As filed with the Securities and Exchange Commission on - ------------------------------------------------------------------------------ May 11, 2000 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 - ------------------------------------------------------------------------------ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000. Commission File Number 0-17440 FEDERAL AGRICULTURAL MORTGAGE CORPORATION (Exact name of registrant as specified in its charter) Federally chartered instrumentality Of the United States 52-1578738 (State or other jurisdiction of (I.R.S. employer identification incorporation or organization) number) 919 18th Street, N.W., Suite 200, Washington, D.C. 20006 (Address of principal executive (Zip code) offices) (202) 872-7700 (Registrant's telephone number, including area code) ----------------------------------------------- Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date. As of May 11, 2000, there were 1,030,780 shares of Class A Voting Common Stock, 500,301 shares of Class B Voting Common Stock and 9,544,936 shares of Class C Non-Voting Common Stock outstanding.
PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements The following interim consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac" or the "Corporation") have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. These financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted as permitted by such rules and regulations. Management believes that the disclosures are adequate to present fairly the consolidated financial position, consolidated results of operations and consolidated cash flows at the dates and for the periods presented. These financial statements should be read in conjunction with the audited 1999 financial statements of Farmer Mac. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. The following information concerning Farmer Mac's financial statements is included herein. Consolidated Balance Sheets at March 31, 2000 and December 31, 1999....3 Consolidated Statements of Operations for the three months ended March 31, 2000 and 1999.............................................4 Consolidated Statements of Cash Flows for the three months ended March 31, 2000 and 1999.............................................5
FEDERAL AGRICULTURAL MORTGAGE CORPORATION CONSOLIDATED BALANCE SHEETS <TABLE> <CAPTION> March 31, 2000 December 31, 1999 ------------------- ------------------ (in thousands) <S> <C> <C> Assets: Cash and cash equivalents $ 344,822 $ 336,282 Investment securities 927,673 847,220 Farmer Mac guaranteed securities 1,289,175 1,306,223 Loans 28,897 38,509 Interest receivable 29,308 42,900 Guarantee fees receivable 2,618 4,358 Prepaid expenses and other assets 16,827 14,918 ------------------- ---------------- Total Assets $ 2,639,320 $ 2,590,410 ------------------- ---------------- Liabilities and Stockholders' Equity: Liabilities: Notes payable Due within one year $ 1,781,310 $ 1,722,061 Due after one year 745,735 750,337 ------------------- ---------------- Total notes payable 2,527,045 2,472,398 Accrued interest payable 11,904 18,549 Accounts payable and accrued expenses 5,398 5,736 Reserve for losses 7,901 6,584 ------------------- ---------------- Total Liabilities 2,552,248 2,503,267 Stockholders' Equity: Common stock: Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares issued and outstanding at March 31, 2000 and December 31, 1999. 1,031 1,031 Class B Voting, $1 par value, no maximum authorization, 500,301 shares issued and outstanding at March 31, 2000 and December 31, 1999. 500 500 Class C Non-Voting, $1 par value, no maximum amortization, 9,418,761 and 9,370,961 shares issued and outstanding at March, 2000 and December 31, 1999. 9,419 9,371 Additional paid-in capital 71,504 71,097 Accumulated other comprehensive loss (4,541) (1,657) Retained earnings 9,159 6,801 ------------------- ---------------- Total Stockholders' Equity 87,072 87,143 ------------------- ---------------- Total Liabilities and Stockholders' Equity $ 2,639,320 $ 2,590,410 ------------------- ---------------- See accompanying notes to consolidated financial statements. </TABLE>
FEDERAL AGRICULTURAL MORTGAGE CORPORATION CONSOLIDATED STATEMENTS OF INCOME <TABLE> <CAPTION> Three Months Ended ------------------------------------- March 31, 2000 March 31, 1999 ------------------------------------- (in thousands, except per share amounts) <S> <C> <C> Interest income: Investments and cash equivalents $ 21,958 $ 15,416 Farmer Mac guaranteed securities 21,694 9,302 Loans 1,240 3,317 --------------- --------------- Total interest income 44,892 28,035 Interest expense 40,276 24,455 --------------- --------------- Net interest income 4,616 3,580 Other income: Guarantee fees 2,582 1,465 Miscellaneous 182 66 --------------- --------------- Total other income 2,764 1,531 --------------- --------------- Total revenues 7,380 5,111 Operating expenses: Compensation and employee benefits 1,251 992 Regulatory fees 150 68 General and administrative 1,007 858 --------------- --------------- Total operating expenses 2,408 1,918 Provision for losses 1,317 798 --------------- --------------- Total expenses 3,725 2,716 --------------- --------------- Income before income taxes 3,655 2,395 Income tax expense 1,297 814 --------------- --------------- Net income $ 2,358 $ 1,581 --------------- --------------- Earnings per share: Basic earnings per share $ 0.22 $ 0.15 Diluted earnings per share $ 0.21 $ 0.14 See accompanying notes to consolidated financial statements. </TABLE>
FEDERAL AGRICULTURAL MORTGAGE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS <TABLE> <CAPTION> Three Months Ended March 31, -------------------------------- 2000 1999 ---------------- --------------- (in thousands) <S> <C> <C> Cash flows from operating activities: Net income $ 2,358 $ 1,581 Adjustments to reconcile net income to cash provided by operating activities: Amortization of investment premiums and discounts 635 2,139 Decrease in interest receivable 13,592 5,548 Decrease in guarantee fees receivable 1,740 555 Increase in prepaid expenses and other assets (1,977) (2,377) Amortization of debt premiums, discounts and issuance costs 27,360 17,739 (Decrease) increase in accrued interest payable (6,645) 80 (Decrease) increase in accounts payable and accrued expenses (338) 578 Provision for losses 1,317 798 ---------------- --------------- Net cash provided by operating activities 38,042 26,641 Cash flows from investing activities: Purchases of available-for-sale investments (105,356) (99,331) Purchases of investment securities (2,585) (4,014) Purchases of Farmer Mac guaranteed securities (147,344) (38,555) Purchases of loans (58,451) (122,635) Proceeds from repayment of available-for-sale investments 20,773 74,686 Proceeds from repayment of investment securities 4,311 17,124 Proceeds from repayment of Farmer Mac guaranteed securities 210,623 42,161 Proceeds from repayment of loans 105 5,095 Proceeds from securitization