LOANS AND ALLOWANCE FOR LOSSES

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of September 30, 2015 and December 31, 2014, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of September 30, 2015 and December 31, 2014:

Table 5.1



	As of September 30, 2015									As of December 31, 2014
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,166,125		$	612,567		$	2,778,692		$	2,118,867		$	421,355		$	2,540,222
Rural Utilities	982,078			—			982,078			718,213			267,396			985,609
Total unpaid principal balance⁽¹⁾	3,148,203			612,567			3,760,770			2,837,080			688,751			3,525,831
Unamortized premiums, discounts and other cost basis adjustments	539			—			539			(3,619		)	3,727			108
Total loans	3,148,742			612,567			3,761,309			2,833,461			692,478			3,525,939
Allowance for loan losses	(4,158		)	(617		)	(4,775		)	(5,324		)	(540		)	(5,864		)
Total loans, net of allowance	$	3,144,584		$	611,950		$	3,756,534		$	2,828,137		$	691,938		$	3,520,075


⁽¹⁾	Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Losses

Farmer Mac maintains an allowance for losses presented in two components on its consolidated balance sheets: (1) an allowance for loan losses to account for estimated probable losses on loans held, and (2) a reserve for losses to account for estimated probable losses on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities. As of September 30, 2015 and December 31, 2014, Farmer Mac reported allowances for losses of $10.3 million and $10.1 million, respectively. See Note 6 for more information about off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs.

The following is a summary of the changes in the total allowance for losses for the three and nine months ended September 30, 2015 and 2014:

Table 5.2



	As of September 30, 2015								As of September 30, 2014
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	5,939		$	4,637	$	10,576		$	5,770		$	5,595		$	11,365
(Release of)/provision for losses	(1,164		)	861		(303		)	511			(1,315		)	(804		)
Charge-offs	—			—		—			—			—			—
Recoveries	—			—		—			45			—			45
Ending Balance	$	4,775		$	5,498	$	10,273		$	6,326		$	4,280		$	10,606

For the Nine Months Ended:
Beginning Balance	$	5,864		$	4,263	$	10,127		$	6,866		$	6,468		$	13,334
(Release of)/provision for losses	(978		)	1,235		257			(499		)	(2,188		)	(2,687		)
Charge-offs	(111		)	—		(111		)	(86		)	—			(86		)
Recoveries	—			—		—			45			—			45
Ending Balance	$	4,775		$	5,498	$	10,273		$	6,326		$	4,280		$	10,606

During third quarter 2015, Farmer Mac recorded releases to its allowance for loan losses of $1.2 million and provisions to its reserve for losses of $0.9 million. The releases to the allowance for loan losses recorded during third quarter 2015 were primarily attributable to a reduction in the specific allowance for a permanent planting loan based on the updated appraised value of the collateral underlying such loan. The provisions to the reserve for losses recorded during third quarter 2015 were attributable to an increase in the specific allowance on two impaired canola facility loans underlying an LTSPC with one borrower. Farmer Mac recorded no charge-offs to its allowance for loan losses during third quarter 2015.

During third quarter 2014, Farmer Mac recorded provisions to its allowance for loan losses of $0.5 million and releases to its reserve for losses of $1.3 million, primarily related to a decline in the balance of its ethanol-related agricultural storage and processing portfolio. Farmer Mac recorded no charge-offs and recoveries of $45,000 to its allowance for loan losses during third quarter 2014.

The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2015 and 2014 by commodity type:

Table 5.3



	September 30, 2015
	Crops		Permanent Plantings			Livestock		Part-time Farm			Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	2,653	$	2,221		$	1,760	$	433		$	3,502	$	7	$	10,576
Provision for/(release of) losses	110		(1,151		)	39		(49		)	748		—		(303		)
Charge-offs	—		—			—		—			—		—		—
Ending Balance	$	2,763	$	1,070		$	1,799	$	384		$	4,250	$	7	$	10,273

For the Nine Months Ended:
Beginning Balance	$	2,519	$	2,159		$	1,423	$	467		$	3,552	$	7	$	10,127
Provision for/(release of) losses	244		(1,089		)	376		28			698		—		257
Charge-offs	—		—			—		(111		)	—		—		(111		)
Ending Balance	$	2,763	$	1,070		$	1,799	$	384		$	4,250	$	7	$	10,273



