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Business Segment Reporting - Business Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
The following tables present core earnings for Farmer Mac's reportable operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2016 and 2015:

Table 9.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2016
 
Farm & Ranch
 
USDA Guarantees
 
Rural 
Utilities
 
Institutional Credit
 
Corporate
 
Reconciling
Adjustments
 
Consolidated Net Income
 
(in thousands)
Net interest income
$
12,039

 
$
5,753

 
$
2,963

 
$
12,226

 
$
2,582

 
$
—

 
$
35,563

Less: reconciling adjustments(1)(2)(3)
(1,336
)
 
(564
)
 
(320
)
 
(799
)
 
(345
)
 
3,364

 
—

Net effective spread
10,703

 
5,189

 
2,643

 
11,427

 
2,237

 
3,364

 
—

Guarantee and commitment fees(2)
3,516

 
29

 
529

 
459

 
—

 
(735
)
 
3,798

Other income/(expense)(3)(4)
276

 
95

 
—

 
—

 
(388
)
 
320

 
303

Non-interest income/(loss)
3,792

 
124

 
529

 
459

 
(388
)
 
(415
)
 
4,101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
(191
)
 
—

 
—

 
—

 
—

 
—

 
(191
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Release of losses
222

 
—

 
—

 
—

 
—

 
—

 
222

Other non-interest expense
(3,673
)
 
(933
)
 
(553
)
 
(1,253
)
 
(3,113
)
 
—

 
(9,525
)
Non-interest expense(5)
(3,451
)
 
(933
)
 
(553
)
 
(1,253
)
 
(3,113
)
 
—

 
(9,303
)
Core earnings before income taxes
10,853

 
4,380

 
2,619

 
10,633

 
(1,264
)
 
2,949

(6) 
30,170

Income tax (expense)/benefit
(3,799
)
 
(1,533
)
 
(917
)
 
(3,722
)
 
474

 
(1,032
)
 
(10,529
)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest - preferred stock dividends
7,054

 
2,847

 
1,702

 
6,911

 
(790
)
 
1,917

(6) 
19,641

Preferred stock dividends
—

 
—

 
—

 
—

 
(3,295
)
 
—

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

 
—

 
—

 
—

 
18

 
—

 
18

Segment core earnings/(losses)
$
7,054

 
$
2,847

 
$
1,702

 
$
6,911

 
$
(4,067
)
 
$
1,917

(6) 
$
16,364

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets at carrying value
$
3,436,641

 
$
2,062,195

 
$
1,008,903

 
$
6,045,227

 
$
3,447,939

 
$
—

 
$
16,000,905

Total on- and off-balance sheet program assets at principal balance
$
6,004,728

 
$
2,020,834

 
$
1,867,666

 
$
7,354,511

 


 
—

 
$
17,247,739

(1) 
Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) 
Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) 
Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) 
Includes reconciling adjustments for 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.
(5) 
Includes directly attributable costs and an allocation of indirectly attributable costs based on headcount.
(6) 
Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Three Months Ended September 30, 2015
 
Farm & Ranch
 
USDA Guarantees
 
Rural 
Utilities
 
Institutional Credit
 
Corporate
 
Reconciling
Adjustments
 
Consolidated Net Income
 
(in thousands)
Net interest income
$
10,838

 
$
4,515

 
$
3,130

 
$
11,686

 
$
2,014

 
$
—

 
$
32,183

Less: reconciling adjustments(1)(2)(3)
(1,210
)
 
115

 
(223
)
 
(415
)
 
(63
)
 
1,796

 
—

Net effective spread
9,628

 
4,630

 
2,907

 
11,271

 
1,951

 
1,796

 
—

Guarantee and commitment fees(2)
3,785

 
7

 
100

 
436

 
—

 
(796
)
 
3,532

Other income/(expense)(3)(4)
513

 
13

 
—

 
—

 
(619
)
 
(8,420
)
 
(8,513
)
Non-interest income/(loss)
4,298

 
20

 
100

 
436

 
(619
)
 
(9,216
)
 
(4,981
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Release of allowance for loan losses
1,164

