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BUSINESS SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENT REPORTING BUSINESS SEGMENT REPORTING
The following table presents Farmer Mac's seven segments:

Agricultural FinanceRural Infrastructure FinanceTreasury
Farm & RanchCorporate AgFinanceRural UtilitiesRenewable EnergyFundingInvestmentsCorporate

The financial information presented below reflects the accounts of Farmer Mac and its subsidiaries on a
consolidated basis. Accordingly, the core earnings for Farmer Mac's segments would differ from any stand-alone financial statements of Farmer Mac's subsidiaries. These differences would be due to various factors, including the exclusion of unrealized gains and losses related to fair value changes of trading assets and financial derivatives, as well as the allocation of certain expenses such as operating expenses, dividends and interest expense related to the issuance of capital and the issuance of indebtedness managed at the corporate level.

The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three and six months ended June 30, 2024 and 2023.
Table 10.1
Core Earnings by Business Segment
For the Three Months Ended June 30, 2024
Agricultural FinanceRural InfrastructureTreasuryCorporate
Farm & RanchCorporate AgFinance
Rural 
Utilities
Renewable EnergyFundingInvestmentsReconciling
Adjustments		Consolidated Net Income
 (in thousands)
Net interest income$35,522 $7,866 $7,672 $2,999 $32,620 $661 $— $—  $87,340 
Less: reconciling adjustments(1)(2)(3)
(1,366)— (26)— (2,352)— — 3,744 — 
Net effective spread34,156 7,866 7,646 2,999 30,268 661 — 3,744 — 
Guarantee and commitment fees4,612 127 301 216 — — — (1,459)3,797 
Gain on sale of investment securities
— — — — — 1,052 — — 1,052 
Loss on sale of mortgage loan
— (1,147)— — — — — — (1,147)
Other income(3)
517 (5)— — — 7 (38)(1,606)(1,125)
Total revenues39,285 6,841 7,947 3,215 30,268 1,720 (38)679 89,917 
(Provision for)/release of losses
(211)(5,354)502 (1,117)— 1 — —  (6,179)
Provision for reserve for losses
(36)— (15)— — — — — (51)
Operating expenses— — — — — — (24,469)—  (24,469)
Total non-interest expense(36)— (15)— — — (24,469)—  (24,520)
Core earnings before income taxes39,038 1,487 8,434 2,098 30,268 1,721 (24,507)679 
(4)
59,218 
Income tax (expense)/benefit(8,198)(312)(1,771)(441)(6,355)(362)5,469 (143)(12,113)
Core earnings before preferred stock dividends 30,840 1,175 6,663 1,657 23,913 1,359 (19,038)536 
(4)
47,105 
Preferred stock dividends— — — — — — (6,792)—  (6,792)
Segment core earnings/(losses)$30,840 $1,175 $6,663 $1,657 $23,913 $1,359 $(25,830)$536 
(4)
$40,313 
Total Assets$14,962,357 $1,660,154 $7,135,581 $736,936 $— $5,560,800 $138,486 $—  $30,194,314 
Total on- and off-balance sheet program assets at principal balance$18,504,501 $1,816,893 $7,561,473 $875,472 $— $— $— $—  $28,758,339 
(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 Three Months Ended June 30, 2023
Agricultural FinanceRural InfrastructureTreasuryCorporate
Farm & RanchCorporate AgFinance
Rural 
Utilities
Renewable EnergyFundingInvestmentsReconciling
Adjustments		Consolidated Net Income
 (in thousands)
Net interest income$35,425 $7,444 $5,839 $1,100 $28,402 $467 $— $—  $78,677 
Less: reconciling adjustments(1)(2)(3)
(1,037)— (31)— 4,096 127 — (3,155)— 
Net effective spread34,388 7,444 5,808 1,100 32,498 594 — (3,155)— 
Guarantee and commitment fees4,221 62 281 17 — — — (1,092)3,489 
Other income/(expense)(3)
342 12 — — — 11 44 2,042 2,451 
Total revenues38,951 7,518 6,089 1,117 32,498 605 44 (2,205)84,617 
(Provision for)/release of losses
(5)(327)(632)(110)— 1 — —  (1,073)
(Provision for)/release of reserve for losses(75)— 6 — — — — — (69)
Operating expenses— — — — — — (24,188)—  (24,188)
Total non-interest expense(75)— 6 — — — (24,188)—  (24,257)
Core earnings before income taxes38,871 7,191 5,463 1,007 32,498 606 (24,144)(2,205)
(4)
59,287 
Income tax (expense)/benefit(8,163)(1,510)(1,147)(211)(6,825)(127)5,444 464 (12,075)
