COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 001-14951 | |
Entity Registrant Name | FEDERAL AGRICULTURAL MORTGAGE CORPORATION | |
Entity Incorporation, State or Country Code | X1 | |
Entity Tax Identification Number | 52-1578738 | |
Entity Address, Address Line One | 1999 K Street, N.W., 4th Floor, | |
Entity Address, City or Town | Washington, | |
Entity Address, State or Province | DC | |
Entity Address, Postal Zip Code | 20006 | |
City Area Code | (202) | |
Local Phone Number | 872-7700 | |
Title of 12(g) Security | Class B voting common stock | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0000845877 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Class A voting common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A voting common stock | |
Trading Symbol | AGM.A | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 1,030,780 | |
Common Class B, Voting | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 500,301 | |
Class C non-voting common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class C non-voting common stock | |
Trading Symbol | AGM | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 9,197,805 | |
5.875% Non-Cumulative Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.875% Non-Cumulative Preferred Stock, Series A | |
Trading Symbol | AGM.PRA | |
Security Exchange Name | NYSE | |
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C | |
Trading Symbol | AGM.PRC | |
Security Exchange Name | NYSE | |
5.700% Non-Cumulative Preferred Stock, Series D | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 5.700% Non-Cumulative Preferred Stock, Series D | |
Trading Symbol | AGM.PRD | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 1,231,585 | $ 604,381 |
Loans: | ||
Loans held for investment, at amortized cost | 5,789,391 | 5,390,977 |
Loans held for investment in consolidated trusts, at amortized cost | 1,540,689 | 1,600,917 |
Allowance for losses | (14,856) | (10,454) |
Total loans, net of allowance | 7,315,224 | 6,981,440 |
Financial derivatives, at fair value | 12,692 | 10,519 |
Interest receivable (includes $11,944 and $20,568, respectively, related to consolidated trusts) | 154,836 | 199,195 |
Guarantee and commitment fees receivable | 37,521 | 38,442 |
Deferred tax asset, net | 47,842 | 16,510 |
Prepaid expenses and other assets | 61,133 | 22,463 |
Total Assets | 23,180,110 | 21,709,374 |
Liabilities: | ||
Notes payable | 20,665,020 | 19,098,648 |
Debt securities of consolidated trusts held by third parties | 1,549,527 | 1,616,504 |
Financial derivatives, at fair value | 53,795 | 27,042 |
Accrued interest payable (includes $9,588 and $18,018, respectively, related to consolidated trusts) | 104,380 | 106,959 |
Guarantee and commitment obligation | 35,939 | 36,700 |
Accounts payable and accrued expenses | 74,412 | 22,081 |
Reserve for losses | 3,420 | 2,164 |
Total Liabilities | 22,486,493 | 20,910,098 |
Commitments and Contingencies | ||
Common stock: | ||
Additional paid-in capital | 120,412 | 119,304 |
Accumulated other comprehensive loss, net of tax | (121,437) | (16,161) |
Retained earnings | 455,545 | 457,047 |
Total Equity | 693,617 | 799,276 |
Total Liabilities and Equity | 23,180,110 | 21,709,374 |
5.875% Non-Cumulative Preferred Stock, Series A | ||
Preferred stock: | ||
Preferred stock | 58,333 | 58,333 |
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C | ||
Preferred stock: | ||
Preferred stock | 73,382 | 73,382 |
5.700% Non-Cumulative Preferred Stock, Series D | ||
Preferred stock: | ||
Preferred stock | 96,659 | 96,659 |
Class A voting common stock | ||
Common stock: | ||
Common Stock | 1,031 | 1,031 |
Common Class B, Voting | ||
Common stock: | ||
Common Stock | 500 | 500 |
Class C non-voting common stock | ||
Common stock: | ||
Common Stock | 9,192 | 9,181 |
Debt Securities | ||
Assets: | ||
Available-for-sale, at fair value | 2,961,157 | 2,959,843 |
Held-to-maturity, at amortized cost | 45,032 | 45,032 |
Total Securities | 3,006,189 | 3,004,875 |
Farmer Mac Guaranteed Securities: | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,186 | 7,143,025 |
Held-to-maturity, at amortized cost | 1,447,883 | 1,447,451 |
Total Securities | 9,035,069 | 8,590,476 |
USDA Securities: | ||
Assets: | ||
Held-to-maturity, at amortized cost | 2,269,611 | 2,232,160 |
Trading, at fair value | 8,408 | 8,913 |
Total Securities | $ 2,278,019 | $ 2,241,073 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Interest receivable - Consolidated Trusts amount | $ 154,836 | $ 199,195 |
Accrued interest payable - Consolidated Trusts amount | 104,380 | 106,959 |
Available-for-Sale Securities | ||
Amortized cost of available-for-sale investment securities | 2,959,694 | 2,961,430 |
Farmer Mac Guaranteed Securities: | ||
Amortized cost of available-for-sale investment securities | 7,273,303 | 7,016,971 |
Variable Interest Entity, Primary Beneficiary | ||
Interest receivable - Consolidated Trusts amount | 11,944 | 20,568 |
Accrued interest payable - Consolidated Trusts amount | $ 9,588 | $ 18,018 |
5.875% Non-Cumulative Preferred Stock, Series A | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 2,400,000 | 2,400,000 |
Preferred stock, shares issued (in shares) | 2,400,000 | 2,400,000 |
Preferred stock, shares outstanding (in shares) | 2,400,000 | 2,400,000 |
6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding (in shares) | 3,000,000 | 3,000,000 |
5.700% Non-Cumulative Preferred Stock, Series D | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding (in shares) | 4,000,000 | 4,000,000 |
Class A voting common stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | 1,030,780 | 1,030,780 |
Common Class B, Voting | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | 500,301 | 500,301 |
Class C non-voting common stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares outstanding (in shares) | 9,192,047 | 9,180,744 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Investments and cash equivalents | $ 17,741 | $ 18,707 |
Farmer Mac Guaranteed Securities and USDA Securities | 71,517 | 85,411 |
Loans | 60,596 | 51,397 |
Total interest income | 149,854 | 155,515 |
Total interest expense | 108,542 | 114,916 |
Net interest income | 41,312 | 40,599 |
(Provision for)/release of losses | (3,438) | 264 |
Net interest income after (provision for)/release of losses | 37,874 | 40,863 |
Non-interest (expense)/income: | ||
Guarantee and commitment fees | 3,196 | 3,513 |
Losses on financial derivatives | (9,298) | (360) |
Gains on trading securities | 106 | 44 |
Gains on sale of real estate owned | 485 | 0 |
(Provision for)/release of reserve for losses | (393) | 129 |
Other income | 816 | 493 |
Non-interest (expense)/income | (5,088) | 3,819 |
Operating expenses: | ||
Compensation and employee benefits | 10,127 | 7,606 |
General and administrative | 5,363 | 4,596 |
Regulatory fees | 725 | 688 |
Operating expenses | 16,215 | 12,890 |
Income before income taxes | 16,571 | 31,792 |
Income tax expense | 3,741 | 6,622 |
Net income attributable to Farmer Mac | 12,830 | 25,170 |
Preferred stock dividends | (3,431) | (3,296) |
Net income attributable to common stockholders | $ 9,399 | $ 21,874 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 0.88 | $ 2.05 |
Diluted earnings per common share (in dollars per share) | $ 0.87 | $ 2.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,830 | $ 25,170 |
Other comprehensive income before taxes: | ||
Net unrealized (losses)/gains on available-for-sale securities | (99,316) | 3,241 |
Net changes in held-to-maturity securities | (5,688) | (2,262) |
Net unrealized losses on cash flow hedges | (28,256) | (5,665) |
Other comprehensive loss before tax | (133,260) | (4,686) |
Income tax benefit related to other comprehensive loss | 27,984 | 984 |
Other comprehensive loss net of tax | (105,276) | (3,702) |
Comprehensive (loss)/income attributable to Farmer Mac | $ (92,446) | $ 21,468 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class C non-voting common stock | Preferred Stock | Common Stock | Common StockClass C non-voting common stock | Additional Paid-in Capital | Additional Paid-in CapitalClass C non-voting common stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsClass C non-voting common stock |
Beginning balance ( in shares) at Dec. 31, 2018 | 8,400 | 10,669 | ||||||||
Beginning balance at Dec. 31, 2018 | $ 752,557 | $ 204,759 | $ 10,669 | $ 118,822 | $ 24,956 | $ 393,351 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to Farmer Mac | 25,170 | 25,170 | ||||||||
Other comprehensive loss, net of tax | (3,702) | (3,702) | ||||||||
Cash dividends, preferred stock | (3,296) | (3,296) | ||||||||
Cash dividends, common stock | (7,470) | (7,470) | ||||||||
Issuance of stock (in shares) | 20 | |||||||||
Issuance of stock | $ 23 | $ 20 | 3 | |||||||
Stock-based compensation cost | 724 | 724 | ||||||||
Other stock-based award activity | (708) | (708) | ||||||||
Ending balance (in shares) at Mar. 31, 2019 | 8,400 | 10,689 | ||||||||
Ending balance at Mar. 31, 2019 | 763,298 | $ 204,759 | $ 10,689 | 118,841 | 21,254 | 407,755 | ||||
Beginning balance ( in shares) at Dec. 31, 2019 | 9,400 | 10,712 | ||||||||
Beginning balance at Dec. 31, 2019 | 799,276 | $ 228,374 | $ 10,712 | 119,304 | (16,161) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to Farmer Mac | 12,830 | 12,830 | ||||||||
Other comprehensive loss, net of tax | (105,276) | (105,276) | ||||||||
Cash dividends, preferred stock | (3,431) | (3,431) | ||||||||
Cash dividends, common stock | (8,571) | (8,571) | ||||||||
Issuance of stock (in shares) | 15 | |||||||||
Issuance of stock | 34 | $ 15 | $ 19 | |||||||
Repurchase of Class C Common Stock (in shares) | (4) | |||||||||
Repurchase of Class C Common Stock | $ (235) | $ (4) | $ (231) | |||||||
Stock-based compensation cost | 1,293 | 1,293 | ||||||||
