Farmer Mac Shares Soar After Posting 1Q Profit

WASHINGTON (AP) — The Federal Agricultural Mortgage Corp., commonly called Farmer Mac, on Tuesday posted a first-quarter profit, reversing a year-ago loss.

The results sent the Congressionally chartered rural real estate and housing company's stock soaring. Farmer Mac shares gained $4.11, to $7.73, more than double its Monday close of $3.62, as volume skyrocketed to nearly 35 times normal trade.

For the quarter ended March 31, Farmer Mac earned $33.5 million, or $3.31 per share, available to common stockholders, compared with a loss of $8.3 million, or 84 cents per share, last year.

Net interest income, or money earned from interest-producing loans, rose to $23.3 million from $17.9 million last year. Non-interest income, or money earned from fees and investments, was $45.6 million, reversing a year-ago loss of $24.5 million.

Farmer Mac said the results were primarily driven by gains on the values of financial derivatives and trading assets.

Results were somewhat offset by the need to set aside cash to cover souring loans in the ethanol sector. Farmer Mac's provision for loan losses in the quarter was $3.5 million, whereas it set aside nothing in the 2008 first quarter.