of loans 20,611 - ---------------- --------------- Net cash used by investing activities (57,313) (125,469) <S> <C> <C> Cash flows from financing activities: Proceeds from issuance of discount notes 18,817,569 20,816,854 Proceeds from issuance of medium-term notes 15,020 97,982 Payments to redeem discount notes (18,794,172) (20,823,285) Payments to redeem medium-term notes (11,060) (18,300) Proceeds from common stock issuance 454 26 ---------------- --------------- Net cash provided by financing activities 27,811 73,277 ---------------- --------------- Net increase (decrease) in cash and cash equivalents 8,540 (25,551) Cash and cash equivalents at beginning of period 336,282 540,626 ---------------- --------------- Cash and cash equivalents at end of period $ 344,822 $ 515,075 ---------------- --------------- See accompanying notes to consolidated financial statements. </TABLE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Accounting Policies. (a) Cash and Cash Equivalents Farmer Mac considers highly liquid investment securities with original maturities of three months or less to be cash equivalents. Changes in the balance of cash and cash equivalents are reported in the Consolidated Statements of Cash Flows using the indirect method of presentation. The following table sets forth information regarding certain cash and non-cash transactions for the three months ended March 31, 2000 and 1999. <TABLE> <CAPTION> Three Months Ended March 31, -------------------------- 2000 1999 ------------- ------------ (in thousands) <S> <C> <C> Cash paid for: Interest $ 16,420 $ 5,566 Income taxes - 300 Non-cash activity: Real estate owned acquired through foreclosure - 578 Loans securitized and retained as Farmer Mac guaranteed securities 46,467 268,386 Loans acquired in exchange for AMBS - 73,597 </TABLE> (b) Loans At March 31, 2000, loans held by Farmer Mac included $25.9 million held for sale and $3.0 million held for investment. At December 31, 1999, loans held by Farmer Mac included $21.4 million held for sale and $17.1 million held for investment. (c) Interest-Rate Contracts and Hedge Instruments Interest-rate contracts, including interest-rate swaps and caps, are used to synthetically alter the interest rate characteristics of specific investments or debt. As such, the net differential received or paid is recorded as an adjustment to interest income or expense of the associated assets or liabilities, on an accrual basis. Hedge instruments, consisting solely of forward sale contracts involving debt securities of other government-sponsored enterprises (GSEs) and futures contracts involving U.S. Treasury securities, are used by Farmer Mac to manage interest-rate risk exposure related to the purchase of loans and the issuances of debt. Farmer Mac measures correlation using changes in interest rates for the hedged items against changes in interest rates for the hedge instruments. Gains and losses on effective hedge instruments that have been terminated or have matured are deferred as an adjustment to the cost basis of the hedged item. Gains and losses on ineffective hedge instruments are marked-to-fair value directly through the consolidated statement of income. (d) Earnings Per Share Basic earnings per share are based on the weighted average common shares outstanding. Diluted earnings per share are based on the weighted average number of common shares outstanding adjusted to include all dilutive potential common stock. The following schedule reconciles basic and diluted earnings per share for the quarter ended March 31, 2000 and 1999: <TABLE> <CAPTION> March 31, 2000 March 31, 1999 ------------------------------- ------------------------------- Dilutive Dilutive Basic stock Diluted Basic stock Diluted EPS options EPS EPS options EPS ------------------------------- ------------------------------- (in thousands, except per share amounts) <S> <C> <C> <C> <C> <C> <C> Net income $ 2,358 - $ 2,358 $ 1,581 - $ 1,581 Weighted average shares 10,921 345 11,266 10,802 374 11,176 Earnings per share $ 0.22 $ 0.21 $ 0.15 $ 0.14 </TABLE> (e) Reclassifications Certain reclassifications of prior period information were made to conform to the current period presentation. Note 2. Off-Balance Sheet Financial Instruments In the ordinary course of its business, Farmer Mac incurs off-balance sheet risk in connection with the issuance of commitments to purchase and sell loans, the issuance of its guarantee and the use of interest-rate contracts and hedge instruments. At March 31, 2000, outstanding commitments to purchase Farmer Mac I and II loans totaled $11.8 million. There were $18.1 million of commitments outstanding to sell loans at March 31, 2000. For information regarding the off-balance sheet risks associated with off-balance sheet guarantees, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management - Credit Risk." For information related to the use of interest-rate contracts and hedge instruments, see Note 1 (c) and "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Management - Interest Rate Risk." In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." The Statement establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. The Statement requires that changes in the derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative's gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. SFAS No. 133 is effective for fiscal years beginning after June 15, 2000. SFAS No. 133 cannot be applied retroactively. SFAS No.133 must be applied to (a) free-standing derivative instruments and (b) certain derivative instruments embedded in hybrid contracts that were issued, acquired, or substantively modified after December 31, 1998. Farmer Mac has not yet quantified the impact of adopting SFAS No. 133 on its financial statements. However, the Statement could increase volatility in earnings and other comprehensive income. Note 3. Comprehensive Income Comprehensive income is comprised of net income plus other changes in stockholders' equity not resulting from investments by or distributions to stockholders. The following table sets forth comprehensive income for the three months ended March 31, 2000 and 1999. Comprehensive income for the three months ended March 31, 2000 and 1999 is net of the related tax benefit/(expense) of $1.6 million and $(150) thousand, respectively. <TABLE> <CAPTION> Three Months Ended March 31, ---------------------------- 2000 1999 ------------- -------------- (in thousands) <S> <C> <C> Net income $2,358 $1,581 Change in unrealized gain (loss) on securities available-for-sale, net of taxes (2,884) 450 ------------- ------------ Comprehensive income (loss) $ (526) $2,031 ------------- ------------ </TABLE> Item 2. Management's Discussion and Analysis of Financial Condition and --------------------------------------------------------------- Results of Operations --------------------- Special Note Regarding Forward-Looking Statements Certain statements made in this Form 10-Q