FEDERAL AGRICULTURAL MORTGAGE CORPORATION |
(Exact name of registrant as specified in its charter) |
Federally chartered instrumentality of the United States | 52-1578738 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) | |
1999 K Street, N.W., 4th Floor, Washington, D.C. | 20006 | |
(Address of principal executive offices) | (Zip code) |
(202) 872-7700 |
(Registrant's telephone number, including area code) |
Large accelerated filer | o | Accelerated filer | x |
Non-accelerated filer | o Smaller reporting company | o | |
Emerging growth company | o | ||
PART I - Financial Information | ||
Item 1. | Financial Statements |
As of | |||||||
September 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Assets: | |||||||
Cash and cash equivalents | $ | 436,152 | $ | 302,022 | |||
Investment securities: | |||||||
Available-for-sale, at fair value | 2,224,002 | 2,215,405 | |||||
Held-to-maturity, at amortized cost | 45,032 | 45,032 | |||||
Total Investment Securities | 2,269,034 | 2,260,437 | |||||
Farmer Mac Guaranteed Securities: | |||||||
Available-for-sale, at fair value | 5,957,304 | 5,471,914 | |||||
Held-to-maturity, at amortized cost | 2,067,307 | 2,126,274 | |||||
Total Farmer Mac Guaranteed Securities | 8,024,611 | 7,598,188 | |||||
USDA Securities: | |||||||
Trading, at fair value | 10,237 | 13,515 | |||||
Held-to-maturity, at amortized cost | 2,143,874 | 2,117,850 | |||||
Total USDA Securities | 2,154,111 | 2,131,365 | |||||
Loans: | |||||||
Loans held for investment, at amortized cost | 3,884,636 | 3,873,755 | |||||
Loans held for investment in consolidated trusts, at amortized cost | 1,483,135 | 1,399,827 | |||||
Allowance for loan losses | (6,871 | ) | (6,796 | ) | |||
Total loans, net of allowance | 5,360,900 | 5,266,786 | |||||
Real estate owned, at lower of cost or fair value | 128 | 139 | |||||
Financial derivatives, at fair value | 8,007 | 7,093 | |||||
Interest receivable (includes $12,446 and $17,373, respectively, related to consolidated trusts) | 135,677 | 155,278 | |||||
Guarantee and commitment fees receivable | 40,178 | 39,895 | |||||
Deferred tax asset, net | — | 2,048 | |||||
Prepaid expenses and other assets | 45,236 | 29,023 | |||||
Total Assets | $ | 18,474,034 | $ | 17,792,274 | |||
Liabilities and Equity: | |||||||
Liabilities: | |||||||
Notes payable: | |||||||
Due within one year | $ | 7,378,927 | $ | 8,089,826 | |||
Due after one year | 8,419,424 | 7,432,790 | |||||
Total notes payable | 15,798,351 | 15,522,616 | |||||
Debt securities of consolidated trusts held by third parties | 1,486,733 | 1,404,945 | |||||
Financial derivatives, at fair value | 17,841 | 26,599 | |||||
Accrued interest payable (includes $10,507 and $14,631, respectively, related to consolidated trusts) | 87,435 | 75,402 | |||||
Guarantee and commitment obligation | 38,597 | 38,400 | |||||
Accounts payable and accrued expenses | 260,753 | 14,096 | |||||
Deferred tax liability, net | 4,586 | — | |||||
Reserve for losses | 2,147 | 2,070 | |||||
Total Liabilities | 17,696,443 | 17,084,128 | |||||
Commitments and Contingencies (Note 6) | |||||||
Equity: | |||||||
Preferred stock: | |||||||
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding | 58,333 | 58,333 | |||||
Series B, par value $25 per share, 3,000,000 shares authorized, issued and outstanding | 73,044 | 73,044 | |||||
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding | 73,382 | 73,382 | |||||
Common stock: | |||||||
Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding | 1,031 | 1,031 | |||||
Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding | 500 | 500 | |||||
Class C Non-Voting, $1 par value, no maximum authorization, 9,137,500 shares and 9,087,670 shares outstanding, respectively | 9,138 | 9,088 | |||||
Additional paid-in capital | 118,183 | 118,979 | |||||
Accumulated other comprehensive income, net of tax | 64,001 | 51,085 | |||||
Retained earnings | 379,979 | 322,704 | |||||
Total Equity | 777,591 | 708,146 | |||||
Total Liabilities and Equity | $ | 18,474,034 | $ | 17,792,274 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Interest income: | |||||||||||||||
Investments and cash equivalents | $ | 15,123 | $ | 9,223 | $ | 38,681 | $ | 24,834 | |||||||
Farmer Mac Guaranteed Securities and USDA Securities | 76,870 | 54,350 | 213,479 | 146,978 | |||||||||||
Loans | 50,622 | 40,924 | 145,671 | 117,349 | |||||||||||
Total interest income | 142,615 | 104,497 | 397,831 | 289,161 | |||||||||||
Total interest expense | 97,557 | 64,935 | 265,611 | 172,797 | |||||||||||
Net interest income | 45,058 | 39,562 | 132,220 | 116,364 | |||||||||||
Provision for loan losses | (99 | ) | (270 | ) | (92 | ) | (1,234 | ) | |||||||
Net interest income after provision for loan losses | 44,959 | 39,292 | 132,128 | 115,130 | |||||||||||
Non-interest income: | |||||||||||||||
Guarantee and commitment fees | 3,490 | 3,314 | 10,470 | 10,630 | |||||||||||
Gains/(losses) on financial derivatives and hedging activities | 628 | 661 | (688 | ) | 2,530 | ||||||||||
(Losses)/gains on trading securities | (3 | ) | — | 24 | (84 | ) | |||||||||
Gains on sale of available-for-sale investment securities | — | 89 | — | 89 | |||||||||||
(Losses)/gains on sale of real estate owned | (41 | ) | 32 | (7 | ) | 784 | |||||||||
Other income | 365 | 203 | 1,259 | 890 | |||||||||||
Non-interest income | 4,439 | 4,299 | 11,058 | 14,839 | |||||||||||
Non-interest expense: | |||||||||||||||
Compensation and employee benefits | 6,777 | 5,987 | 20,367 | 18,986 | |||||||||||
General and administrative | 4,350 | 3,890 | 13,878 | 11,611 | |||||||||||
Regulatory fees | 625 | 625 | 1,875 | 1,875 | |||||||||||
Real estate owned operating costs, net | — | — | 16 | 23 | |||||||||||
(Release of)/provision for reserve for losses | (102 | ) | 114 | 77 | 60 | ||||||||||
Non-interest expense | 11,650 | 10,616 | 36,213 | 32,555 | |||||||||||
Income before income taxes | 37,748 | 32,975 | 106,973 | 97,414 | |||||||||||
Income tax expense | 7,979 | 11,193 | 21,749 | 33,103 | |||||||||||
Net income | 29,769 | 21,782 | 85,224 | 64,311 | |||||||||||
Less: Net loss attributable to non-controlling interest | — | — | — | 165 | |||||||||||
Net income attributable to Farmer Mac | 29,769 | 21,782 | 85,224 | 64,476 | |||||||||||
Preferred stock dividends | (3,295 | ) | (3,295 | ) | (9,886 | ) | (9,886 | ) | |||||||
Net income attributable to common stockholders | $ | 26,474 | $ | 18,487 | $ | 75,338 | $ | 54,590 | |||||||
Earnings per common share and dividends: | |||||||||||||||
Basic earnings per common share | $ | 2.48 | $ | 1.74 | $ | 7.07 | $ | 5.16 | |||||||
Diluted earnings per common share | $ | 2.46 | $ | 1.71 | $ | 7.01 | $ | 5.06 | |||||||
Common stock dividends per common share | $ | 0.58 | $ | 0.36 | $ | 1.74 | $ | 1.08 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Net income | $ | 29,769 | $ | 21,782 | $ | 85,224 | $ | 64,311 | |||||||
Other comprehensive income before taxes: | |||||||||||||||
Net unrealized (losses)/gains on available-for-sale securities | (13,546 | ) | (886 | ) | 8,678 | 19,283 | |||||||||
Net changes in held-to-maturity securities | (1,544 | ) | (1,879 | ) | (4,400 | ) | (7,491 | ) | |||||||
Net unrealized gains/(losses) on cash flow hedges | 3,181 | 253 | 12,038 | (966 | ) | ||||||||||
Other comprehensive (loss)/income before tax | (11,909 | ) | (2,512 | ) | 16,316 | 10,826 | |||||||||
Income tax expense related to other comprehensive (loss)/income | 2,500 | 879 | (3,427 | ) | (3,789 | ) | |||||||||
Other comprehensive (loss)/income net of tax | (9,409 | ) | (1,633 | ) | 12,889 | 7,037 | |||||||||
Comprehensive income | 20,360 | 20,149 | 98,113 | 71,348 | |||||||||||
Less: comprehensive loss attributable to non-controlling interest | — | — | — | 165 | |||||||||||
Comprehensive income attributable to Farmer Mac | $ | 20,360 | $ | 20,149 | $ | 98,113 | $ | 71,513 |
Accumulated | |||||||||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-In | Comprehensive | Retained | Non-controlling | Total | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Income/(Loss) | Earnings | Interest | Equity | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2016 | 8,400 | $ | 204,759 | 10,539 | $ | 10,539 | $ | 118,655 | $ | 33,758 | $ | 275,714 | $ | 222 | $ | 643,647 | |||||||||||||||||
Net income/(loss): | |||||||||||||||||||||||||||||||||
Attributable to Farmer Mac | — | — | — | — | — | — | 64,476 | — | 64,476 | ||||||||||||||||||||||||
Attributable to non-controlling interest | — | — | — | — | — | — | — | (165 | ) | (165 | ) | ||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 7,037 | — | — | 7,037 | ||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | — | (9,886 | ) | — | (9,886 | ) | ||||||||||||||||||||||
Common stock | — | — | — | — | — | — | (11,435 | ) | — | (11,435 | ) | ||||||||||||||||||||||
Issuance of Class C Common Stock | — | — | 74 | 74 | 228 | — | — | — | 302 | ||||||||||||||||||||||||
Stock-based compensation cost | — | — | — | — | 2,597 | — | — | — | 2,597 | ||||||||||||||||||||||||
Other stock-based award activity | — | — | — | — | (2,350 | ) | — | — | — | (2,350 | ) | ||||||||||||||||||||||
Redemption of interest in subsidiary | — | — | — | — | — | — | — | (57 | ) | (57 | ) | ||||||||||||||||||||||
Balance as of September 30, 2017 | 8,400 | $ | 204,759 | 10,613 | $ | 10,613 | $ | 119,130 | $ | 40,795 | $ | 318,869 | $ | — | $ | 694,166 | |||||||||||||||||
Balance as of December 31, 2017 | 8,400 | $ | 204,759 | 10,619 | $ | 10,619 | $ | 118,979 | $ | 51,085 | $ | 322,704 | $ | — | $ | 708,146 | |||||||||||||||||
Cumulative effect from change in hedge accounting | — | — | — | — | — | 27 | 471 | — | 498 | ||||||||||||||||||||||||
Balance as of January 1, 2018 | 8,400 | $ | 204,759 | 10,619 | $ | 10,619 | $ | 118,979 | $ | 51,112 | $ | 323,175 | $ | — | $ | 708,644 | |||||||||||||||||
Net income: | |||||||||||||||||||||||||||||||||
Attributable to Farmer Mac | — | — | — | — | — | — | 85,224 | — | 85,224 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 12,889 | — | — | 12,889 | ||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | — | (9,886 | ) | — | (9,886 | ) | ||||||||||||||||||||||
Common stock | — | — | — | — | — | — | (18,534 | ) | — | (18,534 | ) | ||||||||||||||||||||||
Issuance of Class C Common Stock | — | — | 50 | 50 | 7 | — | — | — | 57 | ||||||||||||||||||||||||
Stock-based compensation cost | — | — | — | — | 1,882 | — | — | — | 1,882 | ||||||||||||||||||||||||
Other stock-based award activity | — | — | — | — | (2,685 | ) | — | — | — | (2,685 | ) | ||||||||||||||||||||||
Balance as of September 30, 2018 | 8,400 | $ | 204,759 | 10,669 | $ | 10,669 | $ | 118,183 | $ | 64,001 | $ | 379,979 | $ | — | $ | 777,591 |
For the Nine Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 85,224 | $ | 64,311 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities | 713 | 1,701 | |||||
Amortization of debt premiums, discounts and issuance costs | 21,744 | 17,078 | |||||
Net change in fair value of trading securities, hedged assets, and financial derivatives | 42,054 | (12,232 | ) | ||||
Losses/(gains) on sale of real estate owned | 7 | (784 | ) | ||||
Total provision for losses | 169 | 1,294 | |||||
Excess tax benefits related to stock-based awards | 1,105 | 1,170 | |||||
Deferred income taxes | 1,750 | 1,910 | |||||
Other | — | 11 | |||||
Stock-based compensation expense | 1,882 | 2,597 | |||||
Proceeds from repayment of loans purchased as held for sale | 76,259 | 54,919 | |||||
Net change in: | |||||||
Interest receivable | 18,537 | 12,678 | |||||
Guarantee and commitment fees receivable | (86 | ) | 226 | ||||
Other assets | (7,268 | ) | (109 | ) | |||
Accrued interest payable | 12,033 | 12,104 | |||||
Other liabilities | (1,898 | ) | 435 | ||||
Net cash provided by operating activities | 252,225 | 157,309 | |||||
Cash flows from investing activities: | |||||||
Purchases of available-for-sale investment securities | (833,650 | ) | (614,423 | ) | |||
Purchases of Farmer Mac Guaranteed Securities and USDA Securities | (2,544,812 | ) | (2,580,229 | ) | |||
Purchases of loans held for investment | (684,486 | ) | (1,047,001 | ) | |||
Purchases of defaulted loans | (7,756 | ) | (3,458 | ) | |||
Proceeds from repayment of available-for-sale investment securities | 814,712 | 895,497 | |||||
Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities | 2,201,723 | 787,743 | |||||
Proceeds from repayment of loans purchased as held for investment | 508,969 | 368,826 | |||||
Proceeds from sale of available-for-sale investment securities | — | 5,089 | |||||
Proceeds from sale of Farmer Mac Guaranteed Securities | 305,391 | 404,246 | |||||
Proceeds from sale of real estate owned | 116 | 6,464 | |||||
Net cash used by investing activities | (239,793 | ) | (1,777,246 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of discount notes | 30,946,426 | 40,262,122 | |||||
Proceeds from issuance of medium-term notes | 6,109,613 | 7,160,298 | |||||
Payments to redeem discount notes | (31,530,896 | ) | (42,174,697 | ) | |||
Payments to redeem medium-term notes | (5,254,430 | ) | (3,416,300 | ) | |||
Payments to third parties on debt securities of consolidated trusts | (117,966 | ) | (86,582 | ) | |||
Proceeds from common stock issuance | 7 | 235 | |||||
Tax payments related to share-based awards | (2,635 | ) | (2,283 | ) | |||
Dividends paid on common and preferred stock | (28,421 | ) | (21,321 | ) | |||
Net cash provided by financing activities | 121,698 | 1,721,472 | |||||
Net increase in cash and cash equivalents | 134,130 | 101,535 | |||||
Cash and cash equivalents at beginning of period | 302,022 | 265,229 | |||||
Cash and cash equivalents at end of period | $ | 436,152 | $ | 366,764 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Consolidation of Variable Interest Entities | |||||||||||||||||||||||
As of September 30, 2018 | |||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
On-Balance Sheet: | |||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||
Loans held for investment in consolidated trusts, at amortized cost | $ | 1,483,135 | $ | — | $ | — | $ | — | $ | — | $ | 1,483,135 | |||||||||||
Debt securities of consolidated trusts held by third parties (1) | 1,486,733 | — | — | — | — | 1,486,733 | |||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||
Carrying value (2) | — | 28,117 | — | — | — | 28,117 | |||||||||||||||||
Maximum exposure to loss (3) | — | 27,861 | — | — | — | 27,861 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Carrying value (4) | — | — | — | — | 924,099 | 924,099 | |||||||||||||||||
Maximum exposure to loss (3) (4) | — | — | — | — | 924,494 | 924,494 | |||||||||||||||||
Off-Balance Sheet: | |||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||
Maximum exposure to loss (3) (5) | 287,594 | 346,689 | — | — | — | 634,283 |
(1) | Includes borrower remittances of $3.6 million. The borrower remittances had not been passed through to third party investors as of September 30, 2018. |
(2) | Includes $0.3 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. |
(3) | Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. |
(4) | Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities. |
(5) | The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party. |
Consolidation of Variable Interest Entities | |||||||||||||||||||||||
As of December 31, 2017 | |||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
On-Balance Sheet: | |||||||||||||||||||||||
Consolidated VIEs: | |||||||||||||||||||||||
Loans held for investment in consolidated trusts, at amortized cost | $ | 1,399,827 | $ | — | $ | — | $ | — | $ | — | $ | 1,399,827 | |||||||||||
Debt securities of consolidated trusts held by third parties (1) | 1,404,945 | — | — | — | — | 1,404,945 | |||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||
Carrying value (2) | — | 30,300 | — | — | — | 30,300 | |||||||||||||||||
Maximum exposure to loss (3) | — | 29,980 | — | — | — | 29,980 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||||
Carrying value (4) | — | — | — | — | 783,964 | 783,964 | |||||||||||||||||
Maximum exposure to loss (3) (4) | — | — | — | — | 783,916 | 783,916 | |||||||||||||||||
Off-Balance Sheet: | |||||||||||||||||||||||
Unconsolidated VIEs: | |||||||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||
Maximum exposure to loss (3) (5) | 333,511 | 254,217 | — | — | — | 587,728 |
(1) | Includes borrower remittances of $5.1 million, which have not been passed through to third party investors as of December 31, 2017. |
(2) | Includes $0.3 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. |
(3) | Farmer Mac uses unpaid principal balance and the outstanding face amount of investment securities to represent maximum exposure to loss. |
(4) | Includes auction-rate certificates, asset-backed securities, and GSE-guaranteed mortgage-backed securities. |
(5) | The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party. |
(a) | Statements of Cash Flows |
For the Nine Months Ended | |||||
September 30, 2018 | September 30, 2017 | ||||
(in thousands) | |||||
Non-cash activity: | |||||
Real estate owned acquired through loan liquidation | 128 | 5,261 | |||
Loans acquired and securitized as Farmer Mac Guaranteed Securities | 305,391 | 404,246 | |||
Consolidation of Farm & Ranch Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties | 199,764 | 277,307 | |||
Purchases of securities - traded not yet settled | 248,600 | 9,987 |
(b) | Earnings Per Common Share |
For the Three Months Ended | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||
Net Income | Weighted-Average Shares | $ per Share | Net Income | Weighted-Average Shares | $ per Share | ||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Basic EPS | |||||||||||||||||||||
Net income attributable to common stockholders | $ | 26,474 | 10,668 | $ | 2.48 | $ | 18,487 | 10,605 | $ | 1.74 | |||||||||||
Effect of dilutive securities(1) | |||||||||||||||||||||
Stock options, SARs and restricted stock | — | 76 | (0.02 | ) | — | 210 | (0.03 | ) | |||||||||||||
Diluted EPS | $ | 26,474 | 10,744 | $ | 2.46 | $ | 18,487 | 10,815 | $ | 1.71 |
(1) | For the three months ended September 30, 2018, 10,122 SARs were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive, compared to 24,657 stock options and SARs for the three months ended September 30, 2017. For the three months ended September 30, 2018 and 2017, contingent shares of non-vested restricted stock of 13,138 and 32,892, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met. |
For the Nine Months Ended | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||
Net Income | Weighted-Average Shares | $ per Share | Net Income | Weighted-Average Shares | $ per Share | ||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Basic EPS | |||||||||||||||||||||
Net income attributable to common stockholders | $ | 75,338 | 10,650 | $ | 7.07 | $ | 54,590 | 10,586 | $ | 5.16 | |||||||||||
Effect of dilutive securities(1) | |||||||||||||||||||||
Stock options, SARs and restricted stock | — | 93 | (0.06 | ) | — | 208 | (0.10 | ) | |||||||||||||
Diluted EPS | $ | 75,338 | 10,743 | $ | 7.01 | $ | 54,590 | 10,794 | $ | 5.06 |
(1) | For the nine months ended September 30, 2018, 15,437 SARs were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive, compared to 33,440 stock options and SARs for the nine months ended September 30, 2017. For the nine months ended September 30, 2018 and 2017, contingent shares of non-vested restricted stock of 13,138 and 32,892, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met. |
(c) | Comprehensive Income |
As of September 30, 2018 | As of September 30, 2017 | ||||||||||||||||||||||||||||||
Available-for-Sale Securities | Held-to-Maturity Securities | Cash Flow Hedges | Total | Available-for-Sale Securities | Held-to-Maturity Securities | Cash Flow Hedges | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | 15,882 | $ | 45,979 | $ | 11,549 | $ | 73,410 | $ | (1,276 | ) | $ | 42,104 | $ | 1,600 | $ | 42,428 | ||||||||||||||
Other comprehensive (loss)/income before reclassifications | (9,947 | ) | — | 2,662 | (7,285 | ) | 2,298 | — | (97 | ) | 2,201 | ||||||||||||||||||||
Amounts reclassified from AOCI | (755 | ) | (1,220 | ) | (149 | ) | (2,124 | ) | (2,875 | ) | (1,221 | ) | 262 | (3,834 | ) | ||||||||||||||||
Net comprehensive (loss)/income | (10,702 | ) | (1,220 | ) | 2,513 | (9,409 | ) | (577 | ) | (1,221 | ) | 165 | (1,633 | ) | |||||||||||||||||
Ending Balance | $ | 5,180 | $ | 44,759 | $ | 14,062 | $ | 64,001 | $ | (1,853 | ) | $ | 40,883 | $ | 1,765 | $ | 40,795 | ||||||||||||||
For the Nine Months Ended: | |||||||||||||||||||||||||||||||
Beginning Balance | $ | (1,676 | ) | $ | 48,236 | $ | 4,525 | $ | 51,085 | $ | (14,387 | ) | $ | 45,752 | $ | 2,393 | $ | 33,758 | |||||||||||||
Cumulative effect from change in hedge accounting | — | — | 27 | 27 | — | — | — | — | |||||||||||||||||||||||
Adjusted Beginning Balance | (1,676 | ) | 48,236 | 4,552 | 51,112 | (14,387 | ) | 45,752 | 2,393 | 33,758 | |||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 10,450 | — | 9,493 | 19,943 | 20,711 | — | (1,522 | ) | 19,189 | ||||||||||||||||||||||
Amounts reclassified from AOCI | (3,594 | ) | (3,477 | ) | 17 | (7,054 | ) | (8,177 | ) | (4,869 | ) | 894 | (12,152 | ) | |||||||||||||||||
Net comprehensive income/(loss) | 6,856 | (3,477 | ) | 9,510 | 12,889 | 12,534 | (4,869 | ) | (628 | ) | 7,037 | ||||||||||||||||||||
Ending Balance | $ | 5,180 | $ | 44,759 | $ | 14,062 | $ | 64,001 | $ | (1,853 | ) | $ | 40,883 | $ | 1,765 | $ | 40,795 |
For the Three Months Ended | |||||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||
Before Tax | Provision (Benefit) | After Tax | Before Tax | Provision (Benefit) | After Tax | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Available-for-sale-securities: | |||||||||||||||||||||||
Unrealized holding (losses)/gains on available-for-sale-securities | $ | (12,590 | ) | $ | (2,643 | ) | $ | (9,947 | ) | $ | 3,536 | $ | 1,238 | $ | 2,298 | ||||||||
Less reclassification adjustments included in: | |||||||||||||||||||||||
Net Interest Income(1) | (946 | ) | (199 | ) | (747 | ) | — | — | — | ||||||||||||||
Gains/(losses) on financial derivatives and hedging activities(1) | — | — | — | (4,326 | ) | (1,514 | ) | (2,812 | ) | ||||||||||||||
Gains on sale of available-for-sale investment securities(2) | — | — | — | (89 | ) | (31 | ) | (58 | ) | ||||||||||||||
Other income(2) | (10 | ) | (2 | ) | (8 | ) | (7 | ) | (2 | ) | (5 | ) | |||||||||||
Total | $ | (13,546 | ) | $ | (2,844 | ) | $ | (10,702 | ) | $ | (886 | ) | $ | (309 | ) | $ | (577 | ) | |||||
Held-to-maturity securities: | |||||||||||||||||||||||
Less reclassification adjustments included in: | |||||||||||||||||||||||
Net interest income(3) | (1,544 | ) | (324 | ) | (1,220 | ) | (1,879 | ) | (658 | ) | (1,221 | ) | |||||||||||
Total | $ | (1,544 | ) | $ | (324 | ) | $ | (1,220 | ) | $ | (1,879 | ) | $ | (658 | ) | $ | (1,221 | ) | |||||
Cash flow hedges | |||||||||||||||||||||||
Unrealized gains/(losses) on cash flow hedges | $ | 3,370 | $ | 708 | $ | 2,662 | $ | (150 | ) | $ | (53 | ) | $ | (97 | ) | ||||||||
Less reclassification adjustments included in: | |||||||||||||||||||||||
Net interest income(4) | (189 | ) | (40 | ) | (149 | ) | 403 | 141 | 262 | ||||||||||||||
Total | $ | 3,181 | $ | 668 | $ | 2,513 | $ | 253 | $ | 88 | $ | 165 | |||||||||||
Other comprehensive (loss)/income | $ | (11,909 | ) | $ | (2,500 | ) | $ | (9,409 | ) | $ | (2,512 | ) | $ | (879 | ) | $ | (1,633 | ) |
(1) | Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. |
(2) | Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. |
(3) | Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. |
