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 basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled


	As of March 31, 2021						As of December 31, 2020
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Farm & Ranch	$	5,128,442	$	1,174,525	$	6,302,967	$	4,889,393	$	1,287,045	$	6,176,438
Rural Utilities	2,247,104		—		2,247,104		2,260,412		—		2,260,412
Total unpaid principal balance(1)	7,375,546		1,174,525		8,550,071		7,149,805		1,287,045		8,436,850
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments	(33,634)		—		(33,634)		112,128		—		112,128
Total loans	7,341,912		1,174,525		8,516,437		7,261,933		1,287,045		8,548,978
Allowance for losses	(14,021)		(786)		(14,807)		(12,943)		(889)		(13,832)
Total loans, net of allowance	$	7,327,891	$	1,173,739	$	8,501,630	$	7,248,990	$	1,286,156	$	8,535,146


	March 31, 2021		December 31, 2020
	Allowance for Losses		Allowance for Losses
	(in thousands)
Loans:
Farm & Ranch	$	3,718	$	3,745
Rural Utilities	11,089		10,087
Total	$	14,807	$	13,832


	For the Three Months Ended
	March 31, 2021		March 31, 2020
	Allowance for Losses		Allowance for Losses
	(in thousands)
Farm & Ranch:
Balance as of December 31	$	3,745	$	10,454
Cumulative effect adjustment from adoption of current expected credit loss standard	—		(3,909)
Balance as of January 1	3,745		6,545
(Release of)/provision for losses	$	(27)	$	808
Charge-offs	—		—
Ending Balance(1)	$	3,718	$	7,353

Rural Utilities:
Balance as of December 31	$	10,087	$	—
Cumulative effect adjustment from adoption of current expected credit loss standard	—		5,378
Balance as of January 1	10,087		5,378
Provision for losses	$	1,002	$	2,125

Charge-offs	—		—
Ending Balance(2)	$	11,089	$	7,503

(1)As of March 31, 2021 and 2020, allowance for losses for Farm & Ranch includes no allowance and $2.2 million, respectively, for collateral dependent assets secured by agricultural real estate.

The provision to the allowance for Rural Utilities loan losses of $1.0 million recorded during first quarter 2021 was primarily attributable to the impact of ratings downgrades on multiple rural utilities that were negatively impacted by the polar vortex that struck Texas in February 2021. The small release from the allowance for the Farm & Ranch portfolio during first quarter 2021 was primarily attributable to ratings upgrades and updated loss-given-default assumptions, offset by net growth in our loan portfolio.

The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2021 and December 31, 2020:


	As of March 31, 2021
	Accruing
	Current		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Farm & Ranch	$	6,154,416	$	4,733	$	261	$	14,150	$	19,144	$	129,407	$	6,302,967
Rural Utilities	2,247,104		—		—		—		—		—		2,247,104
Total	$	8,401,520	$	4,733	$	261	$	14,150	$	19,144	$	129,407	$	8,550,071

(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.

(3)Includes loans 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.

(4)Includes $58.1 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2021, Farmer Mac received $1.1 million in interest on nonaccrual loans.


	As of December 31, 2020
	Accruing
	Current		30-59 Days		60-89 Days		90 Days and Greater(2)		Total Past Due		Nonaccrual loans(3)(4)		Total Loans
	(in thousands)
Loans(1):
Farm & Ranch	$	6,055,154	$	4,582	$	632	$	1,072	$	6,286	$	114,998	$	6,176,438
Rural Utilities	2,260,412		—		—		—		—		—		2,260,412
Total	$	8,315,566	$	4,582	$	632	$	1,072	$	6,286	$	114,998	$	8,436,850

(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.

(4)Includes $44.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2020, Farmer Mac received $4.4 million in interest on nonaccrual loans.

The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of March 31, 2021 and December 31, 2020, by year of origination:


	As of March 31, 2021
	Year of Origination:
	2021		2020		2019		2018		2017		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable	$	542,638	$	1,923,390	$	724,202	$	443,929	$	399,931	$	1,334,771	$	482,993	$	5,851,854
Special mention(2)	16,079		102,656		56,723		16,292		2,569		23,003		11,804		229,126
Substandard(3)	—		3,655		25,027		28,825		57,791		94,565		12,124		221,987
Total	$	558,717	$	2,029,701	$	805,952	$	489,046	$	460,291	$	1,452,339	$	506,921	$	6,302,967

For the Three Months Ended March 31, 2021:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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 March 31, 2021
	Year of Origination:
	2021		2020		2019		2018		2017		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable	$	10,979	$	639,730	$	801,799	$	8,181	$	89,621	$	650,486	$	22,708	$	2,223,504
Special mention(2)	—		23,600		—		—		—		—		—		23,600
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	10,979	$	663,330	$	801,799	$	8,181	$	89,621	$	650,486	$	22,708	$	2,247,104

For the Three Months Ended March 31, 2021:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Farm & Ranch(1):
Internally Assigned Risk Rating:
Acceptable	$	1,947,618	$	774,315	$	484,345	$	500,768	$	465,277	$	1,068,693	$	535,742	$	5,776,758
Special mention(2)	70,171		79,744		18,317		8,530		13,111		21,328		7,656		218,857
Substandard(3)	3,400		5,821		21,879		52,709		37,173		50,582		9,259		180,823
Total	$	2,021,189	$	859,880	$	524,541	$	562,007	$	515,561	$	1,140,603	$	552,657	$	6,176,438

For the Three Months Ended March 31, 2020:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Farm & Ranch net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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, 2020
	Year of Origination:
	2020		2019		2018		2017		2016		Prior		Revolving Loans - Amortized Cost Basis		Total
	(in thousands)
Rural Utilities(1):
Internally Assigned Risk Rating:
Acceptable	$	667,489	$	809,921	$	8,260	$	89,842	$	31,275	$	641,145	$	12,480	$	2,260,412
Special mention(2)	—		—		—		—		—		—		—		—
Substandard(3)	—		—		—		—		—		—		—		—
Total	$	667,489	$	809,921	$	8,260	$	89,842	$	31,275	$	641,145	$	12,480	$	2,260,412

For the Three Months Ended March 31, 2020:
Current period charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Current period recoveries	—		—		—		—		—		—		—		—
Current period Rural Utilities net charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

(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.