Loans and Allowance for Losses and Concentrations of Credit Risk

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans and Allowance for Credit Losses and Concentration Risk Disclosure

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, 2017 and December 31, 2016, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of September 30, 2017 and December 31, 2016:

Table 5.1

	As of September 30, 2017									As of December 31, 2016
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,739,681		$	1,329,212		$	4,068,893		$	2,381,488		$	1,132,966		$	3,514,454
Rural Utilities	1,066,482			—			1,066,482			999,512			—			999,512
Total unpaid principal balance(1)	3,806,163			1,329,212			5,135,375			3,381,000			1,132,966			4,513,966
Unamortized premiums, discounts and other cost basis adjustments	(1,197		)	—			(1,197		)	(1,116		)	—			(1,116		)
Total loans	3,804,966			1,329,212			5,134,178			3,379,884			1,132,966			4,512,850
Allowance for loan losses	(5,195		)	(1,213		)	(6,408		)	(4,437		)	(978		)	(5,415		)
Total loans, net of allowance	$	3,799,771		$	1,327,999		$	5,127,770		$	3,375,447		$	1,131,988		$	4,507,435

⁽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 (excluding AgVantage securities).  Farmer Mac's total allowance for losses was $8.5 million as of September 30, 2017 and $7.4 million as of December 31, 2016. 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, 2017 and 2016:

Table 5.2

	As of September 30, 2017								As of September 30, 2016
	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	$	6,138		$	1,966	$	8,104		$	4,893		$	2,191		$	7,084
Provision for/(release of) losses	270			114		384			191			(222		)	(31		)
Charge-offs	—			—		—			(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923
For the Nine Months Ended:
Beginning Balance	$	5,415		$	2,020	$	7,435		$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,234			60		1,294			604			(114		)	490
Charge-offs	(241		)	—		(241		)	(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923

During third quarter 2017, Farmer Mac recorded net provisions to its allowance for loan losses and reserve for losses of $0.3 million and $0.1 million, respectively. The net provisions to the allowance for loan losses recorded during third quarter 2017 were primarily attributable to (1) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding balance of such loans and downgrades in risk ratings on certain of those loans, and (2) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans. The net provision to the reserve for losses recorded during the third quarter 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs. Farmer Mac recorded no charge-offs to its allowance for loan losses during third quarter 2017.

During third quarter 2016, Farmer Mac recorded net provisions to its allowance for loan losses of $0.2 million and net releases to its reserve for losses of $0.2 million. The net provisions to the allowance for loan losses recorded during third quarter 2016 were attributable to an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans and downgrades in risk ratings for a small number of loans. The net releases to the reserve for losses recorded during the three months ended September 30, 2016 were attributable to the release of a specific reserve on an impaired livestock loan underlying an LTSPC that was required to be removed from the LTSPC pool by the originator during third quarter 2016. Farmer Mac recorded $0.1 million charge-offs to its allowance for loan losses during third quarter 2016.

The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016 by commodity type:

Table 5.3

	September 30, 2017
	Crops			Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing		Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,735		$	2,164	$	1,234		$	397		$	558	$	16		$	8,104
Provision for/(release of) losses	115			162		35			4			72		(4		)	384
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488
For the Nine Months Ended:
Beginning Balance	$	3,365		$	1,723	$	1,375		$	405		$	533	$	34		$	7,435
Provision for/(release of) losses	713			603		(93		)	(4		)	97		(22		)	1,294
Charge-offs	(228		)	—		(13		)	—			—		—			(241		)
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488

	September 30, 2016
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,111	$	1,144	$	1,906		$	447		$	473		$	3		$	7,084
Provision for/(release of) losses	103		198		(354		)	36			(13		)	(1		)	(31		)
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923
For the Nine Months Ended:
Beginning Balance	$	2,791	$	931	$	1,781		$	408		$	649		$	3		$	6,563
Provision for/(release of) losses	423		411		(229		)	75			(189		)	(1		)	490
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of September 30, 2017 and December 31, 2016:

Table 5.4

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,278,701	$	767,275	$	623,499	$	246,416	$	13,248	$	9,004	$	3,938,143
Off-balance sheet	1,237,846		373,496		668,280		153,278		34,820		3,849		2,471,569
Total	$	3,516,547	$	1,140,771	$	1,291,779	$	399,694	$	48,068	$	12,853	$	6,409,712
Individually evaluated for impairment:
On-balance sheet	$	68,322	$	41,201	$	13,516	$	7,069	$	—	$	642	$	130,750
Off-balance sheet	8,847		2,249		4,448		945		—		79		16,568
Total	$	77,169	$	43,450	$	17,964	$	8,014	$	—	$	721	$	147,318
Total Farm & Ranch loans:
On-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-balance sheet	1,246,693		375,745		672,728		154,223		34,820		3,928		2,488,137
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,868	$	973	$	748	$	219	$	87	$	6	$	3,901
Off-balance sheet	560		285		212		46		543		4		1,650
Total	$	2,428	$	1,258	$	960	$	265	$	630	$	10	$	5,551
Individually evaluated for impairment:
On-balance sheet	$	1,193	$	1,010	$	192	$	112	$	—	$	—	$	2,507
Off-balance sheet	229		58		117		24		—		2		430
Total	$	1,422	$	1,068	$	309	$	136	$	—	$	2	$	2,937
Total Farm & Ranch loans:
On-balance sheet	$	3,061	$	1,983	$	940	$	331	$	87	$	6	$	6,408
Off-balance sheet	789		343		329		70		543		6		2,080
Total	$	3,850	$	2,326	$	1,269	$	401	$	630	$	12	$	8,488

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,115,450	$	569,360	$	537,859	$	183,660	$	11,545	$	8,894	$	3,426,768
Off-balance sheet	1,241,851		437,575		752,473		131,889		36,506		4,503		2,604,797
Total	$	3,357,301	$	1,006,935	$	1,290,332	$	315,549	$	48,051	$	13,397	$	6,031,565
Individually evaluated for impairment:
On-balance sheet	$	41,648	$	27,770	$	10,658	$	7,610	$	—	$	—	$	87,686
Off-balance sheet	11,549		2,735		4,854		915		—		—		20,053
Total	$	53,197	$	30,505	$	15,512	$	8,525	$	—	$	—	$	107,739
Total Farm & Ranch loans:
On-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-balance sheet	1,253,400		440,310		757,327		132,804		36,506		4,503		2,624,850
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,000	$	652	$	735	$	193	$	22	$	28	$	3,630
Off-balance sheet	420		281		241		54		511		6		1,513
Total	$	2,420	$	933	$	976	$	247	$	533	$	34	$	5,143
Individually evaluated for impairment:
On-balance sheet	$	613	$	770	$	270	$	132	$	—	$	—	$	1,785
Off-balance sheet	332		20		129		26		—		—		507
Total	$	945	$	790	$	399	$	158	$	—	$	—	$	2,292
Total Farm & Ranch loans:
On-balance sheet	$	2,613	$	1,422	$	1,005	$	325	$	22	$	28	$	5,415
Off-balance sheet	752		301		370		80		511		6		2,020
Total	$	3,365	$	1,723	$	1,375	$	405	$	533	$	34	$	7,435

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, 2017 and December 31, 2016:

Table 5.5

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	11,909	$	4,963	$	3,942	$	1,939	$	—	$	644	$	23,397
Unpaid principal balance	11,885		4,953		3,935		1,936		—		643		23,352
With a specific allowance:
Recorded investment(1)	65,391		38,565		14,048		6,088		—		78		124,170
Unpaid principal balance	65,284		38,497		14,029		6,078		—		78		123,966
Associated allowance	1,422		1,068		309		136		—		2		2,937
Total:
Recorded investment	77,300		43,528		17,990		8,027		—		722		147,567
Unpaid principal balance	77,169		43,450		17,964		8,014		—		721		147,318
Associated allowance	1,422		1,068		309		136		—		2		2,937
Recorded investment of loans on nonaccrual status(2)	$	29,535	$	25,653	$	2,819	$	5,037	$	—	$	—	$	63,044

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $123.3 million (84 percent) of impaired loans as of September 30, 2017, which resulted in a specific allowance of $2.7 million.