(4) | Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. |
For the Nine Months Ended | |||||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||
Before Tax | Provision (Benefit) | After Tax | Before Tax | Provision (Benefit) | After Tax | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Available-for-sale-securities: | |||||||||||||||||||||||
Unrealized holding gains on available-for-sale-securities | $ | 13,227 | $ | 2,777 | $ | 10,450 | $ | 31,863 | $ | 11,152 | $ | 20,711 | |||||||||||
Less reclassification adjustments included in: | |||||||||||||||||||||||
Net Interest Income(1) | (4,523 | ) | (949 | ) | (3,574 | ) | — | — | — | ||||||||||||||
Gains/(losses) on financial derivatives and hedging activities(1) | — | — | — | (12,470 | ) | (4,365 | ) | (8,105 | ) | ||||||||||||||
Gains on sale of available-for-sale investment securities(2) | — | — | — | (89 | ) | (31 | ) | (58 | ) | ||||||||||||||
Other income(2) | (26 | ) | (6 | ) | (20 | ) | (21 | ) | (7 | ) | (14 | ) | |||||||||||
Total | $ | 8,678 | $ | 1,822 | $ | 6,856 | $ | 19,283 | $ | 6,749 | $ | 12,534 | |||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||
Less reclassification adjustments included in: | |||||||||||||||||||||||
Net interest income(3) | (4,400 | ) | (923 | ) | (3,477 | ) | (7,491 | ) | (2,622 | ) | (4,869 | ) | |||||||||||
Total | $ | (4,400 | ) | $ | (923 | ) | $ | (3,477 | ) | $ | (7,491 | ) | $ | (2,622 | ) | $ | (4,869 | ) | |||||
Cash flow hedges | |||||||||||||||||||||||
Unrealized gains/(losses) on cash flow hedges | $ | 12,017 | $ | 2,524 | $ | 9,493 | $ | (2,342 | ) | $ | (820 | ) | $ | (1,522 | ) | ||||||||
Less reclassification adjustments included in: | |||||||||||||||||||||||
Net interest income(4) | 21 | 4 | 17 | 1,376 | 482 | 894 | |||||||||||||||||
Total | $ | 12,038 | $ | 2,528 | $ | 9,510 | $ | (966 | ) | $ | (338 | ) | $ | (628 | ) | ||||||||
Other comprehensive income | $ | 16,316 | $ | 3,427 | $ | 12,889 | $ | 10,826 | $ | 3,789 | $ | 7,037 |
(1) | Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. |
(2) | Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. |
(3) | Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. |
(4) | Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. |
(e) | Reclassifications |
2. | INVESTMENT SECURITIES |
As of September 30, 2018 | |||||||||||||||||||||||
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 | $ | — | $ | (739 | ) | $ | 18,961 | ||||||||||
Floating rate asset-backed securities | 30,266 | (143 | ) | 30,123 | 18 | (85 | ) | 30,056 | |||||||||||||||
Floating rate Government/GSE guaranteed mortgage-backed securities | 1,336,138 | 1,616 | 1,337,754 | 1,196 | (2,476 | ) | 1,336,474 | ||||||||||||||||
Fixed rate GSE guaranteed mortgage-backed securities(1) | 400 | — | 400 | 22 | — | 422 | |||||||||||||||||
Fixed rate U.S. Treasuries | 843,362 | (4,031 | ) | 839,331 | — | (1,242 | ) | 838,089 | |||||||||||||||
Total available-for-sale | 2,229,866 | (2,558 | ) | 2,227,308 | 1,236 | (4,542 | ) | 2,224,002 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||
Fixed rate Government/GSE guaranteed mortgage-backed securities | 45,032 | — | 45,032 | 843 | — | 45,875 | |||||||||||||||||
Total investment securities | $ | 2,274,898 | $ | (2,558 | ) | $ | 2,272,340 | $ | 2,079 | $ | (4,542 | ) | $ | 2,269,877 |
(1) | During second quarter 2018, the remaining premium of an interest-only security was fully amortized because the issuer called the security upon full prepayment of the underlying mortgage loan that collateralized the security. |
As of December 31, 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 | $ | — | $ | (886 | ) | $ | 18,814 | ||||||||||
Floating rate asset-backed securities | 34,462 | (154 | ) | 34,308 | 22 | (120 | ) | 34,210 | |||||||||||||||
Floating rate Government/GSE guaranteed mortgage-backed securities | 1,289,123 | 2,217 | 1,291,340 | 2,215 | (3,368 | ) | 1,290,187 | ||||||||||||||||
Fixed rate GSE guaranteed mortgage-backed securities(1) | 451 | 2,138 | 2,589 | 2,230 | — | 4,819 | |||||||||||||||||
Fixed rate senior agency debt | 100,000 | — | 100,000 | — | (49 | ) | 99,951 | ||||||||||||||||
Fixed rate U.S. Treasuries | 770,852 | (1,836 | ) | 769,016 | — | (1,592 | ) | 767,424 | |||||||||||||||
Total available-for-sale | 2,214,588 | 2,365 | 2,216,953 | 4,467 | (6,015 | ) | 2,215,405 | ||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||
Fixed rate Government/GSE guaranteed mortgage-backed securities | 45,032 | — | 45,032 | 532 | — | 45,564 | |||||||||||||||||
Total investment securities | $ | 2,259,620 | $ | 2,365 | $ | 2,261,985 | $ | 4,999 | $ | (6,015 | ) | $ | 2,260,969 |
(1) | Fair value includes $4.3 million of an interest-only security with a notional amount of $143.7 million. |
As of September 30, 2018 | |||||||||||||||
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 | $ | — | $ | — | $ | 18,961 | $ | (739 | ) | ||||||
Floating rate asset-backed securities | — | — | 20,080 | (85 | ) | ||||||||||
Floating rate Government/GSE guaranteed mortgage-backed securities | 508,554 | (1,285 | ) | 179,870 | (1,191 | ) | |||||||||
Fixed rate U.S. Treasuries | 703,306 | (1,164 | ) | 134,782 | (78 | ) | |||||||||
Total | $ | 1,211,860 | $ | (2,449 | ) | $ | 353,693 | $ | (2,093 | ) |
As of December 31, 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 | $ | — | $ | — | $ | 18,814 | $ | (886 | ) | ||||||
Floating rate asset-backed securities | — | — | 23,145 | (120 | ) | ||||||||||
Floating rate Government/GSE guaranteed mortgage-backed securities | 292,522 | (2,337 | ) | 221,641 | (1,031 | ) | |||||||||
Fixed rate U.S. Treasuries | 742,442 | (1,572 | ) | 24,983 | (20 | ) | |||||||||
Fixed rate senior agency debt | — | — | 99,951 | (49 | ) | ||||||||||
Total | $ | 1,034,964 | $ | (3,909 | ) | $ | 388,534 | $ | (2,106 | ) |
As of September 30, 2018 | |||||||||
Available-for-Sale Securities | |||||||||
Amortized Cost | Fair Value | Weighted- Average Yield | |||||||
(dollars in thousands) | |||||||||
Due within one year | $ | 807,395 | $ | 806,214 | 1.24% | ||||
Due after one year through five years | 277,030 | 277,382 | 2.52% | ||||||
Due after five years through ten years | 508,970 | 508,629 | 2.46% | ||||||
Due after ten years | 633,913 | 631,777 | 2.65% | ||||||
Total | $ | 2,227,308 | $ | 2,224,002 | 2.08% |
3. | FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES |
As of September 30, 2018 | |||||||||||||||||||||||
Unpaid Principal Balance | Unamortized Premium/(Discount) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||
AgVantage | $ | 2,039,471 | $ | (282 | ) | $ | 2,039,189 | $ | 441 | $ | (22,500 | ) | $ | 2,017,130 | |||||||||
Farmer Mac Guaranteed USDA Securities | 27,862 | 256 | 28,118 | 134 | — | 28,252 | |||||||||||||||||
Total Farmer Mac Guaranteed Securities | 2,067,333 | (26 | ) | 2,067,307 | 575 | (22,500 | ) | 2,045,382 | |||||||||||||||
USDA Securities | 2,086,842 | 57,032 | 2,143,874 | 1 | (86,529 | ) | 2,057,346 | ||||||||||||||||
Total held-to-maturity | $ | 4,154,175 | $ | 57,006 | $ | 4,211,181 | $ | 576 | $ | (109,029 | ) | $ | 4,102,728 | ||||||||||
Available-for-sale: | |||||||||||||||||||||||
AgVantage | $ | 6,014,252 | $ | (195 | ) | $ | 6,014,057 | $ | 12,112 | $ | (68,865 | ) | $ | 5,957,304 | |||||||||
Trading: | |||||||||||||||||||||||
USDA Securities | $ | 9,857 | $ | 728 | $ | 10,585 | $ | 19 | $ | (367 | ) | $ | 10,237 |
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 September 30, 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 | $ | 1,064,053 | $ | (11,558 | ) | $ | 814,058 | $ | (10,942 | ) | |||||
USDA Securities | 38,879 | (415 | ) | 2,018,466 | (86,114 | ) | |||||||||
Total held-to-maturity | $ | 1,102,932 | $ | (11,973 | ) | $ | 2,832,524 | $ | (97,056 | ) | |||||
Available-for-sale: | |||||||||||||||
AgVantage | $ | 2,367,859 | $ | (31,550 | ) | $ | 1,559,584 | $ | (37,315 | ) |
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 | ) |
As of September 30, 2018 | ||||||||||
Available-for-Sale Securities | ||||||||||
Amortized Cost | Fair Value | Weighted- Average Yield | ||||||||
(dollars in thousands) | ||||||||||
Due within one year | $ | 1,019,282 | $ | 1,018,343 | 2.58 | % | ||||
Due after one year through five years | 2,664,743 | 2,652,381 | 2.95 | % | ||||||
Due after five years through ten years | 777,186 | 751,727 | 3.14 | % | ||||||
Due after ten years | 1,552,846 | 1,534,853 | 2.64 | % | ||||||
Total | $ | 6,014,057 | $ | 5,957,304 | 2.84 | % |
As of September 30, 2018 | ||||||||||
Held-to-Maturity Securities | ||||||||||
Amortized Cost | Fair Value | Weighted- Average Yield | ||||||||
(dollars in thousands) | ||||||||||
Due within one year | $ | 750,013 | $ | 745,474 | 2.10 | % | ||||
Due after one year through five years | 1,359,953 | 1,340,138 | 2.99 | % | ||||||
Due after five years through ten years | 218,630 | 209,806 | 3.36 | % | ||||||
Due after ten years | 1,882,585 | 1,807,310 | 3.54 | % | ||||||
Total | $ | 4,211,181 | $ | 4,102,728 | 3.09 | % |
4. | FINANCIAL DERIVATIVES |
As of September 30, 2018 | ||||||||||||||||||||
Fair Value | Weighted- Average Pay Rate | Weighted- Average Receive Rate | Weighted- Average Forward Price | Weighted- Average Remaining Term (in years) | ||||||||||||||||
Notional Amount | Asset | (Liability) | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
Pay fixed non-callable | $ | 2,801,164 | $ | 860 | $ | (4,493 | ) | 2.04% | 2.13% | 10.39 | ||||||||||
Receive fixed non-callable | 2,131,200 | 682 | (4,796 | ) | 2.20% | 1.78% | 1.74 | |||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
Pay fixed non-callable | 389,500 | 4,429 | (276 | ) | 2.36% | 2.57% | 6.10 | |||||||||||||
No hedge designation: | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
Pay fixed non-callable | 317,586 | 1,966 | (8,065 | ) | 3.69% | 2.33% | 6.48 | |||||||||||||
Receive fixed non-callable | 2,521,965 | — | — | 2.16% | 1.99% | 0.84 | ||||||||||||||
Basis swaps | 1,529,000 | 233 | (206 | ) | 2.01% | 2.07% | 1.41 | |||||||||||||
Treasury futures | 12,700 | — | (11 | ) | 118.70 | |||||||||||||||
Credit valuation adjustment | (163 | ) | 6 | |||||||||||||||||
Total financial derivatives | $ | 9,703,115 | $ | 8,007 | $ | (17,841 | ) | |||||||||||||
Collateral pledged | — | 46,841 | ||||||||||||||||||
Net amount | $ | 8,007 | $ | 29,000 |
As of December 31, 2017 | ||||||||||||||||||||
Fair Value | Weighted- Average Pay Rate | Weighted- Average Receive Rate | Weighted- Average Forward Price | Weighted- Average Remaining Term (in years) | ||||||||||||||||
Notional Amount | Asset | (Liability) | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
Pay fixed non-callable | $ | 2,086,347 | $ | 5,240 | $ | (5,990 | ) | 1.88% | 1.40% | 5.46 | ||||||||||
Receive fixed non-callable | 1,559,700 | 110 | (4,033 | ) | 1.38% | 1.45% | 1.68 | |||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
Pay fixed non-callable | 365,500 | 1,402 | (138 | ) | 2.16% | 1.74% | 5.84 | |||||||||||||
No hedge designation: | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
Pay fixed non-callable | 345,333 | 339 | (16,352 | ) | 3.79% | 1.40% | 6.68 | |||||||||||||
Receive fixed non-callable | 3,409,916 | — | — | 1.25% | 1.24% | 0.92 | ||||||||||||||
Basis swaps | 1,053,500 | 18 | (106 | ) | 1.33% | 1.42% | 0.91 | |||||||||||||
Treasury futures | 40,000 | — | (36 | ) | 123.96 | |||||||||||||||
Credit valuation adjustment | (16 | ) | 56 | |||||||||||||||||
Total financial derivatives | $ | 8,860,296 | $ | 7,093 | $ | (26,599 | ) | |||||||||||||
Collateral pledged | — | 24,926 | ||||||||||||||||||
Net amount | $ | 7,093 | $ | (1,673 | ) |
For the Three Months Ended September 30, 2018 | |||||||||||||||||||
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives | |||||||||||||||||||
Net Interest Income | Non-Interest Income | Total | |||||||||||||||||
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Interest Income Loans | Total Interest Expense | Gains/(losses) on financial derivatives and hedging activities | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Total amounts presented in the consolidated statement of operations: | $ | 76,870 | $ | 50,622 | $ | (97,557 | ) | $ | 628 | $ | 30,563 | ||||||||
Income/(expense) related to interest settlements on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives | 1,272 | (98 | ) | (2,702 | ) | — | (1,528 | ) | |||||||||||
Recognized on hedged items | 16,769 | 1,660 | (9,821 | ) | — | 8,608 | |||||||||||||
Discount amortization recognized on hedged items | — | — | (177 | ) | — | (177 | ) | ||||||||||||
Income/(expense) related to interest settlements on fair value hedging relationships | $ | 18,041 | $ | 1,562 | $ | (12,700 | ) | $ | — | $ | 6,903 | ||||||||
(Losses)/gains on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives | 13,420 | 3,909 | (1,188 | ) | — | 16,141 | |||||||||||||
Recognized on hedged items | (13,432 | ) | (4,062 | ) | 2,404 | — | (15,090 | ) | |||||||||||
(Losses)/gains on fair value hedging relationships | $ | (12 | ) | $ | (153 | ) | $ | 1,216 | $ | — | $ | 1,051 | |||||||
Expense related to interest settlements on cash flow hedging relationships: | |||||||||||||||||||
Interest settlements reclassified from AOCI into net income on derivatives | — | — | 189 | — | 189 | ||||||||||||||
Recognized on hedged items | — | — | (2,501 | ) | — | (2,501 | ) | ||||||||||||
Discount amortization recognized on hedged items | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Expense recognized on cash flow hedges | $ | — | $ | — | $ | (2,314 | ) | $ | — | $ | (2,314 | ) | |||||||
Gains on financial derivatives not designated in hedge relationships: | |||||||||||||||||||
Gains on interest rate swaps | — | — | — | 3,267 | 3,267 | ||||||||||||||
Interest expense on interest rate swaps | — | — | — | (3,048 | ) | (3,048 | ) | ||||||||||||
Treasury futures | — | — | — | 409 | 409 | ||||||||||||||
Gains on financial derivatives not designated in hedge relationships | $ | — | $ | — | $ | — | $ | 628 | $ | 628 |
For the Three Months Ended September 30, 2017 | |||||||||||||||||||
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives | |||||||||||||||||||
Net Interest Income | Non-Interest Income | Total | |||||||||||||||||
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Interest Income Loans | Total Interest Expense | Gains/(losses) on financial derivatives and hedging activities | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Total amounts presented in the consolidated statement of operations | $ | 54,350 | $ | 40,924 | $ | (64,935 | ) | $ | 661 | $ | 31,000 | ||||||||
Income/(expense) related to interest settlements on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives | (2,267 | ) | (342 | ) | 717 | — | (1,892 | ) | |||||||||||
Recognized on hedged items | 11,986 | 947 | (5,069 | ) | — | 7,864 | |||||||||||||
Discount amortization recognized on hedged items | — | — | (121 | ) | — | (121 | ) | ||||||||||||
Income/(expense) related to interest settlements on fair value hedging relationships | $ | 9,719 | $ | 605 | $ | (4,473 | ) | $ | — | $ | 5,851 | ||||||||
Gains on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives(1) | — | — | — | 1,576 | 1,576 | ||||||||||||||
Recognized on hedged items | — | — | — | 166 | 166 | ||||||||||||||
Gains on fair value hedging relationships | $ | — | $ | — | $ | — | $ | 1,742 | $ | 1,742 | |||||||||
Expense related to interest settlements on cash flow hedging relationships: | |||||||||||||||||||
Interest settlements reclassified from AOCI into net income on derivatives | $ | — | $ | — | $ | (454 | ) | $ | — | $ | (454 | ) | |||||||
Recognized on hedged items | — | — | (1,169 | ) | — | (1,169 | ) | ||||||||||||
Discount amortization recognized on hedged items | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Losses recognized in income for hedge ineffectiveness | — | — | — | (191 | ) | (191 | ) | ||||||||||||
Expense recognized on cash flow hedges | $ | — | $ | — | $ | (1,624 | ) | $ | (191 | ) | $ | (1,815 | ) | ||||||
Losses on financial derivatives not designated in hedging relationships: | |||||||||||||||||||
Gains on interest rate swaps | $ | — | $ | — | $ | — | $ | 1,645 | $ | 1,645 | |||||||||
Interest expense on interest rate swaps | — | — | — | (2,676 | ) | (2,676 | ) | ||||||||||||
Agency forwards | — | — | — | — | — | ||||||||||||||
Treasury futures | — | — | — | 141 | 141 | ||||||||||||||
Losses on financial derivatives not designated in hedge relationships | $ | — | $ | — | $ | — | $ | (890 | ) | $ | (890 | ) |
(1) | Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million for the three months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amount recognized as hedge ineffectiveness for the three months ended September 30, 2017 were gains of $0.1 million. |
For the Nine Months Ended September 30, 2018 | |||||||||||||||||||
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives | |||||||||||||||||||
Net Interest Income | Non-Interest Income | Total | |||||||||||||||||
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Interest Income Loans | Total Interest Expense | Gains/(losses) on financial derivatives and hedging activities | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Total amounts presented in the consolidated statement of operations: | $ | 213,479 | $ | 145,671 | $ | (265,611 | ) | $ | (688 | ) | $ | 92,851 | |||||||
Income/(expense) related to interest settlements on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives | 465 | (560 | ) | (5,315 | ) | — | (5,410 | ) | |||||||||||
Recognized on hedged items | 46,289 | 4,619 | (28,633 | ) | — | 22,275 | |||||||||||||
Discount amortization recognized on hedged items | — | — | (534 | ) | — | (534 | ) | ||||||||||||
Income/(expense) related to interest settlements on fair value hedging relationships | $ | 46,754 | $ | 4,059 | $ | (34,482 | ) | $ | — | $ | 16,331 | ||||||||
Gains/(losses) on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives | 46,354 | 12,564 | (13,565 | ) | — | 45,353 | |||||||||||||
Recognized on hedged items | (43,229 | ) | (13,106 | ) | 16,733 | — | (39,602 | ) | |||||||||||
Gains/(losses) on fair value hedging relationships | $ | 3,125 | $ | (542 | ) | $ | 3,168 | $ | — | $ | 5,751 | ||||||||
Expense related to interest settlements on cash flow hedging relationships: | |||||||||||||||||||
Interest settlements reclassified from AOCI into net income on derivatives | — | — | (21 | ) | — | (21 | ) | ||||||||||||
Recognized on hedged items | — | — | (6,611 | ) | — | (6,611 | ) | ||||||||||||
Discount amortization recognized on hedged items | — | — | (5 | ) | — | (5 | ) | ||||||||||||
Expense recognized on cash flow hedges | $ | — | $ | — | $ | (6,637 | ) | $ | — | $ | (6,637 | ) | |||||||
Losses on financial derivatives not designated in hedge relationships: | |||||||||||||||||||
Gains on interest rate swaps | — | — | — | 7,443 | 7,443 | ||||||||||||||
Interest expense on interest rate swaps | — | — | — | (8,903 | ) | (8,903 | ) | ||||||||||||
Treasury futures | — | — | — | 772 | 772 | ||||||||||||||
Losses on financial derivatives not designated in hedge relationships | $ | — | $ | — | $ | — | $ | (688 | ) | $ | (688 | ) |
For the Nine Months Ended September 30, 2017 | |||||||||||||||||||
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives | |||||||||||||||||||
Net Interest Income | Non-Interest Income | Total | |||||||||||||||||
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Interest Income Loans | Total Interest Expense | Gains/(losses) on financial derivatives and hedging activities | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Total amounts presented in the consolidated statement of operations | $ | 146,978 | $ | 117,349 | $ | (172,797 | ) | $ | 2,530 | $ | 94,060 | ||||||||
Income/(expense) related to interest settlements on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives | (8,251 | ) | (767 | ) | 2,157 | — | (6,861 | ) | |||||||||||
Recognized on hedged items | 34,212 | 2,045 | (12,832 | ) | — | 23,425 | |||||||||||||
Discount amortization recognized on hedged items | — | — | (311 | ) | — | (311 | ) | ||||||||||||
Income/(expense) related to interest settlements on fair value hedging relationships | $ | 25,961 | $ | 1,278 | $ | (10,986 | ) | $ | — | $ | 16,253 | ||||||||
Losses on fair value hedging relationships: | |||||||||||||||||||
Recognized on derivatives(1) | — | — | — | (5,466 | ) | (5,466 | ) | ||||||||||||
Recognized on hedged items | — | — | — | 4,750 | 4,750 | ||||||||||||||
Losses on fair value hedging relationships | $ | — | $ | — | $ | — | $ | (716 | ) | $ | (716 | ) | |||||||
Expense related to interest settlements on cash flow hedging relationships: | |||||||||||||||||||
Interest settlements reclassified from AOCI into net income on derivatives | $ | — | $ | — | $ | (1,494 | ) | $ | — | $ | (1,494 | ) | |||||||
Recognized on hedged items | — | — | (2,665 | ) | — | (2,665 | ) | ||||||||||||
Discount amortization recognized on hedged items | — | — | (3 | ) | — | (3 | ) | ||||||||||||
Losses recognized in income for hedge ineffectiveness | — | — | — | (365 | ) | (365 | ) | ||||||||||||
Expense recognized on cash flow hedges | $ | — | $ | — | $ | (4,162 | ) | $ | (365 | ) | $ | (4,527 | ) | ||||||
Gains on financial derivatives not designated in hedging relationships: | |||||||||||||||||||
Gains on interest rate swaps | $ | — | $ | — | $ | — | $ | 12,324 | $ | 12,324 | |||||||||
Interest expense on interest rate swaps | — | — | — | (8,318 | ) | (8,318 | ) | ||||||||||||
Agency forwards | — | — | — | (588 | ) | (588 | ) | ||||||||||||
Treasury futures | — | — | — | 193 | 193 | ||||||||||||||
Gains on financial derivatives not designated in hedge relationships | $ | — | $ | — | $ | — | $ | 3,611 | $ | 3,611 |
(1) | Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were gains of $0.7 million for the nine months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for the nine months ended September 30, 2017 were zero. |
Hedged Items in Fair Value Relationship | |||||||||||||||
Carrying Amount of Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities) | ||||||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value | $ | 2,514,978 | $ | 1,928,220 | $ | (65,596 | ) | $ | (22,853 | ) | |||||
Loans held for investment, at amortized cost | 166,754 | 149,304 | (13,150 | ) | (189 | ) | |||||||||
Notes Payable, due after one year(1)(2) | (2,057,594 | ) | (1,552,935 | ) | 22,428 | 5,836 |
(1) | Carrying amount represents amortized cost. |
(2) | Includes $0.4 million of hedging adjustments on a discontinued hedging relationship. |
As of September 30, 2018 | As of December 31, 2017 | ||||||||||||||||||||||
Unsecuritized | In Consolidated Trusts | Total | Unsecuritized | In Consolidated Trusts | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Farm & Ranch | $ | 2,937,484 | $ | 1,483,135 | $ | 4,420,619 | $ | 2,798,906 | $ | 1,399,827 | $ | 4,198,733 | |||||||||||
Rural Utilities | 962,702 | — | 962,702 | 1,076,291 | — | 1,076,291 | |||||||||||||||||
Total unpaid principal balance(1) | 3,900,186 | 1,483,135 | 5,383,321 | 3,875,197 | 1,399,827 | 5,275,024 | |||||||||||||||||
Unamortized premiums, discounts, and other cost basis adjustments | (15,550 | ) | — | (15,550 | ) | (1,442 | ) | — | (1,442 | ) | |||||||||||||
Total loans | 3,884,636 | 1,483,135 | 5,367,771 | 3,873,755 | 1,399,827 | 5,273,582 | |||||||||||||||||
Allowance for loan losses | (5,378 | ) | (1,493 | ) | (6,871 | ) | (5,493 | ) | (1,303 | ) | (6,796 | ) | |||||||||||
Total loans, net of allowance | $ | 3,879,258 | $ | 1,481,642 | $ | 5,360,900 | $ | 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. |
