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 March 31, 2018 and December 31, 2017:

Table 3.1



	As of March 31, 2018
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	2,152,618	$	(475	)	$	2,152,143	$	534	$	(16,265	)	$	2,136,412
Farmer Mac Guaranteed USDA Securities	29,596		304			29,900		422		(6		)	30,316
Total Farmer Mac Guaranteed Securities	2,182,214		(171		)	2,182,043		956		(16,271		)	2,166,728
USDA Securities	2,066,645		61,124			2,127,769		740		(52,293		)	2,076,216
Total held-to-maturity	$	4,248,859	$	60,953		$	4,309,812	$	1,696	$	(68,564	)	$	4,242,944
Available-for-sale:
AgVantage	$	5,861,731	$	(165	)	$	5,861,566	$	22,731	$	(44,910	)	$	5,839,387
Trading:
USDA Securities	$	11,063	$	852		$	11,915	$	38	$	(395	)	$	11,558



	As of December 31, 2017
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	2,096,754	$	(779	)	$	2,095,975	$	2,011	$	(11,429	)	$	2,086,557
Farmer Mac Guaranteed USDA Securities	29,980		319			30,299		108		(73		)	30,334
Total Farmer Mac Guaranteed Securities	2,126,734		(460		)	2,126,274		2,119		(11,502		)	2,116,891
USDA Securities	2,055,050		62,800			2,117,850		—		(54,969		)	2,062,881
Total held-to-maturity	$	4,181,784	$	62,340		$	4,244,124	$	2,119	$	(66,471	)	$	4,179,772
Available-for-sale:
AgVantage	$	5,496,569	$	(182	)	$	5,496,387	$	21,838	$	(46,311	)	$	5,471,914
Trading:
USDA Securities	$	12,966	$	922		$	13,888	$	28	$	(401	)	$	13,515

As of March 31, 2018 and December 31,2017, 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 March 31, 2018
	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	$	1,548,488	$	(12,933	)	$	351,667	$	(3,332	)
Farmer Mac Guaranteed USDA Securities	—		—			—		(6		)
USDA Securities	—		—			2,010,713		(52,293		)
Total held-to-maturity	$	1,548,488	$	(12,933	)	$	2,362,380	$	(55,631	)

Available-for-sale:
AgVantage	$	1,031,980	$	(12,371	)	$	1,722,350	$	(32,539	)



	As of December 31, 2017
	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	$	1,304,160	$	(8,094	)	$	351,664	$	(3,335	)
Farmer Mac Guaranteed USDA Securities	24,721		(73		)	—		—
USDA Securities	451		(2		)	2,062,429		(54,967		)
Total held-to-maturity	$	1,329,332	$	(8,169	)	$	2,414,093	$	(58,302	)

Available-for-sale:
AgVantage	$	1,273,965	$	(8,819	)	$	1,759,377	$	(37,492	)

The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to March 31, 2018 and December 31, 2017, as applicable. In addition, the unrealized losses on the held-to-maturity USDA Securities as of both March 31, 2018 and December 31, 2017 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016. 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 43 available-for-sale securities as of March 31, 2018. There were 43 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2018. The unrealized losses from AgVantage securities were on 36 available-for-sale securities as of December 31, 2017. There were unrealized losses from 23 held-to-maturity securities as of December 31, 2017. As of March 31, 2018, 14 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $32.5 million. As of December 31, 2017, 16 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $37.5 million. Farmer Mac has concluded that none of the unrealized losses on its held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities and available-for-sale Farmer Mac Guaranteed Securities are other-than-temporary impaired as of either March 31, 2018 or December 31, 2017. 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 months ended March 31, 2018 and 2017, Farmer Mac realized no gains or losses from the sale of 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 March 31, 2018 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 March 31, 2018
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,285,582	$	1,285,526	2.45	%
Due after one year through five years	2,421,507		2,419,021		2.56	%
Due after five years through ten years	815,799		800,742		3.03	%
Due after ten years	1,338,678		1,334,098		2.84	%
Total	$	5,861,566	$	5,839,387	2.66	%



	As of March 31, 2018
	Held-to-Maturity Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	866,596	$	865,637	1.79	%
Due after one year through five years	1,352,733		1,336,793		2.40	%
Due after five years through ten years	209,070		204,168		3.16	%
Due after ten years	1,881,413		1,836,346		3.43	%
Total	$	4,309,812	$	4,242,944	2.75	%

As of March 31, 2018, Farmer Mac owned trading USDA Securities with an amortized cost of $11.9 million, a fair value of $11.6 million, and a weighted-average yield of 5.31 percent. As of December 31, 2017, Farmer Mac owned trading USDA Securities with an amortized cost of $13.9 million, a fair value of $13.5 million, and a weighted-average yield of 5.33 percent.