Business Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the years ended December 31, 2021, 2020 and 2019. The amounts for the years ended December 31, 2020 and 2019 have been revised to conform to the current year's segment alignment.

Table 14.1

Core Earnings by Business Segment
For the Year Ended December 31, 2021
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	118,289	$	27,081	$	8,224	$	1,219	$	65,405	$	557	$	—	$	—		$	220,775
Less: reconciling adjustments(1)(2)(3)	(4,753)		—		(157)		—		4,803		—		—		107			—
Net effective spread	113,536		27,081		8,067		1,219		70,208		557		—		107			—
Guarantee and commitment fees	16,178		48		1,287		20		—		—		—		(4,864)			12,669
Gain on sale of mortgage loans	6,539		—		—		—		—		—		—		—			6,539
Other income/(expense)(3)	1,966		—		5		—		—		—		(291)		(2,821)			(1,141)
Total revenues	138,219		27,129		9,359		1,239		70,208		557		(291)		(7,578)			238,842
Release of/(provision for) losses	1,574		(210)		(291)		(198)		—		(15)		—		—			860
Release of reserve for losses	1,034		—		293		—		—		—		—		—			1,327
Operating expenses	—		—		—		—		—		—		(73,416)		—			(73,416)
Total non-interest expense	1,034		—		293		—		—		—		(73,416)		—			(72,089)
Core earnings before income taxes	140,827		26,919		9,361		1,041		70,208		542		(73,707)		(7,578)		(4)	167,613
Income tax (expense)/benefit	(29,574)		(5,653)		(1,965)		(219)		(14,744)		(114)		15,325		1,591			(35,353)
Core earnings before preferred stock dividends	111,253		21,266		7,396		822		55,464		428		(58,382)		(5,987)		(4)	132,260
Preferred stock dividends	—		—		—		—		—		—		(24,677)		—			(24,677)
Segment core earnings/(losses)	$	111,253	$	21,266	$	7,396	$	822	$	55,464	$	428	$	(83,059)	$	(5,987)	(4)	$	107,583
Total Assets	$	13,112,193	$	1,507,848	$	5,344,707	$	87,553	$	—	$	5,037,636	$	55,554	$	—		25,145,491
Total on- and off-balance sheet program assets at principal balance	$	16,094,640	$	1,537,834	$	5,895,226	$	86,763	$	—	$	—	$	—	$	—		23,614,463

(1)Includes 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 "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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 reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Year Ended December 31, 2020
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	96,355	$	21,441	$	7,083	$	303	$	66,446	$	(1,040)	$	—	$	—		$	190,588
Less: reconciling adjustments(1)(2)(3)	(6,197)		—		(207)		—		12,772		—		—		(6,368)			—
Net effective spread	90,158		21,441		6,876		303		79,218		(1,040)		—		(6,368)			—
Guarantee and commitment fees	17,800		5		1,345		—		—		—		—		(6,601)			12,549
Other income/(expense)(3)	3,652		—		32		—		—		—		(534)		604			3,754
Total revenues	111,610		21,446		8,253		303		79,218		(1,040)		(534)		(12,365)			206,891
(Provision for)/release of losses	(2,941)		36		(4,763)		(110)		—		(27)		—		—			(7,805)
Provision for reserve for losses	(80)		—		(170)		—		—		—		—		—			(250)
Operating expenses	—		—		—		—		—		—		(61,403)		—			(61,403)
Total non-interest expense	(80)		—		(170)		—		—		—		(61,403)		—			(61,653)
Core earnings before income taxes	108,589		21,482		3,320		193		79,218		(1,067)		(61,937)		(12,365)		(4)	137,433
Income tax (expense)/benefit	(22,802)		(4,511)		(697)		(41)		(16,636)		224		13,082		2,596			(28,785)
Core earnings before preferred stock dividends	85,787		16,971		2,623		152		62,582		(843)		(48,855)		(9,769)		(4)	108,648
Preferred stock dividends	—		—		—		—		—		—		(17,805)		—			(17,805)
Loss on retirement of preferred stock	—		—		—		—		—		—		—		(1,667)			(1,667)
Segment core earnings/(losses)	$	85,787	$	16,971	$	2,623	$	152	$	62,582	$	(843)	$	(66,660)	$	(11,436)	(4)	$	89,176
Total Assets	$	12,373,781	$	1,663,581	$	4,760,585	$	73,493	$	—	$	5,441,426	$	42,635	$	—		$	24,355,501
Total on- and off-balance sheet program assets at principal balance	$	14,872,894	$	1,664,115	$	5,314,051	$	73,035	$	—	$	—	$	—	$	—		$	21,924,095

(1)Includes 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 "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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 reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Year Ended December 31, 2019
	Agricultural Finance				Rural Infrastructure				Treasury				Corporate
	Farm & Ranch		Corporate AgFinance		Rural  Utilities		Renewable Energy		Funding		Investments				Reconciling Adjustments			Consolidated Net Income
	(in thousands)
Net interest income	$	83,226	$	13,757	$	5,242	$	22	70,500		$	388	$	—	$	—		$	173,135
Less: reconciling adjustments(1)(2)(3)	(7,095)		—		(176)		—		2,744		—		—		4,527			—
Net effective spread	76,131		13,757		5,066		22		73,244		388		—		4,527			—
Guarantee and commitment fees	19,551		—		1,784		—		—		—		—		(7,669)			13,666
Other income/(expense)(3)	1,571		—		37		—		—		—		167		5,501			7,276
Total revenues	97,253		13,757		6,887		22		73,244		388		167		2,359			194,077
Provision for losses	(3,165)		(339)		—		—		—		—		—		—			(3,504)
Release of reserve for losses	3		—		—		—		—		—		—		—			3
Operating expenses	—		—		—		—		—		—		(51,925)		—			(51,925)
Total non-interest expense	3		—		—		—		—		—		(51,925)		—			(51,922)
Core earnings before income taxes	94,091		13,418		6,887		22		73,244		388		(51,758)		2,359		(4)	138,651
Income tax (expense)/benefit	(19,759)		(2,818)		(1,446)		(5)		(15,381)		(82)		10,881		(495)			(29,105)
Core earnings before preferred stock dividends	74,332		10,600		5,441		17		57,863		306		(40,877)		1,864		(4)	109,546
Preferred stock dividends	—		—		—		—		—		—		(13,940)		—			(13,940)
Loss on retirement of preferred stock	—		—		—		—		$	—	—		—		(1,956)			(1,956)
Segment core earnings/(losses)	$	74,332	$	10,600	$	5,441	$	17	$	57,863	$	306	$	(54,817)	$	(92)	(4)	$	93,650
Total Assets	$	11,889,538	$	1,338,114	$	4,625,125	$	9,802	$	—	$	3,809,891	$	36,904	$	—		$	21,709,374
Total on- and off-balance sheet program assets at principal balance	$	14,559,268	$	1,328,602	$	5,220,270	$	9,802	$	—	$	—	$	—	$	—		$	21,117,942

(1)Includes 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 "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

(4)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 reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.