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Investment Securities
 12 Months Ended
Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
INVESTMENT SECURITIES

The following tables present the amount outstanding, amortized cost, and fair values of Farmer Mac's investment securities as of December 31, 2012 and 2011:
 
 
December 31, 2012
 
Amount Outstanding
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Floating rate auction-rate certificates backed by Government guaranteed student loans
$
74,100

 
$
—

 
$
74,100

 
$
—

 
$
(10,941
)
 
$
63,159

Floating rate asset-backed securities
150,519

 
(372
)
 
150,147

 
933

 
(36
)
 
151,044

Fixed rate asset-backed securities
6,501

 
—

 
6,501

 
—

 
—

 
6,501

Floating rate corporate debt securities
76,345

 
(32
)
 
76,313

 
450

 
—

 
76,763

Fixed rate corporate debt securities
51,969

 
243

 
52,212

 
204

 
—

 
52,416

Floating rate Government/GSE guaranteed mortgage-backed securities
699,062

 
5,973

 
705,035

 
8,035

 
(211
)
 
712,859

Fixed rate GSE guaranteed mortgage-backed securities
1,910

 
1

 
1,911

 
154

 
—

 
2,065

Floating rate GSE subordinated debt
70,000

 
—

 
70,000

 
—

 
(12,569
)
 
57,431

Fixed rate GSE preferred stock
78,500

 
784

 
79,284

 
7,802

 
—

 
87,086

Floating rate senior agency debt
50,000

 
(6
)
 
49,994

 
61

 
—

 
50,055

Fixed rate senior agency debt
72,700

 
287

 
72,987

 
128

 
(1
)
 
73,114

Fixed rate U.S. Treasuries
1,163,400

 
2,240

 
1,165,640

 
258

 
(9
)
 
1,165,889

Total available-for-sale
2,495,006

 
9,118

 
2,504,124

 
18,025

 
(23,767
)
 
2,498,382

Trading:
 
 
 
 
 

 
 

 
 

 
 

Floating rate asset-backed securities
4,327

 
—

 
4,327

 
—

 
(3,080
)
 
1,247

Total investment securities
$
2,499,333

 
$
9,118

 
$
2,508,451

 
$
18,025

 
$
(26,847
)
 
$
2,499,629


 
December 31, 2011
 
Amount Outstanding
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Floating rate auction-rate certificates backed by Government guaranteed student loans
$
74,100

 
$
—

 
$
74,100

 
$
—

 
$
(13,887
)
 
$
60,213

Floating rate asset-backed securities
178,985

 
(542
)
 
178,443

 
219

 
(102
)
 
178,560

Floating rate corporate debt securities
74,345

 
(193
)
 
74,152

 
69

 
(388
)
 
73,833

Fixed rate corporate debt securities
38,068

 
610

 
38,678

 
27

 
(6
)
 
38,699

Floating rate Government/GSE guaranteed mortgage-backed securities
752,533

 
7,034

 
759,567

 
4,852

 
(381
)
 
764,038

Fixed rate GSE guaranteed mortgage-backed securities
3,108

 
(2
)
 
3,106

 
254

 
—

 
3,360

Floating rate GSE subordinated debt
70,000

 
—

 
70,000

 
—

 
(17,438
)
 
52,562

Fixed rate commercial paper
10,000

 
(1
)
 
9,999

 
1

 
—

 
10,000

Fixed rate GSE preferred stock
78,500

 
1,162

 
79,662

 
5,216

 
—

 
84,878

Floating rate senior agency debt
38,000

 
—

 
38,000

 
32

 
—

 
38,032

Fixed rate senior agency debt
79,000

 
255

 
79,255

 
19

 
(21
)
 
79,253

Fixed rate U.S. Treasuries
797,082

 
1,884

 
798,966

 
304

 
(4
)
 
799,266

Total available-for-sale
2,193,721

 
10,207

 
2,203,928

 
10,993

 
(32,227
)
 
2,182,694

Trading:
 
 
 
 
 

 
 

 
 

 
 

Floating rate asset-backed securities
5,138

 
—

 
5,138

 
—

 
(3,342
)
 
1,796

Total investment securities
$
2,198,859

 
$
10,207

 
$
2,209,066

 
$
10,993

 
$
(35,569
)
 
$
2,184,490


During 2012, Farmer Mac received proceeds of $7.0 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $28,000 and gross realized losses of $10,000. During 2011, Farmer Mac received proceeds of $447.9 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.3 million and gross realized losses of $10,000. During 2010, Farmer Mac received proceeds of $106.3 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.5 million and gross realized losses of $0.2 million.