	September 30, 2014
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	2,390	$	2,217	$	1,311		$	444		$	4,999		$	4		$	11,365
Provision for/(release of) losses	123		74		(6		)	(3		)	(992		)	—			(804		)
Charge-offs	—		—		—			—			—			—			—
Recoveries	—		45		—			—			—			—			45
Ending Balance	$	2,513	$	2,336	$	1,305		$	441		$	4,007		$	4		$	10,606

For the Nine Months Ended:
Beginning Balance	$	2,124	$	2,186	$	1,271		$	454		$	7,292		$	7		$	13,334
Provision for/(release of) losses	389		105		91			16			(3,285		)	(3		)	(2,687		)
Charge-offs	—		—		(57		)	(29		)	—			—			(86		)
Recoveries	—		45		—			—			—			—			45
Ending Balance	$	2,513	$	2,336	$	1,305		$	441		$	4,007		$	4		$	10,606

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities and the related total allowance for losses by impairment method and commodity type as of September 30, 2015 and December 31, 2014:

Table 5.4



	As of September 30, 2015
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,771,015	$	396,674	$	430,598	$	92,327	$	24,469	$	79	$	2,715,162
Off-balance sheet	1,255,337		500,917		768,207		109,474		53,130		5,759		2,692,824
Total	$	3,026,352	$	897,591	$	1,198,805	$	201,801	$	77,599	$	5,838	$	5,407,986
Individually evaluated for impairment:
On-balance sheet	$	20,840	$	29,378	$	4,331	$	8,981	$	—	$	—	$	63,530
Off-balance sheet	7,260		3,690		7,281		783		13,500		—		32,514
Total	$	28,100	$	33,068	$	11,612	$	9,764	$	13,500	$	—	$	96,044
Total Farm & Ranch loans:
On-balance sheet	$	1,791,855	$	426,052	$	434,929	$	101,308	$	24,469	$	79	$	2,778,692
Off-balance sheet	1,262,597		504,607		775,488		110,257		66,630		5,759		2,725,338
Total	$	3,054,452	$	930,659	$	1,210,417	$	211,565	$	91,099	$	5,838	$	5,504,030
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,848	$	445	$	717	$	59	$	357	$	—	$	3,426
Off-balance sheet	333		153		314		61		293		7		1,161
Total	$	2,181	$	598	$	1,031	$	120	$	650	$	7	$	4,587
Individually evaluated for impairment:
On-balance sheet	$	383	$	351	$	379	$	236	$	—	$	—	$	1,349
Off-balance sheet	199		121		389		28		3,600		—		4,337
Total	$	582	$	472	$	768	$	264	$	3,600	$	—	$	5,686
Total Farm & Ranch loans:
On-balance sheet	$	2,231	$	796	$	1,096	$	295	$	357	$	—	$	4,775
Off-balance sheet	532		274		703		89		3,893		7		5,498
Total	$	2,763	$	1,070	$	1,799	$	384	$	4,250	$	7	$	10,273