Other stock-based award activity | (204) | (204) | ||||||||
Ending balance (in shares) at Mar. 31, 2020 | 9,400 | 10,723 | ||||||||
Ending balance at Mar. 31, 2020 | $ 693,617 | $ 228,374 | $ 10,723 | $ 120,412 | $ (121,437) | $ 455,545 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends per common share (in dollars per share) | $ 0.80 | $ 0.70 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 12,830 | $ 25,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities | (177) | (2,204) |
Amortization of debt premiums, discounts, and issuance costs | 9,221 | 10,826 |
Net change in fair value of trading securities, hedged assets, and financial derivatives | (379,004) | (69,096) |
Gain on sale of real estate owned | (485) | 0 |
Total provision for/(release of) allowance for losses | 3,831 | (393) |
Excess tax benefits related to stock-based awards | (508) | 127 |
Deferred income taxes | (3,347) | 2,902 |
Stock-based compensation expense | 1,293 | 724 |
Proceeds from repayment of loans purchased as held for sale | 20,674 | 18,671 |
Net change in: | ||
Interest receivable | 44,679 | 36,204 |
Guarantee and commitment fees receivable | 160 | 58 |
Other assets | (39,783) | (5,674) |
Accrued interest payable | (2,579) | (2,323) |
Other liabilities | 2,884 | 3,528 |
Net cash (used in)/provided by operating activities | (330,311) | 18,520 |
Cash flows from investing activities: | ||
Purchases of loans held for investment | (554,771) | (748,553) |
Proceeds from repayment of loans purchased as held for investment | 345,736 | 222,980 |
Proceeds from sale of Farmer Mac Guaranteed Securities | 28,050 | 116,708 |
Proceeds from sale of real estate owned | 2,191 | 0 |
Net cash used in investing activities | (426,895) | (980,122) |
Cash flows from financing activities: | ||
Payments to third parties on debt securities of consolidated trusts | (99,769) | (64,263) |
Proceeds from common stock issuance | 19 | 3 |
Tax payments related to share-based awards | (189) | (688) |
Purchases of common stock | (235) | 0 |
Dividends paid on common and preferred stock | (12,002) | (10,766) |
Net cash provided by financing activities | 1,384,410 | 912,468 |
Net change in cash and cash equivalents | 627,204 | (49,134) |
Cash and cash equivalents at beginning of period | 604,381 | 425,256 |
Cash and cash equivalents at end of period | 1,231,585 | 376,122 |
Non-cash activity: | ||
Loans acquired and securitized as Farmer Mac Guaranteed Securities | 28,050 | 116,708 |
Consolidation of Farmer Mac Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties | 28,050 | 97,780 |
Reclassification of defaulted loans from loans held for investment in consolidated trusts to loans held for investment | 4,742 | 4,721 |
Maturity of investment security - not yet settled | 0 | (40,310) |
Purchases of securities - traded, not yet settled | 50,000 | 35,100 |
Medium-term Notes | ||
Cash flows from financing activities: | ||
Proceeds from issuance of discount notes and medium-term notes | 3,734,025 | 2,124,252 |
Payments to redeem notes | (2,633,565) | (1,311,954) |
Notes Payable to Banks | ||
Cash flows from financing activities: | ||
Proceeds from issuance of discount notes and medium-term notes | 17,783,348 | 12,773,401 |
Payments to redeem notes | (17,387,222) | (12,597,517) |
Debt Securities | ||
Cash flows from investing activities: | ||
Purchases of securities | (704,306) | (473,326) |
Proceeds from repayment of securities | 706,061 | 205,240 |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Cash flows from investing activities: | ||
Purchases of securities | (657,959) | (857,511) |
Proceeds from repayment of securities | $ 408,103 | $ 554,340 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2019 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2019 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2019 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 25, 2020. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended March 31, 2020. Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary. The following tables present, by line of business, details about the consolidation of VIEs: Table 1.1 Consolidation of Variable Interest Entities As of March 31, 2020 Farm & Ranch USDA Guarantees Corporate Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,540,689 $ — $ — $ 1,540,689 Debt securities of consolidated trusts held by third parties (1) 1,549,527 — — 1,549,527 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value (2) — 33,512 — 33,512 Maximum exposure to loss (3) — 33,440 — 33,440 Investment securities: Carrying value (4) — — 1,291,950 1,291,950 Maximum exposure to loss (3) (4) — — 1,302,410 1,302,410 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3) (5) 97,302 370,903 — 468,205 (1) Includes borrower remittances of $8.8 million. The borrower remittances had not been passed through to third party investors as of March 31, 2020. (2) Includes $0.1 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. (3) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4) Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities. (5) The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party. Consolidation of Variable Interest Entities As of December 31, 2019 Farm & Ranch USDA Guarantees Corporate Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,600,917 $ — $ — $ 1,600,917 Debt securities of consolidated trusts held by third parties (1) 1,616,504 — — 1,616,504 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value (2) — 32,041 — 32,041 Maximum exposure to loss (3) — 31,887 — 31,887 Investment securities: Carrying value (4) — — 1,117,203 1,117,203 Maximum exposure to loss (3) (4) — — 1,120,765 1,120,765 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3) (5) 107,322 389,216 — 496,538 (1) Includes borrower remittances of $15.6 million. The borrower remittances had not been passed through to third party investors as of December 31, 2019. (2) Includes $0.2 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. (3) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4) Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities. (5) The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party. Basic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding. Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock awards. The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2020 and 2019: Table 1.2 For the Three Months Ended March 31, 2020 March 31, 2019 Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 9,399 10,712 $ 0.88 $ 21,874 10,670 $ 2.05 Effect of dilutive securities (1) SARs and restricted stock — 70 (0.01) — 107 (0.02) Diluted EPS $ 9,399 10,782 $ 0.87 $ 21,874 10,777 $ 2.03 (1) For the three months ended March 31, 2020 and 2019, SARs and restricted stock of 87,148 and 56,976, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended March 31, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 12,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met. Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes. The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2020 and 2019: Table 1.3 As of March 31, 2020 As of March 31, 2019 Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total (in thousands) For the Three Months Ended: Beginning Balance $ (43,397) $ 32,845 $ (5,609) $ (16,161) $ (25,360) $ 43,443 $ 6,873 $ 24,956 Other comprehensive (loss)/income before reclassifications (77,685) — (22,668) (100,353) 3,318 — (4,095) (777) Amounts reclassified from AOCI (776) (4,494) 347 (4,923) (758) (1,787) (380) (2,925) Net comprehensive (loss)/income (78,461) (4,494) (22,321) (105,276) 2,560 (1,787) (4,475) (3,702) Ending Balance $ (121,858) $ 28,351 $ (27,930) $ (121,437) $ (22,800) $ 41,656 $ 2,398 $ 21,254 The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2020 and 2019: Table 1.4 For the Three Months Ended March 31, 2020 March 31, 2019 Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax (in thousands) Other comprehensive income: Available-for-sale-securities: Unrealized holding (losses)/gains on available-for-sale securities $ (98,334) $ (20,649) $ (77,685) $ 4,200 $ 882 $ 3,318 Less reclassification adjustments included in: Net interest income (1) (969) (203) (766) (953) (200) (753) Other income (2) (13) (3) (10) (6) (1) (5) Total $ (99,316) $ (20,855) $ (78,461) $ 3,241 $ 681 $ 2,560 Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (3) (5,688) (1,194) (4,494) (2,262) (475) (1,787) Total $ (5,688) $ (1,194) $ (4,494) $ (2,262) $ (475) $ (1,787) Cash flow hedges Unrealized (losses)/gains on cash flow hedges $ (28,695) $ (6,027) $ (22,668) $ (5,184) $ (1,089) $ (4,095) Less reclassification adjustments included in: Net interest income (4) 439 92 347 (481) (101) (380) Total $ (28,256) $ (5,935) $ (22,321) $ (5,665) $ (1,190) $ (4,475) Other comprehensive (loss)/income $ (133,260) $ (27,984) $ (105,276) $ (4,686) $ (984) $ (3,702) (1) Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. (2) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (3) Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. (4) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. Farmer Mac maintains an allowance for losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities, loans held for investment, and Farmer Mac Guaranteed Securities (collectively referred to as "allowance for losses"). Additionally, Farmer Mac maintains a reserve for losses to cover current expected credit losses as of the balance sheet date for off-balance sheet loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (collectively referred to as "reserve for losses"). Both the allowance for losses and reserve for losses are based on historical information and reasonable and supportable forecasts. Farmer Mac has never experienced a credit loss in its Rural Utilities line of business. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the expected life of all financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry historical credit loss data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry. The allowance for losses increases through periodic provisions for loan losses that are charged against net interest income and the reserve for losses increases through provisions for losses that are charged to non-interest expense. Both the allowance for losses and reserve for losses are decreased by charge-offs for realized losses, net of recoveries. Releases from the allowance for losses or reserve for losses occur when the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period. The total allowance for losses consists of the allowance for losses and the reserve for losses. Charge-offs Farmer Mac records a charge-off against the allowance for losses principally when a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The loss equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs. Estimation Methodology Farmer Mac bases its methodology for determining its current estimate of expected losses on a statistical model, which incorporates credit loss history and reasonable and supportable forecasts. Farmer Mac's estimation methodology is comprised of the following key components: • An economic model for each of our portfolios, including Farm & Ranch, Rural Utilities, and Institutional Credit; • A migration matrix for each portfolio that reasonably predicts the movement of each financial asset among various risk categories over the course of each asset's expected life. The migration matrix forms the basis for our estimate of the probability of default of each financial asset; • A loss-given-default ("LGD") model that reasonably predicts the amount of loss that Farmer Mac would incur upon the default of each financial asset; • An economic factor forecast that updates the migration matrix model and the LGD model with current assumptions for the economic indicators that Farmer Mac has determined are most correlated with or relevant to the performance of each portfolio of assets; including Gross Domestic Product ("GDP"), credit spreads, unemployment rates, land values, and commodity prices; and • A discounted cash flow analysis, which relies upon each of the above model outputs, plus the contractual terms of each financial asset, and the effective interest rate of each financial asset. Management evaluates these assumptions by considering many relevant factors, including: • economic conditions; • geographic and agricultural commodity/product concentrations in the portfolio; • the credit profile of the portfolio, including risk ratings and financial metrics; • delinquency trends of the portfolio; • historical charge-off and recovery activities of the portfolio; and • other factors to capture current portfolio trends and characteristics that differ from historical experience. Management believes that its methodology produces a reasonable estimate of expected credit losses, as of the balance sheet date, for the expected life of all of its financial assets. Allowance for Loss on Available-for-Sale (AFS) Securities To measure current expected credit losses on impaired AFS securities, Farmer Mac first considers those impaired securities that: 1) Farmer Mac does not intend to sell, and 2) it is not more likely than not that Farmer Mac will be required to sell before recovering its amortized cost basis. In assessing whether a credit loss exists, Farmer Mac compares the present value, discounted at the security's effective interest rate, of cash flows expected to be collected from an impaired AFS debt security to its amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis of the impaired security, a credit loss exists and Farmer Mac records an allowance for loss for that credit loss. However, the amount of that allowance is limited by the amount that the security’s fair value is less than its amortized cost basis. Accrued interest receivable is recorded separately on the Consolidated Balance Sheet, and the allowance for credit losses excludes uncollectible accrued interest receivable. Collateral Dependent Assets ("CDAs") CDAs are loans, loans underlying LTSPCs, or off-balance sheet credit exposures in which the borrower is either in foreclosure or is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral by Farmer Mac. Farmer Mac estimates the current expected credit loss on CDAs based upon the appraised value of the collateral, the costs to sell it, and any applicable credit protection such as a guarantee. Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates. January 1, 2020 In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below. ASU 2017-08 , Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update. January 1, 2020 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added. January 1, 2020 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings: Table 1.5 December 31, 2019 Transition Adjustment January 1, 2020 (in thousands) Allowance: Farm & Ranch: Loans $ 10,454 $ (3,909) $ 6,545 Long-term standby purchase commitments and guarantees 2,164 (148) 2,016 Rural Utilities: Loans — 5,378 5,378 Long-term standby purchase commitments — 1,011 1,011 Farmer Mac Guaranteed Securities: AgVantage — 315 315 Investment Securities — 9 9 Total Allowance $ 12,618 $ 2,656 $ 15,274 Retained Earnings $ 457,047 $ (2,099) $ 454,948 Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this ASU. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following tables set forth information about Farmer Mac's investment securities as of March 31, 2020 and December 31, 2019: Table 2.1 As of March 31, 2020 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (24) $ — $ (2,955) $ 16,721 Floating rate asset-backed securities 10,521 — 10,521 — — (18) 10,503 Floating rate Government/GSE guaranteed mortgage-backed securities 1,783,998 295 1,784,293 — 4,985 (11,279) 1,777,999 Fixed rate GSE guaranteed mortgage-backed securities 306 — 306 — 29 — 335 Fixed rate U.S. Treasuries 1,140,465 4,409 1,144,874 — 10,725 — 1,155,599 Total available-for-sale 2,954,990 4,704 2,959,694 (24) 15,739 (14,252) 2,961,157 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 — 45,032 — 131 — 45,163 Total investment securities $ 3,000,022 $ 4,704 $ 3,004,726 $ (24) $ 15,870 $ (14,252) $ 3,006,320 (1) Amounts presented exclude $8.3 million of accrued interest receivable on investment securities as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The held-to-maturity investment securities had a weighted average yield of 3.0% as of March 31, 2020. As of December 31, 2019 Amount Outstanding Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ — $ (788) $ 18,912 Floating rate asset-backed securities 11,092 — 11,092 — (7) 11,085 Floating rate Government/GSE guaranteed mortgage-backed securities 1,633,731 1,174 1,634,905 2,414 (4,736) 1,632,583 Fixed rate GSE guaranteed mortgage-backed securities 315 — 315 25 — 340 Fixed rate U.S. Treasuries 1,295,210 208 1,295,418 1,520 (15) 1,296,923 Total available-for-sale 2,960,048 1,382 2,961,430 3,959 (5,546) 2,959,843 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (1) 45,032 — 45,032 953 — 45,985 Total investment securities $ 3,005,080 $ 1,382 $ 3,006,462 $ 4,912 $ (5,546) $ 3,005,828 (1) The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three months ended March 31, 2020 and 2019. As of March 31, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2020 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 16,721 $ (2,955) Floating rate asset-backed securities 2,544 (9) 7,959 (9) Floating rate Government/GSE guaranteed mortgage-backed securities 871,617 (6,208) 411,651 (5,071) Total $ 874,161 $ (6,217) $ 436,331 $ (8,035) Number of securities in loss position 65 67 As of December 31, 2019 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 18,912 $ (788) Floating rate asset-backed securities 2,583 (1) 8,502 (6) Floating rate Government/GSE guaranteed mortgage-backed securities 841,993 (2,244) 436,621 (2,492) Fixed rate U.S. Treasuries 35,107 (15) — — Total $ 879,683 $ (2,260) $ 464,035 $ (3,286) Number of securities in loss position 57 62 The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to March 31, 2020 and December 31, 2019, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both March 31, 2020 and December 31, 2019, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+." Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2020 that is, on average, approximately 98.2% of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads. The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2020 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 1,013,044 $ 1,021,217 2.03% Due after one year through five years 399,388 399,311 2.02% Due after five years through ten years 808,042 804,652 2.03% Due after ten years 739,220 735,977 1.91% Total $ 2,959,694 $ 2,961,157 2.00% The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2020 and December 31, 2019: Table 3.1 As of March 31, 2020 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,120 $ (110) $ 1,415,010 $ (640) $ 31,294 $ — $ 1,445,664 Farmer Mac Guaranteed USDA Securities 33,440 73 33,513 — 879 — 34,392 Total Farmer Mac Guaranteed Securities 1,448,560 (37) 1,448,523 (640) 32,173 — 1,480,056 USDA Securities 2,234,027 35,584 2,269,611 — 68,166 (1,637) 2,336,140 Total held-to-maturity $ 3,682,587 $ 35,547 $ 3,718,134 $ (640) $ 100,339 $ (1,637) $ 3,816,196 Available-for-sale: AgVantage $ 7,273,414 $ (111) $ 7,273,303 $ (166) $ 378,974 $ (64,925) $ 7,587,186 Trading: USDA Securities (3) $ 7,835 $ 433 $ 8,268 $ — $ 149 $ (9) $ 8,408 (1) Amounts presented exclude $35.9 million, $40.6 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The trading USDA securities had a weighted average yield of 5.19% as of March 31, 2020. As of December 31, 2019 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,584 $ (174) $ 1,415,410 $ 15,300 $ (164) $ 1,430,546 Farmer Mac Guaranteed USDA Securities 31,887 154 32,041 839 — 32,880 Total Farmer Mac Guaranteed Securities 1,447,471 (20) 1,447,451 16,139 (164) 1,463,426 USDA Securities 2,190,671 41,489 2,232,160 54,356 (758) 2,285,758 Total held-to-maturity $ 3,638,142 $ 41,469 $ 3,679,611 $ 70,495 $ (922) $ 3,749,184 Available-for-sale: AgVantage $ 7,017,095 $ (124) $ 7,016,971 $ 161,316 $ (35,262) $ 7,143,025 Trading: USDA Securities (1) $ 8,400 $ 479 $ 8,879 $ 61 $ (27) $ 8,913 (1) The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019. As of March 31, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2020 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: USDA Securities $ — $ — $ 25,066 $ (1,637) Total held-to-maturity $ — $ — $ 25,066 $ (1,637) Available-for-sale: AgVantage $ 244,823 $ (540) $ 830,797 $ (64,385) As of December 31, 2019 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: AgVantage $ — $ — $ 301,836 $ (164) USDA Securities — — 27,089 (758) Total held-to-maturity $ — $ — $ 328,925 $ (922) Available-for-sale: AgVantage $ 225,239 $ (2,203) $ 1,394,802 $ (33,059) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to March 31, 2020 and December 31, 2019, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both March 31, 2020 and December 31, 2019 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016. The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States. The unrealized losses from AgVantage securities were on 9 and 17 available-for-sale securities as of March 31, 2020 and December 31, 2019, respectively. There were 0 and 4 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, 6 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. During the three months ended March 31, 2020 and 2019, Farmer Mac had no sales of Farmer Mac Guaranteed Securities or USDA Securities and, therefore, Farmer Mac realized no gains or losses. The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2020 Available-for-Sale Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 1,202,779 $ 1,207,673 1.82 % Due after one year through five years 3,358,079 3,479,730 2.77 % Due after five years through ten years 1,181,538 1,259,191 2.86 % Due after ten years 1,530,907 1,640,758 3.10 % Total $ 7,273,303 $ 7,587,352 2.70 % (1) Amounts presented exclude $35.9 million of accrued interest receivable. (2) Amounts presented exclude $0.2 million related to the allowance for losses. As of March 31, 2020 Held-to-Maturity Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 655,928 $ 660,512 2.57 % Due after one year through five years 840,702 869,401 3.27 % Due after five years through ten years 210,888 216,447 3.34 % Due after ten years 2,010,616 2,070,476 3.52 % Total $ 3,718,134 $ 3,816,836 3.29 % (1) Amounts presented exclude $40.6 million of accrued interest receivable. (2) Amounts presented exclude $0.6 million related to the allowance for losses. |
Farmer Mac Guaranteed Securitie
Farmer Mac Guaranteed Securities and USDA Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
FARMER MAC GUARANTEED SECURITES AND USDA SECURITIES | INVESTMENT SECURITIES The following tables set forth information about Farmer Mac's investment securities as of March 31, 2020 and December 31, 2019: Table 2.1 As of March 31, 2020 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (24) $ — $ (2,955) $ 16,721 Floating rate asset-backed securities 10,521 — 10,521 — — (18) 10,503 Floating rate Government/GSE guaranteed mortgage-backed securities 1,783,998 295 1,784,293 — 4,985 (11,279) 1,777,999 Fixed rate GSE guaranteed mortgage-backed securities 306 — 306 — 29 — 335 Fixed rate U.S. Treasuries 1,140,465 4,409 1,144,874 — 10,725 — 1,155,599 Total available-for-sale 2,954,990 4,704 2,959,694 (24) 15,739 (14,252) 2,961,157 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 — 45,032 — 131 — 45,163 Total investment securities $ 3,000,022 $ 4,704 $ 3,004,726 $ (24) $ 15,870 $ (14,252) $ 3,006,320 (1) Amounts presented exclude $8.3 million of accrued interest receivable on investment securities as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The held-to-maturity investment securities had a weighted average yield of 3.0% as of March 31, 2020. As of December 31, 2019 Amount Outstanding Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ — $ (788) $ 18,912 Floating rate asset-backed securities 11,092 — 11,092 — (7) 11,085 Floating rate Government/GSE guaranteed mortgage-backed securities 1,633,731 1,174 1,634,905 2,414 (4,736) 1,632,583 Fixed rate GSE guaranteed mortgage-backed securities 315 — 315 25 — 340 Fixed rate U.S. Treasuries 1,295,210 208 1,295,418 1,520 (15) 1,296,923 Total available-for-sale 2,960,048 1,382 2,961,430 3,959 (5,546) 2,959,843 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (1) 45,032 — 45,032 953 — 45,985 Total investment securities $ 3,005,080 $ 1,382 $ 3,006,462 $ 4,912 $ (5,546) $ 3,005,828 (1) The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three months ended March 31, 2020 and 2019. As of March 31, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2020 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 16,721 $ (2,955) Floating rate asset-backed securities 2,544 (9) 7,959 (9) Floating rate Government/GSE guaranteed mortgage-backed securities 871,617 (6,208) 411,651 (5,071) Total $ 874,161 $ (6,217) $ 436,331 $ (8,035) Number of securities in loss position 65 67 As of December 31, 2019 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 18,912 $ (788) Floating rate asset-backed securities 2,583 (1) 8,502 (6) Floating rate Government/GSE guaranteed mortgage-backed securities 841,993 (2,244) 436,621 (2,492) Fixed rate U.S. Treasuries 35,107 (15) — — Total $ 879,683 $ (2,260) $ 464,035 $ (3,286) Number of securities in loss position 57 62 The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to March 31, 2020 and December 31, 2019, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both March 31, 2020 and December 31, 2019, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+." Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2020 that is, on average, approximately 98.2% of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads. The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2020 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 1,013,044 $ 1,021,217 2.03% Due after one year through five years 399,388 399,311 2.02% Due after five years through ten years 808,042 804,652 2.03% Due after ten years 739,220 735,977 1.91% Total $ 2,959,694 $ 2,961,157 2.00% The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2020 and December 31, 2019: Table 3.1 As of March 31, 2020 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,120 $ (110) $ 1,415,010 $ (640) $ 31,294 $ — $ 1,445,664 Farmer Mac Guaranteed USDA Securities 33,440 73 33,513 — 879 — 34,392 Total Farmer Mac Guaranteed Securities 1,448,560 (37) 1,448,523 (640) 32,173 — 1,480,056 USDA Securities 2,234,027 35,584 2,269,611 — 68,166 (1,637) 2,336,140 Total held-to-maturity $ 3,682,587 $ 35,547 $ 3,718,134 $ (640) $ 100,339 $ (1,637) $ 3,816,196 Available-for-sale: AgVantage $ 7,273,414 $ (111) $ 7,273,303 $ (166) $ 378,974 $ (64,925) $ 7,587,186 Trading: USDA Securities (3) $ 7,835 $ 433 $ 8,268 $ — $ 149 $ (9) $ 8,408 (1) Amounts presented exclude $35.9 million, $40.6 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The trading USDA securities had a weighted average yield of 5.19% as of March 31, 2020. As of December 31, 2019 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,584 $ (174) $ 1,415,410 $ 15,300 $ (164) $ 1,430,546 Farmer Mac Guaranteed USDA Securities 31,887 154 32,041 839 — 32,880 Total Farmer Mac Guaranteed Securities 1,447,471 (20) 1,447,451 16,139 (164) 1,463,426 USDA Securities 2,190,671 41,489 2,232,160 54,356 (758) 2,285,758 Total held-to-maturity $ 3,638,142 $ 41,469 $ 3,679,611 $ 70,495 $ (922) $ 3,749,184 Available-for-sale: AgVantage $ 7,017,095 $ (124) $ 7,016,971 $ 161,316 $ (35,262) $ 7,143,025 Trading: USDA Securities (1) $ 8,400 $ 479 $ 8,879 $ 61 $ (27) $ 8,913 (1) The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019. As of March 31, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2020 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: USDA Securities $ — $ — $ 25,066 $ (1,637) Total held-to-maturity $ — $ — $ 25,066 $ (1,637) Available-for-sale: AgVantage $ 244,823 $ (540) $ 830,797 $ (64,385) As of December 31, 2019 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: AgVantage $ — $ — $ 301,836 $ (164) USDA Securities — — 27,089 (758) Total held-to-maturity $ — $ — $ 328,925 $ (922) Available-for-sale: AgVantage $ 225,239 $ (2,203) $ 1,394,802 $ (33,059) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to March 31, 2020 and December 31, 2019, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both March 31, 2020 and December 31, 2019 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016. The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States. The unrealized losses from AgVantage securities were on 9 and 17 available-for-sale securities as of March 31, 2020 and December 31, 2019, respectively. There were 0 and 4 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, 6 and 13 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. During the three months ended March 31, 2020 and 2019, Farmer Mac had no sales of Farmer Mac Guaranteed Securities or USDA Securities and, therefore, Farmer Mac realized no gains or losses. The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2020 Available-for-Sale Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 1,202,779 $ 1,207,673 1.82 % Due after one year through five years 3,358,079 3,479,730 2.77 % Due after five years through ten years 1,181,538 1,259,191 2.86 % Due after ten years 1,530,907 1,640,758 3.10 % Total $ 7,273,303 $ 7,587,352 2.70 % (1) Amounts presented exclude $35.9 million of accrued interest receivable. (2) Amounts presented exclude $0.2 million related to the allowance for losses. As of March 31, 2020 Held-to-Maturity Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 655,928 $ 660,512 2.57 % Due after one year through five years 840,702 869,401 3.27 % Due after five years through ten years 210,888 216,447 3.34 % Due after ten years 2,010,616 2,070,476 3.52 % Total $ 3,718,134 $ 3,816,836 3.29 % (1) Amounts presented exclude $40.6 million of accrued interest receivable. (2) Amounts presented exclude $0.6 million related to the allowance for losses. |
