Federal Agricultural Mortgage Corp reports record earnings and business growth in Q3 2023 By Investing.com

Federal Agricultural Mortgage Corp reports record earnings and business growth in Q3 2023 By Investing.com

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In the latest financial update, Federal Agricultural (NYSE:) Mortgage Corp reported a 29% year-over-year increase in net interest income to $87.6 million for Q3 2023, released today. The net income attributable to common stockholders also saw a significant jump from $34.6 million to $51.3 million, marking the company’s sixth consecutive quarter of record earnings.

The company’s total core capital exceeded the statutory requirement by 69%, standing at $1.4 billion. The Tier 1 Capital Ratio was reported at 16%, reflecting a strong financial position.

Federal Agricultural Mortgage Corp also announced a record net effective spread of $83.4 million, up by 27% from the same period last year. This achievement represents the seventh consecutive quarter of record net effective spread for the company.

In terms of business volume, the company showed impressive growth for the tenth consecutive quarter, reporting an outstanding volume of $27.7 billion. It also provided $2.3 billion in liquidity and lending capacity for American agriculture.

InvestingPro Insights

In light of the recent financial update, it’s beneficial to consider some additional insights from InvestingPro. Federal Agricultural Mortgage Corp’s high earnings quality is highlighted by its free cash flow exceeding net income, aligning with the reported increase in net interest income. The company also boasts a track record of consistently increasing earnings per share, a trend that seems to be continuing with its sixth consecutive quarter of record earnings.

In the realm of shareholder returns, Federal Agricultural Mortgage Corp has raised its dividend for 11 consecutive years, showcasing its commitment to returning value to its investors. The company’s current P/E ratio stands at 9.49, indicating it’s trading at a relatively low price relative to its near-term earnings growth.

The InvestingPro platform offers additional insights and tips on Federal Agricultural Mortgage Corp and other companies, helping investors make informed decisions. With 13 more tips available for Federal Agricultural Mortgage Corp, users of InvestingPro can gain a comprehensive understanding of the company’s performance and potential.

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