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 March 31, 2018 and December 31, 2017, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of March 31, 2018 and December 31, 2017:

Table 5.1



	As of March 31, 2018									As of December 31, 2017
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,832,641		$	1,441,718		$	4,274,359		$	2,798,906		$	1,399,827		$	4,198,733
Rural Utilities	1,043,477			—			1,043,477			1,076,291			—			1,076,291
Total unpaid principal balance⁽¹⁾	3,876,118			1,441,718			5,317,836			3,875,197			1,399,827			5,275,024
Unamortized premiums, discounts and other cost basis adjustments	(9,274		)	—			(9,274		)	(1,442		)	—			(1,442		)
Total loans	3,866,844			1,441,718			5,308,562			3,873,755			1,399,827			5,273,582
Allowance for loan losses	(5,051		)	(1,314		)	(6,365		)	(5,493		)	(1,303		)	(6,796		)
Total loans, net of allowance	$	3,861,793		$	1,440,404		$	5,302,197		$	3,868,262		$	1,398,524		$	5,266,786


⁽¹⁾	Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Losses

Farm & Ranch

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 March 31, 2018 and $8.9 million as of December 31, 2017. 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 months ended March 31, 2018 and 2017:

Table 5.2



	For the Three Months Ended
	March 31, 2018								March 31, 2017
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
Beginning Balance	$	6,796		$	2,070	$	8,866		$	5,415		$	2,020		$	7,435
(Release of)/provision for losses	(431		)	21		(410		)	637			(193		)	444
Charge-offs	—			—		—			(241		)	—			(241		)
Ending Balance	$	6,365		$	2,091	$	8,456		$	5,811		$	1,827		$	7,638

During first quarter 2018, Farmer Mac recorded releases of its allowance for loan losses and provisions to its reserve for losses of $0.4 million and $21,000, respectively. The net releases to the allowance for loan losses recorded during first quarter 2018 were primarily attributable to (1) paydowns or payoffs of loans with an existing allowance in amounts that exceeded the increase in the allowance associated with net volume growth in Farm & Ranch loans recorded in first quarter 2018, and (2) paydowns on existing substandard loans or an improvement in the risk ratings of certain substandard loans, which resulted in the reduction of the amount of substandard assets rated in the lowest credit quality tier. Farmer Mac recorded no charge-offs to its allowance for loan losses during first quarter 2018.

During first quarter 2017, Farmer Mac recorded provisions to its allowance for loan losses of $0.6 million and releases to its reserve for losses of $0.2 million. The provisions to the allowance for loan losses recorded during first quarter 2017 were primarily attributable to an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the volume of such loans and downgrades in risk ratings on certain loans. The releases to the reserve for losses recorded during the three months ended March 31, 2017 were primarily attributable to (1) a decrease in the general reserve due to improvement in credit quality of certain Agricultural Storage and Processing loans and (2) a net decrease in the balance of loans underlying off-balance sheet Farmer Mac Guaranteed Securities. Farmer Mac recorded $0.2 million of charge-offs to its allowance for loan losses during first quarter 2017. The charge-offs recorded during the first quarter 2017 were primarily related to two impaired crop loans, with one borrower, that were foreclosed and transitioned to REO during first quarter 2017. Farmer Mac had previously recorded a specific allowance of $0.2 million on these impaired crop loans as of December 31, 2016. Subsequent to March 31, 2017, Farmer Mac sold the related properties for $5.7 million and recognized $0.5 million gain on sale of REO.

The following tables present the changes in the total allowance for losses for the three months ended March 31, 2018 and 2017 by commodity type:

Table 5.3



	March 31, 2018
	Crops			Permanent Plantings		Livestock		Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	4,081		$	2,469	$	1,211	$	481		$	606		$	18		$	8,866
Provision for/(release of) losses	(288		)	10		25		(68		)	(84		)	(5		)	(410		)
Charge-offs	—			—		—		—			—			—			—
Ending Balance	$	3,793		$	2,479	$	1,236	$	413		$	522		$	13		$	8,456



	March 31, 2017
	Crops			Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,365		$	1,723	$	1,375		$	405		$	533		$	34		$	7,435
Provision for/(release of) losses	425			147		17			(81		)	(61		)	(3		)	444
Charge-offs	(228		)	—		(13		)	—			—			—			(241		)
Ending Balance	$	3,562		$	1,870	$	1,379		$	324		$	472		$	31		$	7,638