Financial Derivatives
Financial Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL DERIVATIVES | FINANCIAL DERIVATIVESFarmer Mac enters into financial derivative transactions to protect against risk from the effects of market price, or interest rate movements, on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes. For more information about Farmer Mac's financial derivatives, see Note 6 in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020. The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of March 31, 2020 and December 31, 2019: Table 4.1 As of March 31, 2020 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Pay fixed non-callable $ 5,099,293 $ 4,339 $ (6,583) 2.42% 1.54% 11.64 Receive fixed non-callable 2,201,500 1,303 (9,730) 1.66% 2.06% 2.22 Receive fixed callable 413,000 4,954 (26) 1.36% 1.95% 3.38 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 458,000 1,434 (11,391) 2.31% 1.22% 5.36 No hedge designation: Interest rate swaps: Pay fixed non-callable 339,721 — (22,683) 3.54% 1.69% 5.32 Receive fixed non-callable 3,111,639 — — 1.17% 1.39% 1.01 Receive fixed callable 500,000 604 — 1.52% 1.75% 0.86 Basis swaps 2,850,000 58 (3,385) 1.49% 0.66% 0.91 Treasury futures 18,500 (114) 138.07 Credit valuation adjustment — 117 Total financial derivatives $ 14,991,653 $ 12,692 $ (53,795) Collateral (held)/pledged (2,525) 225,404 Net amount $ 10,167 $ 171,609 As of December 31, 2019 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Pay fixed non-callable $ 4,955,686 $ 7,163 $ (3,281) 2.47% 1.93% 11.26 Receive fixed non-callable 1,413,200 76 (5,329) 1.88% 2.13% 1.25 Receive fixed callable 524,000 476 (772) 1.52% 1.91% 2.83 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 428,000 1,882 (1,514) 2.36% 2.12% 5.43 No hedge designation: Interest rate swaps: Pay fixed non-callable 342,745 7 (14,046) 3.55% 2.00% 5.51 Receive fixed non-callable 3,124,148 49 (1,637) 1.88% 2.06% 1.66 Receive fixed callable 525,000 79 (80) 1.64% 1.68% 0.83 Basis swaps 2,670,000 787 (395) 1.86% 1.76% 0.90 Treasury futures 39,400 — (51) 128.29 Credit valuation adjustment — 63 Total financial derivatives $ 14,022,179 $ 10,519 $ (27,042) Collateral (held)/pledged (2,685) 132,129 Net amount $ 7,834 $ 105,087 As of March 31, 2020, Farmer Mac expects to reclassify $5.2 million after tax from accumulated other comprehensive income to earnings over the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after March 31, 2020. During the three months ended March 31, 2020 and 2019, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it was probable that the originally forecasted transactions would occur. The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three months ended March 31, 2020 and 2019: Table 4.2 For the Three Months Ended March 31, 2020 Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives Net Interest Income Non-Interest Income Total Interest Income Farmer Mac Guaranteed Securities and USDA Securities Interest Income Loans Total Interest Expense Losses on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations $ 71,517 $ 60,596 $ (108,542) $ (9,298) $ 14,273 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (6,152) (1,877) 1,634 — (6,395) Recognized on hedged items 31,826 8,677 (14,276) — 26,227 Discount amortization recognized on hedged items — — (180) — (180) Income/(expense) related to interest settlements on fair value hedging relationships $ 25,674 $ 6,800 $ (12,822) $ — $ 19,652 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ (293,932) $ (145,906) $ 58,934 $ — $ (380,904) Recognized on hedged items 290,379 145,409 (60,565) — 375,223 (Losses)/gains on fair value hedging relationships $ (3,553) $ (497) $ (1,631) $ — $ (5,681) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ (439) $ — $ (439) Recognized on hedged items — — (2,123) — (2,123) Discount amortization recognized on hedged items — — (1) — (1) Expense recognized on cash flow hedges $ — $ — $ (2,563) $ — $ (2,563) Losses on financial derivatives not designated in hedging relationships: Losses on interest rate swaps $ — $ — $ — $ (6,550) $ (6,550) Interest expense on interest rate swaps — — — (862) (862) Treasury futures — — — (1,886) (1,886) Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ (9,298) $ (9,298) For The Three Months Ended March 31, 2019 Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives Net Interest Income Non-Interest Income Total Interest Income Interest Income Loans Total Interest Expense Losses on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations: $ 85,411 $ 51,397 $ (114,916) $ (360) $ 21,532 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 1,550 (22) (3,218) — (1,690) Recognized on hedged items 24,565 4,555 (9,922) — 19,198 Discount amortization recognized on hedged items — — (149) — (149) Income/(expense) related to interest settlements on fair value hedging relationships $ 26,115 $ 4,533 $ (13,289) $ — $ 17,359 Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ (58,987) $ (20,082) $ 8,978 $ — $ (70,091) Recognized on hedged items 59,352 16,237 (8,197) — 67,392 Gains/(losses) on fair value hedging relationships $ 365 $ (3,845) $ 781 $ — $ (2,699) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 481 $ — $ 481 Recognized on hedged items — — (2,688) — (2,688) Discount amortization recognized on hedged items — — (1) — (1) Expense recognized on cash flow hedges $ — $ — $ (2,208) $ — $ (2,208) Losses on financial derivatives not designated in hedge relationships: Gains on interest rate swaps $ — $ — $ — $ 2,168 $ 2,168 Interest expense on interest rate swaps — — — (2,300) (2,300) Treasury futures — — — (228) (228) Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ (360) $ (360) The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2020 and December 31, 2019: Table 4.3 Hedged Items in Fair Value Relationship Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 (in thousands) Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value $ 4,281,350 $ 4,092,611 $ 470,588 $ 180,215 Loans held for investment, at amortized cost 1,330,359 1,050,335 183,315 37,907 Notes Payable (1) (2,680,981) (2,761,052) (68,045) (7,433) (1) Carrying amount represents amortized cost. The following table shows Farmer Mac's credit exposure to interest rate swap counterparties as of March 31, 2020 and December 31, 2019: Table 4.4 March 31, 2020 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swap $ 118,349 $ 116,517 $ 1,832 Liabilities: Derivatives Interest rate swap $ 780,184 $ 776,764 $ 3,420 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. December 31, 2019 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swaps $ 56,139 $ 53,771 $ 2,368 Liabilities: Derivatives Interest rate swaps $ 305,584 $ 291,326 $ 14,258 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. As of March 31, 2020, Farmer Mac held $2.5 million of cash and no investment securities as collateral for its derivatives in net asset positions, compared to $2.7 million of cash and no investment securities as collateral for its derivatives in net asset positions as of December 31, 2019. Farmer Mac posted $19.3 million cash and $206.1 million of investment securities as of March 31, 2020 and posted $0.5 million cash and $131.7 million investment securities as of December 31, 2019. Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets. If Farmer Mac had breached certain provisions of the derivative contracts as of March 31, 2020 and December 31, 2019, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral. As of March 31, 2020 and December 31, 2019, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge. Of Farmer Mac's $15.0 billion notional amount of interest rate swaps outstanding as of March 31, 2020, $11.9 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME"). Of Farmer Mac's $14.0 billion notional amount of interest rate swaps outstanding as of December 31, 2019, $11.0 billion were cleared through the CME. During first quarter 2020 and throughout 2019, the Company increased its use of non-cleared basis swaps as it began to prepare for the transition away from the use of LIBOR as a reference rate. For more information about interest rate swaps cleared through a clearinghouse, see Note 6 in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC on February 25, 2020. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS | LOANS Loans Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost basis adjustments. The following table displays the composition of the loan balances as of March 31, 2020 and December 31, 2019: Table 5.1 As of March 31, 2020 (1) As of December 31, 2019 (2) Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Farm & Ranch $ 3,817,693 $ 1,540,689 $ 5,358,382 $ 3,675,640 $ 1,600,917 $ 5,276,557 Rural Utilities 1,789,726 — 1,789,726 1,671,293 — 1,671,293 Total unpaid principal balance (3) 5,607,419 1,540,689 7,148,108 5,346,933 1,600,917 6,947,850 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments 181,972 — 181,972 44,044 — 44,044 Total loans 5,789,391 1,540,689 7,330,080 5,390,977 1,600,917 6,991,894 Allowance for losses (13,663) (1,193) (14,856) (8,853) (1,601) (10,454) Total loans, net of allowance $ 5,775,728 $ 1,539,496 $ 7,315,224 $ 5,382,124 $ 1,599,316 $ 6,981,440 (1) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained an allowance for losses to cover estimated probable incurred losses on loans held. (3) Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business. Allowance for Losses The following table is a summary, by asset type, of the allowance for losses as of March 31, 2020 and December 31, 2019: Table 5.2 March 31, 2020 (1) December 31, 2019 (2) Allowance for Losses Allowance for Losses (in thousands) Loans: Farm & Ranch $ 7,353 $ 10,454 Rural Utilities 7,503 — Total $ 14,856 $ 10,454 (1) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held. The following is a summary of the changes in the allowance for losses for the three month period ended March 31, 2020 and 2019: Table 5.3 For the Three Months Ended March 31, 2020 (1) March 31, 2019 (2) Allowance for Losses Allowance for Losses (in thousands) Farm & Ranch: Balance as of December 31, $ 10,454 $ 7,017 Cumulative effect adjustment from adoption of current expected credit loss standard (3,909) — Balance as of January 1, 6,545 7,017 Provision for/(release of) losses $ 808 $ (264) Charge-offs — — Ending Balance (3) $ 7,353 $ 6,753 Rural Utilities: Balance as of December 31, $ — $ — Cumulative effect adjustment from adoption of current expected credit loss standard 5,378 — Balance as of January 1, 5,378 — Provision for/(release of) losses $ 2,125 $ — Charge-offs — — Ending Balance (4) $ 7,503 $ — (1) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held. (3) Allowance for losses includes $2.2 million for collateral dependent assets secured by commercial real estate. (4) Allowance for losses includes no allowance for collateral dependent assets. The cumulative transition adjustment decrease of $3.9 million in the Farm & Ranch portfolio was primarily driven by differences in the way that the two loss models measure the impact of low loan-to-value ratios in that portfolio. Under the previous accounting standard, the Company's estimated incurred loss model was based on historical weighted-average loss rates from realized losses within commodities and risk ratings. The historical weighted average loss rates were then applied to sub-portfolios, as disaggregated by commodity and risk rating, to calculate the general allowance. Under the CECL accounting standard, the Company's current expected credit losses are calculated individually based on the expected probability of default and the expected loss-given-default for each loan. The low loan-to-value ratios in the Farm & Ranch portfolio result in low individual losses-given-default. Thus, our expected credit losses as of January 1, 2020 were less than our estimate of incurred losses as of December 31, 2019. The cumulative transition adjustment increase of $5.4 million in the Rural Utilities portfolio was primarily driven by the change from measuring incurred probable credit losses to measuring expected credit losses over the expected lives of these loans. The Company has never experienced a credit loss in its Rural Utilities portfolio. Additionally, these loans have strong credit ratings and performance, which supported the Company's estimate of no incurred credit losses under the previous accounting standard. Upon the adoption of CECL, the Company is now required to measure its expected credit losses for the entire expected life of all financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, the Company relies upon industry data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry. Under the CECL accounting standard, the Company's loss allowance model for these loans is primarily impacted by the long-term maturities of the loans and their low probability of prepayment. In addition, the highly-specialized nature of power generation and transmission facilities results in significant losses given default even though the probability of default is low. Thus, the long-term expected lives of these loans combined with high losses given default result in an estimate of expected losses although we have never incurred a credit loss in this portfolio. The provision to the allowance for loan losses recorded during first quarter 2020 was primarily due to the impact of updated economic factor forecasts, particularly higher credit spreads and expected higher unemployment, as a result of the COVID-19 pandemic and the resulting economic volatility. In addition, economic factor forecasts for lower commodity prices uniquely impacted the Farm & Ranch portfolio. During first quarter 2019, the net release to the allowance for loan losses was primarily due to a decrease in Farm & Ranch outstanding business volume and lower specific allowance amounts on loans that Farmer Mac identified as impaired and individually evaluated. This was offset in part by a modest decline in credit quality during the first quarter of 2019. Farmer Mac recorded no charge-offs to its allowance for loan losses during first quarter 2019. The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2020: Table 5.4 As of March 31, 2020 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Nonaccrual loans (2)(3) Total Loans (in thousands) Loans: Farm & Ranch $ 5,206,313 $ 4,821 $ 3,024 $ 22,152 $ 29,997 $ 122,072 $ 5,358,382 Rural Utilities 1,789,726 — — — — — 1,789,726 Total $ 6,996,039 $ 4,821 $ 3,024 $ 22,152 $ 29,997 $ 122,072 $ 7,148,108 (1) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (2) 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. (3) Includes $24.0 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2020, Farmer Mac received $1.0 million in interest on nonaccrual loans. The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019: Table 5.5 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Ending Balance: Collectively evaluated for impairment $ 2,664,362 $ 1,161,900 $ 871,341 $ 356,920 $ 10,360 $ 4,597 $ 5,069,480 Individually evaluated for impairment 108,815 51,256 39,962 7,044 — — 207,077 Total Farm & Ranch loans $ 2,773,177 $ 1,213,156 $ 911,303 $ 363,964 $ 10,360 $ 4,597 $ 5,276,557 Allowance for Losses: Collectively evaluated for impairment $ 1,880 $ 1,362 $ 714 $ 249 $ 47 $ 4 $ 4,256 Individually evaluated for impairment 2,628 1,008 2,447 115 — — 6,198 Total Farm & Ranch loans $ 4,508 $ 2,370 $ 3,161 $ 364 $ 47 $ 4 $ 10,454 The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of December 31, 2019: Table 5.6 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Impaired Loans: With no specific allowance: Recorded investment $ 30,846 $ 16,696 $ 3,195 $ 1,398 $ — $ 56 $ 52,191 Unpaid principal balance 30,741 16,638 3,185 1,394 — 56 52,014 With a specific allowance: Recorded investment (1) 84,044 36,852 47,113 6,376 — — 174,385 Unpaid principal balance 83,772 36,732 46,984 6,356 — — 173,844 Associated allowance 2,725 1,051 2,636 129 — — 6,541 Total: Recorded investment 114,890 53,548 50,308 7,774 — 56 226,576 Unpaid principal balance 114,513 53,370 50,169 7,750 — 56 225,858 Associated allowance 2,725 1,051 2,636 129 — — 6,541 Recorded investment of loans on nonaccrual status (2) $ 34,037 $ 22,849 $ 28,441 $ 2,454 $ — $ — $ 87,781 (1) Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $159.1 million (70%) of impaired loans as of December 31, 2019, which resulted in a specific allowance of $3.0 million. (2) Includes $30.1 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status. The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2019: Table 5.7 March 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) For the Three Months Ended: Average recorded investment in impaired loans $ 88,653 $ 40,495 $ 28,123 $ 7,730 $ — $ 65 $ 165,066 Income recognized on impaired loans 322 299 113 67 — — 801 Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held are presented in the table below. As of December 31, 2019, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans. Table 5.8 90-Day Delinquencies (1) Net Credit Losses/(Recoveries) As of For the Three Months Ended December 31, 2019 March 31, 2019 (in thousands) Farm & Ranch loans $ 57,719 $ — (1) 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. Of the $57.7 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2019, no loans were subject to "removal-of-account" provisions. Rural Utilities As of December 31, 2019, no allowance for losses had been provided for Farmer Mac's Rural Utilities line of business based on the performance of the loans in this line of business and the credit quality of the collateral supporting these loans, as well as Farmer Mac's counterparty risk analysis. As of December 31, 2019, there were no delinquencies or probable losses inherent in Farmer Mac's Rural Utilities loans held or underlying LTSPCs. Credit Quality Indicators The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of March 31, 2020, by year of origination: Table 5.9 As of March 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Farm & Ranch: Internally Assigned Risk Rating: Acceptable $ 286,971 $ 819,220 $ 588,761 $ 688,649 $ 555,678 $ 1,452,711 $ 468,114 $ 4,860,104 Special mention (1) 9,916 159,523 36,786 20,937 32,227 18,283 9,230 286,902 Substandard (2) — 4,431 16,938 58,407 41,973 78,189 11,438 211,376 Total $ 296,887 $ 983,174 $ 642,485 $ 767,993 $ 629,878 $ 1,549,183 $ 488,782 $ 5,358,382 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Farm & Ranch net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Utilities: Internally Assigned Risk Rating: Acceptable $ 152,385 $ 836,763 $ 8,337 $ 92,568 $ 31,829 $ 662,830 $ — $ 1,784,712 Special mention (1) — — — — — — — — Substandard (2) — — — — — 5,014 — 5,014 Total $ 152,385 $ 836,763 $ 8,337 $ 92,568 $ 31,829 $ 667,844 $ — $ 1,789,726 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Rural Utilities net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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. The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019: Table 5.10 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Internally Assigned Risk Rating (1) Acceptable $ 2,556,956 $ 1,050,160 $ 825,234 $ 343,329 $ 10,360 $ 4,597 $ 4,790,636 Special mention (2) 107,406 111,739 46,107 13,591 — — 278,843 Substandard (3) 108,815 51,257 39,962 7,044 — — 207,078 Total $ 2,773,177 $ 1,213,156 $ 911,303 $ 363,964 $ 10,360 $ 4,597 $ 5,276,557 Commodity analysis of past due loans (1) $ 21,167 $ 15,828 $ 19,354 $ 1,370 $ — $ — $ 57,719 (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. |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
