Income Taxes - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The components of the federal income tax expense for the years ended December 31, 2017, 2016, and 2015 were as follows:

Table 10.1



	For the Year Ended December 31,
	2017		2016		2015
	(in thousands)
Current income tax expense	$	43,148	$	37,954	$	30,247
Deferred income tax (benefit)/expense	3,221		4,103		3,992
Income tax expense	$	46,369	$	42,057	$	34,239

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2017, 2016, and 2015 is as follows:

Table 10.2



	For the Year Ended December 31,
	2017			2016			2015
	(dollars in thousands)
Tax expense at statutory rate	$	45,740		$	41,775		$	37,827
Re-measurement of net deferred tax asset due to enactment of new tax legislation	1,365			—			—
Excess tax benefits related to stock-based awards	(860		)	—			—
Income from non-controlling interest	—			—			(1,874		)
Loss on retirement of preferred stock	—			—			(1,901		)
Valuation allowance	4			21			33
Other	120			261			154
Income tax expense	$	46,369		$	42,057		$	34,239
Statutory tax rate	35.0		%	35.0		%	35.0		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of the deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows:

Table 10.3



	As of December 31,
	2017			2016
	(in thousands)
Deferred tax assets:
Basis differences related to financial derivatives	$	6,800		$	15,917
Basis differences related to hedged items	5,661			9,307
Allowance for losses	1,862			2,602
Stock-based compensation	532			1,648
Capital loss carryforwards and other-than-temporary impairment	36			56
Valuation allowance	(36		)	(56		)
Compensation and Benefits	778			1,222
Other	74			2
Total deferred tax assets	15,707			30,698
Deferred tax liability:
Unrealized gains on securities	12,376			16,889
Other	1,283			1,518
Total deferred tax liability	13,659			18,407
Net deferred tax asset	$	2,048		$	12,291

A valuation allowance is required to reduce a deferred tax asset to an amount that is more likely than not to be realized. Future realization of the tax benefit from a deferred tax asset depends on the existence of sufficient taxable income of the appropriate character. After the evaluation of both positive and negative objective evidence regarding the likelihood that its deferred tax assets will be realized, Farmer Mac established a valuation allowance of $36,000 and $56,000, respectively, as of December 31, 2017 and 2016, which was attributable to capital loss carryforwards on investment securities. Farmer Mac did not establish a valuation allowance for the remainder of its deferred tax assets because it believes it is more likely than not that those deferred tax assets will be realized. In determining its deferred tax asset valuation allowance, Farmer Mac considered its taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback and carryforward periods available under the tax law and the impact of possible tax planning strategies. On December 31, 2016, $5.9 million of capital loss carryforwards expired and Farmer Mac removed $2.1 million of corresponding deferred tax assets and the related deferred tax asset valuation allowance. As of December 31, 2017, no capital loss carryforwards expired. As of December 31, 2017, the amount of capital loss carryforwards was $0.2 million. These capital loss carryforwards will expire in 2021.

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

As of December 31, 2017 and 2016, Farmer Mac did not identify any uncertain tax positions.

Farmer Mac did not incur unrecognized tax benefits for the years ended December 31, 2017, 2016, and 2015.