	As of December 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,621,360	$	359,517	$	406,049	$	57,851	$	29,003	$	—	$	2,473,780
Off-balance sheet	1,305,141		521,535		839,286		102,857		85,357		6,781		2,860,957
Total	$	2,926,501	$	881,052	$	1,245,335	$	160,708	$	114,360	$	6,781	$	5,334,737
Individually evaluated for impairment:
On-balance sheet	$	12,307	$	35,904	$	6,571	$	11,660	$	—	$	—	$	66,442
Off-balance sheet	2,458		3,239		8,712		1,586		—		—		15,995
Total	$	14,765	$	39,143	$	15,283	$	13,246	$	—	$	—	$	82,437
Total Farm & Ranch loans:
On-balance sheet	$	1,633,667	$	395,421	$	412,620	$	69,511	$	29,003	$	—	$	2,540,222
Off-balance sheet	1,307,599		524,774		847,998		104,443		85,357		6,781		2,876,952
Total	$	2,941,266	$	920,195	$	1,260,618	$	173,954	$	114,360	$	6,781	$	5,417,174
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,824	$	495	$	658	$	51	$	503	$	—	$	3,531
Off-balance sheet	298		149		404		52		3,049		7		3,959
Total	$	2,122	$	644	$	1,062	$	103	$	3,552	$	7	$	7,490
Individually evaluated for impairment:
On-balance sheet	$	283	$	1,410	$	328	$	312	$	—	$	—	$	2,333
Off-balance sheet	114		105		33		52		—		—		304
Total	$	397	$	1,515	$	361	$	364	$	—	$	—	$	2,637
Total Farm & Ranch loans:
On-balance sheet	$	2,107	$	1,905	$	986	$	363	$	503	$	—	$	5,864
Off-balance sheet	412		254		437		104		3,049		7		4,263
Total	$	2,519	$	2,159	$	1,423	$	467	$	3,552	$	7	$	10,127

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of September 30, 2015 and December 31, 2014:

Table 5.5



	As of September 30, 2015
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	5,616	$	13,666	$	3,635	$	1,834	$	—	$	—	$	24,751
Unpaid principal balance	5,537		13,639		3,630		1,831		—		—		24,637
With a specific allowance:
Recorded investment⁽¹⁾	22,672		19,462		8,007		7,958		13,500		—		71,599
Unpaid principal balance	22,563		19,429		7,982		7,933		13,500		—		71,407
Associated allowance	582		472		768		264		3,600		—		5,686
Total:
Recorded investment	28,288		33,128		11,642		9,792		13,500		—		96,350
Unpaid principal balance	28,100		33,068		11,612		9,764		13,500		—		96,044
Associated allowance	582		472		768		264		3,600		—		5,686

Recorded investment of loans on nonaccrual status⁽²⁾	$	3,541	$	15,397	$	4,361	$	6,016	$	—	$	—	$	29,315


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $64.6 million (67 percent) of impaired loans as of September 30, 2015, which resulted in a specific reserve of $1.2 million.


⁽²⁾	Includes $11.3 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.



	As of December 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	4,877	$	5,837	$	9,576	$	2,001	$	—	$	—	$	22,291
Unpaid principal balance	4,723		5,750		9,386		1,981		—		—		21,840
With a specific allowance:
Recorded investment⁽¹⁾	10,753		33,690		5,979		11,350		—		—		61,772
Unpaid principal balance	10,042		33,393		5,897		11,265		—		—		60,597
Associated allowance	397		1,515		361		364		—		—		2,637
Total:
Recorded investment	15,630		39,527		15,555		13,351		—		—		84,063
Unpaid principal balance	14,765		39,143		15,283		13,246		—		—		82,437
Associated allowance	397		1,515		361		364		—		—		2,637

Recorded investment of loans on nonaccrual status⁽²⁾	$	5,168	$	14,413	$	4,438	$	6,133	$	—	$	—	$	30,152


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $54.4 million (65 percent) of impaired loans as of December 31, 2014, which resulted in a specific reserve of $1.2 million.


⁽²⁾	Includes $11.7 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2015 and 2014:

Table 5.6



	September 30, 2015
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	27,133	$	37,911	$	12,534	$	9,989	$	13,500	$	—	$	101,067
Income recognized on impaired loans	33		234		76		76		—		—		419

For the Nine Months Ended:
Average recorded investment in impaired loans	$	23,176	$	39,337	$	13,923	$	11,248	$	6,750	$	—	$	94,434
Income recognized on impaired loans	373		459		273		226		—		—		1,331



	September 30, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	19,975	$	43,280	$	12,305	$	12,276	$	—	$	—	$	87,836
Income recognized on impaired loans	90		142		149		87		—		—		468

For the Nine Months Ended:
Average recorded investment in impaired loans	$	21,873	$	44,144	$	13,040	$	12,407	$	—	$	30	$	91,494
Income recognized on impaired loans	365		412		284		288		—		—		1,349

For the three months ended September 30, 2015, there were no troubled debt restructurings ("TDRs"). For the nine months ended September 30, 2015, the recorded investment of loans determined to beTDRs was $1.1 million both before and after restructuring. For the three and nine months ended September 30, 2014, the recorded investment of loans determined to be TDRs was $4.5 million and $5.3 million, respectively, before restructuring and $5.1 million and $6.0 million, respectively, after restructuring. As of September 30, 2015, there were no TDRs identified during the previous 12 months that were in default under the modified terms. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial for the three and nine months ended September 30, 2015 and 2014.

