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Business Segment Reporting
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Business Segment Reporting Disclosure
  
The following tables present core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three months ended March 31, 2016 and 2015:

Table 9.1


Core Earnings by Business Segment
For the Three Months Ended March 31, 2016
 
Farm & Ranch
 
USDA Guarantees
 
Rural 
Utilities
 
Institutional Credit
 
Corporate
 
Reconciling
Adjustments
 
Consolidated Net Income
 
(in thousands)
Interest income(1)
$
24,852

 
$
15,282

 
$
6,829

 
$
20,268

 
$
6,681

 
$
(21
)
 
$
73,891

Interest income related to consolidated trusts owned by third parties reclassified to guarantee fee income
(1,043
)
 
—

 
—

 
—

 
—

 
1,043

 
—

Interest expense(2)
(14,348
)
 
(10,974
)
 
(4,291
)
 
(9,178
)
 
(4,129
)
 
2,669

 
(40,251
)
Net effective spread
9,461

 
4,308

 
2,538

 
11,090

 
2,552

 
3,691

 
33,640

Guarantee and commitment fees
3,909

 
7

 
295

 
458

 
—

 
(1,043
)
 
3,626

Other income/(expense)(3)
97

 
58

 
—

 
—

 
(672
)
 
(5,815
)
 
(6,332
)
Non-interest income/(loss)
4,006

 
65

 
295

 
458

 
(672
)
 
(6,858
)
 
(2,706
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
(49
)
 
—

 
—

 
—

 
—

 
—

 
(49
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for losses
(14
)
 
—

 
—

 
—

 
—

 
—

 
(14
)
Other non-interest expense
(4,161
)
 
(1,093
)
 
(831
)
 
(539
)
 
(3,328
)
 
—

 
(9,952
)
Non-interest expense(4)
(4,175
)
 
(1,093
)
 
(831
)
 
(539
)
 
(3,328
)
 
—

 
(9,966
)
Core earnings before income taxes
9,243

 
3,280

 
2,002

 
11,009

 
(1,448
)
 
(3,167
)
(5) 
20,919

Income tax (expense)/benefit
(3,236
)
 
(1,148
)
 
(701
)
 
(3,852
)
 
493

 
1,109

 
(7,335
)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest
6,007

 
2,132

 
1,301

 
7,157

 
(955
)
 
(2,058
)
(5) 
13,584

Preferred stock dividends
—

 
—

 
—

 
—

 
(3,295
)
 
—

 
(3,295
)
Non-controlling interest
—

 
—

 
—

 
—

 
28

 
—

 
28

Segment core earnings/(losses)
$
6,007

 
$
2,132

 
$
1,301

 
$
7,157

 
$
(4,222
)
 
$
(2,058
)
(5) 
$
10,317

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets at carrying value
$
3,115,749

 
$
1,987,855

 
$
1,002,691

 
$
5,731,346

 
$
4,318,387

 
$
—

 
$
16,156,028

Total on- and off-balance sheet program assets at principal balance
5,713,789

 
1,929,582

 
1,510,575

 
7,061,626

 


 
—

 
16,215,572

(1) 
Includes reconciling adjustments for the amortization of premiums and discounts on assets consolidated at fair value to reflect core earnings amounts.
(2) 
Based on effective funding cost determined for each operating segment, including expenses related to interest rate swaps not designated as hedges, which are included in "Losses on financial derivatives and hedging activities" on the consolidated financial statements.
(3) 
Includes reconciling adjustments for the reclassification of expenses related to interest rate swaps not designated as hedges and fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(4) 
Includes directly attributable costs and an allocation of indirectly attributable costs based on headcount.
(5) 
Net adjustments to reconcile core earnings before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest; and segment core earnings to corresponding income measures: income before income taxes, net income, and net income attributable to common stockholders, respectively.
Core Earnings by Business Segment
For the Three Months Ended March 31, 2015
 
Farm & Ranch
 
USDA Guarantees
 
Rural 
Utilities
 
Institutional Credit
 
Corporate
 
Reconciling
Adjustments
 
Consolidated Net Income
 
(in thousands)
Interest income(1)
$
21,968

 
$
14,348

 
$
6,585

 
$
19,299

 
$
2,865

 
$
(1,114
)
 
$
63,951

Interest income related to consolidated trusts owned by third parties reclassified to guarantee fee income
(635
)
 
—

 
—

 
—

 
—

 
635

 
—

Interest expense(2)
(11,219
)
 
(10,123
)
 
(3,781
)
 
(8,874
)
 
(1,176
)
 
2,011

 
(33,162
)
Net effective spread
10,114

 
4,225

 
2,804

 
10,425

 
1,689

 
1,532

 
30,789

Guarantee and commitment fees
3,633

 
(6
)
 
—

 
385

 
—

 
(635
)
 
3,377

Other income/(expense)(3)
87

 
59

 
—

 
—

 
(552
)
 
(2,496
)
 
(2,902
)
Non-interest income/(loss)
3,720

 
53

 
—

 
385

 
(552
)
 
(3,131
)
 
475

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
(76
)
 
—

 
—

 
—

 
—

 
—

 
(76
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Release of reserve for losses
772

 
—

 
—

 
—

 
—

 
—

 
772

Other non-interest expense
(4,326
)
 
(385
)
 
(866
)
 
(535
)
 
(3,003
)
 
—

 
(9,115
)
Non-interest expense(4)
(3,554
)
 
(385
)
 
(866
)
 
(535
)
 
(3,003
)
 
—

 
(8,343
)
Core earnings before income taxes
10,204

 
3,893

 
1,938

 
10,275

 
(1,866
)
 
(1,599
)
(5) 
22,845

Income tax (expense)/benefit
(3,571
)
 
(1,363
)
 
(678
)
 
(3,596
)
 
2,516

 
2,461

 
(4,231
)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest - preferred stock dividends
6,633

 
2,530

 
1,260

 
6,679

 
650

 
862

(5) 
18,614

Preferred stock dividends
—

 
—

 
—

 
—

 
(3,295
)
 
—

 
(3,295
)
Non-controlling interest - preferred stock dividends
—

 
—

 
—

 
—

 
(5,354
)
 
—

 
(5,354
)
Loss on retirement of preferred stock
—

 
—

 
—

 
—

 
—

 
(8,147
)
 
(8,147
)
Segment core earnings/(losses)
$
6,633

 
$
2,530

 
$
1,260

 
$
6,679

 
$
(7,999
)
 
$
(7,285
)
(5) 
$
1,818

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets at carrying value
$
2,637,743

 
$
1,876,337

 
$
970,020

 
$
5,594,736

 
$
3,770,849

 
$
—

 
$
14,849,685

Total on- and off-balance sheet program assets at principal balance
5,347,248

 
1,814,918

 
968,117

 
6,529,934

 
 
 
—

 
14,660,217

(1) 
Includes reconciling adjustments for the amortization of premiums and discounts on assets consolidated at fair value to reflect core earnings amounts.
(2) 
Based on effective funding cost determined for each operating segment, including expenses related to interest rate swaps not designated as hedges, which are included in "Losses on financial derivatives and hedging activities" on the consolidated financial statements.
(3) 
Includes reconciling adjustments for the reclassification of expenses related to interest rate swaps not designated as hedges and fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(4) 
Includes directly attributable costs and an allocation of indirectly attributable costs based on headcount.
(5) 
Net adjustments to reconcile core earnings before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest; and segment core earnings to corresponding income measures: income before income taxes, net income, and net income attributable to common stockholders, respectively.