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 March 31, 2018 and December 31, 2017:

Table 5.4



	As of March 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,366,184	$	797,591	$	659,997	$	298,438	$	10,926	$	9,005	$	4,142,141
Off-balance sheet	1,246,446		509,396		663,355		161,563		57,983		3,886		2,642,629
Total	$	3,612,630	$	1,306,987	$	1,323,352	$	460,001	$	68,909	$	12,891	$	6,784,770
Individually evaluated for impairment:
On-balance sheet	$	58,314	$	43,960	$	21,206	$	8,103	$	—	$	635	$	132,218
Off-balance sheet	8,878		2,391		2,752		919		—		74		15,014
Total	$	67,192	$	46,351	$	23,958	$	9,022	$	—	$	709	$	147,232
Total Farm & Ranch loans:
On-balance sheet	$	2,424,498	$	841,551	$	681,203	$	306,541	$	10,926	$	9,640	$	4,274,359
Off-balance sheet	1,255,324		511,787		666,107		162,482		57,983		3,960		2,657,643
Total	$	3,679,822	$	1,353,338	$	1,347,310	$	469,023	$	68,909	$	13,600	$	6,932,002
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,158	$	980	$	642	$	245	$	10	$	6	$	4,041
Off-balance sheet	614		272		258		46		512		5		1,707
Total	$	2,772	$	1,252	$	900	$	291	$	522	$	11	$	5,748
Individually evaluated for impairment:
On-balance sheet	$	787	$	1,169	$	268	$	100	$	—	$	—	$	2,324
Off-balance sheet	234		58		68		22		—		2		384
Total	$	1,021	$	1,227	$	336	$	122	$	—	$	2	$	2,708
Total Farm & Ranch loans:
On-balance sheet	$	2,945	$	2,149	$	910	$	345	$	10	$	6	$	6,365
Off-balance sheet	848		330		326		68		512		7		2,091
Total	$	3,793	$	2,479	$	1,236	$	413	$	522	$	13	$	8,456



	As of December 31, 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	$	2,344,821	$	794,478	$	635,768	$	269,337	$	13,023	$	9,030	$	4,066,457
Off-balance sheet	1,236,392		532,666		678,642		155,627		45,738		4,981		2,654,046
Total	$	3,581,213	$	1,327,144	$	1,314,410	$	424,964	$	58,761	$	14,011	$	6,720,503
Individually evaluated for impairment:
On-balance sheet	$	67,828	$	38,180	$	17,766	$	7,858	$	—	$	644	$	132,276
Off-balance sheet	8,904		2,239		2,782		806		—		76		14,807
Total	$	76,732	$	40,419	$	20,548	$	8,664	$	—	$	720	$	147,083
Total Farm & Ranch loans:
On-balance sheet	$	2,412,649	$	832,658	$	653,534	$	277,195	$	13,023	$	9,674	$	4,198,733
Off-balance sheet	1,245,296		534,905		681,424		156,433		45,738		5,057		2,668,853
Total	$	3,657,945	$	1,367,563	$	1,334,958	$	433,628	$	58,761	$	14,731	$	6,867,586
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,104	$	1,101	$	738	$	287	$	44	$	11	$	4,285
Off-balance sheet	546		305		231		48		562		5		1,697
Total	$	2,650	$	1,406	$	969	$	335	$	606	$	16	$	5,982
Individually evaluated for impairment:
On-balance sheet	$	1,207	$	1,006	$	172	$	126	$	—	$	—	$	2,511
Off-balance sheet	224		57		70		20		—		2		373
Total	$	1,431	$	1,063	$	242	$	146	$	—	$	2	$	2,884
Total Farm & Ranch loans:
On-balance sheet	$	3,311	$	2,107	$	910	$	413	$	44	$	11	$	6,796
Off-balance sheet	770		362		301		68		562		7		2,070
Total	$	4,081	$	2,469	$	1,211	$	481	$	606	$	18	$	8,866

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 March 31, 2018 and December 31, 2017:

Table 5.5



	As of March 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	18,940	$	4,629	$	8,090	$	2,909	$	—	$	637	$	35,205
Unpaid principal balance	18,902		4,620		8,074		2,904		—		635		35,135
With a specific allowance:
Recorded investment⁽¹⁾	48,367		41,809		15,910		6,128		—		74		112,288
Unpaid principal balance	48,290		41,731		15,884		6,118		—		74		112,097
Associated allowance	1,021		1,227		336		122		—		2		2,708
Total:
Recorded investment	67,307		46,438		24,000		9,037		—		711		147,493
Unpaid principal balance	67,192		46,351		23,958		9,022		—		709		147,232
Associated allowance	1,021		1,227		336		122		—		2		2,708

Recorded investment of loans on nonaccrual status⁽²⁾	$	28,211	$	24,870	$	5,840	$	5,391	$	—	$	—	$	64,312


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $109.9 million (75 percent) of impaired loans as of March 31, 2018, which resulted in a specific allowance of $2.3 million.


