INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's investment securities as of June 30, 2017 and December 31, 2016:

Table 2.1



	As of June 30, 2017
	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	$	19,700	$	—		$	19,700	$	—	$	(1,182	)	$	18,518
Floating rate asset-backed securities	37,751		(177		)	37,574		2		(153		)	37,423
Floating rate corporate debt securities	10,000		—			10,000		94		—			10,094
Floating rate Government/GSE guaranteed mortgage-backed securities	1,351,804		2,529			1,354,333		2,822		(1,673		)	1,355,482
Fixed rate GSE guaranteed mortgage-backed securities⁽¹⁾	488		2,358			2,846		2,333		—			5,179
Fixed rate senior agency debt	179,295		1			179,296		—		(267		)	179,029
Fixed rate U.S. Treasuries	758,766		38			758,804		—		(724		)	758,080
Total available-for-sale	2,357,804		4,749			2,362,553		5,251		(3,999		)	2,363,805
Total investment securities	$	2,357,804	$	4,749		$	2,362,553	$	5,251	$	(3,999	)	$	2,363,805


⁽¹⁾	Fair value includes $4.7 million of an interest-only security with a notional amount of $144.9 million.



	As of December 31, 2016
	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	$	19,700	$	—		$	19,700	$	—	$	(1,970	)	$	17,730
Floating rate asset-backed securities	44,442		(202		)	44,240		1		(390		)	43,851
Floating rate corporate debt securities	10,000		—			10,000		41		—			10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	1,359,700		2,827			1,362,527		1,768		(3,266		)	1,361,029
Fixed rate GSE guaranteed mortgage-backed securities⁽¹⁾	538		2,582			3,120		4,505		—			7,625
Floating rate GSE subordinated debt	70,000		—			70,000		—		(3,047		)	66,953
Fixed rate senior agency debt	187,295		106			187,401		—		(268		)	187,133
Fixed rate U.S. Treasuries	821,619		359			821,978		47		(536		)	821,489
Total available-for-sale	2,513,294		5,672			2,518,966		6,362		(9,477		)	2,515,851
Total investment securities	$	2,513,294	$	5,672		$	2,518,966	$	6,362	$	(9,477	)	$	2,515,851


⁽¹⁾	Fair value includes $7.0 million of an interest-only security with a notional amount of $146.1 million.

Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and six months ended June 30, 2017 and three months ended June 30, 2016. During the six months ended June 30, 2016, Farmer Mac received proceeds of $186.8 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.1 million and gross realized losses of $0.1 million.

As of June 30, 2017 and December 31, 2016, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2



	As of June 30, 2017
	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	$	—	$	—		$	18,518	$	(1,182	)
Floating rate asset-backed securities	—		—			33,372		(153		)
Floating rate Government/GSE guaranteed mortgage-backed securities	116,588		(254		)	387,188		(1,419		)
Fixed rate U.S. Treasuries	758,080		(724		)	—		—
Fixed rate senior agency debt	179,029		(267		)	—		—
Total	$	1,053,697	$	(1,245	)	$	439,078	$	(2,754	)



	As of December 31, 2016
	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	$	—	$	—		$	17,730	$	(1,970	)
Floating rate asset-backed securities	4,654		(10		)	38,077		(380		)
Floating rate Government/GSE guaranteed mortgage-backed securities	384,586		(1,030		)	442,041		(2,236		)
Floating rate GSE subordinated debt	—		—			66,953		(3,047		)
Fixed rate U.S. Treasuries	732,371		(536		)	—		—
Fixed rate senior agency debt	187,133		(268		)	—		—
Total	$	1,308,744	$	(1,844	)	$	564,801	$	(7,633	)

The unrealized losses presented above are principally due to a general widening of market spreads and an increase in the levels of interest rates from the dates of acquisition to June 30, 2017 and December 31, 2016, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of June 30, 2017, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+." As of December 31, 2016, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+," except one that was rated "A-." The unrealized losses were on 87 and 97 individual investment securities as of June 30, 2017 and December 31, 2016, respectively.

As of June 30, 2017, 46 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.8 million. As of December 31, 2016, 36 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $7.6 million. Securities in unrealized loss positions for 12 months or longer have a fair value as of June 30, 2017 that is, on average, approximately 99 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 maturity or changes in credit spreads. Accordingly, Farmer Mac has concluded that none of the unrealized losses on these available-for-sale investment securities are other-than-temporary impairment as of June 30, 2017 and December 31, 2016.

Farmer Mac did not own any held-to-maturity or trading investment securities as of June 30, 2017 and December 31, 2016.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of June 30, 2017 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



	As of June 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	916,794	$	915,808	0.82%
Due after one year through five years	220,592		220,936		1.65%
Due after five years through ten years	406,525		409,570		1.72%
Due after ten years	818,642		817,491		1.64%
Total	$	2,362,553	$	2,363,805	1.34%