As of September 30, 2018 | As of September 30, 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) | |||||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||||
Beginning Balance | $ | 6,789 | $ | 2,249 | $ | 9,038 | $ | 6,138 | $ | 1,966 | $ | 8,104 | |||||||||||
Provision for/(release of) losses | 99 | (102 | ) | (3 | ) | 270 | 114 | 384 | |||||||||||||||
Charge-offs | (17 | ) | — | (17 | ) | — | — | — | |||||||||||||||
Ending Balance | $ | 6,871 | $ | 2,147 | $ | 9,018 | $ | 6,408 | $ | 2,080 | $ | 8,488 | |||||||||||
For the Nine Months Ended: | |||||||||||||||||||||||
Beginning Balance | 6,796 | 2,070 | 8,866 | 5,415 | 2,020 | 7,435 | |||||||||||||||||
Provision for losses | 92 | 77 | 169 | 1,234 | 60 | 1,294 | |||||||||||||||||
Charge-offs | $ | (17 | ) | $ | — | $ | (17 | ) | $ | (241 | ) | $ | — | $ | (241 | ) | |||||||
Ending Balance | $ | 6,871 | $ | 2,147 | $ | 9,018 | $ | 6,408 | $ | 2,080 | $ | 8,488 |
September 30, 2018 | |||||||||||||||||||||||||||
Crops | Permanent Plantings | Livestock | Part-time Farm | Ag. Storage and Processing | Other | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||||||||
Beginning Balance | $ | 4,125 | $ | 2,368 | $ | 1,322 | $ | 448 | $ | 720 | $ | 55 | $ | 9,038 | |||||||||||||
Provision for/(release of) losses | (99 | ) | 40 | 148 | 50 | (97 | ) | (45 | ) | (3 | ) | ||||||||||||||||
Charge-offs | — | — | — | (17 | ) | — | — | (17 | ) | ||||||||||||||||||
Ending Balance | $ | 4,026 | $ | 2,408 | $ | 1,470 | $ | 481 | $ | 623 | $ | 10 | $ | 9,018 | |||||||||||||
For the Nine Months Ended: | |||||||||||||||||||||||||||
Beginning Balance | $ | 4,081 | $ | 2,469 | $ | 1,211 | $ | 481 | $ | 606 | $ | 18 | $ | 8,866 | |||||||||||||
Provision for/(release of) losses | (55 | ) | (61 | ) | 259 | 17 | 17 | (8 | ) | 169 | |||||||||||||||||
Charge-offs | — | — | — | (17 | ) | — | — | (17 | ) | ||||||||||||||||||
Ending Balance | $ | 4,026 | $ | 2,408 | $ | 1,470 | $ | 481 | $ | 623 | $ | 10 | $ | 9,018 |
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 |
As of September 30, 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 | $ | 2,428,763 | $ | 860,870 | $ | 678,456 | $ | 309,235 | $ | 10,824 | $ | 4,542 | $ | 4,292,690 | |||||||||||||
Off-balance sheet | 1,242,091 | 503,784 | 648,648 | 166,570 | 68,651 | 3,509 | 2,633,253 | ||||||||||||||||||||
Total | $ | 3,670,854 | $ | 1,364,654 | $ | 1,327,104 | $ | 475,805 | $ | 79,475 | $ | 8,051 | $ | 6,925,943 | |||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||
On-balance sheet | $ | 63,726 | $ | 33,948 | $ | 22,729 | $ | 7,526 | $ | — | $ | — | $ | 127,929 | |||||||||||||
Off-balance sheet | 11,497 | 2,374 | 3,308 | 896 | — | 71 | 18,146 | ||||||||||||||||||||
Total | $ | 75,223 | $ | 36,322 | $ | 26,037 | $ | 8,422 | $ | — | $ | 71 | $ | 146,075 | |||||||||||||
Total Farm & Ranch loans: | |||||||||||||||||||||||||||
On-balance sheet | $ | 2,492,489 | $ | 894,818 | $ | 701,185 | $ | 316,761 | $ | 10,824 | $ | 4,542 | $ | 4,420,619 | |||||||||||||
Off-balance sheet | 1,253,588 | 506,158 | 651,956 | 167,466 | 68,651 | 3,580 | 2,651,399 | ||||||||||||||||||||
Total | $ | 3,746,077 | $ | 1,400,976 | $ | 1,353,141 | $ | 484,227 | $ | 79,475 | $ | 8,122 | $ | 7,072,018 | |||||||||||||
Allowance for Losses: | |||||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||
On-balance sheet | $ | 2,047 | $ | 955 | $ | 765 | $ | 300 | $ | 9 | $ | 4 | $ | 4,080 | |||||||||||||
Off-balance sheet | 612 | 191 | 211 | 49 | 614 | 5 | 1,682 | ||||||||||||||||||||
Total | $ | 2,659 | $ | 1,146 | $ | 976 | $ | 349 | $ | 623 | $ | 9 | $ | 5,762 | |||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||
On-balance sheet | $ | 1,112 | $ | 1,207 | $ | 361 | $ | 111 | $ | — | $ | — | $ | 2,791 | |||||||||||||
Off-balance sheet | 255 | 55 | 133 | 21 | — | 1 | 465 | ||||||||||||||||||||
Total | $ | 1,367 | $ | 1,262 | $ | 494 | $ | 132 | $ | — | $ | 1 | $ | 3,256 | |||||||||||||
Total Farm & Ranch loans: | |||||||||||||||||||||||||||
On-balance sheet | $ | 3,159 | $ | 2,162 | $ | 1,126 | $ | 411 | $ | 9 | $ | 4 | $ | 6,871 | |||||||||||||
Off-balance sheet | 867 | 246 | 344 | 70 | 614 | 6 | 2,147 | ||||||||||||||||||||
Total | $ | 4,026 | $ | 2,408 | $ | 1,470 | $ | 481 | $ | 623 | $ | 10 | $ | 9,018 |
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 |
As of September 30, 2018 | |||||||||||||||||||||||||||
Crops | Permanent Plantings | Livestock | Part-time Farm | Ag. Storage and Processing | Other | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Impaired Loans: | |||||||||||||||||||||||||||
With no specific allowance: | |||||||||||||||||||||||||||
Recorded investment | $ | 14,815 | $ | 848 | $ | 10,431 | $ | 2,036 | $ | — | $ | — | $ | 28,130 | |||||||||||||
Unpaid principal balance | 14,851 | 851 | 10,456 | 2,041 | — | — | 28,199 | ||||||||||||||||||||
With a specific allowance: | |||||||||||||||||||||||||||
Recorded investment(1) | 60,250 | 35,389 | 15,550 | 6,368 | — | 71 | 117,628 | ||||||||||||||||||||
Unpaid principal balance | 60,372 | 35,471 | 15,581 | 6,381 | — | 71 | 117,876 | ||||||||||||||||||||
Associated allowance | 1,367 | 1,262 | 494 | 132 | — | 1 | 3,256 | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||||
Recorded investment | 75,065 | 36,237 | 25,981 | 8,404 | — | 71 | 145,758 | ||||||||||||||||||||
Unpaid principal balance | 75,223 | 36,322 | 26,037 | 8,422 | — | 71 | 146,075 | ||||||||||||||||||||
Associated allowance | 1,367 | 1,262 | 494 | 132 | — | 1 | 3,256 | ||||||||||||||||||||
Recorded investment of loans on nonaccrual status(2) | $ | 28,098 | $ | 23,090 | $ | 7,859 | $ | 4,291 | $ | — | $ | — | $ | 63,338 |
(1) | Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $115.2 million (79 percent) of impaired loans as of September 30, 2018, which resulted in a specific allowance of $2.7 million. |
(2) | Includes $30.6 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. |
September 30, 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 | $ | 75,920 | $ | 44,818 | $ | 24,443 | $ | 8,898 | $ | — | $ | 72 | $ | 154,151 | |||||||||||||
Income recognized on impaired loans | 223 | 933 | 122 | 56 | — | — | 1,334 | ||||||||||||||||||||
For the Nine Months Ended: | |||||||||||||||||||||||||||
Average recorded investment in impaired loans | $ | 73,968 | $ | 44,122 | $ | 23,358 | $ | 8,874 | $ | — | $ | 394 | $ | 150,716 | |||||||||||||
Income recognized on impaired loans | 942 | 1,597 | 261 | 173 | — | — | 2,973 |
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 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
($ in thousands) | |||||||||||||||
Unpaid principal balance at acquisition date: | |||||||||||||||
Loans underlying LTSPCs | $ | 1,483 | $ | — | $ | 1,483 | $ | 311 | |||||||
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) | 5,552 | 3,043 | 6,273 | 3,147 | |||||||||||
Total unpaid principal balance at acquisition date | 7,035 | 3,043 | 7,756 | 3,458 | |||||||||||
Contractually required payments receivable | 7,115 | 3,073 | 7,845 | 3,490 | |||||||||||
Impairment recognized subsequent to acquisition | 26 | — | 26 | — | |||||||||||
Release of allowance for all outstanding acquired defaulted loans | — | 29 | — | 171 | |||||||||||
Number of defaulted loans purchased | 7 | 6 | 11 | 10 |
As of | |||||||
September 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Outstanding balance | $ | 22,242 | $ | 18,866 | |||
Carrying amount | 21,481 | 17,691 |
90-Day Delinquencies(1) | Net Credit (Recoveries)/Losses | ||||||||||||||
As of | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
On-balance sheet assets: | |||||||||||||||
Farm & Ranch: | |||||||||||||||
Loans | $ | 32,756 | $ | 47,881 | $ | 40 | $ | (520 | ) | ||||||
Total on-balance sheet | $ | 32,756 | $ | 47,881 | $ | 40 | $ | (520 | ) | ||||||
Off-balance sheet assets: | |||||||||||||||
Farm & Ranch: | |||||||||||||||
LTSPCs | $ | 4,789 | $ | 563 | $ | — | $ | — | |||||||
Total off-balance sheet | $ | 4,789 | $ | 563 | $ | — | $ | — | |||||||
Total | $ | 37,545 | $ | 48,444 | $ | 40 | $ | (520 | ) |
(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. |
As of September 30, 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 | $ | 2,355,938 | $ | 847,666 | $ | 652,715 | $ | 302,243 | $ | 10,824 | $ | 4,542 | $ | 4,173,928 | |||||||||||||
Special mention(2) | 72,974 | 13,204 | 25,729 | 6,992 | — | — | 118,899 | ||||||||||||||||||||
Substandard(3) | 63,577 | 33,948 | 22,741 | 7,526 | — | — | 127,792 | ||||||||||||||||||||
Total on-balance sheet | $ | 2,492,489 | $ | 894,818 | $ | 701,185 | $ | 316,761 | $ | 10,824 | $ | 4,542 | $ | 4,420,619 | |||||||||||||
Off-Balance Sheet: | |||||||||||||||||||||||||||
Acceptable | $ | 1,131,413 | $ | 455,135 | $ | 600,128 | $ | 161,671 | $ | 67,287 | $ | 2,870 | $ | 2,418,504 | |||||||||||||
Special mention(2) | 70,511 | 36,062 | 37,305 | 786 | — | — | 144,664 | ||||||||||||||||||||
Substandard(3) | 51,664 | 14,961 | 14,523 | 5,009 | 1,364 | 710 | 88,231 | ||||||||||||||||||||
Total off-balance sheet | $ | 1,253,588 | $ | 506,158 | $ | 651,956 | $ | 167,466 | $ | 68,651 | $ | 3,580 | $ | 2,651,399 | |||||||||||||
Total Ending Balance: | |||||||||||||||||||||||||||
Acceptable | $ | 3,487,351 | $ | 1,302,801 | $ | 1,252,843 | $ | 463,914 | $ | 78,111 | $ | 7,412 | $ | 6,592,432 | |||||||||||||
Special mention(2) | 143,485 | 49,266 | 63,034 | 7,778 | — | — | 263,563 | ||||||||||||||||||||
Substandard(3) | 115,241 | 48,909 | 37,264 | 12,535 | 1,364 | 710 | 216,023 | ||||||||||||||||||||
Total | $ | 3,746,077 | $ | 1,400,976 | $ | 1,353,141 | $ | 484,227 | $ | 79,475 | $ | 8,122 | $ | 7,072,018 | |||||||||||||
Commodity analysis of past due loans(1) | |||||||||||||||||||||||||||
On-balance sheet | $ | 15,843 | $ | 7,822 | $ | 5,274 | $ | 3,817 | $ | — | $ | — | $ | 32,756 | |||||||||||||
Off-balance sheet | 1,146 | 1,518 | 1,489 | 636 | — | — | 4,789 | ||||||||||||||||||||
90 days or more past due | $ | 16,989 | $ | 9,340 | $ | 6,763 | $ | 4,453 | $ | — | $ | — | $ | 37,545 |
(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. |
As of | |||||||
September 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
By commodity/collateral type: | |||||||
Crops | $ | 3,746,077 | $ | 3,657,945 | |||
Permanent plantings | 1,400,976 | 1,367,563 | |||||
Livestock | 1,353,141 | 1,334,958 | |||||
Part-time farm | 484,227 | 433,628 | |||||
Ag. Storage and Processing | 79,475 | 58,761 | |||||
Other | 8,122 | 14,731 | |||||
Total | $ | 7,072,018 | $ | 6,867,586 | |||
By geographic region(1): | |||||||
Northwest | $ | 815,346 | $ | 740,991 | |||
Southwest | 2,198,744 | 2,093,213 | |||||
Mid-North | 2,276,100 | 2,244,094 | |||||
Mid-South | 876,960 | 908,603 | |||||
Northeast | 315,685 | 296,264 | |||||
Southeast | 589,183 | 584,421 | |||||
Total | $ | 7,072,018 | $ | 6,867,586 | |||
By original loan-to-value ratio(2): | |||||||
0.00% to 40.00% | $ | 1,317,118 | $ | 1,322,422 | |||
40.01% to 50.00% | 1,769,124 | 1,733,671 | |||||
50.01% to 60.00% | 2,456,766 | 2,385,605 | |||||
60.01% to 70.00% | 1,227,092 | 1,150,914 | |||||
70.01% to 80.00%(3) | 277,204 | 248,799 | |||||
80.01% to 90.00%(3) | 24,714 | 26,175 | |||||
Total | $ | 7,072,018 | $ | 6,867,586 | |||
By size of borrower exposure(4): | |||||||
Less than $1,000,000 | $ | 2,423,394 | $ | 2,379,596 | |||
$1,000,000 to $4,999,999 | 2,696,431 | 2,627,617 | |||||
$5,000,000 to $9,999,999 | 917,198 | 867,574 | |||||
$10,000,000 to $24,999,999 | 587,618 | 584,896 | |||||
$25,000,000 to $50,000,000 | 447,377 | 407,903 | |||||
Total | $ | 7,072,018 | $ | 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) | Primarily part-time farm loans. Loans with original loan-to-value ratios of greater than 80% are required to have private mortgage insurance. |
(4) | Includes multiple loans to the same borrower or borrower-related entities. |
6. | GUARANTEES AND LONG-TERM STANDBY PURCHASE COMMITMENTS |
Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities | |||||||
As of September 30, 2018 | As of December 31, 2017 | ||||||
(in thousands) | |||||||
Farm & Ranch: | |||||||
Guaranteed Securities | $ | 287,594 | $ | 333,511 | |||
USDA Guarantees: | |||||||
Farmer Mac Guaranteed USDA Securities | 346,690 | 254,217 | |||||
Institutional Credit: | |||||||
AgVantage Securities | 11,556 | 11,556 | |||||
Revolving floating rate AgVantage facility(1) | 300,000 | 300,000 | |||||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ | 945,840 | $ | 899,284 |
(1) | Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. |
For the Nine Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
(in thousands) | |||||||
Proceeds from new securitizations | $ | 305,391 | $ | 404,246 | |||
Guarantee fees received | 1,481 | 2,141 | |||||
Purchases of assets from the trusts | (6,273 | ) | (3,147 | ) |
7. | EQUITY |
• | Statutory minimum capital requirement – Farmer Mac's statutory minimum capital level is an amount of core capital (stockholders' equity less accumulated other comprehensive income) equal to the sum of 2.75 percent of Farmer Mac's aggregate on-balance sheet assets, as calculated for regulatory purposes, plus 0.75 percent of the aggregate off-balance sheet obligations of Farmer Mac, specifically including: |
◦ | the unpaid principal balance of outstanding Farmer Mac Guaranteed Securities; |
◦ | instruments issued or guaranteed by Farmer Mac that are substantially equivalent to Farmer Mac Guaranteed Securities, including LTSPCs; and |
◦ | other off-balance sheet obligations of Farmer Mac. |
• | Statutory critical capital requirement – Farmer Mac's critical capital level is an amount of core capital equal to 50 percent of the total minimum capital requirement at that time. |
• | Risk-based capital requirement – Farmer Mac's charter directs the Farm Credit Administration ("FCA"), an independent agency in the executive branch of the United States government that regulates Farmer Mac, to establish a risk-based capital stress test for Farmer Mac, using specified stress-test parameters. |
8. | FAIR VALUE DISCLOSURES |
Assets and Liabilities Measured at Fair Value as of September 30, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Recurring: | |||||||||||||||
Assets: | |||||||||||||||
Investment Securities: | |||||||||||||||
Available-for-sale: | |||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | — | $ | — | $ | 18,961 | $ | 18,961 | |||||||
Floating rate asset-backed securities | — | 30,056 | — | 30,056 | |||||||||||
Floating rate Government/GSE guaranteed mortgage-backed securities | — | 1,336,474 | — | 1,336,474 | |||||||||||
Fixed rate GSE guaranteed mortgage-backed securities | — | 422 | — | 422 | |||||||||||
Fixed rate U.S. Treasuries | 838,089 | — | — | 838,089 | |||||||||||
Total Investment Securities | 838,089 | 1,366,952 | 18,961 | 2,224,002 | |||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||
Available-for-sale: | |||||||||||||||
AgVantage | — | — | 5,957,304 | 5,957,304 | |||||||||||
Total Farmer Mac Guaranteed Securities | — | — | 5,957,304 | 5,957,304 | |||||||||||
USDA Securities: | |||||||||||||||
Trading | — | — | 10,237 | 10,237 | |||||||||||
Total USDA Securities | — | — | 10,237 | 10,237 | |||||||||||
Financial derivatives | — | 8,007 | — | 8,007 | |||||||||||
Total Assets at fair value | $ | 838,089 | $ | 1,374,959 | $ | 5,986,502 | $ | 8,199,550 | |||||||
Liabilities: | |||||||||||||||
Financial derivatives | $ | 10 | $ | 17,831 | $ | — | $ | 17,841 | |||||||
Total Liabilities at fair value | $ | 10 | $ | 17,831 | $ | — | $ | 17,841 | |||||||
Non-recurring: | |||||||||||||||
Assets: | |||||||||||||||
Loans held for investment | $ | — | $ | — | $ | 317 | $ | 317 | |||||||
REO | — | — | 128 | 128 | |||||||||||
Total Non-recurring Assets at fair value | $ | — | $ | — | $ | 445 | $ | 445 |
Assets and Liabilities Measured at Fair Value as of December 31, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Recurring: | |||||||||||||||
Assets: | |||||||||||||||
Investment Securities: | |||||||||||||||
Available-for-sale: | |||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | — | $ | — | $ | 18,814 | $ | 18,814 | |||||||
Floating rate asset-backed securities | — | 34,210 | — | 34,210 | |||||||||||
Floating rate Government/GSE guaranteed mortgage-backed securities | — | 1,290,187 | — | 1,290,187 | |||||||||||
Fixed rate GSE guaranteed mortgage-backed securities | — | 486 | 4,333 | 4,819 | |||||||||||
Fixed rate senior agency debt | — | 99,951 | — | 99,951 | |||||||||||
Fixed rate U.S. Treasuries | 767,424 | — | — | 767,424 | |||||||||||
Total available-for-sale | 767,424 | 1,424,834 | 23,147 | 2,215,405 | |||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||
Available-for-sale: | |||||||||||||||
AgVantage | — | — | 5,471,914 | 5,471,914 | |||||||||||
Total Farmer Mac Guaranteed Securities | — | — | 5,471,914 | 5,471,914 | |||||||||||
USDA Securities: | |||||||||||||||
Trading | — | — | 13,515 | 13,515 | |||||||||||
Total USDA Securities | — | — | 13,515 | 13,515 | |||||||||||
Financial derivatives | — | 7,093 | — | 7,093 | |||||||||||
Total Assets at fair value | $ | 767,424 | $ | 1,431,927 | $ | 5,508,576 | $ | 7,707,927 | |||||||
Liabilities: | |||||||||||||||
Financial derivatives | $ | 36 | $ | 26,563 | $ | — | $ | 26,599 | |||||||
Total Liabilities at fair value | $ | 36 | $ | 26,563 | $ | — | $ | 26,599 | |||||||
Non-recurring: | |||||||||||||||
Assets: | |||||||||||||||
Loans held for investment | $ | — | $ | — | $ | 508 | $ | 508 | |||||||
Total Non-recurring Assets at fair value | $ | — | $ | — | $ | 508 | $ | 508 |
Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Beginning Balance | Purchases | Sales | Settlements | Realized and Unrealized (Losses) included in Income | Unrealized Gains/(Losses) included in Other Comprehe- nsive Income | Ending Balance | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Recurring: | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | 19,010 | $ | — | $ | — | $ | — | $ | — | $ | (49 | ) | $ | 18,961 | ||||||||||||
Total available-for-sale | 19,010 | — | — | — | — | (49 | ) | 18,961 | |||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||
AgVantage | 5,985,806 | 687,381 | — | (689,213 | ) | (13,432 | ) | (13,238 | ) | 5,957,304 | |||||||||||||||||
Total available-for-sale | 5,985,806 | 687,381 | — | (689,213 | ) | (13,432 | ) | (13,238 | ) | 5,957,304 | |||||||||||||||||
USDA Securities: | |||||||||||||||||||||||||||
Available-for-sale | — | 26,321 | (26,321 | ) | — | — | — | — | |||||||||||||||||||
Trading(1) | 10,748 | — | — | (508 | ) | (3 | ) | — | 10,237 | ||||||||||||||||||
Total USDA Securities | 10,748 | 26,321 | (26,321 | ) | (508 | ) | (3 | ) | — | 10,237 | |||||||||||||||||
Total Assets at fair value | $ | 6,015,564 | $ | 713,702 | $ | (26,321 | ) | $ | (689,721 | ) | $ | (13,435 | ) | $ | (13,287 | ) | $ | 5,986,502 |
(1) | Includes unrealized losses of $9,000 attributable to assets still held as of September 30, 2018 that are recorded in "(Losses)/gains on trading securities." |
Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Beginning Balance | Purchases | Sales | Settlements | Realized and Unrealized Gains/(losses) included in Income | Unrealized Gains/(losses) included in Other Comprehe-nsive Income | Ending Balance | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Recurring: | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | 18,518 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 18,518 | |||||||||||||
Fixed rate GSE guaranteed mortgage-backed securities | 4,651 | — | — | (111 | ) | — | (82 | ) | 4,458 | ||||||||||||||||||
Total available-for-sale | 23,169 | — | — | (111 | ) | — | (82 | ) | 22,976 | ||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||
AgVantage | 5,282,562 | 193,800 | — | (29,851 | ) | (1,171 | ) | (1,594 | ) | 5,443,746 | |||||||||||||||||
Total available-for-sale | 5,282,562 | 193,800 | — | (29,851 | ) | (1,171 | ) | (1,594 | ) | 5,443,746 | |||||||||||||||||
USDA Securities: | |||||||||||||||||||||||||||
Available-for-sale | — | 40,844 | (40,844 | ) | — | — | — | — | |||||||||||||||||||
Trading(1) | 16,294 | — | — | (1,430 | ) | — | — | 14,864 | |||||||||||||||||||
Total USDA Securities | 16,294 | 40,844 | (40,844 | ) | (1,430 | ) | — | — | 14,864 | ||||||||||||||||||
Total Assets at fair value | $ | 5,322,025 | $ | 234,644 | $ | (40,844 | ) | $ | (31,392 | ) | $ | (1,171 | ) | $ | (1,676 | ) | $ | 5,481,586 |
(1) | Includes unrealized gains of $34,000 attributable to assets still held as of September 30, 2017 that are recorded in "(Losses)/gains on trading securities." |
Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Beginning Balance | Cumulative Effect from Change in Hedge Accounting | Purchases | Sales | Settlements | Realized and Unrealized (Losses) included in Income | Unrealized Gains/(Losses) included in Other Comprehe- nsive Income | Ending Balance | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Recurring: | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | 18,814 | — | $ | — | $ | — | $ | — | $ | — | $ | 147 | $ | 18,961 | ||||||||||||||||
Fixed rate GSE guaranteed mortgage-backed securities | 4,333 | — | — | — | (2,137 | ) | (2,092 | ) | (104 | ) | — | ||||||||||||||||||||
Total available-for-sale | 23,147 | — | — | — | (2,137 | ) | (2,092 | ) | 43 | 18,961 | |||||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||
AgVantage | 5,471,914 | 487 | 1,646,345 | — | (1,128,674 | ) | (43,230 | ) | 10,462 | 5,957,304 | |||||||||||||||||||||
Total available-for-sale | 5,471,914 | 487 | 1,646,345 | — | (1,128,674 | ) | (43,230 | ) | 10,462 | 5,957,304 | |||||||||||||||||||||
USDA Securities: | |||||||||||||||||||||||||||||||
Available-for-sale | — | — | 105,628 | (105,628 | ) | — | — | — | — | ||||||||||||||||||||||
Trading(1) | 13,515 | — | — | — | (3,302 | ) | 24 | — | 10,237 | ||||||||||||||||||||||
Total USDA Securities | 13,515 | — | 105,628 | (105,628 | ) | (3,302 | ) | 24 | — | 10,237 | |||||||||||||||||||||
Total Assets at fair value | $ | 5,508,576 | $ | 487 | $ | 1,751,973 | $ | (105,628 | ) | $ | (1,134,113 | ) | $ | (45,298 | ) | $ | 10,505 | $ | 5,986,502 |
(1) | Includes unrealized gains of $0.1 million attributable to assets still held as of September 30, 2018 that are recorded in "(Losses)/gains on trading securities." |
Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||
Beginning Balance | Transfers in | Purchases | Sales | Settlements | Realized and Unrealized Gains/(losses) included in Income | Unrealized Gains/(losses) included in Other Comprehe-nsive Income | Ending Balance | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Recurring: | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | 17,730 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 788 | $ | 18,518 | |||||||||||||||
Fixed rate GSE guaranteed mortgage-backed securities | $ | — | $ | 7,041 | $ | — | $ | — | $ | (334 | ) | $ | — | $ | (2,249 | ) | $ | 4,458 | |||||||||||||
Total available-for-sale | 17,730 | 7,041 | — | — | (334 | ) | — | (1,461 | ) | 22,976 | |||||||||||||||||||||
Farmer Mac Guaranteed Securities: | |||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||
AgVantage | 4,853,685 | — | 927,615 | — | (357,006 | ) | 5,166 | 14,286 | 5,443,746 | ||||||||||||||||||||||
Total available-for-sale | 4,853,685 | — | 927,615 | — | (357,006 | ) | 5,166 | 14,286 | 5,443,746 | ||||||||||||||||||||||
USDA Securities: | |||||||||||||||||||||||||||||||
Available-for-sale | — | — | 126,939 | (126,939 | ) | — | — | — | — | ||||||||||||||||||||||
Trading(1) | 20,388 | — | — | — | (5,440 | ) | (84 | ) | — | 14,864 | |||||||||||||||||||||
Total USDA Securities | 20,388 | — | 126,939 | (126,939 | ) | (5,440 | ) | (84 | ) | — | 14,864 | ||||||||||||||||||||
