Revision of Prior Period Financial Statements

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Revision of Prior Period Financial Statements

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTSFarmer Mac revised certain prior period financial statements to correct an error related to the recognition of accrual of interest for derivative contracts cleared through the swap clearinghouse, the CME. Farmer Mac determined that the error was immaterial to these previous consolidated financial statements, taken as a whole. Although Farmer Mac has concluded these errors are immaterial to the previously issued consolidated financial statements, Farmer Mac has corrected this error by revising the accompanying consolidated financial statements. Farmer Mac will also correct previously reported financial information

for such immaterial errors in future filings, as applicable. The following tables summarize the effect of the revision on each financial statement line item:

Revised Consolidated Statements of Operations

	Three Months Ended March 31, 2022
	As previously Reported		Adjustments		As Revised
	(in thousands)
Interest Income:
Farmer Mac Guaranteed Securities and USDA Securities	$	39,257	$	3,663	$	42,920
Total interest income	112,220		3,663		115,883
Net interest income	61,875		3,663		65,538
Non-interest income/(expense):
(Losses)/gains on financial derivatives	16,074		914		16,988
Non-Interest Income	20,491		914		21,405
Income before income taxes	60,922		4,577		65,499
Income tax expense	13,085		961		14,046
Net Income	47,837		3,616		51,453
Net Income attributable to common stockholders	41,046		3,616		44,662

Revised Consolidated Statements of Comprehensive Income

	Three Months Ended March 31, 2022
	As previously Reported		Adjustments		As Revised
	(in thousands)
Net Income	$	47,837	$	3,616	$	51,453
Comprehensive Income	4,319		3,616		7,935

Revised Consolidated Statements of Equity

	Retained Earnings						Total Equity
	As previously Reported		Adjustments		As Revised		As previously Reported		Adjustments		As Revised
	(in thousands)
Balance as of December 31, 2021	$	579,270	$	9,287	$	588,557	$	1,204,413	$	9,287	$	1,213,700
Net Income	47,837		3,616		51,453		47,837		3,616		51,453
Balance as of March 31, 2022	$	610,087	$	12,903	$	622,990	$	1,192,844	$	12,903	$	1,205,747

Revised Consolidated Statements of Cash Flows

	Three Months Ended March 31, 2022
	As previously Reported		Adjustments		As Revised
	(in thousands)
Cash flows from operating activities:
Net income/(loss)	$	47,837	$	3,616	$	51,453
Adjustments to reconcile net income to net cash provided by operating activities:
Net change in fair value of trading securities, hedged assets, and financial derivatives	231,470		4,494		235,964
Deferred income taxes	2,216		578		2,794
Net change in:
Interest receivable	29,408		2,869		32,277
Other assets	(61,087)		(3,089)		(64,176)
Accrued interest payable	5,769		(4,697)		1,072
Other liabilities	9,962		(3,771)		6,191
Net cash provided by operating activities	269,305		—		269,305