⁽²⁾  Includes no 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, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	20,761	$	3,683	$	1,054	$	1,970	$	—	$	—	$	27,468
Unpaid principal balance	20,816		3,688		1,055		1,975		—		—		27,534
With a specific allowance:
Recorded investment(1)	32,326		26,748		14,322		6,535		—		—		79,931
Unpaid principal balance	32,381		26,817		14,457		6,550		—		—		80,205
Associated allowance	945		790		399		158		—		—		2,292
Total:
Recorded investment	53,087		30,431		15,376		8,505		—		—		107,399
Unpaid principal balance	53,197		30,505		15,512		8,525		—		—		107,739
Associated allowance	945		790		399		158		—		—		2,292
Recorded investment of loans on nonaccrual status(2)	$	13,405	$	10,785	$	2,696	$	5,256	$	—	$	—	$	32,142

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $76.5 million (71 percent) of impaired loans as of December 31, 2016, which resulted in a specific allowance of $1.6 million.

⁽²⁾  Includes $12.4 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, 2017 and 2016:

Table 5.6

	September 30, 2017
	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	$	72,180	$	38,396	$	15,582	$	7,944	$	—	$	401	$	134,503
Income recognized on impaired loans	101		244		13		61		—		—		419
For the Nine Months Ended:
Average recorded investment in impaired loans	$	65,244	$	35,101	$	14,620	$	8,096	$	—	$	201	$	123,262
Income recognized on impaired loans	563		464		212		235		—		—		1,474

	September 30, 2016
	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	$	33,032	$	22,980	$	12,120	$	8,172	$	—	$	—	$	76,304
Income recognized on impaired loans	46		236		81		74		—		—		437
For the Nine Months Ended:
Average recorded investment in impaired loans	$	28,293	$	25,277	$	13,704	$	8,654	$	4,668	$	—	$	80,596
Income recognized on impaired loans	108		789		229		251		—		—		1,377

For the three months ended September 30, 2017, there were no troubled debt restructurings ("TDRs"). For the nine months ended September 30, 2017, the recorded investment of loans determined to be TDRs was$0.2 million both before and after restructuring. For the three and nine months ended September 30, 2016, there were no TDRs. As of September 30, 2017 and 2016, 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, 2017 and 2016.

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.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and nine months ended September 30, 2017 and 2016 and the outstanding balances and carrying amounts of all such loans as of September 30, 2017 and December 31, 2016:

Table 5.7

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	852	$	311	$	2,118
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	3,043		250		3,147		398
Total unpaid principal balance at acquisition date	3,043		1,102		3,458		2,516
Contractually required payments receivable	3,073		1,109		3,490		2,544
Impairment recognized subsequent to acquisition	—		—		—		208
Recovery/release of allowance for all outstanding acquired defaulted loans	29		21		171		31
Number of defaulted loans purchased	6		3		10		8

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
Outstanding balance	$	16,514	$	14,669
Carrying amount	15,379		13,069

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below.  As of September 30, 2017, 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 (Recoveries)/Losses
	As of				For the Nine Months Ended
	September 30, 2017		December 31, 2016		September 30, 2017			September 30, 2016
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	65,105	$	19,757	$	(520	)	$	154
Total on-balance sheet	$	65,105	$	19,757	$	(520	)	$	154
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	1,276	$	1,281	$	—		$	—
Total off-balance sheet	$	1,276	$	1,281	$	—		$	—
Total	$	66,381	$	21,038	$	(520	)	$	154

⁽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 with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $65.1 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2017, $11,000 were loans subject to "removal-of-account" provisions. Of the $19.8 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2016, $0.1 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, 2017 and December 31, 2016:  