Total Assets at fair value | $ | 4,891,803 | $ | 7,041 | $ | 1,054,554 | $ | (126,939 | ) | $ | (362,780 | ) | $ | 5,082 | $ | 12,825 | $ | 5,481,586 |
(1) | Includes unrealized gains of $42,000 attributable to assets still held as of September 30, 2017 that are recorded in "(Losses)/gains on trading securities." |
As of September 30, 2018 | ||||||||||
Financial Instruments | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted-Average) | ||||||
(in thousands) | ||||||||||
Assets: | ||||||||||
Investment securities: | ||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | 18,961 | Indicative bids | Range of broker quotes | 96.3% - 96.3% (96.3%) | |||||
Farmer Mac Guaranteed Securities: | ||||||||||
AgVantage | $ | 5,957,304 | Discounted cash flow | Discount rate | 2.9% - 4.0% (3.1%) | |||||
USDA Securities | $ | 10,237 | Discounted cash flow | Discount rate | 3.3% - 5.2% (4.9%) | |||||
CPR | 6% - 16% (15%) |
As of December 31, 2017 | ||||||||||
Financial Instruments | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted-Average) | ||||||
(in thousands) | ||||||||||
Assets: | ||||||||||
Investment securities: | ||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans | $ | 18,814 | Indicative bids | Range of broker quotes | 95.5% - 95.5% (95.5%) | |||||
Fixed rate GSE guaranteed mortgage-backed securities | $ | 4,333 | Discounted cash flow | Discount rate | 2.9% | |||||
CPR | 0 % | |||||||||
Farmer Mac Guaranteed Securities: | ||||||||||
AgVantage | $ | 5,471,914 | Discounted cash flow | Discount rate | 2.1% - 3.4% (2.4%) | |||||
USDA Securities | $ | 13,515 | Discounted cash flow | Discount rate | 3.6% - 5.4% (5.0%) | |||||
CPR | 7% - 19% (17%) |
As of September 30, 2018 | As of December 31, 2017 | ||||||||||||||
Fair Value | Carrying Amount | Fair Value | Carrying Amount | ||||||||||||
(in thousands) | |||||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 436,152 | $ | 436,152 | $ | 302,022 | $ | 302,022 | |||||||
Investment securities | 2,269,877 | 2,269,034 | 2,260,969 | 2,260,437 | |||||||||||
Farmer Mac Guaranteed Securities | 8,002,686 | 8,024,611 | 7,588,806 | 7,598,188 | |||||||||||
USDA Securities | 2,067,583 | 2,154,111 | 2,076,396 | 2,131,365 | |||||||||||
Loans | 5,331,095 | 5,360,900 | 5,279,225 | 5,266,786 | |||||||||||
Financial derivatives | 8,007 | 8,007 | 7,093 | 7,093 | |||||||||||
Guarantee and commitment fees receivable: | |||||||||||||||
LTSPCs | 37,764 | 36,436 | 33,871 | 35,718 | |||||||||||
Farmer Mac Guaranteed Securities | 3,710 | 3,742 | 4,323 | 4,177 | |||||||||||
Financial liabilities: | |||||||||||||||
Notes payable: | |||||||||||||||
Due within one year | 7,363,251 | 7,378,927 | 8,079,309 | 8,089,826 | |||||||||||
Due after one year | 8,348,709 | 8,419,424 | 7,445,545 | 7,432,790 | |||||||||||
Debt securities of consolidated trusts held by third parties | 1,451,781 | 1,486,733 | 1,386,652 | 1,404,945 | |||||||||||
Financial derivatives | 17,841 | 17,841 | 26,599 | 26,599 | |||||||||||
Guarantee and commitment obligations: | |||||||||||||||
LTSPCs | 36,796 | 35,468 | 32,976 | 34,824 | |||||||||||
Farmer Mac Guaranteed Securities | 3,098 | 3,129 | 3,722 | 3,576 |
9. | BUSINESS SEGMENT REPORTING |
Core Earnings by Business Segment | |||||||||||||||||||||||||||
For the Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Reconciling Adjustments | Consolidated Net Income | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Net interest income | $ | 16,425 | $ | 5,304 | $ | 3,081 | $ | 17,600 | $ | 2,648 | $ | — | $ | 45,058 | |||||||||||||
Less: reconciling adjustments(1)(2)(3)(4) | (2,538 | ) | (677 | ) | (204 | ) | (1,958 | ) | (604 | ) | 5,981 | — | |||||||||||||||
Net effective spread | 13,887 | 4,627 | 2,877 | 15,642 | 2,044 | 5,981 | — | ||||||||||||||||||||
Guarantee and commitment fees(2) | 4,489 | 214 | 376 | 91 | — | (1,680 | ) | 3,490 | |||||||||||||||||||
Other income/(expense)(3) | 294 | 5 | 15 | — | (245 | ) | 880 | 949 | |||||||||||||||||||
Non-interest income/(loss) | 4,783 | 219 | 391 | 91 | (245 | ) | (800 | ) | 4,439 | ||||||||||||||||||
Provision for loan losses | (99 | ) | — | — | — | — | — | (99 | ) | ||||||||||||||||||
Release of reserve for losses | 102 | — | — | — | — | — | 102 | ||||||||||||||||||||
Other non-interest expense | (4,456 | ) | (1,288 | ) | (732 | ) | (1,844 | ) | (3,432 | ) | — | (11,752 | ) | ||||||||||||||
Non-interest expense(5) | (4,354 | ) | (1,288 | ) | (732 | ) | (1,844 | ) | (3,432 | ) | — | (11,650 | ) | ||||||||||||||
Core earnings before income taxes | 14,217 | 3,558 | 2,536 | 13,889 | (1,633 | ) | 5,181 | (6) | 37,748 | ||||||||||||||||||
Income tax (expense)/benefit | (2,986 | ) | (747 | ) | (533 | ) | (2,917 | ) | 292 | (1,088 | ) | (7,979 | ) | ||||||||||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 11,231 | 2,811 | 2,003 | 10,972 | (1,341 | ) | 4,093 | (6) | 29,769 | ||||||||||||||||||
Preferred stock dividends | — | — | — | — | (3,295 | ) | — | (3,295 | ) | ||||||||||||||||||
Segment core earnings/(losses) | $ | 11,231 | $ | 2,811 | $ | 2,003 | $ | 10,972 | $ | (4,636 | ) | $ | 4,093 | (6) | $ | 26,474 | |||||||||||
Total assets at carrying value | $ | 4,438,128 | $ | 2,212,515 | $ | 956,204 | $ | 8,103,181 | $ | 2,764,006 | $ | — | $ | 18,474,034 | |||||||||||||
Total on- and off-balance sheet program assets at principal balance | $ | 7,072,018 | $ | 2,471,251 | $ | 1,632,037 | $ | 8,365,280 | — | — | $ | 19,540,586 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. |
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. |
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment. |
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread." |
(5) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. |
(6) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. |
Core Earnings by Business Segment | |||||||||||||||||||||||||||
For the Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Reconciling Adjustments | Consolidated Net Income | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Net interest income | $ | 13,609 | $ | 5,288 | $ | 2,230 | $ | 15,431 | $ | 3,004 | $ | — | $ | 39,562 | |||||||||||||
Less: reconciling adjustments(1)(2)(3)(4) | (2,306 | ) | (560 | ) | 535 | (976 | ) | (279 | ) | 3,586 | — | ||||||||||||||||
Net effective spread | 11,303 | 4,728 | 2,765 | 14,455 | 2,725 | 3,586 | — | ||||||||||||||||||||
Guarantee and commitment fees(2) | 4,236 | 130 | 476 | 93 | — | (1,621 | ) | 3,314 | |||||||||||||||||||
Other income/(expense)(3)(5) | 214 | 9 | 5 | — | 78 | 679 | 985 | ||||||||||||||||||||
Non-interest income/(loss) | 4,450 | 139 | 481 | 93 | 78 | (942 | ) | 4,299 | |||||||||||||||||||
Provision for loan losses | (270 | ) | — | — | — | — | — | (270 | ) | ||||||||||||||||||
Provision for reserve for losses | (114 | ) | — | — | — | — | — | (114 | ) | ||||||||||||||||||
Other non-interest expense | (4,077 | ) | (1,080 | ) | (608 | ) | (1,670 | ) | (3,067 | ) | — | (10,502 | ) | ||||||||||||||
Non-interest expense(6) | (4,191 | ) | (1,080 | ) | (608 | ) | (1,670 | ) | (3,067 | ) | — | (10,616 | ) | ||||||||||||||
Core earnings before income taxes | 11,292 | 3,787 | 2,638 | 12,878 | (264 | ) | 2,644 | (7) | 32,975 | ||||||||||||||||||
Income tax (expense)/benefit | (3,952 | ) | (1,325 | ) | (923 | ) | (4,507 | ) | 439 | (925 | ) | (11,193 | ) | ||||||||||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 7,340 | 2,462 | 1,715 | 8,371 | 175 | 1,719 | (7) | 21,782 | |||||||||||||||||||
Preferred stock dividends | — | — | — | — | (3,295 | ) | — | (3,295 | ) | ||||||||||||||||||
Non-controlling interest | — | — | — | — | — | — | — | ||||||||||||||||||||
Segment core earnings/(losses) | $ | 7,340 | $ | 2,462 | $ | 1,715 | $ | 8,371 | $ | (3,120 | ) | $ | 1,719 | (7) | $ | 18,487 | |||||||||||
Total assets at carrying value | $ | 4,128,778 | $ | 2,165,749 | $ | 1,073,525 | $ | 7,612,572 | $ | 2,709,614 | $ | — | $ | 17,690,238 | |||||||||||||
Total on- and off-balance sheet program assets at principal balance | $ | 6,557,030 | $ | 2,298,956 | $ | 1,886,445 | $ | 7,901,842 | $ | — | $ | — | $ | 18,644,273 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. |
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. |
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment. |
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread." |
(5) | Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. |
(6) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. |
(7) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. |
Core Earnings by Business Segment | |||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Reconciling Adjustments | Consolidated Net Income | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Net interest income | $ | 47,255 | $ | 15,446 | $ | 8,931 | $ | 54,237 | $ | 6,351 | $ | — | $ | 132,220 | |||||||||||||
Less: reconciling adjustments(1)(2)(3)(4) | (7,481 | ) | (2,021 | ) | (181 | ) | (8,551 | ) | (1,646 | ) | 19,880 | — | |||||||||||||||
Net effective spread | 39,774 | 13,425 | 8,750 | 45,686 | 4,705 | 19,880 | — | ||||||||||||||||||||
Guarantee and commitment fees(2) | 13,356 | 570 | 1,227 | 271 | — | (4,954 | ) | 10,470 | |||||||||||||||||||
Other income/(expense)(3) | 1,193 | 18 | 25 | — | (594 | ) | (54 | ) | 588 | ||||||||||||||||||
Non-interest income/(loss) | 14,549 | 588 | 1,252 | 271 | (594 | ) | (5,008 | ) | 11,058 | ||||||||||||||||||
Provision for loan losses | (92 | ) | — | — | — | — | — | (92 | ) | ||||||||||||||||||
Provision for reserve for losses | (77 | ) | — | — | — | — | — | (77 | ) | ||||||||||||||||||
Other non-interest expense | (13,930 | ) | (3,793 | ) | (2,144 | ) | (5,720 | ) | (10,549 | ) | — | (36,136 | ) | ||||||||||||||
Non-interest expense(5) | (14,007 | ) | (3,793 | ) | (2,144 | ) | (5,720 | ) | (10,549 | ) | — | (36,213 | ) | ||||||||||||||
Core earnings before income taxes | 40,224 | 10,220 | 7,858 | 40,237 | (6,438 | ) | 14,872 | (6) | 106,973 | ||||||||||||||||||
Income tax (expense)/benefit | (8,447 | ) | (2,146 | ) | (1,651 | ) | (8,450 | ) | 2,067 | (3,122 | ) | (21,749 | ) | ||||||||||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 31,777 | 8,074 | 6,207 | 31,787 | (4,371 | ) | 11,750 | (6) | 85,224 | ||||||||||||||||||
Preferred stock dividends | — | — | — | — | (9,886 | ) | — | (9,886 | ) | ||||||||||||||||||
Segment core earnings/(losses) | $ | 31,777 | $ | 8,074 | $ | 6,207 | $ | 31,787 | $ | (14,257 | ) | $ | 11,750 | (6) | $ | 75,338 | |||||||||||
Total assets at carrying value | $ | 4,438,128 | $ | 2,212,515 | $ | 956,204 | $ | 8,103,181 | $ | 2,764,006 | $ | — | $ | 18,474,034 | |||||||||||||
Total on- and off-balance sheet program assets at principal balance | $ | 7,072,018 | $ | 2,471,251 | $ | 1,632,037 | $ | 8,365,280 | — | — | $ | 19,540,586 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. |
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. |
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment. |
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread." |
(5) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. |
(6) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. |
Core Earnings by Business Segment | |||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Reconciling Adjustments | Consolidated Net Income | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Net interest income | $ | 39,701 | $ | 15,747 | $ | 8,181 | $ | 44,364 | $ | 8,371 | $ | — | $ | 116,364 | |||||||||||||
Less: reconciling adjustments(1)(2)(3)(4) | (6,729 | ) | (1,907 | ) | (179 | ) | (2,827 | ) | (886 | ) | 12,528 | — | |||||||||||||||
Net effective spread | 32,972 | 13,840 | 8,002 | 41,537 | 7,485 | 12,528 | — | ||||||||||||||||||||
Guarantee and commitment fees(2) | 12,722 | 303 | 1,455 | 713 | — | (4,563 | ) | 10,630 | |||||||||||||||||||
Other income/(expense)(3)(5) | 1,402 | 34 | 15 | — | 199 | 2,559 | 4,209 | ||||||||||||||||||||
Non-interest income/(loss) | 14,124 | 337 | 1,470 | 713 | 199 | (2,004 | ) | 14,839 | |||||||||||||||||||
Provision for loan losses | (1,234 | ) | — | — | — | — | — | (1,234 | ) | ||||||||||||||||||
Provision for reserve for losses | (60 | ) | — | — | — | — | — | (60 | ) | ||||||||||||||||||
Other non-interest expense | (12,588 | ) | (3,333 | ) | (1,838 | ) | (4,813 | ) | (9,923 | ) | — | (32,495 | ) | ||||||||||||||
Non-interest expense(6) | (12,648 | ) | (3,333 | ) | (1,838 | ) | (4,813 | ) | (9,923 | ) | — | (32,555 | ) | ||||||||||||||
Core earnings before income taxes | 33,214 | 10,844 | 7,634 | 37,437 | (2,239 | ) | 10,524 | (7) | 97,414 | ||||||||||||||||||
Income tax (expense)/benefit | (11,625 | ) | (3,795 | ) | (2,671 | ) | (13,103 | ) | 1,775 | (3,684 | ) | (33,103 | ) | ||||||||||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 21,589 | 7,049 | 4,963 | 24,334 | (464 | ) | 6,840 | (7) | 64,311 | ||||||||||||||||||
Preferred stock dividends | — | — | — | — | (9,886 | ) | — | (9,886 | ) | ||||||||||||||||||
Non-controlling interest | — | — | — | — | 165 | — | 165 | ||||||||||||||||||||
Segment core earnings/(losses) | $ | 21,589 | $ | 7,049 | $ | 4,963 | $ | 24,334 | $ | (10,185 | ) | $ | 6,840 | (7) | $ | 54,590 | |||||||||||
Total assets at carrying value | $ | 4,128,778 | $ | 2,165,749 | $ | 1,073,525 | $ | 7,612,572 | $ | 2,709,614 | $ | — | $ | 17,690,238 | |||||||||||||
Total on- and off-balance sheet program assets at principal balance | $ | 6,557,030 | $ | 2,298,956 | $ | 1,886,445 | $ | 7,901,842 | — | — | $ | 18,644,273 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. |
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. |
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment. |
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread." |
(5) | Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. |
(6) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. |
(7) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. |
10. | INCOME TAXES |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | prospects for earnings; |
• | prospects for growth in business volume; |
• | trends in net interest income and net effective spread; |
• | trends in portfolio credit quality, delinquencies, substandard assets, credit losses, and provisions for losses; |
• | trends in expenses; |
• | trends in investment securities; |
• | prospects for asset impairments and allowance for losses; |
• | changes in capital position; |
• | future dividend payments; and |
• | other business and financial matters. |
• | the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms; |
• | legislative or regulatory developments that could affect Farmer Mac, its sources of business, or the agricultural or rural utilities industries; |
• | fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries; |
• | the rate and direction of development of the secondary market for agricultural mortgage and rural utilities loans, including lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac; |
• | the general rate of growth in agricultural mortgage and rural utilities indebtedness; |
• | the effect of economic conditions, including the effects of drought and other weather-related conditions and fluctuations in agricultural real estate values, on agricultural mortgage lending and borrower repayment capacity; |
• | the effect of any changes in Farmer Mac's executive leadership; |
• | developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac; |
• | changes in the level and direction of interest rates, which could, among other things, affect the value of collateral securing Farmer Mac's agricultural mortgage loan assets; |
• | the degree to which Farmer Mac is exposed to basis risk, which results from fluctuations in Farmer Mac's borrowing costs relative to market indexes such as LIBOR; and |
• | volatility in commodity prices relative to costs of production, changes in U.S. trade policies, and/or fluctuations in export demand for U.S. agricultural products. |
Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings | |||||||
For the Three Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
(in thousands, except per share amounts) | |||||||
Net income attributable to common stockholders | $ | 26,474 | $ | 18,487 | |||
Less reconciling items: | |||||||
Gains on undesignated financial derivatives due to fair value changes (see Table 8) | 3,625 | 995 | |||||
Gains on hedging activities due to fair value changes | 1,051 | 1,742 | |||||
Unrealized losses on trading securities | (3 | ) | — | ||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | (38 | ) | (954 | ) | |||
Net effects of terminations or net settlements on financial derivatives and hedging activities(1) | 546 | 862 | |||||
Income tax effect related to reconciling items | (1,088 | ) | (926 | ) | |||
Sub-total | 4,093 | 1,719 | |||||
Core earnings | $ | 22,381 | $ | 16,768 | |||
Composition of Core Earnings: | |||||||
Revenues: | |||||||
Net effective spread(2) | $ | 39,077 | $ | 35,976 | |||
Guarantee and commitment fees(3) | 5,170 | 4,935 | |||||
Other(4) | 110 | 274 | |||||
Total revenues | 44,357 | 41,185 | |||||
Credit related expense/(income)(GAAP): | |||||||
(Release of)/provision for losses | (3 | ) | 384 | ||||
Losses/(gains) on sale of REO | 41 | (32 | ) | ||||
Total credit related expenses | 38 | 352 | |||||
Operating expenses (GAAP): | |||||||
Compensation and employee benefits | 6,777 | 5,987 | |||||
General and administrative | 4,350 | 3,890 | |||||
Regulatory fees | 625 | 625 | |||||
Total operating expenses | 11,752 | 10,502 | |||||
Net earnings | 32,567 | 30,331 | |||||
Income tax expense(5) | 6,891 | 10,268 | |||||
Preferred stock dividends (GAAP) | 3,295 | 3,295 | |||||
Core earnings | $ | 22,381 | $ | 16,768 | |||
Core earnings per share: | |||||||
Basic | $ | 2.10 | $ | 1.58 | |||
Diluted | 2.08 | 1.55 | |||||
Weighted-average shares: | |||||||
Basic | 10,668 | 10,605 | |||||
Diluted | 10,744 | 10,815 |
(1) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, which is a component of core earnings, to also include the net effects of terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" and the information set forth below. |
(2) | Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 6 for a reconciliation of net interest income to net effective spread. |
(3) | Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities. |
(4) | Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives and hedging activities, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. |
(5) | Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. |
Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings | |||||||
For the Nine Months Ended | |||||||
September 30, 2018 | September 30, 2017 | ||||||
(in thousands, except per share amounts) | |||||||
Net income attributable to common stockholders | $ | 75,338 | $ | 54,590 | |||
Less reconciling items: | |||||||
Gains on undesignated financial derivatives due to fair value changes (see Table 8) | 8,055 | 10,479 | |||||
Gains/(losses) on hedging activities due to fair value changes | 5,302 | (716 | ) | ||||
Unrealized gains/(losses) on trading securities | 24 | (84 | ) | ||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | (528 | ) | (1,198 | ) | |||
Net effects of terminations or net settlements on financial derivatives and hedging activities(1) | 2,020 | 2,042 | |||||
Income tax effect related to reconciling items | (3,123 | ) | (3,683 | ) | |||
Sub-total | 11,750 | 6,840 | |||||
Core earnings | $ | 63,588 | $ | 47,750 | |||
Composition of Core Earnings: | |||||||
Revenues: | |||||||
Net effective spread(2) | $ | 112,340 | $ | 103,836 | |||
Guarantee and commitment fees(3) | 15,424 | 15,193 | |||||
Other(4) | 649 | 866 | |||||
Total revenues | 128,413 | 119,895 | |||||
Credit related expense (GAAP): | |||||||
Provision for losses | 169 | 1,294 | |||||
REO operating expenses | 16 | 23 | |||||
Loss/(gain) on sale of REO | 7 | (784 | ) | ||||
Total credit related expense | 192 | 533 | |||||
Operating expenses (GAAP): | |||||||
Compensation and employee benefits | 20,367 | 18,986 | |||||
General and administrative | 13,878 | 11,611 | |||||
Regulatory fees | 1,875 | 1,875 | |||||
Total operating expenses | 36,120 | 32,472 | |||||
Net earnings | 92,101 | 86,890 | |||||
Income tax expense(5) | 18,627 | 29,419 | |||||
Net loss attributable to non-controlling interest (GAAP) | — | (165 | ) | ||||
Preferred stock dividends (GAAP) | 9,886 | 9,886 | |||||
Core earnings | $ | 63,588 | $ | 47,750 | |||
Core earnings per share: | |||||||
Basic | $ | 5.97 | $ | 4.51 | |||
Diluted | 5.92 | 4.42 | |||||
Weighted-average shares: | |||||||
Basic | 10,650 | 10,586 | |||||
Diluted | 10,743 | 10,794 |
(1) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, which is a component of core earnings, to also include the net effects of terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" and the information set forth below. |
(2) | Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 6 for a reconciliation of net interest income to net effective spread. |
(3) | Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities. |
(4) | Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives and hedging activities, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. |
(5) | Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. |
Reconciliation of GAAP Basic Earnings Per Share to Core Earnings - Basic Earnings Per Share | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
GAAP - Basic EPS | $ | 2.48 | $ | 1.74 | $ | 7.07 | $ | 5.16 | |||||||
Less reconciling items: | |||||||||||||||
Gains on undesignated financial derivatives due to fair value changes (see Table 8) | 0.34 | 0.09 | 0.76 | 0.99 | |||||||||||
Gains/(losses) on hedging activities due to fair value changes | 0.10 | 0.17 | 0.50 | (0.07 | ) | ||||||||||
Unrealized gains/(losses) on trading securities | — | — | — | (0.01 | ) | ||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | (0.09 | ) | (0.05 | ) | (0.11 | ) | ||||||||
Net effects of terminations or net settlements on financial derivatives and hedging activities | 0.05 | 0.08 | 0.19 | 0.20 | |||||||||||
Income tax effect related to reconciling items | (0.11 | ) | (0.09 | ) | (0.30 | ) | (0.35 | ) | |||||||
Sub-total | 0.38 | 0.16 | 1.10 | 0.65 | |||||||||||
Core Earnings - Basic EPS | $ | 2.10 | $ | 1.58 | $ | 5.97 | $ | 4.51 | |||||||
Shares used in per share calculation (GAAP and Core Earnings) | 10,668 | 10,605 | 10,650 | 10,586 |
Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings - Diluted Earnings Per Share | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
GAAP - Diluted EPS | $ | 2.46 | $ | 1.71 | $ | 7.01 | $ | 5.06 | |||||||
Less reconciling items: | |||||||||||||||
Gains on undesignated financial derivatives due to fair value changes (see Table 8) | 0.33 | 0.09 | 0.75 | 0.97 | |||||||||||
Gains/(losses) on hedging activities due to fair value changes | 0.10 | 0.17 | 0.49 | (0.06 | ) | ||||||||||
Unrealized gains/(losses) on trading securities | — | — | — | (0.01 | ) | ||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | — | (0.09 | ) | (0.05 | ) | (0.11 | ) | ||||||||
Net effects of terminations or net settlements on financial derivatives and hedging activities | 0.05 | 0.08 | 0.19 | 0.19 | |||||||||||
Income tax effect related to reconciling items | (0.10 | ) | (0.09 | ) | (0.29 | ) | (0.34 | ) | |||||||
Sub-total | 0.38 | 0.16 | 1.09 | 0.64 | |||||||||||
Core Earnings - Diluted EPS | $ | 2.08 | $ | 1.55 | $ | 5.92 | $ | 4.42 | |||||||
Shares used in per share calculation (GAAP and Core Earnings) | 10,744 | 10,815 | 10,743 | 10,794 |
Non-GAAP Reconciling Items for Gains/(Losses) on Hedging Activities due to Fair Value Changes | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Gains/(losses) due to fair value changes (see Table 4.2) | 1,051 | 1,742 | 5,751 | (716 | ) | ||||||||||