Core earnings before preferred stock dividends 30,708 5,681 4,316 796 25,673 479 (18,700)(1,741)
(4)
47,212 
Preferred stock dividends— — — — — — (6,791)—  (6,791)
Segment core earnings/(losses)$30,708 $5,681 $4,316 $796 $25,673 $479 $(25,491)$(1,741)
(4)
$40,421 
Total Assets$14,456,296 $1,584,841 $6,169,811 $314,538 $— $4,959,243 $174,836 $—  $27,659,565 
Total on- and off-balance sheet program assets at principal balance$18,116,503 $1,680,756 $6,611,892 $327,901 $— $— $— $—  $26,737,052 
(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 Six Months Ended June 30, 2024
Agricultural FinanceRural InfrastructureTreasuryCorporate
Farm & RanchCorporate AgFinance
Rural 
Utilities
Renewable EnergyFundingInvestmentsReconciling
Adjustments		Consolidated Net Income
 (in thousands)
Net interest income$69,411 $15,837 $14,937 $5,048 $67,339 $1,136 $— $—  $173,708 
Less: reconciling adjustments(1)(2)(3)
(2,412)— (60)— (4,596)— — 7,068 — 
Net effective spread66,999 15,837 14,877 5,048 62,743 1,136 — 7,068 — 
Guarantee and commitment fees9,096 214 650 278 — — — (2,524)7,714 
Gain on sale of investment securities— — — — — 1,052 — — 1,052 
Loss on sale of mortgage loan— (1,147)— — — — — — (1,147)
Other income(3)
1,512 7 — — — 11 28 645 2,203 
Total revenues77,607 14,911 15,527 5,326 62,743 2,199 28 5,189 183,530 
(Provision for)/release of losses
(772)(4,976)3,519 (2,151)— 2 — —  (4,378)
Release of/(provision for) reserve for losses
28 — (10)— — — — — 18 
Operating expenses— — — — — — (51,706)—  (51,706)
Total non-interest expense28 — (10)— — — (51,706)—  (51,688)
Core earnings before income taxes76,863 9,935 19,036 3,175 62,743 2,201 (51,678)5,189 
(4)
127,464 
Income tax (expense)/benefit(16,141)(2,086)(3,998)(667)(13,174)(463)11,006 (1,090)(26,613)
Core earnings before preferred stock dividends 60,722 7,849 15,038 2,508 49,569 1,738 (40,672)4,099 
(4)
100,851 
Preferred stock dividends— — — — — — (13,583)—  (13,583)
Segment core earnings/(losses)$60,722 $7,849 $15,038 $2,508 $49,569 $1,738 $(54,255)$4,099 
(4)
$87,268 
Total Assets$14,962,357 $1,660,154 $7,135,581 $736,936 $— $5,560,800 $138,486 $—  $30,194,314 
Total on- and off-balance sheet program assets at principal balance$18,504,501 $1,816,893 $7,561,473 $875,472 $— $— $— $—  $28,758,339 
(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 Six Months Ended June 30, 2023
Agricultural FinanceRural InfrastructureTreasuryCorporate
Farm & RanchCorporate AgFinance
Rural 
Utilities
Renewable EnergyFundingInvestmentsReconciling
Adjustments		Consolidated Net Income
 (in thousands)
Net interest income$68,936 $14,592 $11,379 $1,958 $60,946 $(76)$— $—  $157,735 
Less: reconciling adjustments(1)(2)(3)
(2,083)— (64)— 3,290 127 — (1,270)— 
Net effective spread66,853 14,592 11,315 1,958 64,236 51 — (1,270)— 
Guarantee and commitment fees8,513 115 562 45 — — — (1,813)7,422 
Other income/(expense)(3)
1,409 12 — — — 11 44 2,600 4,076 
Total revenues76,775 14,719 11,877 2,003 64,236 62 44 (483)169,233 
Release of/(provision for) losses123 (4,628)2,852 28 — 5 — —  (1,620)
(Provision for)/release of reserve for losses(652)— 380 — — — — — (272)
Operating expenses— — — — — — (47,901)—  (47,901)
Total non-interest expense(652)— 380 — — — (47,901)—  (48,173)
Core earnings before income taxes76,246 10,091 15,109 2,031 64,236 67 (47,857)(483)
(4)
119,440 
Income tax (expense)/benefit(16,012)(2,119)(3,173)(426)(13,490)(14)9,939 102 (25,193)
Core earnings before preferred stock dividends 60,234 7,972 11,936 1,605 50,746 53 (37,918)(381)
(4)
94,247 
Preferred stock dividends— — — — — — (13,582)—  (13,582)
Segment core earnings/(losses)$60,234 $7,972 $11,936 $1,605 $50,746 $53 $(51,500)$(381)
(4)
$80,665 
Total Assets$14,456,296 $1,584,841 $6,169,811 $314,538 $— $4,959,243 $174,836 $—  $27,659,565 
Total on- and off-balance sheet program assets at principal balance$18,116,503 $1,680,756 $6,611,892 $327,901 $— $— $— $—  $26,737,052 
(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.