⁽²⁾	Includes $20.7 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.



	As of December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	14,417	$	3,272	$	11,171	$	1,953	$	—	$	644	$	31,457
Unpaid principal balance	14,418		3,273		11,172		1,953		—		644		31,460
With a specific allowance:
Recorded investment⁽¹⁾	62,309		37,143		9,376		6,710		—		76		115,614
Unpaid principal balance	62,314		37,146		9,376		6,711		—		76		115,623
Associated allowance	1,431		1,063		242		146		—		2		2,884
Total:
Recorded investment	76,726		40,415		20,547		8,663		—		720		147,071
Unpaid principal balance	76,732		40,419		20,548		8,664		—		720		147,083
Associated allowance	1,431		1,063		242		146		—		2		2,884

Recorded investment of loans on nonaccrual status⁽²⁾	$	27,630	$	25,701	$	5,333	$	4,929	$	—	$	—	$	63,593


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $113.2 million (77 percent) of impaired loans as of December 31, 2017, which resulted in a specific allowance of $2.7 million.


⁽²⁾	Includes $15.7 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 months ended March 31, 2018 and 2017:

Table 5.6



	March 31, 2018
	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	$	72,017	$	43,427	$	22,274	$	8,850	$	—	$	716	$	147,284
Income recognized on impaired loans	392		172		79		55		—		—		698



	March 31, 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	$	58,309	$	31,806	$	13,658	$	8,248	$	—	$	—	$	112,021
Income recognized on impaired loans	302		152		177		103		—		—		734

For the three months ended March 31, 2018 and 2017, there were no troubled debt restructurings ("TDRs"). As of March 31, 2018 and 2017, 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 months ended March 31, 2018 and 2017.

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 months ended March 31, 2018 and 2017 and the outstanding balances and carrying amounts of all such loans as of March 31, 2018 and December 31, 2017:

Table 5.7



	For the Three Months Ended
	March 31, 2018		March 31, 2017
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	311
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	721		—
Total unpaid principal balance at acquisition date	721		311
Contractually required payments receivable	730		311
Impairment recognized subsequent to acquisition	—		—
Recovery/release of allowance for all outstanding acquired defaulted loans	—		14

Number of defaulted loans purchased	4		3



	As of
	March 31, 2018		December 31, 2017
	(in thousands)
Outstanding balance	$	19,453	$	18,866
Carrying amount	18,097		17,691

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 March 31, 2018, 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 Three Months Ended
	March 31, 2018		December 31, 2017		March 31, 2018		March 31, 2017
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	43,658	$	47,881	$	16	$	246
Total on-balance sheet	$	43,658	$	47,881	$	16	$	246
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	3,902	$	563	$	—	$	—
Total off-balance sheet	$	3,902	$	563	$	—	$	—
Total	$	47,560	$	48,444	$	16	$	246


⁽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 $43.7 million of on-balance sheet loans reported as 90-day delinquencies as of March 31, 2018, none were loans subject to "removal-of-account" provisions. Of the $47.9 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2017, $0.3 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 March 31, 2018 and December 31, 2017:

Table 5.9



	As of March 31, 2018
	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	$	2,288,500	$	774,771	$	651,345	$	294,534	$	10,926	$	9,005	$	4,029,081
Special mention⁽²⁾	77,684		22,819		8,652		3,904		—		—		113,059
Substandard⁽³⁾	58,314		43,961		21,206		8,103		—		635		132,219
Total on-balance sheet	$	2,424,498	$	841,551	$	681,203	$	306,541	$	10,926	$	9,640	$	4,274,359
Off-Balance Sheet:
Acceptable	$	1,118,453	$	450,299	$	613,302	$	158,157	$	55,050	$	3,218	$	2,398,479
Special mention⁽²⁾	97,872		37,510		34,394		210		—		158		170,144
Substandard⁽³⁾	38,999		23,978		18,411		4,115		2,933		584		89,020
Total off-balance sheet	$	1,255,324	$	511,787	$	666,107	$	162,482	$	57,983	$	3,960	$	2,657,643
Total Ending Balance:
Acceptable	$	3,406,953	$	1,225,070	$	1,264,647	$	452,691	$	65,976	$	12,223	$	6,427,560
Special mention⁽²⁾	175,556		60,329		43,046		4,114		—		158		283,203
Substandard⁽³⁾	97,313		67,939		39,617		12,218		2,933		1,219		221,239
Total	$	3,679,822	$	1,353,338	$	1,347,310	$	469,023	$	68,909	$	13,600	$	6,932,002

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	24,385	$	9,140	$	6,020	$	3,477	$	—	$	636	$	43,658
Off-balance sheet	176		—		3,331		395		—		—		3,902
90 days or more past due	$	24,561	$	9,140	$	9,351	$	3,872	$	—	$	636	$	47,560


⁽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, 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	$	2,274,912	$	771,600	$	617,527	$	260,854	$	13,023	$	9,030	$	3,946,946
Special mention⁽²⁾	70,063		22,878		18,405		8,483		—		—		119,829
Substandard⁽³⁾	67,674		38,180		17,602		7,858		—		644		131,958
Total on-balance sheet	$	2,412,649	$	832,658	$	653,534	$	277,195	$	13,023	$	9,674	$	4,198,733
Off-Balance Sheet
Acceptable	$	1,132,196	$	478,573	$	634,633	$	150,906	$	42,723	$	4,294	$	2,443,325
Special mention⁽²⁾	76,778		26,134		31,451		1,647		—		169		136,179
Substandard⁽³⁾	36,322		30,198		15,340		3,880		3,015		594		89,349
Total off-balance sheet	$	1,245,296	$	534,905	$	681,424	$	156,433	$	45,738	$	5,057	$	2,668,853
Total Ending Balance:
Acceptable	$	3,407,108	$	1,250,173	$	1,252,160	$	411,760	$	55,746	$	13,324	$	6,390,271
Special mention⁽²⁾	146,841		49,012		49,856		10,130		—		169		256,008
Substandard⁽³⁾	103,996		68,378		32,942		11,738		3,015		1,238		221,307
Total	$	3,657,945	$	1,367,563	$	1,334,958	$	433,628	$	58,761	$	14,731	$	6,867,586

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	21,702	$	18,833	$	3,835	$	3,511	$	—	$	—	$	47,881
Off-balance sheet	151		—		—		412		—		—		563
90 days or more past due	$	21,853	$	18,833	$	3,835	$	3,923	$	—	$	—	$	48,444


⁽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 March 31, 2018 and December 31, 2017:

Table 5.10



	As of
	March 31, 2018		December 31, 2017
	(in thousands)
By commodity/collateral type:
Crops	$	3,679,822	$	3,657,945
Permanent plantings	1,353,338		1,367,563
Livestock	1,347,310		1,334,958
Part-time farm	469,023		433,628
Ag. Storage and Processing	68,909		58,761
Other	13,600		14,731
Total	$	6,932,002	$	6,867,586
By geographic region⁽¹⁾:
Northwest	$	799,823	$	740,991
Southwest	2,096,948		2,093,213
Mid-North	2,249,763		2,244,094
Mid-South	901,231		908,603
Northeast	300,731		296,264
Southeast	583,506		584,421
Total	$	6,932,002	$	6,867,586
By original loan-to-value ratio⁽²⁾:
0.00% to 40.00%	$	1,328,529	$	1,322,422
40.01% to 50.00%	1,717,932		1,733,671
50.01% to 60.00%	2,395,568		2,385,605
60.01% to 70.00%	1,195,017		1,150,914
70.01% to 80.00%	269,716		248,799
80.01% to 90.00%	25,240		26,175
Total	$	6,932,002	$	6,867,586
By size of borrower exposure⁽³⁾:
Less than $1,000,000	$	2,404,191	$	2,379,596
$1,000,000 to $4,999,999	2,663,554		2,627,617
$5,000,000 to $9,999,999	887,986		867,574
$10,000,000 to $24,999,999	571,315		584,896
$25,000,000 to $50,000,000	404,956		407,903
Total	$	6,932,002	$	6,867,586


⁽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.