Initial cash payment received at inception of swap(1) | — | — | (449 | ) | — | ||||||||||
Gains/(losses) on hedging activities due to fair value changes | $ | 1,051 | $ | 1,742 | $ | 5,302 | $ | (716 | ) |
(1) | Relates to initial cash payments received at the inception of a swap designated in a fair value hedge. These initial cash payments were previously recognized in "Gains/(losses) on financial derivatives and hedging activities" in the statement of operations. Upon adoption of ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," for financial derivatives designated in fair value hedge relationships, the changes in the fair values of the derivative and the associated hedged item are recorded within net interest income. For core earnings purposes, these initial cash payments are deferred and amortized as net yield adjustments over the term of the related debt. |
• | Forward contracts on the debt of other GSEs and futures contracts on U.S. Treasury securities. These contracts are used as a short-term economic hedge of the issuance of debt. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the consolidated statements of operations in the period in which they occur. For core earnings purposes, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years. |
• | Initial cash payments received by Farmer Mac upon the inception of certain swaps. When there is no direct payment arrangement between a swap dealer counterparty and a debt dealer issuing Farmer Mac's medium-term notes for a particular transaction, Farmer Mac may receive an initial cash payment from the swap dealer at the inception of the swap to offset dollar-for-dollar the |
For the Nine Months Ended | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | ||||||||||||||||||||
Average Balance | Income/ Expense | Average Rate | Average Balance | Income/ Expense | Average Rate | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Cash and investments | $ | 2,750,402 | $ | 38,681 | 1.88 | % | $ | 2,746,902 | $ | 24,834 | 1.21 | % | |||||||||
Loans, Farmer Mac Guaranteed Securities and USDA Securities(1) | 13,889,468 | 319,040 | 3.06 | % | 12,496,888 | 231,852 | 2.47 | % | |||||||||||||
Total interest-earning assets | 16,639,870 | 357,721 | 2.87 | % | 15,243,790 | 256,686 | 2.25 | % | |||||||||||||
Funding: | |||||||||||||||||||||
Notes payable due within one year | 3,521,125 | 44,990 | 1.70 | % | 5,409,742 | 36,526 | 0.90 | % | |||||||||||||
Notes payable due after one year(2) | 12,399,858 | 185,464 | 1.99 | % | 9,205,917 | 108,359 | 1.57 | % | |||||||||||||
Total interest-bearing liabilities(3) | 15,920,983 | 230,454 | 1.93 | % | 14,615,659 | 144,885 | 1.32 | % | |||||||||||||
Net non-interest-bearing funding | 718,887 | — | 628,131 | — | |||||||||||||||||
Total funding | 16,639,870 | 230,454 | 1.85 | % | 15,243,790 | 144,885 | 1.27 | % | |||||||||||||
Net interest income/yield prior to consolidation of certain trusts | 16,639,870 | 127,267 | 1.02 | % | 15,243,790 | 111,801 | 0.98 | % | |||||||||||||
Net effect of consolidated trusts(4) | 1,427,560 | 4,953 | 0.46 | % | 1,211,419 | 4,563 | 0.50 | % | |||||||||||||
Net interest income/yield | $ | 18,067,430 | $ | 132,220 | 0.98 | % | $ | 16,455,209 | $ | 116,364 | 0.94 | % |
(1) | Excludes interest income of $40.1 million and $32.5 million in the first nine months of 2018 and 2017, respectively, related to consolidated trusts with beneficial interests owned by third parties. |
(2) | Includes current portion of long-term notes. |
(3) | Excludes interest expense of $35.2 million and $27.9 million in the first nine months of 2018 and 2017, respectively, related to consolidated trusts with beneficial interests owned by third parties. |
(4) | Includes the effect of consolidated trusts with beneficial interests owned by third parties. |
For the Nine Months Ended September 30, 2018 Compared to Same Period in 2017 | |||||||||||
Increase/(Decrease) Due to | |||||||||||
Rate | Volume | Total | |||||||||
(in thousands) | |||||||||||
Income from interest-earning assets: | |||||||||||
Cash and investments | $ | 13,815 | $ | 32 | $ | 13,847 | |||||
Loans, Farmer Mac Guaranteed Securities and USDA Securities | 59,391 | 27,797 | 87,188 | ||||||||
Total | 73,206 | 27,829 | 101,035 | ||||||||
Expense from other interest-bearing liabilities | 71,662 | 13,907 | 85,569 | ||||||||
Change in net interest income prior to consolidation of certain trusts(1) | $ | 1,544 | $ | 13,922 | $ | 15,466 |
(1) | Excludes the effect of debt in consolidated trusts with beneficial interests owned by third parties. |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||||||||||||||
Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||
Net interest income/yield | $ | 45,058 | 0.99 | % | $ | 39,562 | 0.92 | % | $ | 132,220 | 0.98 | % | $ | 116,364 | 0.94 | % | |||||||||||
Net effects of consolidated trusts | (1,681 | ) | 0.05 | % | (1,621 | ) | 0.04 | % | (4,953 | ) | 0.04 | % | (4,563 | ) | 0.04 | % | |||||||||||
Expense related to undesignated financial derivatives | (3,223 | ) | (0.08 | )% | (2,675 | ) | (0.07 | )% | (9,523 | ) | (0.08 | )% | (8,317 | ) | (0.07 | )% | |||||||||||
Amortization of premiums/discounts on assets consolidated at fair value | 49 | — | % | 961 | 0.03 | % | 555 | 0.01 | % | 1,219 | 0.01 | % | |||||||||||||||
Amortization of losses due to terminations or net settlements on financial derivatives and hedging activities | (75 | ) | — | % | (251 | ) | (0.01 | )% | (207 | ) | — | % | (867 | ) | (0.01 | )% | |||||||||||
Fair value changes on fair value hedge relationships | (1,051 | ) | (0.03 | )% | — | — | % | $ | (5,752 | ) | (0.05 | )% | $ | — | — | % | |||||||||||
Net effective spread | $ | 39,077 | 0.93 | % | $ | 35,976 | 0.91 | % | $ | 112,340 | 0.90 | % | $ | 103,836 | 0.91 | % |
As of September 30, 2018 | As of September 30, 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) | |||||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||||
Beginning Balance | $ | 6,789 | $ | 2,249 | $ | 9,038 | $ | 6,138 | $ | 1,966 | $ | 8,104 | |||||||||||
Provision for/(release of) losses | 99 | (102 | ) | (3 | ) | 270 | 114 | 384 | |||||||||||||||
Charge-offs | (17 | ) | — | (17 | ) | — | — | — | |||||||||||||||
Ending Balance | $ | 6,871 | $ | 2,147 | $ | 9,018 | $ | 6,408 | $ | 2,080 | $ | 8,488 | |||||||||||
For the Nine Months Ended: | |||||||||||||||||||||||
Beginning Balance | $ | 6,796 | $ | 2,070 | $ | 8,866 | $ | 5,415 | $ | 2,020 | $ | 7,435 | |||||||||||
Provision for losses | 92 | $ | 77 | $ | 169 | 1,234 | 60 | 1,294 | |||||||||||||||
Charge-offs | (17 | ) | $ | — | $ | (17 | ) | (241 | ) | — | (241 | ) | |||||||||||
Ending Balance | $ | 6,871 | $ | 2,147 | $ | 9,018 | $ | 6,408 | $ | 2,080 | $ | 8,488 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Fair value hedges: | |||||||||||||||
(Losses)/gains due to fair value changes: | |||||||||||||||
Financial derivatives(2) | $ | — | $ | 1,576 | $ | (5,466 | ) | ||||||||
Hedged items | — | 166 | 4,750 | ||||||||||||
(Losses)/gains on fair value hedging activities | — | 1,742 | — | (716 | ) | ||||||||||
Cash flow hedges: | |||||||||||||||
Loss recognized (ineffective portion) | — | (191 | ) | (365 | ) | ||||||||||
Losses on cash flow hedges | — | (191 | ) | (365 | ) | ||||||||||
No hedge designation: | |||||||||||||||
(Losses)/Gains due to fair value changes | 3,624 | 995 | 8,055 | 10,479 | |||||||||||
Accrual of contractual payments | (3,224 | ) | (2,484 | ) | (9,524 | ) | (7,952 | ) | |||||||
Gains/(losses) due to terminations or net settlements | 228 | 599 | 781 | 1,084 | |||||||||||
(Losses)/gains on financial derivatives not designated in hedging relationships | 628 | (890 | ) | (688 | ) | 3,611 | |||||||||
(Losses)/gains on financial derivatives and hedging activities | $ | 628 | $ | 661 | $ | (688 | ) | $ | 2,530 |
(1) | Effective in first quarter 2018, Farmer Mac adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." For financial derivatives designated in fair value hedge relationships, changes in the fair values of the derivative and the associated hedged item are recorded within net interest income. For financial derivatives designated in cash flow hedge relationships, changes in the fair values of the derivative and the associated hedged item are recorded within accumulated other comprehensive income and reclassified to net interest income when the hedged item impacts earnings. |
(2) | Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million and gains of $0.7 million for the three and nine months ended September 30, 2017, respectively, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for the three and nine months ended September 30, 2017 were gains of $0.1 million and losses of zero, respectively. |
• | purchased $786.0 million of AgVantage securities; |
• | renewed a $300.0 million revolving floating rate AgVantage facility; |
• | purchased $192.6 million of newly originated Farm & Ranch loans; |
• | purchased $90.0 million of USDA Securities; |
• | added $64.1 million of Farm & Ranch loans under LTSPCs; and |
• | issued $26.3 million of Farmer Mac Guaranteed USDA Securities. |
New Business Volume – Farmer Mac Loan Purchases, Guarantees, LTSPCs, and AgVantage Securities | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Farm & Ranch: | |||||||||||||||
Loans | $ | 192,628 | $ | 298,274 | $ | 675,840 | $ | 924,628 | |||||||
LTSPCs | 64,100 | 102,774 | 349,231 | 271,934 | |||||||||||
USDA Guarantees: | |||||||||||||||
USDA Securities | 90,018 | 90,229 | 264,196 | 298,539 | |||||||||||
Farmer Mac Guaranteed USDA Securities | 26,321 | 41,069 | 105,628 | 133,121 | |||||||||||
Rural Utilities: | |||||||||||||||
Loans | — | 70,000 | 8,645 | 122,341 | |||||||||||
Institutional Credit: | |||||||||||||||
AgVantage securities | 785,953 | 290,995 | 2,424,493 | 2,149,159 | |||||||||||
AgVantage revolving line of credit facility | 300,000 | — | 300,000 | — | |||||||||||
Total purchases, guarantees, LTSPCs, and AgVantage securities | $ | 1,459,020 | $ | 893,341 | $ | 4,128,033 | $ | 3,899,722 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Loans securitized and sold as Farm & Ranch Guaranteed Securities | $ | 82,781 | $ | 115,427 | $ | 199,764 | $ | 277,307 | |||||||
Farmer Mac Guaranteed USDA Securities | 26,321 | 41,069 | 105,628 | 127,164 | |||||||||||
AgVantage securities | 785,953 | 290,995 | 2,424,493 | 2,149,159 | |||||||||||
Total Farmer Mac Guaranteed Securities issuances | $ | 895,055 | $ | 447,491 | $ | 2,729,885 | $ | 2,553,630 |
Lines of Business - Outstanding Business Volume | |||||||
As of September 30, 2018 | As of December 31, 2017 | ||||||
(in thousands) | |||||||
On-balance sheet: | |||||||
Farm & Ranch: | |||||||
Loans | $ | 2,937,484 | $ | 2,798,906 | |||
Loans held in trusts: | |||||||
Beneficial interests owned by third party investors | 1,483,135 | 1,399,827 | |||||
USDA Guarantees: | |||||||
USDA Securities | 2,096,700 | 2,068,017 | |||||
Farmer Mac Guaranteed USDA Securities | 27,861 | 29,980 | |||||
Rural Utilities: | |||||||
Loans | 962,702 | 1,076,291 | |||||
Institutional Credit: | |||||||
AgVantage securities | 8,053,724 | 7,593,322 | |||||
Total on-balance sheet | $ | 15,561,606 | $ | 14,966,343 | |||
Off-balance sheet: | |||||||
Farm & Ranch: | |||||||
LTSPCs | $ | 2,363,805 | $ | 2,335,342 | |||
Guaranteed Securities | 287,594 | 333,511 | |||||
USDA Guarantees: | |||||||
Farmer Mac Guaranteed USDA Securities | 346,690 | 254,217 | |||||
Rural Utilities: | |||||||
LTSPCs(1) | 669,335 | 806,342 | |||||
Institutional Credit: | |||||||
AgVantage securities | 11,556 | 11,556 | |||||
Revolving floating rate AgVantage facility(2) | 300,000 | 300,000 | |||||
Total off-balance sheet | $ | 3,978,980 | $ | 4,040,968 | |||
Total | $ | 19,540,586 | $ | 19,007,311 |
(1) | Includes $20.0 million related to one-year loan purchase commitments on which Farmer Mac receives a nominal unused commitment fee as of both September 30, 2018 and December 31, 2017. |
(2) | During the first nine months of 2018, $100.0 million of this facility was drawn and subsequently repaid. During 2017, $100.0 million of this facility was drawn and subsequently repaid. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. If the counterparty draws on the facility, the amounts drawn will be in the form of AgVantage securities, and Farmer Mac will earn interest income on those securities. |
Schedule of Principal Amortization as of September 30, 2018 | |||||||||||||||
Loans Held | Loans Underlying Off-Balance Sheet Farmer Mac Guaranteed Securities and LTSPCs | USDA Securities and Farmer Mac Guaranteed USDA Securities | Total | ||||||||||||
(in thousands) | |||||||||||||||
2018 | 51,715 | 57,751 | 25,722 | 135,188 | |||||||||||
2019 | 219,777 | 267,446 | 109,758 | 596,981 | |||||||||||
2020 | 240,173 | 238,144 | 107,449 | 585,766 | |||||||||||
2021 | 249,110 | 270,939 | 111,138 | 631,187 | |||||||||||
2022 | 216,044 | 208,781 | 114,561 | 539,386 | |||||||||||
Thereafter | 4,406,501 | 2,277,675 | 2,002,622 | 8,686,798 | |||||||||||
Total | $ | 5,383,320 | $ | 3,320,736 | $ | 2,471,250 | $ | 11,175,306 |
AgVantage Balances by Year of Maturity | |||
As of | |||
September 30, 2018 | |||
(in thousands) | |||
2018 | 520,919 | ||
2019 | 1,437,279 | ||
2020 | 1,320,758 | ||
2021 | 1,414,262 | ||
2022 | 909,278 | ||
Thereafter(1)(2) | 2,762,784 | ||
Total | $ | 8,365,280 |
(1) | Includes the expiration of the $300.0 million revolving floating rate AgVantage facility. |
(2) | Includes various maturities ranging from 2023 to 2044. |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Defaulted loans purchased underlying Farm & Ranch Guaranteed Securities owned by third party investors | $ | 5,552 | $ | 3,043 | $ | 6,273 | $ | 3,147 | |||||||
Defaulted loans purchased underlying LTSPCs | 1,483 | — | 1,483 | 311 | |||||||||||
Total loan purchases | $ | 7,035 | $ | 3,043 | $ | 7,756 | $ | 3,458 |
• | As agricultural and rural utilities lenders seek to manage equity capital requirements under regulatory frameworks or seek to reduce exposure due to lending limits or concentration limits, Farmer Mac can provide relief for those institutions through loan purchases, guarantees, LTSPCs, or wholesale funding. |
• | Prospects for loan growth within the rural utilities industry appear to be modest in the near term due to generally flat demand for capital. Future growth opportunities for Farmer Mac related to this industry through its Rural Utilities and Institutional Credit lines of business may be impacted by sector growth, credit quality, and the competitiveness of Farmer Mac's AgVantage product. |
• | As a result of targeted marketing and brand awareness initiatives, product development efforts, and continued interest in the agricultural asset class from institutional investors, Farmer Mac's customer base continues to expand, which may generate additional demand for Farmer Mac's products from new sources. |
• | Consolidation, expansion, and vertical integration occurring across many sectors of the agricultural industry and in agricultural finance, coupled with Farmer Mac's relationships with larger regional and national lenders, continues to provide opportunities that could influence Farmer Mac's loan demand and the average transaction size within Farmer Mac's Farm & Ranch line of business. |
• | loans held; |
• | loans underlying Farmer Mac Guaranteed Securities; and |
• | loans underlying LTSPCs. |
As of September 30, 2018 | As of September 30, 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) | |||||||||||||||||||||||
For the Three Months Ended: | |||||||||||||||||||||||
Beginning Balance | $ | 6,789 | $ | 2,249 | $ | 9,038 | $ | 6,138 | $ | 1,966 | $ | 8,104 | |||||||||||
Provision for losses | 99 | (102 | ) | (3 | ) | 270 | 114 | 384 | |||||||||||||||
Charge-offs | (17 | ) | — | (17 | ) | — | — | — | |||||||||||||||
Ending Balance | $ | 6,871 | $ | 2,147 | $ | 9,018 | $ | 6,408 | $ | 2,080 | $ | 8,488 | |||||||||||
For the Nine Months Ended: | |||||||||||||||||||||||
Beginning Balance | $ | 6,796 | $ | 2,070 | $ | 8,866 | $ | 5,415 | $ | 2,020 | $ | 7,435 | |||||||||||
Provision for losses | 92 | 77 | 169 | 1,234 | 60 | 1,294 | |||||||||||||||||
Charge-offs | (17 | ) | — | (17 | ) | (241 | ) | — | (241 | ) | |||||||||||||
Ending Balance | $ | 6,871 | $ | 2,147 | $ | 9,018 | $ | 6,408 | $ | 2,080 | $ | 8,488 |
Farm & Ranch Line of Business | 90-Day Delinquencies | Percentage | ||||||||
(dollars in thousands) | ||||||||||
As of: | ||||||||||
September 30, 2018 | $ | 7,072,018 | $ | 37,545 | 0.53 | % | ||||
June 30, 2018 | 7,045,397 | 43,076 | 0.61 | % | ||||||
March 31, 2018 | 6,932,002 | 47,560 | 0.69 | % | ||||||
December 31, 2017 | 6,867,586 | 48,444 | 0.71 | % | ||||||
September 30, 2017 | 6,557,030 | 66,381 | 1.01 | % | ||||||
June 30, 2017 | 6,426,518 | 41,901 | 0.65 | % | ||||||
March 31, 2017 | 6,240,467 | 50,807 | 0.81 | % | ||||||
December 31, 2016 | 6,139,304 | 21,038 | 0.34 | % | ||||||
September 30, 2016 | 6,004,728 | 18,377 | 0.31 | % |
Farm & Ranch 90-Day Delinquencies as of September 30, 2018 | |||||||||||||
Distribution of Farm & Ranch Line of Business | Farm & Ranch Line of Business | 90-Day Delinquencies(1) | Percentage | ||||||||||
(dollars in thousands) | |||||||||||||
By year of origination: | |||||||||||||
2008 and prior | 11 | % | 790,898 | 8,548 | 1.08 | % | |||||||
2009 | 1 | % | 95,465 | 477 | 0.50 | % | |||||||
2010 | 2 | % | 152,089 | — | — | % | |||||||
2011 | 3 | % | 225,295 | 914 | 0.41 | % | |||||||
2012 | 8 | % | 532,747 | 1,955 | 0.37 | % | |||||||
2013 | 11 | % | 759,516 | 4,018 | 0.53 | % | |||||||
2014 | 8 | % | 597,238 | 3,075 | 0.51 | % | |||||||
2015 | 11 | % | 768,477 | 391 | 0.05 | % | |||||||
2016 | 16 | % | 1,123,758 | 8,663 | 0.77 | % | |||||||
2017 | 19 | % | 1,306,981 | 9,504 | 0.73 | % | |||||||
2018 | 10 | % | 719,554 | — | — | % | |||||||
Total | 100 | % | $ | 7,072,018 | $ | 37,545 | 0.53 | % | |||||
By geographic region(2): | |||||||||||||
Northwest | 12 | % | $ | 815,346 | $ | 12,659 | 1.55 | % | |||||
Southwest | 31 | % | 2,198,744 | 12,065 | 0.55 | % | |||||||
Mid-North | 32 | % | 2,276,100 | 7,373 | 0.32 | % | |||||||
Mid-South | 12 | % | 876,960 | 3,274 | 0.37 | % | |||||||
Northeast | 5 | % | 315,685 | 1,487 | 0.47 | % | |||||||
Southeast | 8 | % | 589,183 | 687 | 0.12 | % | |||||||
Total | 100 | % | $ | 7,072,018 | $ | 37,545 | 0.53 | % | |||||
By commodity/collateral type: | |||||||||||||
Crops | 53 | % | $ | 3,746,077 | $ | 16,989 | 0.45 | % | |||||
Permanent plantings | 20 | % | 1,400,976 | 9,340 | 0.67 | % | |||||||
Livestock | 19 | % | 1,353,141 | 6,763 | 0.50 | % | |||||||
Part-time farm | 7 | % | 484,227 | 4,453 | 0.92 | % | |||||||
Ag. Storage and Processing | 1 | % | 79,475 | — | — | % | |||||||
Other | — | 8,122 | — | — | % | ||||||||
Total | 100 | % | $ | 7,072,018 | $ | 37,545 | 0.53 | % | |||||
By original loan-to-value ratio(3): | |||||||||||||
0.00% to 40.00% | 19 | % | $ | 1,317,118 | $ | 4,607 | 0.35 | % | |||||
40.01% to 50.00% | 25 | % | 1,769,124 | 11,794 | 0.67 | % | |||||||
50.01% to 60.00% | 35 | % | 2,456,766 | 16,074 | 0.65 | % | |||||||
60.01% to 70.00% | 17 | % | 1,227,092 | 3,809 | 0.31 | % | |||||||
70.01% to 80.00%(4) | 4 | % | 277,204 | 960 | 0.35 | % | |||||||
80.01% to 90.00%(4) | — | % | 24,714 | 301 | 1.22 | % | |||||||
Total | 100 | % | $ | 7,072,018 | $ | 37,545 | 0.53 | % | |||||
By size of borrower exposure(5): | |||||||||||||
Less than $1,000,000 | 34 | % | $ | 2,423,394 | $ | 13,862 | 0.57 | % | |||||
$1,000,000 to $4,999,999 | 38 | % | 2,696,431 | 23,683 | 0.88 | % | |||||||
$5,000,000 to $9,999,999 | 13 | % | 917,198 | — | — | % | |||||||
$10,000,000 to $24,999,999 | 8 | % | 587,618 | — | — | % | |||||||
$25,000,000 to $50,000,000 | 7 | % | 447,377 | — | — | % | |||||||
Total | 100 | % | $ | 7,072,018 | $ | 37,545 | 0.53 | % |
(1) | Includes loans held 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. |
(2) | 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). |
(3) | 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, set forth as follows: (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. |
(4) | Primarily part-time farm loans. Loans with an original loan-to-value ratio of greater than 80% are required to have private mortgage insurance. |
(5) | Includes aggregated loans to single borrowers or borrower-related entities. |
Farm & Ranch Credit Losses Relative to Cumulative | ||||||||||
Original Loans, Guarantees, and LTSPCs as of September 30, 2018 | ||||||||||
Cumulative Original Loans, Guarantees and LTSPCs | Cumulative Net Credit Losses/(Recoveries) | Cumulative Loss Rate | ||||||||
(dollars in thousands) | ||||||||||
By year of origination: | ||||||||||
2008 and prior | 14,974,346 | 28,538 | 0.19 | % | ||||||
2009 | 579,665 | 1,544 | 0.27 | % | ||||||
2010 | 663,870 | 5 | — | % | ||||||
2011 | 785,554 | 3,661 | 0.47 | % | ||||||
2012 | 1,158,941 | — | — | % | ||||||
2013 | 1,423,735 | — | — | % | ||||||
2014 | 980,965 | — | — | % | ||||||
2015 | 1,104,579 | (540 | ) | (0.05 | )% | |||||
2016 | 1,404,299 | — | — | % | ||||||
2017 | 1,482,209 | — | — | % | ||||||
2018 | 776,090 | — | — | % | ||||||
Total | $ | 25,334,253 | $ | 33,208 | 0.13 | % | ||||
By geographic region(1): | ||||||||||
Northwest | $ | 3,245,378 | $ | 11,191 | 0.34 | % | ||||
Southwest | 8,840,676 | 8,167 | 0.09 | % | ||||||
Mid-North | 6,239,007 | 12,830 | 0.21 | % | ||||||
Mid-South | 2,930,849 | (211 | ) | (0.01 | )% | |||||
Northeast | 1,780,211 | 259 | 0.01 | % | ||||||
Southeast | 2,298,132 | 972 | 0.04 | % | ||||||
Total | $ | 25,334,253 | $ | 33,208 | 0.13 | % | ||||
By commodity/collateral type: | ||||||||||
Crops | $ | 11,416,270 | $ | 2,887 | 0.03 | % | ||||
Permanent plantings | 5,369,875 | 9,368 | 0.17 | % | ||||||
Livestock | 6,055,966 | 3,877 | 0.06 | % | ||||||
Part-time farm | 1,550,443 | 1,403 | 0.09 | % | ||||||
Ag. Storage and Processing | 783,908 | 15,673 | 2.00 | % | ||||||
Other | 157,791 | — | — | % | ||||||
Total | $ | 25,334,253 | $ | 33,208 | 0.13 | % |
(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). |
As of September 30, 2018 | |||||||||||||||||||||||||||
Farm & Ranch Concentrations by Commodity Type within Geographic Region | |||||||||||||||||||||||||||
Crops | Permanent Plantings | Livestock | Part-time Farm | Ag. Storage and Processing | Other | Total | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||
By geographic region(1): | |||||||||||||||||||||||||||
Northwest | $ | 401,675 | $ | 102,187 | $ | 240,728 | $ | 70,353 | $ | — | $ | 403 | $ | 815,346 | |||||||||||||
5.7 | % | 1.4 | % | 3.4 | % | 1.0 | % | — | % | — | % | 11.5 | % | ||||||||||||||
Southwest | 534,570 | 1,089,010 | 439,515 | 81,284 | 50,292 | 4,073 | 2,198,744 | ||||||||||||||||||||
7.6 | % | 15.4 | % | 6.2 | % | 1.1 | % | 0.7 | % | 0.1 | % | 31.1 | % | ||||||||||||||
Mid-North | 1,932,370 | 16,948 | 188,220 | 126,823 | 8,943 | 2,796 | 2,276,100 | ||||||||||||||||||||
27.3 | % | 0.3 | % | 2.7 | % | 1.8 | % | 0.1 | % | — | % | 32.2 | % | ||||||||||||||
Mid-South | 533,204 | 8,094 | 264,086 | 62,458 | 8,661 | 457 | 876,960 | ||||||||||||||||||||
7.5 | % | 0.1 | % | 3.7 | % | 0.9 | % | 0.1 | % | — | % | 12.3 | % | ||||||||||||||
Northeast | 153,233 | 22,450 | 60,545 | 74,879 | 4,578 | — | 315,685 | ||||||||||||||||||||
2.2 | % | 0.3 | % | 0.9 | % | 1.1 | % | 0.1 | % | — | % | 4.6 | % | ||||||||||||||
Southeast | 191,025 | 162,287 | 160,047 | 68,430 | 7,001 | 393 | 589,183 | ||||||||||||||||||||
2.7 | % | 2.3 | % | 2.3 | % | 0.9 | % | 0.1 | % | — | % | 8.3 | % | ||||||||||||||
Total | $ | 3,746,077 | $ | 1,400,976 | $ | 1,353,141 | $ | 484,227 | $ | 79,475 | $ | 8,122 | $ | 7,072,018 | |||||||||||||