are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 pertaining to management's current expectations as to 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, and typically are accompanied by, and identified with, such terms as "anticipates," "believes," "expects," "intends," "should" and similar phrases. The following management's discussion and analysis includes forward-looking statements addressing Farmer Mac's prospects for earnings and growth in loan purchase, guarantee and securitization volume; trends in net interest income, delinquencies and provision for losses; changes in capital position; and other business and financial matters. Management's expectations for Farmer Mac's future necessarily involve a number of assumptions and estimates and the evaluation of risks and uncertainties. Various factors could cause Farmer Mac's actual results or events to differ materially from the expectations as expressed or implied by the forward-looking statements, including: uncertainties regarding the rate and direction of development of the secondary market for agricultural mortgage loans; the possible establishment of additional statutory or regulatory restrictions applicable to Farmer Mac, such as the imposition of regulatory risk-based capital requirements in excess of current statutory minimum and critical capital levels or restrictions on Farmer Mac's investment authority; substantial changes in interest rates, the agricultural economy (including agricultural land values, commodity prices, export demand for U.S. agricultural products and federal assistance to farmers) or the general economy; protracted adverse weather, market or other conditions affecting particular geographic regions or particular commodities related to agricultural mortgage loans backing Farmer Mac guaranteed securities; legislative or regulatory developments or interpretations of Farmer Mac's statutory charter that could adversely affect Farmer Mac or the ability of certain lenders to participate in its programs or the terms of any such participation; the availability of debt funding in sufficient quantities and at favorable rates to support continued growth; the rate of growth in agricultural mortgage indebtedness; the size of the agricultural mortgage market; borrower preferences for fixed-rate agricultural mortgage indebtedness; the willingness of lenders to sell agricultural mortgage loans into the Farmer Mac secondary market; the willingness of investors to invest in agricultural mortgage-backed securities; competition in the origination or purchase of agricultural mortgage loans and the sale of agricultural mortgage-backed and debt securities; or changes in Farmer Mac's status as a government-sponsored enterprise. The foregoing factors are not exhaustive. Other sections of this report may include additional factors that could adversely impact Farmer Mac's business and its financial performance. Furthermore, new risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor assess the impact of such factors on Farmer Mac's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from the expectations expressed or implied by the forward-looking statements. Given these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this report. Furthermore, Farmer Mac undertakes no obligation to publicly release the results of revisions to any forward-looking statements that may be made to reflect any future events or circumstances. Results of Operations Overview. Net income totaled $2.4 million for first quarter 2000, or $0.21 per share on a diluted basis, compared to $1.6 million, or $0.14 per share, for first quarter 1999. Earnings per share for the first quarter increased 50 percent over first quarter 1999. Farmer Mac's strong earnings and revenue growth during the first quarter of 2000 enabled it to maintain the positive financial performance trend from 1999. Net income and total revenues for first quarter 2000 grew 49 percent and 44 percent, respectively, compared to the same period a year ago, due to a 29 percent increase in net interest income (primarily from Agricultural Mortgage-Backed Securities (AMBS) retained in portfolio) and a 76 percent rise in guarantee fees, while operating expenses only increased by 26 percent, all over the same one year period. Farmer Mac's continued earnings growth reflects the annuity-like structure of interest and guarantee fee income from program assets, whereby the annual revenue stream from new business volume is layered onto ongoing annual revenues earned on loans purchased or guaranteed during prior years. Although Farmer Mac's earnings increased, cash window loan purchases and guarantee volume for the quarter were down compared to prior quarters. This was largely due to unusual economic conditions in the agricultural sector. During fourth quarter 1999 and first quarter 2000, the combination of continuing low agricultural commodity prices and substantial government cash payments to farmers slowed demand for agricultural mortgages. In addition, higher interest rates increased farmer demand for variable rate mortgages, which many agricultural lenders were inclined to hold in portfolio, further reducing the supply of newly originated mortgages for sale into the secondary market. Nevertheless, total loans held or guaranteed were up 28 percent over the balance at the end of the first quarter of 1999. Consistent with fluctuations in business volume over the past several quarters, Farmer Mac expects business growth to vary significantly from quarter to quarter until the Corporation's secondary market programs for the agricultural credit sector attract wider participation. While current market conditions are expected to constrain cash window purchase volume over the next several quarters, Farmer Mac continues to develop competitive new loan products and intensify marketing efforts to increase its market share of new originations. Farmer Mac is also currently pursuing significant opportunities for business volume growth during 2000 through the addition of swap and long-term standby purchase commitment transactions. Set forth below is a more detailed discussion of Farmer Mac's results of operations. Net Interest Income. Net interest income was $4.6 million for first quarter 2000, compared to $3.6 million for first quarter 1999. The increase compared to first quarter 1999 was due to a 42 percent increase in the average balance of interest-earning assets driven by Farmer Mac's retention of AMBS. The following table provides information regarding the average balances and rates of interest-earning assets and funding for the three months ended March 31, 2000 and 1999. The decrease in net interest yield from first quarter 1999 to first quarter 2000, as reflected in the table below, was due to tighter spreads on short-term and variable rate investments. <TABLE> <CAPTION> Three Months Ended March 31, ------------------------------------------------------------------------------ 2000 1999 -------------------------------------- --------------------------------------- Average Income/ Average Average Income/ Average Balance Expense Rate Balance Expense Rate ------------------------------------------------------------------------------ (dollars in thousands) <S> <C> <C> <C> <C> <C> <C> Interest Earning Assets: Cash and cash equivalents $ 540,967 $ 7,919 5.86% $ 583,202 $ 7,242 4.97% Investments 887,845 14,039 6.32% 607,438 8,174 5.38% Farmer Mac guaranteed securities 1,272,145 21,694 6.82% 549,915 9,302 6.82% Loans 63,579 1,240 7.80% 213,071 3,317 6.23% -------------- ----------- ----------- -------------- ------------ ----------- Total interest earning assets 2,764,536 44,892 6.50% 1,953,626 28,035 5.74% -------------- -------------- <S> <C> <C> <C> <C> <C> <C> Funding: Discount notes 1,926,731 27,296 5.67% 1,477,704 17,716 4.80% Medium-term notes 781,482 12,980 6.64% 421,012 6,739 6.40% -------------- ----------- ----------- -------------- ------------ ----------- Total interest -earing liabilities 2,708,213 40,276 5.95% 1,898,716 24,455 5.15% Net non-interest bearing funding 56,323 - 0.00% 54,910 - 0.00% -------------- ----------- ----------- -------------- ------------ ----------- Total funding $2,764,536 40,276 5.83% $1,953,626 24,455 5.01% -------------- ----------- ----------- -------------- ------------ ----------- Net interest income/yield $ 4,616 0.67% $ 3,580 0.73% ----------- ----------- ------------ ----------- </TABLE> The table below sets forth certain information regarding the changes in the components of Farmer Mac's net interest income for the periods indicated. For each category, information is provided on changes attributable to changes in volume (change in volume multiplied by old rate) and changes in rate (change in rate multiplied by old volume). Combined rate/volume variances, a third element of the calculation, are allocated based on their relative size. <TABLE> <CAPTION> Comparison of Three Months Ended March 31, 2000 and 1999 ----------------------------------------------- Increase/(Decrease) Due to ----------------------------------------------- Rate Volume Total ------------- ------------- ------------- (in thousands) <S> <C> <C> <C> Income from interest earning assets: Cash and cash equivalents $ 1,228 $ (551) $ 677 Investments 1,613 4,252 5,865 Farmer Mac guaranteed securities 76 12,316 12,392 Loans 683 (2,760) (2,077) ------------- ------------- ------------- Total 3,600 13,257 16,857 Expense from interest-bearing liabilities 4,212 11,609 15,821 ------------- ------------- ------------- Change in net interest income $ (612) $ 1,648 $ 1,036 ------------- ------------- ------------- </TABLE> Other Income. Other income, which is comprised of guarantee fee income and miscellaneous income, totaled $2.8 million for first quarter 2000, compared to $1.5 million for first quarter 1999. Guarantee fee income, the largest component of other income, was $2.6 million for first quarter 2000 and $1.5 million for first quarter 1999. The increase in guarantee fees reflects an increase in the average balance of outstanding guarantees. Miscellaneous income totaled $182 thousand for first quarter 2000, compared to $66 thousand for first quarter 1999. Miscellaneous income, which includes fees and hedging gains and losses related to program activities, as well as valuation adjustments related to loans held for sale, is expected to fluctuate from period to period. Expenses. During the first quarter 2000, operating expenses totaled $2.4 million compared to $1.9 million for first quarter 1999. While operating expenses have been increasing with growth in the balance of loans held or guaranteed, they have been increasing at a slower rate than increases in total revenues due to Farmer Mac's ability to leverage existing resources to support that growth. Operating expenses as a percentage of total revenues for the same quarters were 33 percent and 38 percent, respectively. First quarter 2000 operating expenses included expenses totaling $133 thousand related to foreclosed properties held by Farmer Mac, including anticipated losses on the sale of the properties based on sales contracts entered into during the quarter. Farmer Mac's provision for principal and interest losses was $1.3 million for first quarter 2000, compared to $798 thousand for first quarter 1999. The increase in the provision for losses corresponds to growth in outstanding post-1996 Act loans held or guaranteed by Farmer Mac, which totaled $1.9 billion at March 31, 2000. Income Tax Expense. The provision for income taxes totaled $1.3 million for first quarter 2000, compared to $814 thousand for first quarter 1999. Farmer Mac's effective tax rate for each of these periods was 35.5 percent and 34.0 percent, respectively. Business Volume. The following table sets forth the amount of loans --------------- purchased or guaranteed, and AMBS issued during the periods indicated: <TABLE> <CAPTION> Three Months Ended March 31, ------------------------------ 2000 1999 ------------- ------------- (in thousands) <S> <C> <C> Purchase and guarantee volume: Farmer Mac I Cash window $ 58,283 $ 127,625 Swap transactions - 73,597 LTSPC - 407,701 Farmer Mac II 22,570 29,965 ------------- ------------- Total loans purchased or guaranteed $ 80,853 $ 638,888 ------------- ------------- <S> <C> <C> AMBS issuances: Retained $ 46,467 $ 268,386 Sold 20,611 - Swap transactions - 73,597 ------------- ------------- Total AMBS issuances $ 67,078 $ 341,983 ------------- ------------- Total loans held or guaranteed $ 2,386,211 $ 1,867,189 ------------- ------------- </TABLE> See "Overview" for a discussion regarding changes in the amount of loans purchased and guaranteed by Farmer Mac. Indicators of future purchase and guarantee volume, particularly cash window activity, include outstanding commitments to purchase loans and the total balance of loans submitted for approval or approved but not yet purchased. Most purchase commitments entered into by Farmer Mac are mandatory delivery commitments. If a Seller obtains a mandatory commitment and is unable to deliver the loans required thereunder within the specified time period, Farmer Mac requires the Seller to pay a fee to extend or cancel the commitment. At March 31, 2000, outstanding commitments to purchase Farmer Mac I loans totaled $10.7 million, compared to $22.5 million at March 31, 1999. Of the total commitments outstanding at March 31, 2000, $2.9 million were optional commitments. All the commitments outstanding at March 31, 1999 were mandatory commitments. Loans submitted for approval or approved but not yet committed to purchase totaled $108.1 million at March 31, 2000, compared to $205.6 million at March 31, 1999. Not all of these loans are expected to be purchased, as Farmer Mac is expected to deny some for credit reasons and others may be withdrawn by the Seller. While significant progress has been made in developing the secondary market for agricultural mortgages, Farmer Mac continues