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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
 12 Months Ended
Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]  
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
FARMER MAC GUARANTEED SECURITIES AND USDA GUARANTEED SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Guaranteed Securities as of December 31, 2012 and 2011:

 
December 31, 2012
 
Unpaid Principal Balance
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Farmer Mac I
$
3,339,200

 
$
160

 
$
3,339,360

 
$
92,223

 
$
(5,094
)
 
$
3,426,489

Farmer Mac II
26,238

 
(452
)
 
25,786

 
909

 
(14
)
 
26,681

Rural Utilities
1,298,506

 
—

 
1,298,506

 
18,530

 
(3,948
)
 
1,313,088

USDA Guaranteed Securities
1,461,184

 
5,975

 
1,467,159

 
19,605

 
(169
)
 
1,486,595

Total available-for-sale
6,125,128

 
5,683

 
6,130,811

 
131,267

 
(9,225
)
 
6,252,853

Trading:
 
 
 
 
 

 
 

 
 

 
 

USDA Guaranteed Securities
98,499

 
6,415

 
104,914

 
624

 
(1,350
)
 
104,188

Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
$
6,223,627

 
$
12,098

 
$
6,235,725

 
$
131,891

 
$
(10,575
)
 
$
6,357,041


 
December 31, 2011
 
Unpaid Principal Balance
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Farmer Mac I
$
2,730,000

 
$
11,192

 
$
2,741,192

 
$
67,895

 
$
(1,460
)
 
$
2,807,627

Farmer Mac II
35,410

 
(718
)
 
34,692

 
924

 
(17
)
 
35,599

Rural Utilities
1,410,800

 
—

 
1,410,800

 
35,246

 
—

 
1,446,046

USDA Guaranteed Securities
1,235,486

 
9,033

 
1,244,519

 
35,149

 
(122
)
 
1,279,546

Total available-for-sale
5,411,696

 
19,507

 
5,431,203

 
139,214

 
(1,599
)
 
5,568,818

Trading:
 
 
 
 
 

 
 

 
 

 
 

USDA Guaranteed Securities
200,193

 
12,937

 
213,130

 
1,804

 
(2,575
)
 
212,359

Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
$
5,611,889

 
$
32,444

 
$
5,644,333

 
$
141,018

 
$
(4,174
)
 
$
5,781,177


The unrealized losses presented above are principally due to higher interest rates and wider spreads on mortgage securities from the date of acquisition to December 31, 2012 and 2011, as applicable.  The unrealized losses presented above related to Farmer Mac II Guaranteed Securities, are USDA-guaranteed portions of loans backed by the full faith and credit of the United States.  None of the Farmer Mac I or Rural Utilities Guaranteed Securities has been in an unrealized loss position for greater than 12 months. Farmer Mac has concluded that none of the unrealized losses on its available-for-sale Farmer Mac Guaranteed Securities and USDA Guaranteed Securities represents an other-than-temporary impairment as of December 31, 2012 and 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.

During 2012, 2011, and 2010, Farmer Mac realized no gains or losses from the sale of Farmer Mac Guaranteed Securities and USDA Guaranteed Securities.

The amortized cost, fair value and weighted average yield of available-for-sale Farmer Mac Guaranteed Securities and USDA Guaranteed Securities by remaining contractual maturity as of December 31, 2012 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

 
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities Available-for-Sale as of December 31, 2012
 
Amortized
Cost
 
Fair Value
 
Weighted-
Average
Yield
 
(dollars in thousands)
Due within one year
$
667,361

 
$
672,873

 
1.55
%
Due after one year through five years
3,324,755

 
3,413,898

 
2.42
%
Due after five years through ten years
716,633

 
730,175

 
2.71
%
Due after ten years
1,422,062

 
1,435,907

 
3.18
%
Total
$
6,130,811

 
$
6,252,853

 
2.54
%


Farmer Mac did not own any held-to-maturity Farmer Mac Guaranteed and USDA Guaranteed Securities as of December 31, 2012 and 2011. As of December 31, 2012, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $104.9 million, a fair value of $104.2 million, and a weighted average yield of 5.77 percent.  As of December 31, 2011, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $213.1 million, a fair value of $212.4 million, and a weighted average yield of 5.83 percent.