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Investment Securities (Investment Securities [Member])
 3 Months Ended
Mar. 31, 2014
Investment Securities [Member]
  
Schedule of Available-for-sale and Trading Securities [Line Items]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
INVESTMENT SECURITIES

The following tables present the amount outstanding, amortized cost, and fair values of Farmer Mac's investment securities as of March 31, 2014 and December 31, 2013:
 
Table 2.1

 
March 31, 2014
 
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

 
$
—

 
$
(9,137
)
 
$
64,963

Floating rate asset-backed securities
177,999

 
(176
)
 
177,823

 
385

 
(13
)
 
178,195

Floating rate corporate debt securities
107,130

 
2

 
107,132

 
411

 
(1
)
 
107,542

Fixed rate corporate debt securities
55,000

 
32

 
55,032

 
158

 
—

 
55,190

Floating rate Government/GSE guaranteed mortgage-backed securities
640,910

 
4,056

 
644,966

 
4,891

 
(640
)
 
649,217

Fixed rate GSE guaranteed mortgage-backed securities (1)
1,123

 
3,860

 
4,983

 
3,601

 
—

 
8,584

Floating rate GSE subordinated debt
70,000

 
—

 
70,000

 
—

 
(6,615
)
 
63,385

Fixed rate GSE preferred stock
78,500

 
253

 
78,753

 
2,887

 
—

 
81,640

Fixed rate taxable municipal bonds
22,053

 
47

 
22,100

 
7

 
—

 
22,107

Fixed rate senior agency debt
518,691

 
204

 
518,895

 
149

 
(129
)
 
518,915

Floating rate U.S. Treasuries
75,000

 
(16
)
 
74,984

 
—

 
(26
)
 
74,958

Fixed rate U.S. Treasuries
643,692

 
608

 
644,300

 
100

 
(4
)
 
644,396

Total available-for-sale
2,464,198

 
8,870

 
2,473,068

 
12,589

 
(16,565
)
 
2,469,092

Trading:
 
 
 
 
 

 
 

 
 

 
 

Floating rate asset-backed securities
3,270

 
—

 
3,270

 
—

 
(2,347
)
 
923

Total investment securities
$
2,467,468

 
$
8,870

 
$
2,476,338

 
$
12,589

 
$
(18,912
)
 
$
2,470,015

(1)
Fair value includes $7.4 million of an interest-only security with a notional amount of $152.4 million.





 
December 31, 2013
 
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

 
$
—

 
$
(8,815
)
 
$
65,285

Floating rate asset-backed securities
166,185

 
(217
)
 
165,968

 
195

 
(59
)
 
166,104

Floating rate corporate debt securities
109,345

 
(3
)
 
109,342

 
445

 
(18
)
 
109,769

Fixed rate corporate debt securities
55,000

 
48

 
55,048

 
97

 
(4
)
 
55,141

Floating rate Government/GSE guaranteed mortgage-backed securities
612,413

 
4,336

 
616,749

 
4,955

 
(435
)
 
621,269

Fixed rate GSE guaranteed mortgage-backed securities (1)
1,173

 
3,966

 
5,139

 
3,518

 
—

 
8,657

Floating rate GSE subordinated debt
70,000

 
—

 
70,000

 
—

 
(6,615
)
 
63,385

Fixed rate GSE preferred stock
78,500

 
365

 
78,865

 
4,296

 
—

 
83,161

Fixed rate taxable municipal bonds
30,595

 
84

 
30,679

 
5

 
(3
)
 
30,681

Fixed rate senior agency debt
523,691

 
294

 
523,985

 
107

 
(30
)
 
524,062

Fixed rate U.S. Treasuries
754,405

 
1,141

 
755,546

 
95

 
(8
)
 
755,633

Total available-for-sale
2,475,407

 
10,014

 
2,485,421

 
13,713

 
(15,987
)
 
2,483,147

Trading:
 
 
 
 
 

 
 

 
 

 
 

Floating rate asset-backed securities
3,553

 
—

 
3,553

 
—

 
(2,625
)
 
928

Total investment securities
$
2,478,960

 
$
10,014

 
$
2,488,974

 
$
13,713

 
$
(18,612
)
 
$
2,484,075

(1)
Fair value includes $7.4 million of an interest-only security with a notional amount of $152.4 million.