to face the challenges of establishing a new market. Management believes that acceptance of Farmer Mac's programs is increasing among lenders, reflecting the competitive rates, terms and products offered and the advantages we believe Farmer Mac's programs provide. For Farmer Mac to succeed in realizing its business development and profitability goals over the long term, however, agricultural mortgage lenders, whether traditional or non-traditional, must value the benefits of selling loans to Farmer Mac or otherwise obtaining the benefits of the Farmer Mac guarantee and must be persuaded to modify their business practices accordingly. Balance Sheet Review During first quarter 2000, total assets grew by $48.9 million. The growth in total assets was due to an $89.0 million increase in non-program assets (cash and cash equivalents and investments), partially offset by a $26.7 million decrease in on-balance sheet program assets (Farmer Mac guaranteed securities and loans). The decrease in program assets was due to the maturity of AgVantage bonds and the issuance of a $20.6 million AMBS to a capital market investor during the quarter. For further information regarding both on- and off-balance sheet guaranteed securities, see "Supplemental Information." Total liabilities increased by $49.0 million from December 31, 1999 to March 31, 2000 due to growth in notes payable, which corresponded to the net increase in program and non-program assets. Medium-term notes, including discount notes converted to long-term debt through interest-rate swap contracts, totaled $837.8 million at March 31, 2000, compared to $797.5 million at December 31, 1999. The increase in medium-term notes corresponds to AMBS issued and retained by Farmer Mac during the quarter. During first quarter 2000, stockholders' equity decreased by $71 thousand as the increasing effect of net income earned during the quarter was offset by an unrealized loss on available for sale securities, which are marked-to-fair value through equity. Farmer Mac's regulatory core capital, which excludes unrealized gains and losses on available for sale securities, totaled $91.6 million at March 31, 2000 compared to $88.8 million at December 31, 1999. The capital balance at March 31, 2000 exceeded Farmer Mac's regulatory minimum capital requirements by $10.7 million. Farmer Mac's current surplus capital would support additional asset growth in amounts ranging from $385 million of on-balance sheet assets to $1.4 billion of off-balance sheet assets based on existing minimum capital requirements. Furthermore, Farmer Mac has an even greater ability to replace on-balance sheet non-program assets with on- and off-balance sheet program assets and, ultimately, to sell on-balance sheet program assets in order to support increases in off-balance sheet program activities. Return on average equity increased to 10.8 percent during first quarter 2000, compared to 8.7 percent during fourth quarter 1999. Risk Management Interest Rate Risk. Farmer Mac's asset and liability management objective is to limit the effect of changes in interest rates on its equity and earnings to within acceptable risk tolerance levels. In doing so, Farmer Mac enters into off-balance sheet derivative financial instruments, including interest-rate swaps and caps (collectively "interest-rate contracts"), forward sale contracts involving GSE debt securities and futures contracts involving U.S. Treasury securities. Interest-rate contracts are used to synthetically alter the interest rate characteristics of specific investments or debt such that the interest rate characteristics of Farmer Mac's investments and debt are better matched. At March 31, 2000, the notional amount of interest-rate contracts was $802.1 million compared to $769.5 million at December 31, 1999. Farmer Mac uses forward sale and futures contracts to reduce its interest rate risk exposure to loans committed or purchased and not yet sold or funded as retained investments, which totaled $12.3 million at March 31, 2000 and $19.7 million at December 31, 1999. At March 31, 2000, the notional amount of outstanding forward sale and futures contracts totaled $10.5 million, compared to $16.7 million at December 31, 1999. Farmer Mac monitors its exposure to interest rate risk by measuring the sensitivity of its market value of equity (MVE) to an immediate and permanent parallel shift in the Treasury yield curve. The following schedule summarizes the results of Farmer Mac's MVE sensitivity analysis at March 31, 2000 and December 31, 1999. The increase in MVE sensitivity in the decreasing interest rate scenarios reflects the lengthening of Farmer Mac's debt maturities (see "Balance Sheet Review"). <TABLE> <CAPTION> Percentage Change in FVE from Base Case ------------------------------------ Interest Rate March 31, December 31, Scenario 2000 1999 ------------- ---------------- ---------------- <S> <C> <C> <C> + 300 bp -10.9% -9.4% + 200 bp -5.4% -5.6% + 100 bp -1.1% -2.1% - 100 bp -4.1% -1.1% - 200 bp -11.7% -6.5% - 300 bp -20.3% -15.0% </TABLE> Credit Risk. The outstanding principal balance of those loans held or guaranteed by Farmer Mac as of March 31, 2000 and December 31, 1999 is summarized in the table below. <TABLE> <CAPTION> March 31, 2000 December 31, 1999 ---------------- ------------------ (in thousands) <S> <C> <C> Farmer Mac I: Post-1996 Act $ 1,890,816 $ 1,879,978 Pre-1996 Act 107,403 118,214 Farmer Mac II 387,992 383,266 ---------------- ---------------- Total $ 2,386,211 $ 2,381,458 ---------------- ---------------- </TABLE> Farmer Mac believes it has little or no credit risk exposure to pre-1996 Act Farmer Mac I loans because of the subordinated interests related to the loans, or to Farmer Mac II loans because they are guaranteed by the USDA. Farmer Mac assumes 100 percent of the credit risk on post-1996 Act loans; pre-1996 Act loans are supported by mandatory 10 percent subordinated interests that mitigate credit exposure. At March 31, 2000, post-1996 Act loans that were 90 days or more past due represented 1.36 percent of the principal amount of all post-1996 Act loans, compared to 1.59 percent at March 31, 1999 and 0.94 percent at December 31, 1999. Consistent with the increase in the delinquency rate at March 31, 2000 compared to December 31, 1999, Farmer Mac anticipates fluctuations in the delinquency rate from quarter to quarter, with higher levels likely to be reported during the first and third quarters of each year due to the semiannual payment characteristics of most Farmer Mac loans. For the remainder of 2000 and into 2001, preliminary steps already taken by Congress to provide additional income support to the agricultural sector, by including authority for approximately $7 billion in new farm assistance in the federal budget, should help to moderate delinquencies. The following table segregates the post-1996 Act delinquencies at March 31, 2000 by year of origination, geographic region and commodity.