Table 5.9

	As of September 30, 2017
	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	$	2,240,054	$	760,251	$	603,653	$	241,208	$	13,248	$	9,004	$	3,867,418
Special mention(2)	38,647		7,024		19,846		5,208		—		—		70,725
Substandard(3)	68,322		41,201		13,516		7,069		—		642		130,750
Total on-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-Balance Sheet:
Acceptable	$	1,133,150	$	336,780	$	627,220	$	148,085	$	31,502	$	3,213	$	2,279,950
Special mention(2)	77,671		8,359		31,264		1,832		—		169		119,295
Substandard(3)	35,872		30,606		14,244		4,306		3,318		546		88,892
Total off-balance sheet	$	1,246,693	$	375,745	$	672,728	$	154,223	$	34,820	$	3,928	$	2,488,137
Total Ending Balance:
Acceptable	$	3,373,204	$	1,097,031	$	1,230,873	$	389,293	$	44,750	$	12,217	$	6,147,368
Special mention(2)	116,318		15,383		51,110		7,040		—		169		190,020
Substandard(3)	104,194		71,807		27,760		11,375		3,318		1,188		219,642
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Commodity analysis of past due loans(1)
On-balance sheet	$	31,413	$	22,330	$	7,367	$	3,352	$	—	$	643	$	65,105
Off-balance sheet	862		—		—		414		—		—		1,276
90 days or more past due	$	32,275	$	22,330	$	7,367	$	3,766	$	—	$	643	$	66,381

⁽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, 2016
	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	$	2,080,227	$	568,221	$	504,784	$	179,288	$	11,545	$	8,894	$	3,352,959
Special mention(2)	35,223		1,139		33,075		4,372		—		—		73,809
Substandard(3)	41,648		27,770		10,658		7,610		—		—		87,686
Total on-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-Balance Sheet
Acceptable	$	1,201,144	$	403,256	$	724,056	$	125,440	$	34,537	$	3,916	$	2,492,349
Special mention(2)	20,422		16,881		15,341		2,344		—		6		54,994
Substandard(3)	31,834		20,173		17,930		5,020		1,969		581		77,507
Total off-balance sheet	$	1,253,400	$	440,310	$	757,327	$	132,804	$	36,506	$	4,503	$	2,624,850
Total Ending Balance:
Acceptable	$	3,281,371	$	971,477	$	1,228,840	$	304,728	$	46,082	$	12,810	$	5,845,308
Special mention(2)	55,645		18,020		48,416		6,716		—		6		128,803
Substandard(3)	73,482		47,943		28,588		12,630		1,969		581		165,193
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Commodity analysis of past due loans(1)
On-balance sheet	$	13,449	$	3,245	$	669	$	2,394	$	—	$	—	$	19,757
Off-balance sheet	373		407		38		463		—		—		1,281
90 days or more past due	$	13,822	$	3,652	$	707	$	2,857	$	—	$	—	$	21,038

⁽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, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2017 and December 31, 2016:

Table 5.10

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
By commodity/collateral type:
Crops	$	3,593,716	$	3,410,498
Permanent plantings	1,184,221		1,037,440
Livestock	1,309,743		1,305,844
Part-time farm	407,708		324,074
Ag. Storage and Processing	48,068		48,051
Other	13,574		13,397
Total	$	6,557,030	$	6,139,304
By geographic region(1):
Northwest	$	723,616	$	657,403
Southwest	1,917,692		1,791,745
Mid-North	2,205,750		2,104,867
Mid-South	899,293		837,121
Northeast	290,655		229,679
Southeast	520,024		518,489
Total	$	6,557,030	$	6,139,304
By original loan-to-value ratio(2):
0.00% to 40.00%	$	1,274,050	$	1,220,432
40.01% to 50.00%	1,622,767		1,466,047
50.01% to 60.00%	2,268,852		2,078,099
60.01% to 70.00%	1,130,748		1,167,395
70.01% to 80.00%	233,963		191,664
80.01% to 90.00%	26,650		15,667
Total	$	6,557,030	$	6,139,304
By size of borrower exposure(3):
Less than $1,000,000	$	2,297,648	$	2,195,103
$1,000,000 to $4,999,999	2,500,101		2,398,843
$5,000,000 to $9,999,999	815,411		782,171
$10,000,000 to $24,999,999	568,471		469,681
$25,000,000 to $50,000,000	375,399		293,506
Total	$	6,557,030	$	6,139,304

⁽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).

⁽²⁾  As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

⁽³⁾  Includes multiple loans to the same borrower or borrower-related entities.

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.