GUARANTEES | GUARANTEES The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of March 31, 2020 and December 31, 2019, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1 Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities As of March 31, 2020 As of December 31, 2019 (in thousands) Farm & Ranch: Farmer Mac Guaranteed Securities $ 97,302 $ 107,322 USDA Guarantees: Farmer Mac Guaranteed USDA Securities 370,903 389,216 Institutional Credit: AgVantage Securities 7,567 7,567 Total off-balance sheet Farmer Mac Guaranteed Securities $ 475,772 $ 504,105 Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors. The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2 For the Three Months Ended March 31, 2020 March 31, 2019 (in thousands) Proceeds from new securitizations $ 28,050 $ 116,708 Guarantee fees received 466 442 Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the consolidated balance sheets. The following table presents the liability and the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities: Table 6.3 As of March 31, 2020 As of December 31, 2019 (dollars in thousands) Guarantee and commitment obligation $ 2,080 $ 2,230 Weighted average remaining maturity: Farmer Mac Guaranteed Securities 9.7 years 9.8 years AgVantage Securities 4.7 years 5.0 years Long-Term Standby Purchase Commitments Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets. The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs: Table 6.4 As of March 31, 2020 As of December 31, 2019 (dollars in thousands) Guarantee and commitment obligation (1) $ 33,859 $ 34,470 Maximum principal amount 2,951,595 3,002,349 Weighted-average remaining maturity 15.2 years 15.2 years (1) Relates to LTSPCs issued or modified on or after January 1, 2003. Reserve for Losses The following table is a summary, by asset type, of the reserve for losses as of March 31, 2020 and December 31, 2019: Table 6.5 March 31, 2020 (1) December 31, 2019 (2) Reserve for Losses Reserve for Losses (in thousands) Farm & Ranch: LTSPCs and Farmer Mac Guaranteed Securities $ 2,020 $ 2,164 Rural Utilities LTSPCs 1,400 — Total $ 3,420 $ 2,164 (1) Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities. The following is a summary of the changes in the reserve for losses for the three month period ended March 31, 2020 and 2019: Table 6.6 For the Three Months Ended March 31, 2020 (1) March 31, 2019 (2) Reserve for Losses Reserve for Losses (in thousands) Farm & Ranch: Balance as of December 31, $ 2,164 $ 2,167 Cumulative effect adjustment from adoption of current expected credit loss standard (148) — Balance as of January 1, 2,016 2,167 Provision for/(release of) losses $ 4 $ (129) Charge-offs — — Ending Balance $ 2,020 $ 2,038 Rural Utilities: Balance as of December 31, $ — $ — Cumulative effect adjustment from adoption of current expected credit loss standard 1,011 — Balance as of January 1, 1,011 — Provision for/(release of) losses $ 389 $ — Charge-offs — — Ending Balance $ 1,400 $ — (1) Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities. The provision to the reserve for losses recorded during first quarter 2020 was primarily due to the impact of updated economic factor forecasts, particularly higher credit spreads and expected higher unemployment, as a result of the COVID-19 pandemic and the resulting economic volatility. The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of March 31, 2020: Table 6.7 As of March 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Farm and Ranch: LTSPCs and Farmer Mac Guaranteed Securities $ 2,434,531 $ 6,183 $ 7,893 $ 4,605 $ 18,681 $ 2,453,212 Rural Utilities: LTSPCs $ 595,685 $ — $ — $ — $ — $ 595,685 (1) Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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. The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019: Table 6.8 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Ending Balance: Collectively evaluated for impairment: $ 1,151,983 $ 511,991 $ 581,377 $ 167,395 $ 66,106 $ 2,760 $ 2,481,612 Individually evaluated for impairment: 5,698 2,114 10,207 706 — 56 18,781 Total Farm & Ranch $ 1,157,681 $ 514,105 $ 591,584 $ 168,101 $ 66,106 $ 2,816 $ 2,500,393 Allowance for Losses: Collectively evaluated for impairment: $ 599 $ 96 $ 308 $ 50 $ 767 $ 1 $ 1,821 Individually evaluated for impairment: 97 43 189 14 — — 343 Total Farm & Ranch $ 696 $ 139 $ 497 $ 64 $ 767 $ 1 $ 2,164 Net credit losses and 90-day delinquencies as of and for the periods indicated for loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch LTSPCs are presented in the table below. As of December 31, 2019, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities LTSPCs portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities LTSPCs. Table 6.9 90-Day Delinquencies (1) Net Credit Losses/(Recoveries) As of For the Three Months Ended December 31, 2019 March 31, 2019 (in thousands) Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities $ 3,235 $ — (1) Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs 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. Credit Quality Indicators The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of March 31, 2020, by year of origination: Table 6.10 As of March 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 31,243 $ 219,342 $ 183,228 $ 249,022 $ 225,466 $ 1,132,870 $ 173,082 $ 2,214,253 Special mention (1) — 3,600 7,843 29,982 17,482 68,709 10,379 137,995 Substandard (2) — — 3,393 16,435 16,282 60,133 4,721 100,964 Total $ 31,243 $ 222,942 $ 194,464 $ 295,439 $ 259,230 $ 1,261,712 $ 188,182 $ 2,453,212 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Farm & Ranch net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Utilities LTSPCs: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 595,685 $ — $ 595,685 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 595,685 $ — $ 595,685 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Rural Utilities net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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. The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019: Table 6.11 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Internally Assigned Risk Rating (1) Acceptable $ 1,033,002 $ 484,601 $ 521,341 $ 161,361 $ 66,106 $ 2,594 $ 2,269,005 Special mention (2) 68,372 22,909 35,618 1,612 — — 128,511 Substandard (3) 56,307 6,595 34,625 5,128 — 222 102,877 Total $ 1,157,681 $ 514,105 $ 591,584 $ 168,101 $ 66,106 $ 2,816 $ 2,500,393 Commodity analysis of past due loans (1) $ 1,493 $ 196 $ 1,066 $ 480 $ — $ — $ 3,235 (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. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLEFarmer Mac's borrowings consist of discount notes and medium-term notes, both of which are unsecured general obligations of Farmer Mac. Discount notes generally have original maturities of 1.0 year or less, whereas medium-term notes generally have maturities of 0.5 years to 15.0 years. The following tables set forth information related to Farmer Mac's borrowings as of March 31, 2020 and December 31, 2019: Table 7.1 March 31, 2020 Outstanding as of March 31 Average Outstanding During the Quarter Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 2,598,091 0.82 % $ 2,043,407 1.52 % Medium-term notes 1,203,723 1.18 % 971,050 1.79 % Current portion of medium-term notes 7,346,370 1.39 % Total due within one year $ 11,148,184 1.24 % Due after one year: Medium-term notes due in: Two years $ 3,381,965 1.64 % Three years 1,588,751 1.90 % Four years 1,311,362 2.13 % Five years 1,027,532 1.95 % Thereafter 2,207,226 2.57 % Total due after one year 9,516,836 2.00 % Total $ 20,665,020 1.59 % December 31, 2019 Outstanding as of December 31 Average Outstanding During the Year Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 2,194,177 1.72 % $ 1,977,214 2.25 % Medium-term notes 1,152,770 1.98 % 1,780,517 2.33 % Current portion of medium-term notes 6,672,135 1.85 % Total due within one year $ 10,019,082 1.84 % Due after one year: Medium-term notes due in: Two years $ 3,700,835 2.04 % Three years 1,594,709 2.15 % Four years 1,205,276 2.27 % Five years 760,887 2.25 % Thereafter 1,817,859 2.89 % Total due after one year 9,079,566 2.28 % Total $ 19,098,648 2.05 % During the three months ended March 31, 2020, the Company increased its use of short-term funding in order to fund the growth of short-term assets in its liquidity portfolio. The maximum amount of Farmer Mac's discount notes outstanding at any month end during the three months ended March 31, 2020 and 2019 was $2.6 billion and $1.9 billion, respectively. Callable medium-term notes give Farmer Mac the option to redeem the debt at par value on a specified call date or at any time on or after a specified call date. The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2020 as of March 31, 2020: Table 7.2 Debt Callable in 2020 as of March 31, 