 
—

 
—

 
—

 
—

 
—

 
1,164

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for losses
(861
)
 
—

 
—

 
—

 
—

 
—

 
(861
)
Other non-interest expense
(4,228
)
 
(986
)
 
(838
)
 
(522
)
 
(2,986
)
 
—

 
(9,560
)
Non-interest expense(5)
(5,089
)
 
(986
)
 
(838
)
 
(522
)
 
(2,986
)
 
—

 
(10,421
)
Core earnings before income taxes
10,001

 
3,664

 
2,169

 
11,185

 
(1,654
)
 
(7,420
)
(6) 
17,945

Income tax (expense)/benefit
(3,500
)
 
(1,282
)
 
(760
)
 
(3,915
)
 
533

 
2,597

 
(6,327
)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest - preferred stock dividends
6,501

 
2,382

 
1,409

 
7,270

 
(1,121
)
 
(4,823
)
(6) 
11,618

Preferred stock dividends
—

 
—

 
—

 
—

 
(3,295
)
 
—

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

 
—

 
—

 
—

 
36

 
—

 
36

Segment core earnings/(losses)
$
6,501

 
$
2,382

 
$
1,409

 
$
7,270

 
$
(4,380
)
 
$
(4,823
)
(6) 
$
8,359

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets at carrying value
$
2,856,097

 
$
1,941,166

 
$
987,115

 
$
5,405,360

 
$
3,664,107

 
$
—

 
$
14,853,845

Total on- and off-balance sheet program assets at principal balance
$
5,504,030

 
$
1,898,625

 
$
1,500,307

 
$
6,725,017

 
 
 
—

 
$
15,627,979

(1) 
Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) 
Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) 
Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) 
Includes reconciling adjustments for 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.
(5) 
Includes directly attributable costs and an allocation of indirectly attributable costs based on headcount.
(6) 
Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.


Core Earnings by Business Segment
For the Nine Months Ended September 30, 2016
 
Farm & Ranch
 
USDA Guarantees
 
Rural 
Utilities
 
Institutional Credit
 
Corporate
 
Reconciling
Adjustments
 
Consolidated Net Income
 
(in thousands)
Net interest income
$
34,772

 
$
15,743

 
$
8,682

 
$
36,084

 
$
8,280

 
$
—

 
$
103,561

Less: reconciling adjustments(1)(2)(3)
(4,733
)
 
(1,658
)
 
(939
)
 
(2,160
)
 
(897
)
 
10,387

 
—

Net effective spread
30,039

 
14,085

 
7,743

 
33,924

 
7,383

 
10,387

 
—

Guarantee and commitment fees(2)
11,390

 
50

 
1,197

 
1,375

 
—

 
(2,933
)
 
11,079

Other income/(expense)(3)(4)
451

 
178

 
—

 
—

 
(1,288
)
 
(9,259
)
 
(9,918
)
Non-interest income/(loss)
11,841

 
228

 
1,197

 
1,375

 
(1,288
)
 
(12,192
)
 
1,161

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
(604
)
 
—

 
—

 
—

 
—

 
—

 
(604
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Release of losses
114

 
—

 
—

 
—

 
—

 
—

 
114

Other non-interest expense
(11,946
)
 
(3,118
)
 
(2,214
)
 
(2,330
)
 
(9,849
)
 
—

 
(29,457
)
Non-interest expense(5)
(11,832
)
 
(3,118
)
 
(2,214
)
 
(2,330
)
 
(9,849
)
 
—

 
(29,343
)
Core earnings before income taxes
29,444

 
11,195

 
6,726

 
32,969

 
(3,754
)
 
(1,805
)
(6) 
74,775

Income tax (expense)/benefit
(10,307
)
 
(3,918
)
 
(2,355
)
 
(11,538
)
 
1,221

 
633

 
(26,264
)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest - preferred stock dividends
19,137

 
7,277

 
4,371

 
21,431

 
(2,533
)
 
(1,172
)
(6) 
48,511

Preferred stock dividends
—

 
—

 
—

 
—

 
(9,886
)
 