When particular criteria are met, such as the default of the borrower, Farmer Mac becomes entitled to purchase the defaulted loans underlying Farmer Mac Guaranteed Securities (commonly referred to as "removal-of-account" provisions). Farmer Mac records all such defaulted loans at their unpaid principal balance during the period in which Farmer Mac becomes entitled to purchase the loans and therefore regains effective control over the transferred loans. In accordance with the terms of all LTSPCs, Farmer Mac acquires loans that are either 90 days or 120 days delinquent (depending on the provisions of the applicable agreement) upon the request of the counterparty. Subsequent to the purchase, these defaulted loans are treated as nonaccrual loans and, therefore, interest is accounted for on the cash basis. Any decreases in expected cash flows are recognized as impairment.

During the three months ended September 30, 2015, Farmer Mac purchased one defaulted loan having an unpaid principal balance of $0.3 million from a pool underlying a Farm & Ranch Guaranteed Security. During the nine months ended September 30, 2015, Farmer Mac purchased three defaulted loans having an unpaid principal balance of $2.2 million from pools underlying Farm & Ranch Guaranteed Securities. During the three months ended September 30, 2014, Farmer Mac purchased no defaulted loans. During the nine months ended September 30, 2014, Farmer Mac purchased one defaulted loan having an unpaid principal balance of $0.4 million from a pool underlying an LTSPC.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and nine months ended September 30, 2015 and 2014 and the outstanding balances and carrying amounts of all such loans as of September 30, 2015 and December 31, 2014:

Table 5.7



	For the Three Months Ended				For the Nine Months Ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
	(in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	—	$	—	$	440
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities	263		—		2,244		—
Total unpaid principal balance at acquisition date	263		—		2,244		440
Contractually required payments receivable	264		—		2,334		440
Impairment recognized subsequent to acquisition	1		—		110		69
Recovery/release of allowance for defaulted loans	882		47		1,003		54



	As of
	September 30, 2015		December 31, 2014
	(in thousands)
Outstanding balance	$	25,412	$	24,921
Carrying amount	23,225		22,149

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs are presented in the table below. As of September 30, 2015, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans.

Table 5.8



	90-Day Delinquencies⁽¹⁾				Net Credit Losses
	As of				For the Nine Months Ended
	September 30, 2015		December 31, 2014		September 30, 2015		September 30, 2014
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	17,967	$	18,427	$	160	$	(66	)
Total on-balance sheet	$	17,967	$	18,427	$	160	$	(66	)
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	18,702	$	490	$	—	$	—
Total off-balance sheet	$	18,702	$	490	$	—	$	—
Total	$	36,669	$	18,917	$	160	$	(66	)


⁽¹⁾	Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $18.0 million and $18.4 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2015 and December 31, 2014, respectively, $2.1 million and $1.8 million were loans subject to "removal-of-account" provisions.

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of September 30, 2015 and December 31, 2014:

Table 5.9



	As of September 30, 2015
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	1,753,713	$	396,674	$	386,273	$	92,327	$	24,469	$	79	$	2,653,535
Special mention⁽²⁾	17,302		136		44,325		—		—		—		61,763
Substandard⁽³⁾	20,840		29,242		4,331		8,981		—		—		63,394
Total on-balance sheet	$	1,791,855	$	426,052	$	434,929	$	101,308	$	24,469	$	79	$	2,778,692
Off-Balance Sheet:
Acceptable	$	1,211,404	$	486,117	$	743,523	$	103,754	$	53,130	$	5,123	$	2,603,051
Special mention⁽²⁾	38,263		12,434		11,614		1,263		—		7		63,581
Substandard⁽³⁾	12,930		6,056		20,351		5,240		13,500		629		58,706
Total off-balance sheet	$	1,262,597	$	504,607	$	775,488	$	110,257	$	66,630	$	5,759	$	2,725,338
Total Ending Balance:
Acceptable	$	2,965,117	$	882,791	$	1,129,796	$	196,081	$	77,599	$	5,202	$	5,256,586
Special mention⁽²⁾	55,565		12,570		55,939		1,263		—		7		125,344
Substandard⁽³⁾	33,770		35,298		24,682		14,221		13,500		629		122,100
Total	$	3,054,452	$	930,659	$	1,210,417	$	211,565	$	91,099	$	5,838	$	5,504,030

