Farmer Mac announces capital boost, names interim CEO

By Lisa Kerner

Charlotte, N.C., Oct. 1 - The Federal Agricultural Mortgage Corp. announced a $65 million capital infusion in the form of non-voting senior cumulative perpetual preferred stock, series B-1 and series B-2.

Making the investment are AgFirst Farm Credit Bank; AgriBank, FCB; CoBank, ACB; Farm Credit Bank of Texas; U.S. AgBank, FCB and Zions Bancorp., a Farmer Mac news release said.

The additional capital infusion satisfies Farmer Mac's previously announced intent to meet regulatory requirements, said Farmer Mac acting chairman of the board Lowell Junkins.

According to Farmer Mac, the need for the extra capital was due in part to impairment charges on the company's investments in Fannie Mae preferreds and Lehman Brothers Holdings Inc. senior debt securities.

Previously, Farmer Mac said it would, along with a financial adviser, evaluate capital-restoration strategies that could include the sale of assets, sales of preferred and common stock and the sale of other equity securities.

Gerber named CEO

Farmer Mac also announced that the board of directors appointed Michael A. Gerber as acting president and chief executive officer, succeeding Henry D. Edelman, effective immediately.

Gerber will continue as CEO of Farm Credit of Western New York and as a member of Farmer Mac's board and its finance and marketing committees.

The board also formed an executive committee to work with Gerber to oversee the company's operations as well as the search for a new, permanent CEO, the Farmer Mac release said.

Members of the executive committee are Gerber, a member of the board since June 2007, Junkins and Dennis A. Everson, president of First Dakota National Bank, agri-business division.

Washington, D.C.-based Farmer Mac provides agricultural real estate and rural housing mortgage loans in the secondary market in the United States.

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