53.0 | % | 19.8 | % | 19.2 | % | 6.8 | % | 1.1 | % | 0.1 | % | 100.0 | % |
(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). |
As of September 30, 2018 | |||||||||||||||||||||||
Farm & Ranch Cumulative Credit Losses by Origination Year and Commodity Type | |||||||||||||||||||||||
Crops | Permanent Plantings | Livestock | Part-time Farm | Ag. Storage and Processing | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
By year of origination: | |||||||||||||||||||||||
2008 and Prior | $ | 3,329 | $ | 9,184 | $ | 3,803 | $ | 1,403 | $ | 10,819 | $ | 28,538 | |||||||||||
2009 | 98 | 184 | 69 | — | 1,193 | 1,544 | |||||||||||||||||
2010 | — | — | 5 | — | — | 5 | |||||||||||||||||
2011 | — | — | — | — | 3,661 | 3,661 | |||||||||||||||||
2012 | — | — | — | — | — | — | |||||||||||||||||
2013 | — | — | — | — | — | — | |||||||||||||||||
2014 | — | — | — | — | — | — | |||||||||||||||||
2015 | (540 | ) | — | — | — | — | (540 | ) | |||||||||||||||
2016 | — | — | — | — | — | — | |||||||||||||||||
2017 | — | — | — | — | — | — | |||||||||||||||||
2018 | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 2,887 | $ | 9,368 | $ | 3,877 | $ | 1,403 | $ | 15,673 | $ | 33,208 |
• | issuers of AgVantage securities; |
• | approved lenders and servicers; and |
• | interest rate swap counterparties. |
As of September 30, 2018 | As of December 31, 2017 | |||||||||||||||
Counterparty | Balance | Credit Rating | Required Collateralization | Balance | Credit Rating | Required Collateralization | ||||||||||
(dollars in thousands) | ||||||||||||||||
AgVantage: | ||||||||||||||||
MetLife | $ | 2,550,000 | AA- | 103% | $ | 2,550,000 | AA- | 103% | ||||||||
CFC(1) | 3,086,187 | A | 100% | 2,800,188 | A | 100% | ||||||||||
Rabo AgriFinance | 2,075,000 | None | 110% | 2,075,000 | None | 106% | ||||||||||
Other(2) | 374,303 | (3) | 106% to 125% | 199,959 | (3) | 106% to 125% | ||||||||||
Farm Equity AgVantage(4) | 279,790 | None | 110% | 279,731 | None | 110% | ||||||||||
Total outstanding | $ | 8,365,280 | $ | 7,904,878 |
(1) | Includes $300.0 million related to a revolving floating rate AgVantage facility. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. |
(2) | Consists of AgVantage securities issued by 6 different issuers as of both September 30, 2018 and December 31, 2017. |
(3) | Consists of AgVantage securities from 6 different issuers without a credit rating as of both September 30, 2018 and December 31, 2017. |
(4) | Consists of AgVantage securities from 5 different issuers as of both September 30, 2018 and December 31, 2017. |
• | purchasing assets in the ordinary course of business; |
• | refinancing existing liabilities; or |
• | using financial derivatives to alter the characteristics of existing assets or liabilities. |
Percentage Change in MVE from Base Case | ||||||
Interest Rate Scenario | As of September 30, 2018 | As of December 31, 2017 | ||||
+100 basis points | (1.6 | )% | (1.1 | )% | ||
-100 basis points | (2.7 | )% | (5.4 | )% |
Percentage Change in NES from Base Case | ||||||
Interest Rate Scenario | As of September 30, 2018 | As of December 31, 2017 | ||||
+100 basis points | 5.2 | % | 4.4 | % | ||
-100 basis points | (5.8 | )% | (3.7 | )% |
• | "pay-fixed" interest rate swaps, in which Farmer Mac pays fixed rates of interest to, and receives floating rates of interest from, counterparties; |
• | "receive-fixed" interest rate swaps, in which Farmer Mac receives fixed rates of interest from, and pays floating rates of interest to, counterparties; and |
• | "basis swaps," in which Farmer Mac pays variable rates of interest based on one index to, and receives variable rates of interest based on another index from, counterparties. |
• | issuing short-term discount notes with maturities that match the reset period of the assets; |
• | issuing floating rate medium-term notes with maturities that match the maturities of the assets; |
• | issuing non-maturity matched, floating rate medium-term notes; or |
• | issuing non-maturity matched, fixed-rate discount notes or medium-term notes swapped to match the interest rate reset dates of the assets as an alternative source of effectively floating rate funding. |
As of September 30, 2018 | As of December 31, 2017 | ||||||
(in thousands) | |||||||
Cash and cash equivalents | $ | 436,152 | $ | 302,022 | |||
Investment securities: | |||||||
Guaranteed by U.S. Government and its agencies | 1,299,903 | 1,331,490 | |||||
Guaranteed by GSEs | 935,633 | 893,843 | |||||
Asset-backed securities | 33,498 | 35,104 | |||||
Total | $ | 2,705,186 | $ | 2,562,459 |
• | $0.3672 per share on its 5.875% Non-Cumulative Preferred Stock, Series A; |
• | $0.4297 per share on its 6.875% Non-Cumulative Preferred Stock, Series B; and |
• | $0.3750 per share on its 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C. |
New Business Volume | |||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | ||||||||||||||||||||||||
Loans | LTSPCs | USDA Securities | Loans | LTSPCs | AgVantage | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
For the quarter ended: | |||||||||||||||||||||||||||
September 30, 2018 | $ | 192,628 | $ | 64,100 | $ | 116,339 | $ | — | $ | — | $ | 1,085,953 | $ | 1,459,020 | |||||||||||||
June 30, 2018 | 224,101 | 126,066 | 129,960 | — | — | 825,203 | 1,305,330 | ||||||||||||||||||||
March 31, 2018 | 259,111 | 159,065 | 123,525 | 8,645 | — | 813,337 | 1,363,683 | ||||||||||||||||||||
December 31, 2017 | 204,917 | 282,809 | 100,024 | 15,000 | — | 234,753 | 837,503 | ||||||||||||||||||||
September 30, 2017 | 298,274 | 102,774 | 131,298 | 70,000 | — | 290,995 | 893,341 | ||||||||||||||||||||
June 30, 2017 | 312,217 | 55,899 | 169,261 | 25,000 | — | 1,296,757 | 1,859,134 | ||||||||||||||||||||
March 31, 2017 | 314,137 | 113,261 | 131,101 | 27,341 | — | 561,407 | 1,147,247 | ||||||||||||||||||||
December 31, 2016 | 243,692 | 117,265 | 129,343 | 10,800 | 20,000 | 247,154 | 768,254 | ||||||||||||||||||||
September 30, 2016 | 282,690 | 155,657 | 119,201 | 20,000 | — | 528,234 | 1,105,782 | ||||||||||||||||||||
For the year ended: | |||||||||||||||||||||||||||
December 31, 2017 | 1,129,545 | 554,743 | 531,684 | 137,341 | — | 2,383,912 | 4,737,225 | ||||||||||||||||||||
December 31, 2016 | 966,023 | 399,095 | 481,257 | 50,491 | 441,404 | 2,098,852 | 4,437,122 |
Repayments of Assets by Line of Business | |||||||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | ||||||||||||||||||||||||||||
Loans | Guaranteed Securities | LTSPCs | USDA Securities | Loans | LTSPCs | AgVantage | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
For the quarter ended: | |||||||||||||||||||||||||||||||
Scheduled | $ | 73,476 | $ | 3,556 | $ | 21,742 | $ | 28,135 | $ | 25,640 | $ | 8,286 | $ | 1,112,558 | $ | 1,273,393 | |||||||||||||||
Unscheduled | 77,492 | 6,683 | 47,159 | 35,068 | 3,476 | — | — | 169,878 | |||||||||||||||||||||||
September 30, 2018 | $ | 150,968 | $ | 10,239 | $ | 68,901 | $ | 63,203 | $ | 29,116 | $ | 8,286 | $ | 1,112,558 | $ | 1,443,271 | |||||||||||||||
Scheduled | $ | 33,075 | $ | 8,391 | $ | 31,067 | $ | 36,983 | $ | 353 | $ | 8,699 | $ | 759,223 | $ | 877,791 | |||||||||||||||
Unscheduled | 86,426 | 8,273 | 69,539 | 66,601 | 51,306 | — | — | 282,145 | |||||||||||||||||||||||
June 30, 2018 | $ | 119,501 | $ | 16,664 | $ | 100,606 | $ | 103,584 | $ | 51,659 | $ | 8,699 | $ | 759,223 | $ | 1,159,936 | |||||||||||||||
Scheduled | $ | 110,733 | $ | 14,085 | $ | 70,057 | $ | 40,811 | $ | 26,507 | $ | — | $ | 392,310 | $ | 654,503 | |||||||||||||||
Unscheduled | 73,502 | 4,929 | 81,204 | 43,189 | 14,952 | 120,022 | — | 337,798 | |||||||||||||||||||||||
March 31, 2018 | $ | 184,235 | $ | 19,014 | $ | 151,261 | $ | 84,000 | $ | 41,459 | $ | 120,022 | $ | 392,310 | $ | 992,301 | |||||||||||||||
Scheduled | $ | 25,848 | $ | 14,371 | $ | 36,806 | $ | 22,381 | $ | 315 | $ | 13,621 | $ | 231,717 | $ | 345,059 | |||||||||||||||
Unscheduled | 49,229 | 6,941 | 43,975 | 24,385 | 4,876 | — | — | 129,406 | |||||||||||||||||||||||
December 31, 2017 | $ | 75,077 | $ | 21,312 | $ | 80,781 | $ | 46,766 | $ | 5,191 | $ | 13,621 | $ | 231,717 | $ | 474,465 | |||||||||||||||
Scheduled | $ | 61,961 | $ | 6,735 | $ | 21,409 | $ | 24,163 | $ | 27,191 | $ | 39,816 | $ | 100,571 | $ | 281,846 | |||||||||||||||
Unscheduled | 49,894 | 5,861 | 124,676 | 45,192 | 457 | — | — | 226,080 | |||||||||||||||||||||||
September 30, 2017 | $ | 111,855 | $ | 12,596 | $ | 146,085 | $ | 69,355 | $ | 27,648 | $ | 39,816 | $ | 100,571 | $ | 507,926 | |||||||||||||||
Scheduled | $ | 21,687 | $ | 9,116 | $ | 41,821 | $ | 35,169 | $ | — | $ | 9,885 | $ | 1,166,922 | $ | 1,284,600 | |||||||||||||||
Unscheduled | 51,442 | 10,737 | 47,262 | 46,776 | — | — | 4,000 | 160,217 | |||||||||||||||||||||||
June 30, 2017 | $ | 73,129 | $ | 19,853 | $ | 89,083 | $ | 81,945 | $ | — | $ | 9,885 | $ | 1,170,922 | $ | 1,444,817 | |||||||||||||||
Scheduled | $ | 70,394 | $ | 16,184 | $ | 48,375 | $ | 36,322 | $ | 26,909 | $ | 8,934 | $ | 161,451 | $ | 368,569 | |||||||||||||||
Unscheduled | 114,811 | 11,985 | 64,486 | 39,457 | 814 | — | 102,059 | 333,612 | |||||||||||||||||||||||
March 31, 2017 | $ | 185,205 | $ | 28,169 | $ | 112,861 | $ | 75,779 | $ | 27,723 | $ | 8,934 | $ | 263,510 | $ | 702,181 | |||||||||||||||
Scheduled | $ | 20,566 | $ | 15,209 | $ | 21,546 | $ | 21,325 | $ | — | $ | 15,929 | $ | 311,739 | $ | 406,314 | |||||||||||||||
Unscheduled | 47,156 | 10,767 | 111,137 | 34,477 | 4,427 | — | 2,240 | 210,204 | |||||||||||||||||||||||
December 31, 2016 | $ | 67,722 | $ | 25,976 | $ | 132,683 | $ | 55,802 | $ | 4,427 | $ | 15,929 | $ | 313,979 | $ | 616,518 | |||||||||||||||
Scheduled | $ | 47,221 | $ | 7,954 | $ | 39,192 | $ | 22,626 | $ | 26,522 | $ | 58,177 | $ | 559,895 | $ | 761,587 | |||||||||||||||
Unscheduled | 85,583 | 17,108 | 67,094 | 36,099 | 2,108 | — | 5,000 | 212,992 | |||||||||||||||||||||||
September 30, 2016 | $ | 132,804 | $ | 25,062 | $ | 106,286 | $ | 58,725 | $ | 28,630 | $ | 58,177 | $ | 564,895 | $ | 974,579 | |||||||||||||||
For the year ended: | |||||||||||||||||||||||||||||||
Scheduled | $ | 179,890 | $ | 46,406 | $ | 148,411 | $ | 118,035 | $ | 54,415 | $ | 72,256 | $ | 1,660,661 | $ | 2,280,074 | |||||||||||||||
Unscheduled | 265,376 | 35,524 | 280,399 | 155,810 | 6,147 | — | 106,059 | 849,315 | |||||||||||||||||||||||
December 31, 2017 | $ | 445,266 | $ | 81,930 | $ | 428,810 | $ | 273,845 | $ | 60,562 | $ | 72,256 | $ | 1,766,720 | $ | 3,129,389 | |||||||||||||||
Scheduled | $ | 121,111 | $ | 50,905 | $ | 137,967 | $ | 121,354 | $ | 52,570 | $ | 85,670 | $ | 1,528,180 | $ | 2,097,757 | |||||||||||||||
Unscheduled | 288,433 | 47,705 | 304,992 | 183,805 | 6,535 | — | 7,240 | 838,710 | |||||||||||||||||||||||
December 31, 2016 | $ | 409,544 | $ | 98,610 | $ | 442,959 | $ | 305,159 | $ | 59,105 | $ | 85,670 | $ | 1,535,420 | $ | 2,936,467 |
Lines of Business - Outstanding Business Volume | |||||||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | ||||||||||||||||||||||||||||
Loans | Guaranteed Securities | LTSPCs | USDA Securities | Loans | LTSPCs | AgVantage | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
As of: | |||||||||||||||||||||||||||||||
September 30, 2018 | $ | 4,420,619 | $ | 287,594 | $ | 2,363,805 | $ | 2,471,251 | $ | 962,702 | $ | 669,335 | $ | 8,365,280 | $ | 19,540,586 | |||||||||||||||
June 30, 2018 | 4,378,958 | 297,833 | 2,368,606 | 2,418,115 | 991,819 | 677,621 | 8,391,885 | 19,524,837 | |||||||||||||||||||||||
March 31, 2018 | 4,274,359 | 314,497 | 2,343,146 | 2,391,739 | 1,043,477 | 686,320 | 8,325,905 | 19,379,443 | |||||||||||||||||||||||
December 31, 2017 | 4,198,733 | 333,511 | 2,335,342 | 2,352,214 | 1,076,291 | 806,342 | 7,904,878 | 19,007,311 | |||||||||||||||||||||||
September 30, 2017 | 4,068,893 | 354,823 | 2,133,314 | 2,298,956 | 1,066,482 | 819,963 | 7,901,842 | 18,644,273 | |||||||||||||||||||||||
June 30, 2017 | 3,882,474 | 367,419 | 2,176,625 | 2,237,013 | 1,024,130 | 859,779 | 7,711,418 | 18,258,858 | |||||||||||||||||||||||
March 31, 2017 | 3,643,386 | 387,272 | 2,209,809 | 2,149,697 | 999,130 | 869,664 | 7,585,583 | 17,844,541 | |||||||||||||||||||||||
December 31, 2016 | 3,514,454 | 415,441 | 2,209,409 | 2,094,375 | 999,512 | 878,598 | 7,287,686 | 17,399,475 | |||||||||||||||||||||||
September 30, 2016 | 3,338,484 | 441,417 | 2,224,827 | 2,020,834 | 993,139 | 874,527 | 7,354,511 | 17,247,739 |
On-Balance Sheet Outstanding Business Volume | |||||||||||||||
Fixed Rate | 5- to 10-Year ARMs & Resets | 1-Month to 3-Year ARMs | Total Held in Portfolio | ||||||||||||
(in thousands) | |||||||||||||||
As of: | |||||||||||||||
September 30, 2018 | $ | 7,945,007 | $ | 2,629,612 | $ | 4,986,987 | $ | 15,561,606 | |||||||
June 30, 2018 | 7,551,149 | 2,594,399 | 5,398,021 | 15,543,569 | |||||||||||
March 31, 2018 | 7,507,581 | 2,498,985 | 5,432,923 | 15,439,489 | |||||||||||
December 31, 2017 | 7,158,014 | 2,499,203 | 5,309,126 | 14,966,343 | |||||||||||
September 30, 2017 | 6,921,477 | 2,447,923 | 5,426,757 | 14,796,157 | |||||||||||
June 30, 2017 | 6,722,463 | 2,406,120 | 5,226,982 | 14,355,565 | |||||||||||
March 31, 2017 | 5,373,283 | 2,330,819 | 5,255,146 | 12,959,248 | |||||||||||
December 31, 2016 | 5,346,011 | 2,274,535 | 4,888,291 | 12,508,837 | |||||||||||
September 30, 2016 | 5,278,332 | 2,212,946 | 4,869,765 | 12,361,043 |
Net Effective Spread by Line of Business | |||||||||||||||||||||||||||||||||||||||||
Farm & Ranch | USDA Guarantees | Rural Utilities | Institutional Credit | Corporate | Net Effective Spread(1) | ||||||||||||||||||||||||||||||||||||
Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | Dollars | Yield | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
For the quarter ended: | |||||||||||||||||||||||||||||||||||||||||
September 30, 2018(2) | $ | 13,887 | 1.91 | % | $ | 4,627 | 0.86 | % | $ | 2,877 | 1.18 | % | $ | 15,642 | 0.78 | % | $ | 2,044 | 0.30 | % | $ | 39,077 | 0.93 | % | |||||||||||||||||
June 30, 2018 | 13,347 | 1.86 | % | 4,398 | 0.83 | % | 2,923 | 1.15 | % | 15,220 | 0.76 | % | 274 | 0.04 | % | 36,162 | 0.86 | % | |||||||||||||||||||||||
March 31, 2018 | 12,540 | 1.80 | % | 4,400 | 0.82 | % | 2,950 | 1.12 | % | 14,824 | 0.78 | % | 2,387 | 0.36 | % | 37,101 | 0.91 | % | |||||||||||||||||||||||
December 31, 2017 | 12,396 | 1.80 | % | 4,979 | 0.93 | % | 3,057 | 1.14 | % | 14,800 | 0.78 | % | 2,235 | 0.35 | % | 37,467 | 0.93 | % | |||||||||||||||||||||||
September 30, 2017(2) | 11,303 | 1.73 | % | 4,728 | 0.90 | % | 2,765 | 1.07 | % | 14,455 | 0.78 | % | 2,725 | 0.41 | % | 35,976 | 0.91 | % | |||||||||||||||||||||||
June 30, 2017 | 11,158 | 1.77 | % | 4,551 | 0.87 | % | 2,669 | 1.06 | % | 14,467 | 0.81 | % | 2,489 | 0.36 | % | 35,334 | 0.91 | % | |||||||||||||||||||||||
March 31, 2017 | 10,511 | 1.77 | % | 4,561 | 0.89 | % | 2,568 | 1.04 | % | 12,615 | 0.82 | % | 2,271 | 0.32 | % | 32,526 | 0.90 | % | |||||||||||||||||||||||
December 31, 2016 | 10,131 | 1.75 | % | 5,152 | 1.04 | % | 2,530 | 1.02 | % | 11,636 | 0.78 | % | 1,999 | 0.26 | % | 31,448 | 0.88 | % | |||||||||||||||||||||||
September 30, 2016 | 10,476 | 1.86 | % | 4,994 | 1.03 | % | 2,541 | 1.01 | % | 11,431 | 0.75 | % | 2,239 | 0.24 | % | 31,681 | 0.85 | % |
(1) | Net effective spread is a non-GAAP measure. Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread to also include the net effects of terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised net effective spread methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for more information about net effective spread. |
(2) | See Note 9 to the consolidated financial statements for a reconciliation of GAAP net interest income by line of business to net effective spread by line of business for the three months ended September 30, 2018 and 2017. |
Core Earnings by Quarter End | |||||||||||||||||||||||||||||||||||
September 2018 | June 2018 | March 2018 | December 2017 | September 2017 | June 2017 | March 2017 | December 2016 | September 2016 | |||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Net effective spread | $ | 39,077 | $ | 36,162 | $ | 37,101 | $ | 37,467 | $ | 35,976 | $ | 35,334 | $ | 32,526 | $ | 31,448 | $ | 31,681 | |||||||||||||||||
Guarantee and commitment fees | 5,170 | 5,171 | 5,083 | 5,157 | 4,935 | 4,942 | 5,316 | 5,158 | 4,533 | ||||||||||||||||||||||||||
Other | 110 | 111 | 428 | 69 | 274 | 107 | 485 | 545 | 713 | ||||||||||||||||||||||||||
Total revenues | 44,357 | 41,444 | 42,612 | 42,693 | 41,185 | 40,383 | 38,327 | 37,151 | 36,927 | ||||||||||||||||||||||||||
Credit related expense/(income): | |||||||||||||||||||||||||||||||||||
(Release of)/provision for losses | (3 | ) | 582 | (410 | ) | 464 | 384 | 466 | 444 | 512 | (31 | ) | |||||||||||||||||||||||
REO operating expenses | — | — | 16 | — | — | 23 | — | — | — | ||||||||||||||||||||||||||
Losses/(gains) on sale of REO | 41 | (34 | ) | — | (964 | ) | (32 | ) | (757 | ) | 5 | — | (15 | ) | |||||||||||||||||||||
Total credit related expense/(income) | 38 | 548 | (394 | ) | (500 | ) | 352 | (268 | ) | 449 | 512 | (46 | ) | ||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Compensation and employee benefits | 6,777 | 6,936 | 6,654 | 5,247 | 5,987 | 6,682 | 6,317 | 5,949 | 5,438 | ||||||||||||||||||||||||||
General and administrative | 4,350 | 5,202 | 4,326 | 4,348 | 3,890 | 3,921 | 3,800 | 4,352 | 3,474 | ||||||||||||||||||||||||||
Regulatory fees | 625 | 625 | 625 | 625 | 625 | 625 | 625 | 625 | 613 | ||||||||||||||||||||||||||
Total operating expenses | 11,752 | 12,763 | 11,605 | 10,220 | 10,502 | 11,228 | 10,742 | 10,926 | 9,525 | ||||||||||||||||||||||||||
Net earnings | 32,567 | 28,133 | 31,401 | 32,973 | 30,331 | 29,423 | 27,136 | 25,713 | 27,448 | ||||||||||||||||||||||||||
Income tax expense | 6,891 | 5,477 | 6,259 | 11,796 | 10,268 | 10,307 | 8,844 | 9,189 | 9,577 | ||||||||||||||||||||||||||
Net (loss)/income attributable to non-controlling interest(1) | — | — | — | — | — | (150 | ) | (15 | ) | 28 | (18 | ) | |||||||||||||||||||||||
Preferred stock dividends | 3,295 | 3,296 | 3,295 | 3,296 | 3,295 | 3,296 | 3,295 | 3,296 | 3,295 | ||||||||||||||||||||||||||
Core earnings | $ | 22,381 | $ | 19,360 | $ | 21,847 | $ | 17,881 | $ | 16,768 | $ | 15,970 | $ | 15,012 | $ | 13,200 | $ | 14,594 | |||||||||||||||||
Reconciling items: | |||||||||||||||||||||||||||||||||||
Gains/(losses) on undesignated financial derivatives due to fair value changes | 3,625 | 6,709 | (2,279 | ) | (261 | ) | 995 | 801 | 8,683 | 17,906 | 734 | ||||||||||||||||||||||||
Gains/(losses) on hedging activities due to fair value changes | 1,051 | 1,687 | 2,564 | (3 | ) | 1,742 | 1,420 | (3,878 | ) | (673 | ) | 726 | |||||||||||||||||||||||
Unrealized (losses)/gains on trading assets | (3 | ) | 11 | 16 | 60 | — | (2 | ) | (82 | ) | (474 | ) | 1,182 | ||||||||||||||||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value | (38 | ) | 196 | (686 | ) | (129 | ) | (954 | ) | (117 | ) | (127 | ) | (40 | ) | (157 | ) | ||||||||||||||||||
Net effects of terminations or net settlements on financial derivatives and hedging activities | 546 | 232 | 1,242 | 632 | 862 | 232 | 948 | 2,150 | 238 | ||||||||||||||||||||||||||
Re-measurement of net deferred tax asset due to enactment of new tax legislation | — | — | — | (1,365 | ) | — | — | — | — | — | |||||||||||||||||||||||||
Income tax effect related to reconciling items | (1,088 | ) | (1,855 | ) | (180 | ) | (105 | ) | (926 | ) | (816 | ) | (1,941 | ) | (6,604 | ) | (953 | ) | |||||||||||||||||
Net income attributable to common stockholders | $ | 26,474 | $ | 26,340 | $ | 22,524 | $ | 16,710 | $ | 18,487 | $ | 17,488 | $ | 18,615 | $ | 25,465 | $ | 16,364 |
(1) | As of May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
(b) | Not applicable. |
(c) | None. |
Item 4. | Mine Safety Disclosures |
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
* | — | |||||
**# | — | |||||
*† | ||||||
** | — | |||||
** | — | |||||
** | — |
* | Incorporated by reference to the indicated prior filing. |
** | Filed with this report. |
# | Portions of this exhibit have been omitted pursuant to a request for confidential treatment. |
† | Management contract or compensatory plan. |
/s/ Bradford T. Nordholm | November 8, 2018 | ||
By: | Bradford T. Nordholm | Date | |
President and Chief Executive Officer | |||
(Principal Executive Officer) |
/s/ R. Dale Lynch | November 8, 2018 | ||
By: | R. Dale Lynch | Date | |
Executive Vice President – Chief Financial Officer | |||
(Principal Financial Officer) |
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION | |
By | |
Name: | |
Title: |
Date of Exchange | Amount of decrease in principal amount of this Bond | Amount of increase in principal amount of this Bond | Principal amount of this Bond following such decrease or increase | Signature of authorized officer or signatory of Issuer |
1. | I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2018; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Bradford T. Nordholm | |
Bradford T. Nordholm | |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2018; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ R. Dale Lynch | |
R. Dale Lynch | |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation. |
/s/ Bradford T. Nordholm | ||
Bradford T. Nordholm | ||
Chief Executive Officer | ||
/s/ R. Dale Lynch | ||
R. Dale Lynch | ||
Chief Financial Officer | ||
Date: | November 8, 2018 |
'MW_(-U6TU$+_U\0O&3
M_P"2P_2L\\7M,%SKI9_I^IID[Y,7R/S7]?_X;7^#7_16_AE_P"%38__ !VO2K6ZCOK6.:&1)H9E#QR(P974C(((
MX(([U_,O7])WPM_Y)EX=_P"P7;?^BEKY;-WXLSFYXW$WBM_P1^ONEV9T[3+>W+F0P1+&7/5L
M #-6***_/S[<**** /ES_@I!^S;JGQ*T2T\7Z,TUW<>'[9H;JP5
0>,@J>*\?_P""
MB_[,(^('A)O&NC6X.M:'%_I\:+\UY:KR6]VCY/NN[T45\V?L6?M(2?L^?%./
M[9*W_".:T5MM23/$7/R3@>J$G/JI8=<5^1X3%5L@S>>#QCO0K.]WMKU_27W]
MC^A\?@,/Q;P[3S'+ERXK#I*RW]U?#\_B@^^G5F7^U9^SG>?LX?$N33SYDVC7
MVZ?2[IA_K8L\HQ_OID _@>-PK[1_8/\ VD?^%Y?# :?J4^_Q)X>58+K
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M:[XANRTDTIS\S$L\CGLJC+'T XK]0O@U\)=+^"/P[T_P[I*?N+-,R2E=2G
M[\K>['\A@#@"M>':F+SK.7FT_=IT[J*]4U;[G>3_ .
DOCUMENT AND ENTITY INFORMATION DOCUMENT AND ENTITY INFORMATION - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 01, 2018 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | FEDERAL AGRICULTURAL MORTGAGE CORP | |
Entity Central Index Key | 0000845877 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Trading Symbol | AGM | |
Common Class A, Voting [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,030,780 | |
Common Class B, Voting [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 500,301 | |
Common Class C, Non-Voting [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,137,550 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Net income | $ 29,769 | $ 21,782 | $ 85,224 | $ 64,311 |
Interest Income, Operating | 76,870 | 54,350 | 213,479 | 146,978 |
Other comprehensive income before taxes: | ||||
Net unrealized (losses)/gains on available-for-sale securities | (13,546) | (886) | 8,678 | 19,283 |
Net changes in held-to-maturity securities | (1,544) | (1,879) | (4,400) | (7,491) |
Net unrealized gains/(losses) on cash flow hedges | 3,181 | 253 | 12,038 | (966) |
Other comprehensive (loss)/income before tax | (11,909) | (2,512) | 16,316 | 10,826 |
Income tax expense related to other comprehensive (loss)/income | 2,500 | 879 | (3,427) | (3,789) |
Other comprehensive (loss)/income net of tax | (9,409) | (1,633) | 12,889 | 7,037 |
Comprehensive income | 20,360 | 20,149 | 98,113 | 71,348 |
Less: comprehensive loss attributable to non-controlling interest | 0 | 0 | 0 | 165 |
Comprehensive income attributable to Farmer Mac | $ 20,360 | $ 20,149 | $ 98,113 | $ 71,513 |
Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] |