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	6,209	$	8,729	$	753	$	2,276	$	—	$	—	$	17,967
Off-balance sheet	692		—		4,322		188		13,500		—		18,702
90 days or more past due	$	6,901	$	8,729	$	5,075	$	2,464	$	13,500	$	—	$	36,669


⁽¹⁾	Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.


⁽²⁾	Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.


⁽³⁾	Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.



	As of December 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	1,604,546	$	353,487	$	375,010	$	57,239	$	29,003	$	—	$	2,419,285
Special mention⁽²⁾	16,814		6,030		31,039		612		—		—		54,495
Substandard⁽³⁾	12,307		35,904		6,571		11,660		—		—		66,442
Total on-balance sheet	$	1,633,667	$	395,421	$	412,620	$	69,511	$	29,003	$	—	$	2,540,222
Off-Balance Sheet
Acceptable	$	1,282,773	$	503,414	$	799,047	$	97,692	$	64,363	$	6,117	$	2,753,406
Special mention⁽²⁾	13,603		12,150		30,281		1,351		—		8		57,393
Substandard⁽³⁾	11,223		9,210		18,670		5,400		20,994		656		66,153
Total off-balance sheet	$	1,307,599	$	524,774	$	847,998	$	104,443	$	85,357	$	6,781	$	2,876,952
Total Ending Balance:
Acceptable	$	2,887,319	$	856,901	$	1,174,057	$	154,931	$	93,366	$	6,117	$	5,172,691
Special mention⁽²⁾	30,417		18,180		61,320		1,963		—		8		111,888
Substandard⁽³⁾	23,530		45,114		25,241		17,060		20,994		656		132,595
Total	$	2,941,266	$	920,195	$	1,260,618	$	173,954	$	114,360	$	6,781	$	5,417,174

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	4,175	$	6,869	$	4,555	$	2,828	$	—	$	—	$	18,427
Off-balance sheet	—		—		490		—		—		—		490
90 days or more past due	$	4,175	$	6,869	$	5,045	$	2,828	$	—	$	—	$	18,917


⁽¹⁾	Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.


⁽²⁾	Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.


⁽³⁾	Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, as well as the range of original loan-to-value ratios, for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2015 and December 31, 2014:

Table 5.10



	As of
	September 30, 2015		December 31, 2014
	(in thousands)
By commodity/collateral type:
Crops	$	3,054,452	$	2,941,266
Permanent plantings	930,659		920,195
Livestock	1,210,417		1,260,618
Part-time farm	211,565		173,954
Ag. Storage and Processing	91,099		114,360
Other	5,838		6,781
Total	$	5,504,030	$	5,417,174
By geographic region⁽¹⁾:
Northwest	$	579,240	$	573,135
Southwest	1,693,048		1,753,606
Mid-North	1,933,020		1,873,041
Mid-South	688,615		627,615
Northeast	211,093		214,402
Southeast	399,014		375,375
Total	$	5,504,030	$	5,417,174
By original loan-to-value ratio:
0.00% to 40.00%	$	1,538,701	$	1,503,076
40.01% to 50.00%	1,193,443		1,191,804
50.01% to 60.00%	1,536,435		1,491,502
60.01% to 70.00%	1,072,182		1,091,759
70.01% to 80.00%	136,641		115,645
80.01% to 90.00%	26,628		23,388
Total	$	5,504,030	$	5,417,174


⁽¹⁾	Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, the updated appraised value at the time of guarantee, purchase, or commitment. Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.