—

 
(9,886
)
Non-controlling interest - preferred stock dividends
—

 
—

 
—

 
—

 
62

 
—

 
62

Segment core earnings/(losses)
$
19,137

 
$
7,277

 
$
4,371

 
$
21,431

 
$
(12,357
)
 
$
(1,172
)
(6) 
$
38,687

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets at carrying value
$
3,436,641

 
$
2,062,195

 
$
1,008,903

 
$
6,045,227

 
$
3,447,939

 
$
—

 
$
16,000,905

Total on- and off-balance sheet program assets at principal balance
$
6,004,728

 
$
2,020,834

 
$
1,867,666

 
$
7,354,511

 
 
 
—

 
$
17,247,739

(1) 
Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) 
Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) 
Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) 
Includes reconciling adjustments for 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.
(5) 
Includes directly attributable costs and an allocation of indirectly attributable costs based on headcount.
(6) 
Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.


Core Earnings by Business Segment
For the Nine Months Ended September 30, 2015
 
Farm & Ranch
 
USDA Guarantees
 
Rural 
Utilities
 
Institutional Credit
 
Corporate
 
Reconciling
Adjustments
 
Consolidated Net Income
 
(in thousands)
Net interest income
$
32,825

 
$
13,503

 
$
8,741

 
$
33,990

 
$
5,777

 
$
—

 
$
94,836

Less: reconciling adjustments(1)(2)(3)
(3,402
)
 
(182
)
 
(192
)
 
(1,434
)
 
(195
)
 
5,405

 
—

Net effective spread
29,423

 
13,321

 
8,549

 
32,556

 
5,582

 
5,405

 
—

Guarantee and commitment fees(2)
11,111

 
9

 
100

 
1,205

 
—

 
(2,128
)
 
10,297

Other income/(expense)(3)(4)
760

 
100

 
—

 
—

 
(1,383
)
 
3,927

 
3,404

Non-interest income/(loss)
11,871

 
109

 
100

 
1,205

 
(1,383
)
 
1,799

 
13,701

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Release of allowance for loan losses
978

 
—

 
—

 
—

 
—

 
—

 
978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for losses
(1,235
)
 
—

 
—

 
—

 
—

 
—

 
(1,235
)
Other non-interest expense
(12,858
)
 
(2,396
)
 
(2,564
)
 
(1,589
)
 
(8,975
)
 
—

 
(28,382
)
Non-interest expense(5)
(14,093
)
 
(2,396
)
 
(2,564
)
 
(1,589
)
 
(8,975
)
 
—

 
(29,617
)
Core earnings before income taxes
28,179

 
11,034

 
6,085

 
32,172

 
(4,776
)
 
7,204

(6) 
79,898

Income tax (expense)/benefit
(9,862
)
 
(3,861
)
 
(2,129
)
 
(11,260
)
 
3,405

 
(620
)
 
(24,327
)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest - preferred stock dividends
18,317

 
7,173

 
3,956

 
20,912

 
(1,371
)
 
6,584

(6) 
55,571

Preferred stock dividends
—

 
—

 
—

 
—

 
(9,886
)
 
—

 
(9,886
)
Non-controlling interest - preferred stock dividends
—

 
—

 
—

 
—

 
(5,199
)
 
—

 
(5,199
)
Loss on retirement of preferred stock
—

 
—

 
—

 
—

 
—

 
(8,147
)
 
(8,147
)
Segment core earnings/(losses)
$
18,317

 
$
7,173

 
$
3,956

 
$
20,912

 
$
(16,456
)
 
$
(1,563
)
(6) 
$
32,339

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets at carrying value
$
2,856,097

 
$
1,941,166

 
$
987,115

 
$
5,405,360

 
$
3,664,107

 
$
—

 
$
14,853,845

Total on- and off-balance sheet program assets at principal balance
$
5,504,030

 
$
1,898,625

 
$
1,500,307

 
$
6,725,017

 
 
 
—

 
$
15,627,979

(1) 
Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) 
Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) 
Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) 
Includes reconciling adjustments for 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.
(5) 
Includes directly attributable costs and an allocation of indirectly attributable costs based on headcount.
(6) 
Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.