The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2017 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2017 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2017 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 8, 2018. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended September 30, 2018. Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary. The accounts of Contour Valuation Services, LLC (which began doing business as AgVisory during first quarter 2016) ("AgVisory"), Farmer Mac's former majority-owned subsidiary, are also included through June 30, 2017. Farmer Mac redeemed its ownership interest in AgVisory on May 1, 2017. The following tables present, by line of business, details about the consolidation of VIEs: Table 1.1
The following table sets forth information regarding certain cash and non-cash transactions for the nine months ended September 30, 2018 and 2017: Table 1.2
Earnings Per Common Share Basic earnings per common share ("EPS") is based on the weighted-average number of shares of common stock outstanding. Diluted earnings per common share is based on the weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive common stock options, stock appreciation rights ("SARs"), and non-vested restricted stock awards. The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2018 and 2017: Table 1.3
Comprehensive Income Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes. The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2018 and 2017: Table 1.4
The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2018 and 2017: Table 1.5
New Accounting Standards In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," which provides new guidance intended to improve financial reporting about leasing transactions. The ASU requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The ASU also requires new disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac’s financial position, results of operations, or cash flows. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326)," which will require entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to form their credit loss estimates. The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Farmer Mac is currently developing its accounting policy, planning for changes to its loss estimation methodologies and evaluating the impact that the new guidance will have on its consolidated financial statements. That impact will primarily be from the new requirement to recognize all expected losses rather than just incurred losses as of the reporting date. In March 2017, the FASB issued ASU 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows. In first quarter 2018 Farmer Mac adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends hedge accounting recognition and presentation requirements to better align a reporting entity's risk management activities and hedge accounting. The new guidance reduces the complexity and simplifies the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and by requiring the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The cumulative-effect adjustment to retained earnings as of January 1, 2018 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which removes or modifies certain disclosures and adds new disclosures. The new requirements are designed to improve the effectiveness of disclosures in the notes to the financial statements. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which requires the application of the same criteria for capitalization of implementation costs as for an arrangement that has a software license. Additionally, the new guidance prescribes the balance sheet, income statement, and cash flows classifications of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Farmer Mac does not expect that adoption of this guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Reclassifications Certain reclassifications of prior period information were made to conform to the current period presentation. |
Investment Securities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale and Trading Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENT SECURITIES The following tables set forth information about Farmer Mac's investment securities as of September 30, 2018 and December 31, 2017: Table 2.1
Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three and nine months ended September 30, 2018. During the three and nine months ended September 30, 2017, Farmer Mac received proceeds of $5.1 million from the sale of securities from its available-for-sale portfolio, resulting in gross realized gains of $0.1 million. As of September 30, 2018 and December 31, 2017, unrealized losses on available-for-sale investment securities were as follows: Table 2.2
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 September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 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+." The unrealized losses were on 107 and 91 individual investment securities as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, 45 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.1 million. As of December 31, 2017, 51 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.1 million. Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2018 that is, on average, approximately 99.4 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 September 30, 2018 and December 31, 2017. As of September 30, 2018, Farmer Mac owned $45.0 million of held-to-maturity investment securities at amortized cost with a fair value of $45.9 million and a weighted average yield of 3.3 percent. As of December 31, 2017, Farmer Mac owned $45.0 million of held-to-maturity investment securities at amortized cost with a fair value of $45.6 million and a weighted average yield of 2.5 percent. Farmer Mac did not own any trading investment securities as of September 30, 2018 and December 31, 2017. The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2018 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
|
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmer Mac Guaranteed Securities and USDA Securities [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 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 September 30, 2018 and December 31, 2017: Table 3.1
As of September 30, 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
The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to September 30, 2018 and December 31, 2017, as applicable. In addition, the unrealized losses on the held-to-maturity USDA Securities as of both September 30, 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 54 available-for-sale securities as of September 30, 2018. There were 52 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 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 September 30, 2018, 17 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $37.3 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 September 30, 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 and nine months ended September 30, 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 September 30, 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 September 30, 2018, Farmer Mac owned trading USDA Securities with an amortized cost of $10.6 million, a fair value of $10.2 million, and a weighted-average yield of 5.23 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. |
Financial Derivatives |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | FINANCIAL DERIVATIVES Farmer Mac enters into financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes. Certain financial derivatives are designated as fair value hedges of fixed rate assets, primarily classified as available-for-sale, to protect against fair value changes in the assets related to a benchmark interest rate (e.g., LIBOR). Other financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt. Farmer Mac manages the interest rate risk related to loans it has committed to acquire, but has not yet permanently funded, through the use of forward sale contracts on the debt of other GSEs and futures contracts involving U.S. Treasury securities. Farmer Mac uses forward sale contracts on GSE securities to reduce its interest rate exposure to changes in both U.S. Treasury rates and spreads on Farmer Mac debt. The notional amounts of these contracts are determined based on a duration-matched hedge ratio between the hedged item and the hedge instrument. Gains or losses generated by these hedge transactions are expected to offset changes in funding costs. All financial derivatives are recorded on the balance sheet at fair value as a freestanding asset or liability. Effective first quarter 2018, Farmer Mac adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This ASU reduces the complexity of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and by requiring the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the income or expense effect from the hedged item. Upon the adoption of the ASU, Farmer Mac elected to retrospectively designate the hedged risk of its fair value hedges as the risk of changes in fair value resulting from changes in the benchmark interest rate component of the contractual coupon cash flows. Farmer Mac made this election for its fair value hedges designated upon the inception of the hedging instruments. For fair value hedges designated subsequent to the inception of the hedging instruments, Farmer Mac continues to designate the hedged risk as the risk of changes in fair value based on total contractual coupon cash flows. The adoption of the new guidance did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2018 and December 31, 2017: Table 4.1
Changes in the fair values of financial derivatives not designated as cash flow or fair value hedges are reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. For financial derivatives designated in fair value hedge relationships, changes in the fair values of the hedged items, which are primarily fixed rate AgVantage securities and fixed rate medium-term notes, related to the risk being hedged are reported in "Net interest income" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge relationships are also recorded in "Net interest income" in the consolidated statements of operations. For financial derivatives designated in cash flow hedge relationships, the unrealized gain or loss on the derivative is recorded in other comprehensive income. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. As of September 30, 2018, Farmer Mac expects to reclassify $1.9 million after tax from accumulated other comprehensive income to earnings over the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to September 30, 2018. During the three and nine months ended September 30, 2018 and 2017, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it became probable that the original forecasted transaction would not occur. The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2018 and 2017: Table 4.2
The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of September 30, 2018 and December 31, 2017: Table 4.3
As of September 30, 2018 and December 31, 2017, Farmer Mac's credit exposure to interest rate swap counterparties, excluding netting arrangements and any adjustment for nonperformance risk, but including accrued interest, was $94.6 million and $28.5 million, respectively; however, including netting arrangements and accrued interest, Farmer Mac's credit exposure was $4.4 million and $0.5 million as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, Farmer Mac held no cash as collateral for its derivatives in net asset positions resulting in uncollateralized net asset positions of $4.4 million. As of December 31, 2017, Farmer Mac held no cash collateral for its derivatives in net asset positions, resulting in uncollateralized net asset positions of $0.5 million. As of September 30, 2018 and December 31, 2017, the fair value of Farmer Mac's derivatives in a net liability position including accrued interest but excluding netting arrangements and any adjustment for nonperformance risk, was $50.1 million and $58.2 million, respectively; however, including netting arrangements and accrued interest, the fair value of Farmer Mac's derivatives in a net liability position at the counterparty level was $6.4 million and $28.0 million as of September 30, 2018 and December 31, 2017, respectively. Farmer Mac posted cash of $0 and $46.8 million of investment securities as of September 30, 2018 and posted cash of $0.1 million and $24.8 million investment securities as of December 31, 2017. Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets. If Farmer Mac had breached certain provisions of the derivative contracts as of September 30, 2018 and December 31, 2017, it could have been required to settle its obligations under the agreements or post additional collateral of none and $3.1 million, respectively. As of September 30, 2018 and December 31, 2017, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge. For certain derivatives, Farmer Mac clears interest rate swaps through a clearinghouse, the Chicago Mercantile Exchange ("CME"). Farmer Mac posts initial and variation margin to this clearinghouse through which centrally-cleared derivatives and futures contracts are traded. These collateral postings expose Farmer Mac to institutional credit risk in the event that either the clearinghouse or the futures commission merchant that Farmer Mac uses to post collateral to the clearinghouse fails to meet its obligations. Conversely, the use of centrally-cleared derivatives mitigates Farmer Mac's credit risk to individual counterparties because clearinghouses assume the credit risk among counterparties in centrally-cleared derivatives transactions. Of Farmer Mac's $9.7 billion notional amount of interest rate swaps outstanding as of September 30, 2018, $8.3 billion were cleared through the swap clearinghouse. Of Farmer Mac's $8.8 billion notional amount of interest rate swaps outstanding as of December 31, 2017, $7.9 billion were cleared through the swap clearinghouse. |
Loans and Allowance for Losses and Concentrations of Credit Risk |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 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 September 30, 2018 and December 31, 2017: Table 5.1
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 $9.0 million as of September 30, 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 and nine months ended September 30, 2018 and 2017: Table 5.2
During the three and nine months ended September 30, 2018, Farmer Mac recorded a provision to its allowance for loan losses of $0.1 million and $0.1 million respectively. During those same periods, Farmer Mac also recorded a release of reserve for losses of $0.1 million and a provision to the reserve for losses of $0.1 million, respectively. The provisions for the allowance for loan losses recorded during the three and nine months ended September 30, 2018 were attributable to an increase in the balance of on-balance sheet Farm & Ranch loans, which was partially offset by a slight improvement in overall portfolio credit quality. The release of the reserve for losses recorded during third quarter 2018 was attributable to a decrease in the balance of loans underlying LTSPCs since second quarter 2018. The provision for the reserve for losses recorded during the nine months ended September 30, 2018 was attributable to an increase in the balance of loans underlying LTSPCs since December 31, 2017. The charge-off that Farmer Mac recorded during the three and nine months ended September 30, 2018 related to one loan that was foreclosed and transitioned to REO during third quarter 2018. 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 loan 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 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. The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2018 and 2017 by commodity type: Table 5.3
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, 2018 and December 31, 2017: Table 5.4
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, 2018 and December 31, 2017: Table 5.5
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, 2018 and 2017: Table 5.6
For the three and nine months ended September 30, 2018, there were two Farm & Ranch loans to the same borrower that were restructured in a troubled debt restructuring ("TDR"). The recorded investment of these TDR loans was $10.9 million before and after the restructuring. As a result of the restructuring, $0.8 million of unpaid interest, late fees and other fees were capitalized. For the three months ended September 30, 2017, there were no 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. As of September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 2018 and 2017 and the outstanding balances and carrying amounts of all such loans as of September 30, 2018 and December 31, 2017: Table 5.7
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, 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
Of the $32.8 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2018, $0.2 million 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 September 30, 2018 and December 31, 2017: Table 5.9
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, 2018 and December 31, 2017: Table 5.10
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. |
Guarantees and Long Term Standby Purchase Commitments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees and Long Term Standby Purchase Commitments Disclosure | GUARANTEES AND LONG-TERM STANDBY PURCHASE COMMITMENTS Farmer Mac offers two credit enhancement alternatives to direct loan purchases that allow approved lenders the ability to retain the cash flow benefits of their loans and increase their liquidity and lending capacity: (1) Farmer Mac Guaranteed Securities, which are available through each of the Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit lines of business, and (2) LTSPCs, which are available through the Farm & Ranch or the Rural Utilities lines of business. The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2018 and December 31, 2017, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1
Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors. The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2
Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets. This liability approximated $3.1 million as of September 30, 2018 and $3.6 million as of December 31, 2017. As of September 30, 2018 and December 31, 2017, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 9.5 years and 10.0 years, respectively. As of September 30, 2018 and December 31, 2017, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 5.3 years and 0.8 years, respectively. Long-Term Standby Purchase Commitments An LTSPC is a commitment by Farmer Mac to purchase eligible loans from an identified pool of loans under specified circumstances set forth in the applicable agreement, either for cash or in exchange for Farmer Mac Guaranteed Securities, on one or more undetermined future dates. As consideration for its assumption of the credit risk on loans underlying an LTSPC, Farmer Mac receives a commitment fee payable monthly in arrears. The maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, was $3.0 billion and $3.1 billion as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018 and December 31, 2017, the weighted-average remaining maturity of all loans underlying LTSPCs was 15.5 years and 15.3 years, respectively. For those LTSPCs issued or modified on or after January 1, 2003, Farmer Mac has recorded a liability for its obligation to stand ready under the commitment in the guarantee and commitment obligation on the consolidated balance sheets. This liability approximated $35.5 million as of September 30, 2018 and $34.8 million as of December 31, 2017. |
Equity |
9 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Equity Disclosure | EQUITY Common Stock For each of the first, second, and third quarters in 2018, Farmer Mac paid a quarterly dividend of $0.58 per share on all classes of its common stock. For each quarter in 2017, Farmer Mac paid a quarterly dividend of $0.36 per share on all classes of its common stock. In August 2017, Farmer Mac's board of directors approved the continuation of the share repurchase program on its existing terms through August 2019 for the repurchase of up to $5.4 million of Farmer Mac's outstanding Class C non-voting common stock, which is the amount that was remaining under the share repurchase program originally authorized in third quarter 2015. Capital Requirements Farmer Mac is subject to the following capital requirements:
Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both September 30, 2018 and December 31, 2017, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements. As of September 30, 2018, Farmer Mac's minimum capital requirement was $539.8 million and its core capital level was $713.6 million, which was $173.8 million above the minimum capital requirement as of that date. As of December 31, 2017, Farmer Mac's minimum capital requirement was $520.3 million and its core capital level was $657.1 million, which was $136.8 million above the minimum capital requirement as of that date. In accordance with FCA's rule on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds. |
Fair Value Disclosures |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosure | FAIR VALUE DISCLOSURES As of September 30, 2018, Farmer Mac's assets and liabilities recorded at fair value included financial instruments valued at $6.0 billion whose fair values were estimated by management in the absence of readily determinable fair values (i.e., level 3). These financial instruments measured as Level 3 represented 32 percent of total assets and 73 percent of financial instruments measured at fair value as of September 30, 2018. As of December 31, 2017, Farmer Mac's assets and liabilities recorded at fair value included financial instruments valued at $5.5 billion whose fair values were estimated by management in the absence of readily determinable fair values. These financial instruments measured as level 3 represented 31 percent of total assets and 71 percent of financial instruments measured at fair value as of December 31, 2017. Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the first nine months of 2018 there were no transfers within fair value hierarchy for fair value measurements of Farmer Mac's investment securities, Farmer Mac Guaranteed Securities, USDA Securities, and financial derivatives. During the first nine months of 2017 there was one transfer within the fair value hierarchy from Level 2 to Level 3 for the fair value measurement of a fixed-rate GSE guaranteed mortgage-backed security (interest-only security). The transfer to Level 3 was because unobservable inputs became significant to the overall estimate of the fair value of the security as of March 31, 2017. The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2018 and December 31, 2017, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 8.1
The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2018 and 2017. Table 8.2
The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in level 3 of the fair value hierarchy as of September 30, 2018 and December 31, 2017. Table 8.3