As of December 31, 2012 and 2011, unrealized losses on available-for-sale investment securities were as follows:

 
December 31, 2012
 
Available-for-Sale Securities
 
Unrealized loss position for
less than 12 months
 
Unrealized loss position for
more than 12 months
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans
$
—

 
$
—

 
$
63,159

 
$
(10,941
)
Floating rate asset-backed securities
21,648

 
(27
)
 
3,619

 
(9
)
Floating rate Government/GSE guaranteed mortgage-backed securities
174,352

 
(209
)
 
829

 
(2
)
Floating rate GSE subordinated debt
—

 
—

 
57,431

 
(12,569
)
Fixed rate senior agency debt
50,088

 
(1
)
 
—

 
—

Fixed rate U.S. Treasuries
136,194

 
(9
)
 
—

 
—

Total
$
382,282

 
$
(246
)
 
$
125,038

 
$
(23,521
)

 
December 31, 2011
 
Available-for-Sale Securities
 
Unrealized loss position for
less than 12 months
 
Unrealized loss position for
more than 12 months
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans
$
—

 
$
—

 
$
60,213

 
$
(13,887
)
Floating rate asset-backed securities
63,496

 
(102
)
 
—

 
—

Floating rate corporate debt securities
41,061

 
(388
)
 
—

 
—

Fixed rate corporate debt securities
18,189

 
(6
)
 
—

 
—

Floating rate Government/GSE guaranteed mortgage-backed securities
235,454

 
(359
)
 
17,409

 
(22
)
Floating rate GSE subordinated debt
—

 
—

 
52,562

 
(17,438
)
Fixed rate senior agency debt
44,976

 
(21
)
 
—

 
—

Fixed rate U.S. Treasuries
50,160

 
(4
)
 
—

 
—

Total
$
453,336

 
$
(880
)
 
$
130,184

 
$
(31,347
)

 
The unrealized losses presented above are principally due to a general widening of credit spreads from the dates of acquisition to December 31, 2012 and 2011, as applicable. As of December 31, 2012, all of the investment securities in an unrealized loss position had credit ratings of at least "AA+" except one that was rated "A-". As of December 31, 2011, all of the investment securities in an unrealized loss position had credit ratings of at least "A" except one that was rated "A- " and two that were rated "BBB+".  The unrealized losses were on 17 and 44 individual investment securities, as of December 31, 2012 and 2011, respectively.

As of December 31, 2012, 9 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $23.5 million.  As of December 31, 2011, 10 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $31.3 million.  The unrealized losses on those securities are principally due to a general widening of credit spreads from the dates of acquisition.  Securities in unrealized loss positions 12 months or more have a fair value as of December 31, 2012 that is, on average, approximately 84.2 percent of their amortized cost basis.  Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of changes in credit spreads or maturity.  Accordingly, Farmer Mac has concluded that none of the unrealized losses on these available-for-sale investment securities represent other-than-temporary impairment as of December 31, 2012 and December 31, 2011.  Farmer Mac does not intend to sell these securities and it is not more likely than not that Farmer Mac will be required to sell the securities before recovery of the amortized cost basis.

Farmer Mac did not own any held-to-maturity investment securities as of December 31, 2012 and 2011. As of December 31, 2012, Farmer Mac owned trading investment securities with an amortized cost of $4.3 million, a fair value of $1.2 million, and a weighted average yield of 4.29 percent.  As of December 31, 2011, Farmer Mac owned trading investment securities with an amortized cost of $5.1 million, a fair value of $1.8 million, and a weighted average yield of 4.36 percent.

The amortized cost, fair value and weighted average yield of available-for-sale investment securities by remaining contractual maturity as of December 31, 2012 are set forth below.  Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

 
Investment Securities Available-for-Sale as of
 
December 31, 2012
 
Amortized
Cost
 
Fair Value
 
Weighted-
Average
Yield
 
(dollars in thousands)
Due within one year
$
1,209,076

 
$
1,209,406

 
0.64%
Due after one year through five years
241,788

 
242,617

 
1.06%
Due after five years through ten years
416,087

 
406,333

 
1.06%
Due after ten years
637,173

 
640,026

 
2.59%
Total
$
2,504,124

 
$
2,498,382

 
1.24%