Farmer Mac Guaranteed Securities and USDA Guaranteed Securities

9 Months Ended

Sep. 30, 2016

Farmer Mac Guaranteed Securities and USDA Securities [Member]

Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2016 and December 31, 2015:

Table 3.1

	As of September 30, 2016
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,156,203	$	(2,557	)	$	1,153,646	$	13,203	$	(895	)	$	1,165,954
Available-for-sale:
AgVantage	$	4,913,438	$	(38	)	$	4,913,400	$	51,458	$	(60,201	)	$	4,904,657
Farmer Mac Guaranteed USDA Securities	32,364		(283		)	32,081		743		—			32,824
Total Farmer Mac Guaranteed Securities	4,945,802		(321		)	4,945,481		52,201		(60,201		)	4,937,481
USDA Securities	1,905,457		1,778			1,907,235		73,114		(22		)	1,980,327
Total available-for-sale	$	6,851,259	$	1,457		$	6,852,716	$	125,315	$	(60,223	)	$	6,917,808
Trading:
USDA Securities	$	21,958	$	1,406		$	23,364	$	207	$	(82	)	$	23,489

	As of December 31, 2015
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,274,431	$	(415	)	$	1,274,016	$	7,801	$	—		$	1,281,817
Available-for-sale:
AgVantage	$	4,164,952	$	—		$	4,164,952	$	26,831	$	(70,539	)	$	4,121,244
Farmer Mac Guaranteed USDA Securities	31,554		(333		)	31,221		140		—			31,361
Total Farmer Mac Guaranteed Securities	4,196,506		(333		)	4,196,173		26,971		(70,539		)	4,152,605
USDA Securities	1,849,322		1,890			1,851,212		37,160		(28		)	1,888,344
Total available-for-sale	$	6,045,828	$	1,557		$	6,047,385	$	64,131	$	(70,567	)	$	6,040,949
Trading:
USDA Securities	$	27,129	$	1,934		$	29,063	$	125	$	(213	)	$	28,975

As of September 30, 2016 and December 31, 2015, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2016
	Held-to-Maturity and 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)
Held-to-maturity:
AgVantage	$	404,105	$	(895	)	$	—	$	—
Available-for-sale:
AgVantage	$	847,890	$	(2,110	)	$	2,101,844	$	(58,091	)
USDA Securities	—		—			98,460		(22		)
Total available-for-sale	$	847,890	$	(2,110	)	$	2,200,304	$	(58,113	)

	As of December 31, 2015
	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)
Available-for-sale:
AgVantage	$	1,193,866	$	(41,835	)	$	1,104,981	$	(28,704	)
USDA Securities	—		—			103,010		(28		)
Total available-for-sale	$	1,193,866	$	(41,835	)	$	1,207,991	$	(28,732	)

The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to September 30, 2016 and December 31, 2015, as applicable. The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States. The unrealized losses from AgVantage securities were on 25 available-for-sale securities as of September 30, 2016. There were four held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2016. The unrealized losses from AgVantage securities were on 22 available-for-sale securities as of December 31, 2015. There were no unrealized losses from held-to-maturity securities as of December 31, 2015. As of September 30, 2016, 17 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $58.1 million. As of December 31, 2015, 8 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $28.7 million. Farmer Mac has concluded that none of the unrealized losses on its held-to-maturity Farmer Mac Guaranteed Securities and available-for-sale Farmer Mac Guaranteed Securities and USDA Securities are other-than-temporary impairment as of either September 30, 2016 or December 31, 2015.  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 the three and nine months ended September 30, 2016 and 2015, Farmer Mac did not sell any Farmer Mac Guaranteed Securities and USDA Securities.

The amortized cost, fair value, and weighted average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2016 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.

Table 3.3

	As of September 30, 2016
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	313,714	$	314,376	1.39	%
Due after one year through five years	2,726,577		2,756,149		1.79	%
Due after five years through ten years	1,299,644		1,321,453		2.05	%
Due after ten years	2,512,781		2,525,830		2.63	%
Total	$	6,852,716	$	6,917,808	2.13	%

	As of September 30, 2016
	Held-to-Maturity Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	407,942	$	408,699	1.60	%
Due after one year through five years	693,616		701,844		1.94	%
Due after five years through ten years	52,088		55,411		3.24	%
Total	$	1,153,646	$	1,165,954	1.88	%

As of September 30, 2016, Farmer Mac owned trading USDA Securities with an amortized cost of $23.4 million, a fair value of $23.5 million, and a weighted average yield of 5.48 percent. As of December 31, 2015, Farmer Mac owned trading USDA Securities with an amortized cost of $29.1 million, a fair value of $29.0 million, and a weighted average yield of 5.53 percent.