During the three months ended March 31, 2014, Farmer Mac received proceeds of $10.0 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $15,000, compared to proceeds of $15.0 million for the same period in 2013, resulting in gross realized gains of $2,000.

As of March 31, 2014 and December 31, 2013, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

 
March 31, 2014
 
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
$
—

 
$
—

 
$
64,963

 
$
(9,137
)
Floating rate asset-backed securities
21,645

 
(13
)
 
—

 
—

Floating rate corporate debt securities
4,999

 
(1
)
 
—

 
—

Floating rate Government/GSE guaranteed mortgage-backed securities
230,889

 
(615
)
 
7,337

 
(25
)
Floating rate GSE subordinated debt
—

 
—

 
63,385

 
(6,615
)
Fixed rate senior agency debt
284,512

 
(129
)
 
—

 
—

Floating rate U.S. Treasuries
74,958

 
(26
)
 
—

 
—

Fixed rate U.S. Treasuries
150,045

 
(4
)
 
—

 
—

Total
$
767,048

 
$
(788
)
 
$
135,685

 
$
(15,777
)

 
December 31, 2013
 
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
$
—

 
$
—

 
$
65,285

 
$
(8,815
)
Floating rate asset-backed securities
50,129

 
(59
)
 
—

 
—

Floating rate corporate debt securities
19,982

 
(18
)
 
—

 
—

Fixed rate corporate debt securities
10,058

 
(4
)
 
—

 
—

Floating rate Government/GSE guaranteed mortgage-backed securities
161,960

 
(435
)
 
—

 
—

Floating rate GSE subordinated debt
—

 
—

 
63,385

 
(6,615
)
Fixed rate taxable municipal bonds
8,041

 
(3
)
 
—

 
—

Fixed rate senior agency debt
316,273

 
(30
)
 
—

 
—

Fixed rate U.S. Treasuries
118,056

 
(8
)
 
—

 
—

Total
$
684,499

 
$
(557
)
 
$
128,670

 
$
(15,430
)


 
The unrealized losses presented above are principally due to a general widening of credit spreads from the dates of acquisition to March 31, 2014 and December 31, 2013, as applicable. The resulting decrease in fair values reflect an increase in the perceived risk by the financial markets related to those securities. As of March 31, 2014, all of the investment securities in an unrealized loss position had credit ratings of at least "AA+," except one, comprising the floating rate GSE subordinated debt category, that was rated "A-". As of December 31, 2013, all of the investment securities in an unrealized loss position had credit ratings of at least "AA+," except two that were rated "A-" and one that was rated "BBB+". The unrealized losses were on 45 and 64 individual investment securities as of March 31, 2014 and December 31, 2013, respectively.

As of March 31, 2014, 10 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $15.8 million. As of December 31, 2013, 7 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $15.4 million.  Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2014 that is, on average, approximately 89.6 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 represents other-than-temporary impairment as of March 31, 2014 and December 31, 2013. 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 March 31, 2014 and December 31, 2013. As of March 31, 2014, Farmer Mac owned trading investment securities with an amortized cost of $3.3 million, a fair value of $0.9 million, and a weighted average yield of 4.24 percent. As of December 31, 2013, Farmer Mac owned trading investment securities with an amortized cost of $3.6 million, a fair value of $0.9 million, and a weighted average yield of 4.25 percent.

The amortized cost, fair value, and weighted average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2014 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.

Table 2.3

 
March 31, 2014
 
Available-for-Sale Securities
 
Amortized
Cost
 
Fair Value
 
Weighted-
Average
Yield
 
(dollars in thousands)
Due within one year
$
1,246,490

 
$
1,246,691

 
0.43%
Due after one year through five years
288,599

 
289,722

 
0.84%
Due after five years through ten years
325,128

 
323,229

 
0.79%
Due after ten years
612,851

 
609,450

 
2.35%
Total
$
2,473,068

 
$
2,469,092

 
1.00%