Equity - Equity (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following tables summarize information regarding SARs and non-vested restricted stock outstanding as of December 31, 2018:

Table 9.2



	Outstanding		Exercisable		Vested or Expected to Vest
Range of Exercise Prices	SARs	Weighted- Average Remaining Contractual Life	SARs	Weighted- Average Remaining Contractual Life	SARs	Weighted- Average Remaining Contractual Life
$10.00 - $24.99	16,000	2.6 years	16,000	2.6 years	16,000	2.6 years
25.00 - 39.99	86,462	6.1 years	76,629	5.9 years	86,462	6.1 years
40.00 - 54.99	—	0.0 years	—	0.0 years	—	0.0 years
55.00 - 69.99	12,376	8.3 years	3,046	8.3 years	12,376	8.3 years
70.00 - 84.99	—	0.0 years	—	0.0 years	—	0.0 years
85.00 - 99.99	10,122	9.3 years	—	0.0 years	10,122	9.3 years
	124,960		95,675		124,960

	Outstanding		Expected to Vest
Weighted- Average Grant-Date Fair Value	Non-vested Restricted Stock	Weighted-Average Remaining Contractual Life	Non-vested Restricted Stock	Weighted-Average Remaining Contractual Life
$35.00 - $49.99	27,505	0.3 years	27,505	0.3 years
50.00 - 64.99	21,848	1.3 years	21,848	1.3 years
65.00 - 79.99	3,578	2.2 years	3,578	2.2 years
80.00 - 94.99	27,222	1.6 years	27,222	1.6 years
	80,153		80,153

Share-based Compensation, Stock Options, Activity [Table Text Block]

The following tables summarize stock options, SARs, and non-vested restricted stock activity for the years ended December 31, 2018, 2017, and 2016:

Table 9.1



	For the Year Ended December 31,
	2018				2017				2016
	Stock Options and SARs		Weighted- Average Exercise Price		Stock Options and SARs		Weighted- Average Exercise Price		Stock Options and SARs		Weighted- Average Exercise Price
Outstanding, beginning of year	163,272		$	32.95	367,535		$	30.18	747,573		$	26.68
Granted	10,122		86.15		24,657		60.84		51,975		35.75
Exercised	(48,434	)	30.06		(111,278	)	31.47		(431,346	)	24.77
Canceled	—		—		(117,642	)	31.55		(667	)	35.60
Outstanding, end of year	124,960		38.38		163,272		32.95		367,535		30.18
Exercisable at end of year	95,675		31.41		93,085		28.57		208,274		27.41

	For the Year Ended December 31,
	2018				2017				2016
	Non-vested Restricted Stock		Weighted- Average Grant Date Fair Value		Non-vested Restricted Stock		Weighted- Average Grant Date Fair Value		Non-vested Restricted Stock		Weighted- Average Grant Date Fair Value
Outstanding, beginning of year	95,015		$	44.39	138,497		$	34.63	132,651		$	32.12
Granted	32,070		84.03		45,828		59.79		76,617		36.33
Canceled	(1,098	)	86.15		(28,815	)	42.15		(1,360	)	35.75
Vested and issued	(45,834	)	42.12		(60,495	)	34.77		(69,411	)	31.69
Outstanding, end of year	80,153		60.98		95,015		44.39		138,497		34.63

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

As of December 31, 2018 and 2017, the intrinsic value of options, SARs, and non-vested restricted stock outstanding, exercisable, and vested or expected to vest was $7.9 million and $14.8 million, respectively. During 2018, 2017, and 2016, the total intrinsic value of options and SARs exercised was $3.0 million, $3.8 million, and $7.6 million, respectively. As of December 31, 2018, there was $2.6 million of total unrecognized compensation cost related to non-vested SARs and restricted stock awards. This cost is expected to be recognized over a weighted-average period of 1.7 years.

The weighted-average grant date fair values of options, SARs, and restricted stock awards granted in 2018, 2017, and 2016 were $69.38, $44.93, and $25.11 per share, respectively. Under the fair value-based method of accounting for stock-based compensation cost, Farmer Mac recognized compensation expense of $2.5 million, $2.7 million, and $3.3 million during 2018, 2017, and 2016, respectively.

The fair values of stock options and SARs were estimated using the Black-Scholes option pricing model based on the following assumptions:

Table 9.3



	For the Year Ended December 31,
	2018	2017	2016
Risk-free interest rate	2.7%	2.3%	1.5%
Expected years until exercise	6 years	6 years	5 years
Expected stock volatility	33.0%	34.8%	34.7%
Dividend yield	2.7%	2.4%	2.9%

The risk-free interest rates used in the model were based on the U.S. Treasury yield curve in effect at the grant date. Farmer Mac used historical data to estimate the timing of option exercises and stock option cancellation rates used in the model. Expected volatilities were based on historical volatility of Farmer Mac's Class C non-voting common stock. The dividend yields were based on the expected dividends as a percentage of the value of Farmer Mac's Class C non-voting common stock on the grant date.

Because restricted stock awards will be issued upon vesting regardless of the stock price, expected stock volatility is not considered in determining grant date fair value. Restricted stock awards also accrue dividends which are paid at vesting. The weighted-average grant date fair value of the restricted stock awarded in 2018, 2017, and 2016 was $84.03, $59.79, and $36.33 per share, respectively, which is based on the closing price of the stock on the date granted.