The significant unobservable inputs used in the fair value measurements of Farmer Mac Guaranteed Securities and USDA Securities are prepayment rates and discount rates commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates. Prepayment rates are not presented in the table above for AgVantage securities because they generally do not pay down principal based on amortization schedules but instead typically have fixed maturity dates when the secured general obligations are due. Disclosures on Fair Value of Financial Instruments The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2018 and December 31, 2017: Table 8.4
The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. Investment securities primarily are valued based on unadjusted quoted prices in active markets and are classified as Level 2. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts. |
Business Segment Reporting |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | BUSINESS SEGMENT REPORTING The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2018 and 2017: Table 9.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Table 9.1
|
Income Taxes - INCOME TAXES |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES As a result of the changes to the U.S. tax code resulting from legislation enacted in December 2017, Farmer Mac's effective tax rate decreased from 35.5 percent for the year ended December 31, 2017 to 20.1 percent for the first nine months of 2018. The effective tax rate was lower than the statutory corporate tax rate in the first nine months of 2018 due to net tax benefits recognized related to exercises of share-based compensation awards during 2018. |
Accounting Policies - Accounting Policies (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary. The accounts of Contour Valuation Services, LLC (which began doing business as AgVisory during first quarter 2016) ("AgVisory"), Farmer Mac's former majority-owned subsidiary, are also included through June 30, 2017. Farmer Mac redeemed its ownership interest in AgVisory on May 1, 2017. The following tables present, by line of business, details about the consolidation of VIEs: Table 1.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Account Policies |
The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2017 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2017 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2017 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 8, 2018. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended September 30, 2018. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents and Statements of Cash Flows | Statements of Cash Flows |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Common Share Basic earnings per common share ("EPS") is based on the weighted-average number of shares of common stock outstanding. Diluted earnings per common share is based on the weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive common stock options, stock appreciation rights ("SARs"), and non-vested restricted stock awards. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Standards | New Accounting Standards In February 2016, the FASB issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)," which provides new guidance intended to improve financial reporting about leasing transactions. The ASU requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The ASU also requires new disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac’s financial position, results of operations, or cash flows. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326)," which will require entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will be required to use forward-looking information to form their credit loss estimates. The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Farmer Mac is currently developing its accounting policy, planning for changes to its loss estimation methodologies and evaluating the impact that the new guidance will have on its consolidated financial statements. That impact will primarily be from the new requirement to recognize all expected losses rather than just incurred losses as of the reporting date. In March 2017, the FASB issued ASU 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows. In first quarter 2018 Farmer Mac adopted ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends hedge accounting recognition and presentation requirements to better align a reporting entity's risk management activities and hedge accounting. The new guidance reduces the complexity and simplifies the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and by requiring the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The cumulative-effect adjustment to retained earnings as of January 1, 2018 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which removes or modifies certain disclosures and adds new disclosures. The new requirements are designed to improve the effectiveness of disclosures in the notes to the financial statements. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows. In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract," which requires the application of the same criteria for capitalization of implementation costs as for an arrangement that has a software license. Additionally, the new guidance prescribes the balance sheet, income statement, and cash flows classifications of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. Farmer Mac does not expect that adoption of this guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications | Reclassifications Certain reclassifications of prior period information were made to conform to the current period presentation. |
Accounting Policies - Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | The following tables present, by line of business, details about the consolidation of VIEs: Table 1.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | The following table sets forth information regarding certain cash and non-cash transactions for the nine months ended September 30, 2018 and 2017: Table 1.2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2018 and 2017: Table 1.3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Table 1.4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2018 and 2017: Table 1.5
|
Investment Securities - Investment Securities (Tables) - Investment Securities [Member] |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale and Trading Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Table Text Block] | The following tables set forth information about Farmer Mac's investment securities as of September 30, 2018 and December 31, 2017: Table 2.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | As of September 30, 2018 and December 31, 2017, unrealized losses on available-for-sale investment securities were as follows: Table 2.2
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 September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 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+." The unrealized losses were on 107 and 91 individual investment securities as of September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, 45 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.1 million. As of December 31, 2017, 51 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.1 million. Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2018 that is, on average, approximately 99.4 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 September 30, 2018 and December 31, 2017. As of September 30, 2018, Farmer Mac owned $45.0 million of held-to-maturity investment securities at amortized cost with a fair value of $45.9 million and a weighted average yield of 3.3 percent. As of December 31, 2017, Farmer Mac owned $45.0 million of held-to-maturity investment securities at amortized cost with a fair value of $45.6 million and a weighted average yield of 2.5 percent. Farmer Mac did not own any trading investment securities as of September 30, 2018 and December 31, 2017. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2018 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
|
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Farmer Mac Guaranteed Securities and USDA Securities (Tables) - Farmer Mac Guaranteed Securities and USDA Securities [Member] |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Table Text Block] | The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2018 and December 31, 2017: Table 3.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | As of September 30, 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
The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to September 30, 2018 and December 31, 2017, as applicable. In addition, the unrealized losses on the held-to-maturity USDA Securities as of both September 30, 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 54 available-for-sale securities as of September 30, 2018. There were 52 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 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 September 30, 2018, 17 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $37.3 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 September 30, 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. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | 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 September 30, 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
|
Financial Derivatives - Financial Derivatives (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged Items in Fair Value Hedging Relationships [Table Text Block] | The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of September 30, 2018 and December 31, 2017: Table 4.3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | he following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2018 and December 31, 2017: Table 4.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three and nine months ended September 30, 2018 and 2017: Table 4.2
|
Loans and Allowance for Losses and Concentrations of Credit Risk - Loans and Allowance for Losses and Concentrations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 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, 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 September 30, 2018 and December 31, 2017: Table 5.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | 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 $9.0 million as of September 30, 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 and nine months ended September 30, 2018 and 2017: Table 5.2
During the three and nine months ended September 30, 2018, Farmer Mac recorded a provision to its allowance for loan losses of $0.1 million and $0.1 million respectively. During those same periods, Farmer Mac also recorded a release of reserve for losses of $0.1 million and a provision to the reserve for losses of $0.1 million, respectively. The provisions for the allowance for loan losses recorded during the three and nine months ended September 30, 2018 were attributable to an increase in the balance of on-balance sheet Farm & Ranch loans, which was partially offset by a slight improvement in overall portfolio credit quality. The release of the reserve for losses recorded during third quarter 2018 was attributable to a decrease in the balance of loans underlying LTSPCs since second quarter 2018. The provision for the reserve for losses recorded during the nine months ended September 30, 2018 was attributable to an increase in the balance of loans underlying LTSPCs since December 31, 2017. The charge-off that Farmer Mac recorded during the three and nine months ended September 30, 2018 related to one loan that was foreclosed and transitioned to REO during third quarter 2018. 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 loan 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 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. The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2018 and 2017 by commodity type: Table 5.3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Losses by Impairment Method and Commodity [Table Text Block] | 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, 2018 and December 31, 2017: Table 5.4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | 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, 2018 and December 31, 2017: Table 5.5
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, 2018 and 2017: Table 5.6
For the three and nine months ended September 30, 2018, there were two Farm & Ranch loans to the same borrower that were restructured in a troubled debt restructuring ("TDR"). The recorded investment of these TDR loans was $10.9 million before and after the restructuring. As a result of the restructuring, $0.8 million of unpaid interest, late fees and other fees were capitalized. For the three months ended September 30, 2017, there were no 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. As of September 30, 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 and nine months ended September 30, 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. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Certain Loans Acquired in Transfer Acquired During Period [Table Text Block] | The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and nine months ended September 30, 2018 and 2017 and the outstanding balances and carrying amounts of all such loans as of September 30, 2018 and December 31, 2017: Table 5.7
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | 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, 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
Of the $32.8 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2018, $0.2 million 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. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | 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, 2018 and December 31, 2017: Table 5.9
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | 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, 2018 and December 31, 2017: Table 5.10
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. |
Guarantees and Long Term Standby Purchase Commitments - Guarantees and Long-Term Standby Purchase Commitments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] | The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2018 and December 31, 2017, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flows Related To Transfer of Securitizations [Table Text Block] | Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors. The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2
Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets. This liability approximated $3.1 million as of September 30, 2018 and $3.6 million as of December 31, 2017. As of September 30, 2018 and December 31, 2017, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 9.5 years and 10.0 years, respectively. As of September 30, 2018 and December 31, 2017, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 5.3 years and 0.8 years, respectively. |
Fair Value Disclosures - Fair Value Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2018 and December 31, 2017, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 8.1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2018 and 2017. Table 8.2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Table Text Block] | The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in level 3 of the fair value hierarchy as of September 30, 2018 and December 31, 2017. Table 8.3
The significant unobservable inputs used in the fair value measurements of Farmer Mac Guaranteed Securities and USDA Securities are prepayment rates and discount rates commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates. Prepayment rates are not presented in the table above for AgVantage securities because they generally do not pay down principal based on amortization schedules but instead typically have fixed maturity dates when the secured general obligations are due. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2018 and December 31, 2017: Table 8.4
The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. Investment securities primarily are valued based on unadjusted quoted prices in active markets and are classified as Level 2. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts. |
Business Segment Reporting - Business Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Table 9.1
|
Accounting Policies - Cash and Cash Equivalents and Statements of Cash Flows (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Other Significant Noncash Transactions [Line Items] | ||
SEC Schedule III, Real Estate, Acquisitions Through Foreclosures | $ 128 | $ 5,261 |
Proceeds from sale of Farmer Mac Guaranteed Securities | 305,391 | 404,246 |
Consolidation of guaranteed securities from off-balance sheet to Loans Held for Investment and Debt Securities of consolidated trusts held by third parties | 199,764 | 277,307 |
Purchases of Investment Securities Traded, Not Yet Settled | $ 248,600 | $ 9,987 |
Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounting Policies [Abstract] | ||||
Net income attributable to common stockholders (Dilutive) | $ 26,474 | $ 18,487 | $ 75,338 | $ 54,590 |
Stock options, SARs and restricted stock | 76 | 210 | 93 | 208 |
Earnings Per Share, On Incremental Common Shares Attributable to Share-based Payment Arrangements | $ (0.02) | $ (0.03) | $ (0.06) | $ (0.10) |
Weighted Average Number of Shares Outstanding, Diluted | 10,744 | 10,815 | 10,743 | 10,794 |
Diluted earnings per common share | $ 2.46000 | $ 1.71000 | $ 7.01000 | $ 5.06 |
Earnings Per Share, Basic [Abstract] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 26,474 | $ 18,487 | $ 75,338 | $ 54,590 |
Weighted Average Number of Shares Outstanding, Basic | 10,668 | 10,605 | 10,650 | 10,586 |
Basic earnings per common share | $ 2.48 | $ 1.74 | $ 7.07 | $ 5.16 |
Accounting Policies - New Accounting Standards (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounting Policies [Abstract] | ||
Excess Tax Benefits from Share-Based Compensation | $ 1,105 | $ 1,170 |
Payments Related to Tax Withholding for Share-based Compensation | $ 2,635 | $ 2,283 |
Investment Securities - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Investment Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $ 0 | $ 5,089 | |||
Available-for-sale Securities, Gross Realized Losses | $ 0 | $ 0 | |||
Available-for-sale Securities, Gross Realized Gains | $ 100 | ||||
Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Held-to-Maturity Securities, Debt Maturities, Weighted-Average Yield | 3.30% | 2.50% | |||
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 45,032 | $ 45,032 | |||
Held-to-maturity Securities, Fair Value | $ 45,875 | $ 45,564 |
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Trading Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2,093 | $ 2,106 |
USDA Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading, at fair value | 10,237 | 13,515 |
USDA Guarantees [Member] | USDA Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading Securities, Debt, Amortized Cost | 10,585 | 13,888 |
Trading, at fair value | $ 10,237 | $ 13,515 |
Trading Securities, Weighted-Average Yield | 5.23% | 5.33% |
Financial Derivatives - Hedging Description (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 1,900 |
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ 0 |
Loans and Allowance for Losses and Concentrations of Credit Risk - Troubled Debt Restructurings (Details) |
6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Receivables [Abstract] | ||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 10,900,000 | $ 200,000 | ||
Loan Restructuring, Trial Modifications, Amount | 800,000 | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 177,033 | $ 10,900,000 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | 0 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 0 | $ 0 | ||
Financing Receivable, Modifications, Subsequent Default, Determination of Allowance for Credit Losses | 0 | 0 |
Loans and Allowance for Losses and Concentrations of Credit Risk - Certain Loans Acquired Delinquencies and Net Credit Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | $ 37,545 | $ 48,444 | |
Net credit losses (recoveries) | 40 | $ (520) | |
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Subject To Be Purchased | 200 | 300 | |
On-balance sheet [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 32,756 | 47,881 | |
Net credit losses (recoveries) | 40 | (520) | |
Off-balance sheet [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 4,789 | $ 563 | |
Net credit losses (recoveries) | $ 0 | $ 0 |
Guarantees and Long Term Standby Purchase Commitments - Off-Balance Sheet Guaranteed Securities (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 945,840 | $ 899,284 |
Farm & Ranch [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 287,594 | 333,511 |
USDA Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 346,690 | 254,217 |
Institutional Credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 11,556 | 11,556 |
Revolving Credit Facility [Member] | Institutional Credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 300,000 | $ 300,000 |
Guarantees and Long Term Standby Purchase Commitments - Long-Term Standby Purchase Commitments (Details) - Long-Term Standby Purchase Commitments [Member] - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Guarantor Obligations [Line Items] | ||
Weighted average remaining maturity, Loans underlying guarantees not held by transferor | 15 years 5 months 20 days | 15 years 3 months 10 days |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 3,000.0 | $ 3,100.0 |
Guarantee obligations issued after January 1, 2003 [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 35.5 | $ 34.8 |
Equity - Capital Requirements (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Equity [Abstract] | ||
Capital Required for Capital Adequacy | $ 539.8 | $ 520.3 |
Capital | 713.6 | 657.1 |
Excess Capital | $ 173.8 | $ 136.8 |
Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Aug. 03, 2017 |
|
Class of Stock [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.58 | $ 0.36 | $ 1.74 | $ 1.08 | |
Common Class C, Non-Voting [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 5.4 |
Fair Value Disclosures - Narrative (Details) - Level 3 [Member] - USD ($) $ in Billions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets and Liabilities, Fair Value Disclosure | $ 6.0 | $ 5.5 |
Fair Value, Assets and Liabilities Fair Value as Percent of Total Assets | 32.00% | 31.00% |
Fair Value, Assets and Liabilities, Fair Value as Percent of Total Financial Instruments Measured at Fair Value | 73.00% | 71.00% |
Income Taxes - Components of Income Tax Expense (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 20.10% | 35.50% |
DL*>+Z8P IG@T!XZ.!FUZ-G4PC)^.I7H.M
MD56:RP+[K)!O5P 467YBFP!J$=)0#L,FII&)\2ROP2&?">1D!)B3VB8%2\:"
M]<5A"]/(PH82-+8)'4W/\0;;A &;BE" ]VXPYV53WMULZ[?1
M=A\/F[(-.[IV8;KNVXO=['3_"^.Y"U=?[TQJ;B:OK:%>,]UK^$CCTU/)7$OH
MH)B$#AQZP:@74U;-^?0&,ZWPF>C#12/%62,GW31PL$S7WIP,EL4&+#1@.P/V
MQ( 3H[W79)UFW6FNB%V>B '1,N.,G!8M(L,L!JX IL@?1<&)8PXZYH!CHC/3
MO<8=.\:I%<$VTRIBXX5?6L19)MT"EH@<8[=2Z%8*W!*WF:;:K3RW0C73*N9<
MNJ5%E%@G9KX II*,(NLM@WYEP"_1F6FF_ M&VP+.TY[6\ /TS_XDS0K/
M*F7+H5.MZ#P)58:>@OTQMG@'^-7"H!9SSR8Y"_%N%U_+#/G6$# HM%6@9KC"
M$1BS0L;&[TD3S2TM<3F_J;^X[";+F2HX"O;6EKK)T YY)53TPO2K&+[ E"=&
MWA3^&UR!&;AU8GH4@BGW](J+TH)/*L8*IQ_CV'9N'";]&VV;0"8"F0E!_%]"
M.!'"3T+DPH_.7-1GJFF>2C%X(AI
M0PQ&N"2"P* (<1@D0) #I. !4I0H 1*,C_R95P2
MA 5=VF.,8'.A&"70W%T(.$^,4($76 M&Q@ +SUDX/E(,<[*P 1BV,R8 BLQ1
M!#A5-!=LJ82P\W%L_2)Z/\769R7C%.4+*-C[.(]/EEB2@%V- 5N+N0N ($:7
M-AMV-09L+>:V!H(877@;8MC4&'"UB,H?!S&ZM,NPI[&(.65T>.,@=Z 6.+#U
M,>#]DLXY<1"C;,;)[CZP_@+S0_:GJC7)J[;N6QV^J$>MK7*"Z,%M^-G=F:9.
MK8[6-[EK]\/%8>A8W8V7HFRZF6W^ 5!+ P04 " J2&A-XUG+L1L# #!
M# &0 'AL+W=O