<TABLE> <CAPTION> Distribution of Post-1996 Delinquency Act Loans Rate ---------------- --------------- <S> <C> <C> By year of origination: Before 1996 36% 0.41% 1996 9% 4.55% 1997 11% 3.87% 1998 20% 1.61% 1999 21% 0.34% 2000 3% 0.00% ---------------- Total 100% 1.36% ---------------- <S> <C> <C> By geographic region: (1) Mid-north 19% 0.33% Mid-south 4% 0.70% Northeast 3% 0.00% Northwest 41% 1.88% Southeast 1% 7.45% Southwest 32% 1.23% ---------------- Total 100% 1.36% ---------------- <S> <C> <C> By commodity: Crops 52% 1.96% Livestock 20% 0.83% Permanent plantings 24% 0.75% Other 4% 0.17% ---------------- Total 100% 1.36% ---------------- (1)Geographic regions - Mid-North (IA, IL, IN, MI, MN, MO, WI); Mid-South (KS, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, TN, VA, VT, WV); Northwest (ID, MT, ND, NE, OR, SD, WA, WY); Southeast (AL, AR, FL, GA, LA, MS, SC); and Southwest (AZ, CA, CO, NM, NV, UT). </TABLE> Farmer Mac maintains a reserve to cover credit losses incurred on post-1996 Act loans. The following schedule summarizes the change in the reserve for loan losses for the three months ended March 31, 2000 and 1999: <TABLE> <CAPTION> Three Months Ended March 31, -------------------------- 2000 1999 ------------ ------------- (in thousands) <S> <C> <C> Beginning balance $6,584 $3,259 Provision for losses 1,317 798 Net charge-offs - (41) ------------ ------------- Ending balance $7,901 $4,016 ------------ ------------- </TABLE> Although credit losses are expected to be incurred on the existing post-1996 Act Farmer Mac I delinquencies, Farmer Mac expects those losses to be within current reserve levels based on the collateral values supporting the loans. The following table summarizes the post-1996 Act delinquencies by loan-to-value ratio (calculated by dividing the current loan principal balance by the original appraised value):
<TABLE> <CAPTION> Distribution of Post-1996 Act Delinquencies ---------------- <S> <C> By loan-to-value ratio: 0.00% to 40.00% 7% 40.01% to 50.00% 17% 50.01% to 60.00% 45% 60.01% to 70.00% 30% 70.01% to 80.00% 1% ---------------- Total 100% ---------------- </TABLE> As of March 31, 2000, the weighted average loan-to-value ratio of post-1996 Act loans was approximately 50 percent. Supplemental Information The following tables set forth quarterly activity regarding: commitments to purchase loans; purchases and guarantees of loans; AMBS issuances; delinquencies; and outstanding guarantees. <TABLE> <CAPTION> Commitments to Purchase or Guarantee Farmer Mac I Loans (1) (2) - ------------------------------------------------------------------------------------------------------- Long Term 5 and 7 Year Fixed Rate Balloons ARMs Total Outstanding -------------- --------------- -------------- --------------- -------------- (in thousands) <S> <C> <C> <C> <C> <C> For the quarter ended: March 31, 2000 $ 10,369 $ 16,835 $ 32,438 $ 59,642 $ 10,707 December 31,1999 317,357 6,882 75,326 399,565 12,470 September 30, 1999 26,623 19,384 34,170 80,177 17,010 June 30, 1999 56,010 17,025 48,791 121,826 12,069 March 31, 1999 137,200 14,774 45,249 197,223 22,501 For the year ended: December 31, 1999 537,190 58,065 203,536 798,791 12,470 December 31, 1998 302,227 48,412 502,283 852,922 431,544 </TABLE> <TABLE> <CAPTION> Purchases and Guarantees of Farmer Mac I Loans (1) (2) - ---------------------------------------------------------------------------------------- Long Term 5 and 7 Year Fixed Rate Balloons ARMs Total ------------------------------ --------------- -------------- (in thousands) <S> <C> <C> <C> <C> For the quarter ended: March 31, 2000 $ 11,917 $ 13,185 $ 33,181 $ 58,283 December 31, 1999 319,478 9,522 73,030 402,030 September 30, 1999 26,670 14,862 29,029 70,561 June 30, 1999 58,406 16,975 52,244 127,625 March 31, 1999 257,632 15,817 329,099 602,548 For the year ended: December 31, 1999 662,186 57,176 483,402 1,202,764 December 31, 1998 164,436 48,086 211,737 424,259 </TABLE> <TABLE> <CAPTION>
Farmer Mac I AMBS Issuances (1) (3) - -------------------------------------------------------------------------------------- Long Term 5 and 7 Year Fixed Rate Balloons ARMs Total --------------- -------------- ------------- -------------- (in thousands) <S> <C> <C> <C> <C> For the quarter ended: March 31, 2000 $ 6,582 $ 14,616 $ 45,880 $ 67,078 December 31, 1999 128,641 8,084 17,069 153,794 September 30, 1999 95,121 33,532 24,744 153,397 June 30, 1999 1,018 - 44,397 45,415 March 31, 1999 134,405 16,271 191,307 341,983 For the year ended: December 31, 1999 359,185 57,887 277,517 694,589 December 31, 1998 165,383 51,941 84,322 301,646 </TABLE> <TABLE> <CAPTION> Farmer Mac I Delinquencies (4) (5) - ------------------------------------------------------------------------- As of: Post-1996 Act Pre-1996 Act Total --------------- -------------- --------------- <S> <C> <C> <C> March 31, 2000 1.36% 5.04% 1.56% December 31, 1999 0.94% 3.06% 1.06% September 30, 1999 1.56% 3.48% 1.72% June 30, 1999 1.03% 1.44% 1.07% March 31, 1999 1.59% 3.71% 1.81% </TABLE> <TABLE> <CAPTION> Outstanding Loans Held or Guaranteed (5) - -------------------------------------------------------------------------------------------------------------------- Farmer Mac I ----------------------------------------- Post-1996 Act ---------------------------- Pre-1996 Farmer Held in Loans/AMBS LTSPC Act Mac II Total Portfolio (6) ---------------- ----------- ------------ ------------- ------------ ----------------- (in thousands) <S> <C> <C> <C> <C> <C> <C> As of: March 31, 2000 $1,339,393 $ 551,423 $ 107,403 $ 387,992 $2,386,211 $1,292,571 December 31,1999 1,304,881 575,097 118,214 383,266 2,381,458 1,275,982 September 30, 1999 1,137,037 367,934 130,452 377,663 2,013,179 1,209,512 June 30, 1999 1,083,713 375,915 142,842 367,250 1,967,657 1,145,478 March 31, 1999 963,032 390,520 157,710 345,927 1,857,189 817,690 </TABLE> (1)Includes loans guaranteed by Farmer Mac through swap transactions. Such transactions totaled $103.2 million in fourth quarter 1999 and $73.6 million in first quarter 1999. (2)Includes guarantee transactions of $226.8 million committed to and executed in fourth quarter 1999, and $407.7 million committed to in fourth quarter 1998 and executed in first quarter 1999. The transactions, referred to as long-term standby purchase commitments (LTSPC), obligate Farmer Mac to purchase loans within the pool at par when they become four or more months delinquent. In exchange, Farmer Mac receives an annual commitment fee on the outstanding balance of the pool over the life of the loans. (3)Includes AMBS issued and retained by Farmer Mac. Such transactions totaled $46.5 million in first quarter 2000, $50.6 million in fourth quarter 1999, $153.4 million in third quarter 1999, $45.4 million in second quarter 1999 and $268.4 million in first quarter 1999. (4)Includes loans 90 days or more past due, in foreclosure or in bankruptcy. (5)Pre-1996 Act loans back securities that are supported by unguaranteed subordinated interests representing approximately 10 percent of the balance of the loans. Farmer Mac assumes 100 percent of the credit risk on post-1996 Act loans. Farmer Mac II loans are guaranteed by the U.S. Department of Agriculture. (6)Included in total outstanding guarantees.
