UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 2003
Federal Agricultural Mortgage Corporation
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(Exact name of registrant as specified in its charter)
Federally chartered
instrumentality of
the United States 0-17440 52-1578738
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1133 Twenty-First Street, N.W., Suite 600, Washington, D.C. 20036
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (202) 872-7700
No change
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(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99 Press release dated January 24, 2003.
Item 9. Regulation FD Disclosure.
On January 24, 2003, the Registrant issued a press release to amplify the
Registrant's earnings release for fourth quarter 2002, which was issued on
January 23, 2003. The January 24, 2003 press release is filed as Exhibit 99
hereto and incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION
By: /s/ Jerome G. Oslick
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Name: Jerome G. Oslick
Title: Vice President - General Counsel
Dated: January 24, 2003
EXHIBIT INDEX
Exhibit No. Description Page No.
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99 Press Release Dated January 24, 2003 5
Exhibit 99
FARMER MAC NEWS
FOR IMMEDIATE RELEASE CONTACT
January 24, 2003 Jerome Oslick
202-872-7700
Farmer Mac Amplifies Earnings Release
Met Analyst Expectations for 2002 Fourth Quarter and Year
Washington, D.C. -- Yesterday, the Federal Agricultural Mortgage
Corporation (Farmer Mac, NYSE: AGM and AGMA) announced it achieved net income
for fourth quarter 2002 of $2.8 million, or $0.23 per diluted share, and net
income of $21.3 million, or $1.77 per diluted share, for the year. Excluding
extraordinary gains and losses, net income was $4.1 million, or $0.34 per
diluted share, and $20.4 million, or $1.69 per diluted share for fourth quarter
2002 and the year, respectively. Later in this release, Farmer Mac provides
supplemental information about the impact of Statement of Financial Accounting
Standards No. 133, Accounting for Derivative Instruments and Hedging Activities
("FAS 133"), which reduced net income by $1.8 million in fourth quarter 2002 and
$2.5 million for the year.
In response to market inquiries today, Farmer Mac is amplifying its January
23, 2003 earnings release with the following statement.
Net income for fourth quarter 2002 included the effects of FAS 133, which
were a net reduction of $0.15 per diluted share. On that basis, and excluding
the effect of extraordinary items, diluted operating earnings per share - a
non-GAAP measure - for the quarter were a record $0.49, a 14 percent increase
over fourth quarter 2001 diluted operating earnings per share of $0.43.
Operating income reached a record $5.9 million for the fourth quarter 2002 and
$22.9 million for the year ($1.90 per diluted share), compared to $5.2 million
and $17.1 million ($1.45 per diluted share) for the same periods in 2001.
Forward-Looking Statements
In addition to historical information, this release includes
forward-looking statements that reflect management's current expectations for
Farmer Mac's future financial results, business prospects and business
developments. Management's expectations for Farmer Mac's future necessarily
involve assumptions, estimates and the evaluation of risks and uncertainties.
Various factors could cause actual events or results to differ materially from
those expectations. Some of the important factors that could cause Farmer Mac's
actual results to differ materially from management's expectations include
uncertainties regarding: (1) the rate and direction of the development of the
secondary market for agricultural mortgage loans; (2) the effect on the
agricultural economy resulting from low commodity prices, weak demand for U.S.
agricultural products and crop damage from natural disasters; (3) the effect on
the agricultural economy of federal assistance for agriculture provided for in
the Farm Bill enacted last Spring; (4) the possible effect of the risk-based
capital requirement which could, under certain circumstances, be in excess of
the statutory minimum capital level; (5) the possible establishment of
additional legislative or regulatory restrictions on Farmer Mac; (6) the outcome
of the pending analysis of Farmer Mac by the General Accounting Office; and (7)
Farmer Mac's continuing access to the debt markets at favorable rates and terms.
Other factors are discussed in Farmer Mac's Annual Report on Form 10-K for the
year ended December 31, 2001, as filed with the Securities and Exchange
Commission ("SEC") on March 27, 2002, and Farmer Mac's Quarterly Report on Form
10-Q for the quarter ended September 30, 2002, as filed with the SEC on November
14, 2002. The forward-looking statements contained herein represent management's
expectations as of the date of this release. Farmer Mac undertakes no obligation
to release publicly the results of any revisions to the forward-looking
statements included herein to reflect events or circumstances after today, or to
reflect the occurrence of unanticipated events, except as otherwise mandated by
the SEC.
Farmer Mac is a stockholder-owned instrumentality of the United States
chartered by Congress to establish a secondary market for agricultural real
estate and rural housing mortgage loans and to facilitate capital market funding
for USDA guaranteed farm program and rural development loans. Farmer Mac's Class
C and Class A common stocks are listed on the New York Stock Exchange under the
symbols AGM and AGMA, respectively. Additional information about Farmer Mac (as
well as the Form 10-K and Form 10-Q referenced above) is available on Farmer
Mac's website at www.farmermac.com. The conference call to discuss Farmer Mac's
fourth quarter 2002 earnings and this press release will be webcast on Farmer
Mac's website beginning at 11:00 a.m. eastern time, Friday, January 24, 2003,
and an audio recording of that call will be available for two weeks on Farmer
Mac's website after the call is concluded.