XML 33 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
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

 
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
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

 
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
)

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

 
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
%