PART II - OTHER INFORMATION Item 1. Legal Proceedings. ------------------ The registrant is not a party to any material pending legal proceedings. Item 2. Changes in Securities. ---------------------- (a) Not applicable (b) Not Applicable. (c) Farmer Mac is a federally chartered instrumentality of the United States and its Common Stock is exempt from registration pursuant to Section 3(a)(2) of the Securities Act of 1933. Pursuant to Farmer Mac's policy which permits Directors of Farmer Mac to elect to receive shares of Class C Non-Voting Common Stock in lieu of their annual cash retainers, on January 19, 2000, Farmer Mac issued an aggregate of 450 shares of its Class C Non-Voting Common Stock at an issue price of $20.1875 per share to the 9 Directors who elected to receive such stock in lieu of their cash retainers. On February 3, 2000, Farmer Mac issued 2,615 restricted shares of its Class C Non-Voting Common Stock to an employee of Farmer Mac in connection with that employee's appointment as an officer of the Corporation. (d) Not applicable. Item 3. Defaults upon Senior Securities. Not applicable.
Item 4. Submission of Matters to a Vote of Stockholders. ------------------------------------------------ Not applicable. Item 5. Other Information. ------------------ None. Item 6. Exhibits and Reports on Form 8-K. --------------------------------- (a) Exhibits. * 3.1 - Title VIII of the Farm Credit Act of 1971, as most recently amended by the Farm Credit System Reform Act of 1996, P.L. 104-105 (Form 10-K filed March 29, 1996). * 3.2 - Amended and restated Bylaws of the Registrant (Form 10-Q filed August 12, 1999). +* 10.1 - Stock Option Plan (Previously filed as Exhibit 19.1 to Form 10-Q filed November 10, 1992). +* 10.1.1 - Amendment No. 1 to Stock Option Plan (Previously filed as Exhibit 10.2 to Form 10-Q filed August 16, 1993). +* 10.1.2 - 1996 Stock Option Plan (Form 10-Q filed November 10, 1996). +* 10.1.3 - Amended and Restated 1997 Stock Option Plan. +* 10.2 - Employment Agreement dated May 5, 1989 between Henry D. Edelman and the Registrant (Previously filed as Exhibit 10.4 to Form 10-K filed February 14, 1990). +* 10.2.1 - Amendment No. 1 dated as of January 10, 1991 to Employment Contract between Henry D. Edelman and the Registrant (Previously filed as Exhibit 10.4 to Form 10-K filed April 1, 1991). +* 10.2.2 - Amendment to Employment Contract dated as of September 1, 1993 between Henry D. Edelman and the Registrant (Previously filed as Exhibit 10.5 to Form 10-Q filed November 15, 1993). +* 10.2.3 - Amendment No. 3 dated as of September 1, 1994 to Employment Contract between Henry D. Edelman and the Registrant (Previously filed as Exhibit 10.5 to Form 10-Q filed November 15, 1994). * Incorporated by reference to the indicated prior filing. + Management contract or compensatory plan.
+* 10.2.4 - Amendment No. 4 dated as of February 8, 1996 to Employment Contract between Henry D. Edelman and the Registrant (Form 10-K filed March 29, 1996). +* 10.2.5 - Amendment No. 5 dated as of September 13, 1996 to Employment Contract between Henry D. Edelman and the Registrant (Form 10-Q filed November 10, 1996). +* 10.2.6 - Amendment No. 6 dated as of August 7, 1997 to Employment Contract between Henry D. Edelman and the Registrant (Form 10-Q filed November 14, 1997). +* 10.2.7 - Amendment No. 7 dated as of September 4, 1998 to Employment Contract between Henry D. Edelman and the Registrant (Form 10-Q filed August 14, 1998). +* 10.2.8 - Amendment No. 8 dated as of September 3, 1999 to Employment Contract between Henry D. Edelman and the Registrant (Form 10-Q filed August 12, 1999). +* 10.3 - Employment Agreement dated May 11, 1989 between Nancy E. Corsiglia and the Registrant (Previously filed as Exhibit 10.5 to Form 10-K filed February 14, 1990). +* 10.3.1 - Amendment dated December 14, 1989 to Employment Agreement between Nancy E. Corsiglia and the Registrant (Previously filed as Exhibit 10.5 to Form 10-K filed February 14, 1990). +* 10.3.2 - Amendment No. 2 dated February 14, 1991 to Employment Agreement between Nancy E. Corsiglia and the Registrant (Previously filed as Exhibit 10.7 to Form 10-K filed April 1, 1991). +* 10.3.3 - Amendment to Employment Contract dated as of September 1, 1993 between Nancy E. Corsiglia and the Registrant (Previously filed as Exhibit 10.9 to Form 10-Q filed November 15, 1993). +* 10.3.4 - Amendment No. 4 dated September 1, 1993 to Employment Contract between Nancy E. Corsiglia and the Registrant (Previously filed as Exhibit 10.11 to Form 10-K filed March 30, 1994). +* 10.3.5 - Amendment No. 5 dated as of September 1, 1994 to Employment Contract between Nancy E. Corsiglia and the Registrant (Previously filed as Exhibit 10.12 to Form 10-Q filed August 15, 1994). * Incorporated by reference to the indicated prior filing. + Management contract or compensatory plan.
