive areas and supporting the dividend strategy. CEO Bradford Nordholm added that the structure of preferreds provides favorable redemption options for capital management.

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