Revision of Prior Period Financial Statements

6 Months Ended

Jun. 30, 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 June 30, 2022						Six Months Ended June 30, 2022
	As previously Reported		Adjustments		As Revised		As previously Reported		Adjustments		As Revised
	(in thousands)
Interest Income:
Farmer Mac Guaranteed Securities and USDA Securities	$	57,104	$	(5,488)	$	51,616	$	96,361	$	(1,825)	$	94,536
Total interest income	144,936		(5,488)		139,448		257,156		(1,825)		255,331
Net interest income	69,402		(5,488)		63,914		131,277		(1,825)		129,452
Non-interest income/(expense):
(Losses)/gains on financial derivatives	3,418		373		3,791		19,492		1,287		20,779
Non-Interest Income	7,302		373		7,675		27,793		1,287		29,080
Income before income taxes	58,028		(5,115)		52,913		118,950		(538)		118,412
Income tax expense	12,132		(1,074)		11,058		25,217		(113)		25,104
Net Income	45,896		(4,041)		41,855		93,733		(425)		93,308
Net Income attributable to common stockholders	39,104		(4,041)		35,063		80,150		(425)		79,725

Revised Consolidated Statements of Comprehensive Income

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
	As previously Reported		Adjustments		As Revised		As previously Reported		Adjustments		As Revised
	(in thousands)
Net Income	$	45,896	$	(4,041)	$	41,855	$	93,733	$	(425)	$	93,308
Comprehensive Income	36,077		(4,041)		32,036		40,396		(425)		39,971

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
Net Income	45,896		(4,041)		41,855		45,896		(4,041)		41,855
Balance as of June 30, 2022	$	638,935	$	8,862	$	647,797	$	1,212,348	$	8,862	$	1,221,210

Revised Consolidated Statements of Cash Flows

	Six Months Ended June 30, 2022
	As previously Reported		Adjustments		As Revised
	(in thousands)
Cash flows from operating activities:
Net income/(loss)	$	93,733	$	(425)	$	93,308
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	461,598		26,682		488,280
Deferred income taxes	3,765		51		3,816
Net change in:
Interest receivable	(739)		(961)		(1,700)
Other assets	(89,794)		688		(89,106)
Accrued interest payable	9,831		1,738		11,569
Other liabilities	31,295		(27,773)		3,522
Net cash provided by operating activities	526,010		—		526,010