+* 10.3.6 - Amendment No. 6 dated as of September 1, 1995 to Employment Contract between Nancy E. Corsiglia and the Registrant (Form 10-Q filed November 10, 1995). +* 10.3.7 - Amendment No. 7 dated as of February 8, 1996 to Employment Contract between Nancy E. Corsiglia and the Registrant (Form 10-K filed March 29, 1996). +* 10.3.8 - Amendment No. 8 dated as of September 13, 1996 to Employment Contract between Nancy E. Corsiglia and the Registrant (Form 10-Q filed November 10, 1996). +* 10.3.9 - Amendment No. 9 dated as of August 7, 1997 to Employment Contract between Nancy E. Corsiglia and the Registrant (Form 10-Q filed November 14, 1997). +* 10.3.10 - Amendment No. 10 dated as of September 4, 1998 to Employment Contract between Nancy E. Corsiglia and the Registrant (Form 10-Q filed August 14, 1998). +* 10.3.11 - Amendment No. 11 dated as of September 3, 1999 to Employment Contract between Nancy E. Corsiglia and the Registrant (Form 10-Q filed August 12, 1999). +* 10.4 - Employment Agreement dated September 13, 1989 between Thomas R. Clark and the Registrant (Previously filed as Exhibit 10.6 to Form 10-K filed April 1, 1990). +* 10.4.1 - Amendment No. 1 dated February 14, 1991 to Employment Agreement between Thomas R. Clark and the Registrant (Previously filed as Exhibit 10.9 to Form 10-K filed April 1, 1991). +* 10.4.2 - Amendment to Employment Contract dated as of September 1, 1993 between Thomas R. Clark and the Registrant (Previously filed as Exhibit 10.12 to Form 10-Q filed November 15, 1993). +* 10.4.3 - Amendment No. 3 dated September 1, 1993 to Employment Contract between Thomas R. Clark and the Registrant (Previously filed as Exhibit 10.16 to Form 10-K filed March 30, 1994). +* 10.4.4 - Amendment No. 4 dated as of September 1, 1994 to Employment Contract between Thomas R. Clark and the Registrant (Previously filed as Exhibit 10.17 to Form 10-Q filed August 15, 1994). * Incorporated by reference to the indicated prior filing. + Management contract or compensatory plan.
+* 10.4.5 -Amendment No. 5 dated as of September 1, 1995 to Employment Contract between Thomas R. Clark and the Registrant (Form 10-Q filed November 10, 1995). +* 10.4.6 -Amendment No. 6 dated as of February 8, 1996 to Employment Contract between Thomas R. Clark and the Registrant (Form 10-K filed March 29, 1996). +* 10.4.7 -Amendment No. 7 dated as of September 13, 1996 to Employment Contract between Thomas R. Clark and the Registrant (Form 10-Q filed November 10, 1996). +* 10.4.8 -Amendment No. 8 dated as of August 7, 1997 to Employment Contract between Thomas R. Clark and the Registrant (Form 10-Q filed November 14, 1997). +* 10.4.9 -Amendment No. 9 dated as of September 4, 1998 to Employment Contract between Thomas R. Clark and the Registrant (Form 10-Q filed August 14, 1998). +* 10.4.10 -Amendment No. 10 dated as of September 3, 1999 to Employment Contract between Thomas R. Clark and the Registrant (Form 10-Q filed August 12, 1999). +* 10.5 -Employment Contract dated as of September 1, 1997 between Tom D. Stenson and the Registrant (Previously filed as Exhibit 10.8 to Form 10-Q filed November 14, 1997). +* 10.5.1 -Amendment No. 1 dated as of September 4, 1998 to Employment Contract between Tom D. Stenson and the Registrant (Previously filed as Exhibit 10.8.1 to Form 10-Q filed August 14, 1998). +* 10.5.2 -Amendment No. 2 dated as of September 3, 1999 to Employment Contract between Tom D. Stenson and the Registrant (Form 10-Q filed August 12, 1999). +** 10.6 -Employment Agreement dated February 1, 2000 between Jerome G. Oslick and the Registrant. * Incorporated by reference to the indicated prior filing. ** Filed herewith. + Management contract or compensatory plan.
* 10.9 - Lease Agreement, dated September 30, 1991 between 919 Eighteenth Street, N.W. Associates Limited Partnership and the Registrant (Previously filed as Exhibit 10.20 to Form 10-K filed March 30, 1992). * 21 - Subsidiaries. 21.1 - Farmer Mac Mortgage Securities Corporation, a Delaware Corporation. * 99.1 - Map of U.S. Department of Agriculture (Secretary of Agriculture's) Regions (Previously filed as Exhibit 1.1 to Form 10-K filed April 1, 1991). (b) Reports on Form 8-K. The Registrant did not file any reports on Form 8-K during the quarter ended March 31, 2000. * Incorporated by reference to the indicated prior filing. + Management contract or compensatory plan.
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FEDERAL AGRICULTURAL MORTGAGE CORPORATION May 11, 2000 By: /s/ Henry D. Edelman ----------------------------------------------------- Henry D. Edelman President and Chief Executive Officer (Principal Executive Officer) /s/ Nancy E. Corsiglia ----------------------------------------------------- Nancy E. Corsiglia Vice President-Treasurer and Chief Financial Officer (Principal Financial Officer)
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 EXHIBITS TO FORM 10-Q UNDER FEDERAL AGRICULTURAL MORTGAGE CORPORATION
Exhibit Index 10.6 - Employment Agreement dated February 1, 2000 between Jerome G. Oslick and the Registrant.