2020, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2021 $ 731,715 1.56 % 2022 209,852 1.80 % 2023 49,959 1.34 % 2024 206,716 2.12 % Thereafter 397,740 2.59 % Total $ 1,595,982 1.91 % The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2020, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date: Table 7.3 Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding Amount Weighted-Average Rate (dollars in thousands) Debt with interest rate resets, or debt maturities in: 2020 $ 11,565,193 1.13 % 2021 3,038,940 1.97 % 2022 1,483,282 2.02 % 2023 1,489,184 2.10 % 2024 945,152 2.04 % Thereafter 2,143,269 2.67 % Total $ 20,665,020 1.59 % During the three months ended March 31, 2020 and 2019, Farmer Mac called $762.4 million and $47.1 million of callable medium-term notes, respectively. The decrease in market interest rates throughout 2019 and continuing into the first quarter 2020 led to an increase in called medium-term notes compared to the prior year. Authority to Borrow from the U.S. Treasury Farmer Mac's statutory charter authorizes it to borrow up to $1.5 billion from the U.S. Treasury through the issuance of debt obligations to the U.S. Treasury. Any funds borrowed from the U.S. Treasury may be used solely for the purpose of fulfilling Farmer Mac's guarantee obligations. Any debt obligations issued by Farmer Mac under this authority would bear interest at a rate determined by the U.S. Treasury, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of the obligations from Farmer Mac. The charter requires Farmer Mac to repurchase any of its debt obligations held by the U.S. Treasury within a reasonable time. As of March 31, 2020, Farmer Mac had not used this borrowing authority and does not expect to use this borrowing authority in the future. Gains on Repurchase of Outstanding Debt No outstanding debt repurchases were made in the three months ended March 31, 2020 or 2019. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock During first quarter 2020, Farmer Mac paid a quarterly dividend of $0.80 per share on all classes of its common stock. For each quarter in 2019, Farmer Mac paid a quarterly dividend of $0.70 per share on all classes of its common stock. Farmer Mac's board of directors approved a share repurchase program during third quarter 2015 authorizing Farmer Mac to repurchase up to $25.0 million of its outstanding Class C non-voting common stock. The share repurchase program, last modified on March 14, 2019, authorized Farmer Mac to repurchase up to $10.0 million of Farmer Mac's outstanding Class C non-voting common stock. During first quarter 2020, Farmer Mac repurchased approximately 4,000 shares of Class C non-voting common stock at a cost of approximately $0.2 million. Shortly after these repurchases were completed, Farmer Mac indefinitely suspended its share repurchase program in an effort to preserve capital and liquidity in view of market volatility and uncertainty caused by the COVID-19 pandemic. As of March 31, 2020, Farmer Mac had repurchased approximately 673,000 shares of Class C non-voting common stock at a cost of approximately $19.8 million under the share repurchase program since 2015. The program expires at the end of March 2021. Capital Requirements Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both March 31, 2020 and December 31, 2019, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements. As of March 31, 2020, Farmer Mac's minimum capital requirement was $649.3 million and its core capital level was $815.1 million, which was $165.8 million above the minimum capital requirement as of that date. As of December 31, 2019, Farmer Mac's minimum capital requirement was $618.8 million and its core capital level was $815.4 million, which was $196.6 million above the minimum capital requirement as of that date. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Fair Value Classification and Transfers The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 9.1 Assets and Liabilities Measured at Fair Value as of March 31, 2020 Level 1 Level 2 Level 3 (1) Total (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 16,721 $ 16,721 Floating rate asset-backed securities — 10,503 — 10,503 Floating rate Government/GSE guaranteed mortgage-backed securities — 1,777,999 — 1,777,999 Fixed rate GSE guaranteed mortgage-backed securities — 335 — 335 Fixed rate U.S. Treasuries 1,155,599 — — 1,155,599 Total Investment Securities 1,155,599 1,788,837 16,721 2,961,157 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 7,587,186 7,587,186 Total Farmer Mac Guaranteed Securities — — 7,587,186 7,587,186 USDA Securities: Trading — — 8,408 8,408 Total USDA Securities — — 8,408 8,408 Financial derivatives — 12,692 — 12,692 Total Assets at fair value $ 1,155,599 $ 1,801,529 $ 7,612,315 $ 10,569,443 Liabilities: Financial derivatives $ 114 $ 53,681 $ — $ 53,795 Total Liabilities at fair value $ 114 $ 53,681 $ — $ 53,795 (1) Level 3 assets represent 33% of total assets and 72% of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 (1) Total (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 18,912 $ 18,912 Floating rate asset-backed securities — 11,085 — 11,085 Floating rate Government/GSE guaranteed mortgage-backed securities — 1,632,583 — 1,632,583 Fixed rate GSE guaranteed mortgage-backed securities — 340 — 340 Fixed rate U.S. Treasuries 1,296,923 — — 1,296,923 Total available-for-sale 1,296,923 1,644,008 18,912 2,959,843 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 7,143,025 7,143,025 Total Farmer Mac Guaranteed Securities — — 7,143,025 7,143,025 USDA Securities: Trading — — 8,913 8,913 Total USDA Securities — — 8,913 8,913 Financial derivatives — 10,519 — 10,519 Total Assets at fair value $ 1,296,923 $ 1,654,527 $ 7,170,850 $ 10,122,300 Liabilities: Financial derivatives $ 51 $ 26,991 $ — $ 27,042 Total Liabilities at fair value $ 51 $ 26,991 $ — $ 27,042 (1) Level 3 assets represent 33% of total assets and 71% of financial instruments measured at fair value. There were no significant assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2020 or December 31, 2019. Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the three months ended March 31, 2020 and 2019, there were no transfers within the fair value hierarchy for fair value measurements of Farmer Mac's investment securities, Farmer Mac Guaranteed Securities, USDA Securities, and financial derivatives. The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three months ended March 31, 2020 and 2019. Table 9.2 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2020 Beginning Purchases Sales Settlements Allowance for Losses Realized and Unrealized Losses Ending (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,912 $ — $ — $ — $ (24) $ — $ (2,167) $ 16,721 Total available-for-sale 18,912 — — — (24) — (2,167) 16,721 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 7,143,025 483,580 — (227,255) (166) 290,380 (102,378) 7,587,186 Total available-for-sale 7,143,025 483,580 — (227,255) (166) 290,380 (102,378) 7,587,186 USDA Securities: Trading 8,913 — — (611) — 106 — 8,408 Total USDA Securities 8,913 — — (611) 106 — 8,408 Total Assets at fair value $ 7,170,850 $ 483,580 $ — $ (227,866) $ (190) $ 290,486 $ (104,545) $ 7,612,315 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2019 Beginning Purchases Sales Settlements Realized and Unrealized Gains included Unrealized Gains included in Other Ending (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,715 $ — $ — $ — $ — $ 197 $ 18,912 Total available-for-sale 18,715 — — — — 197 18,912 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,974,497 776,332 — (371,733) 59,352 3,176 6,441,624 Total available-for-sale 5,974,497 776,332 — (371,733) 59,352 3,176 6,441,624 USDA Securities: Available-for-sale — 18,928 (18,928) — — — — Trading 9,999 — — (556) 44 — 9,487 Total USDA Securities 9,999 18,928 (18,928) (556) 44 — 9,487 Total Assets at fair value $ 6,003,211 $ 795,260 $ (18,928) $ (372,289) $ 59,396 $ 3,373 $ 6,470,023 The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2020 and December 31, 2019: Table 9.3 As of March 31, 2020 Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average) (in thousands) Assets: Investment securities: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 16,721 Indicative bids Range of broker quotes 85.0% - 85.0% (85.0%) Farmer Mac Guaranteed Securities: AgVantage $ 7,587,186 Discounted cash flow Discount rate 1.1% - 2.2% (1.4%) USDA Securities $ 8,408 Discounted cash flow Discount rate 1.6% - 2.2% (1.6%) CPR 13% - 23% (21%) As of December 31, 2019 Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average) (in thousands) Assets: Investment securities: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,912 Indicative bids Range of broker quotes 96.0% - 96.0% (96.0%) Farmer Mac Guaranteed Securities: AgVantage $ 7,143,025 Discounted cash flow Discount rate 2.3% - 5.5% (2.6%) USDA Securities $ 8,913 Discounted cash flow Discount rate 2.3% - 2.6% (2.1%) CPR 10% - 21% (19%) The significant unobservable input used in the fair value measurements of AgVantage Farmer Mac Guaranteed Securities is the discount rate commensurate with the risks involved. Typically, significant increases (decreases) in this input in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease. Prepayment rates are not presented in the table above for AgVantage securities because they generally have fixed maturity dates when the secured general obligations are due and don't prepay. The significant unobservable inputs used in the fair value measurements of USDA Securities are the prepayment rate and discount rate commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates. Disclosures on Fair Value of Financial Instruments The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2020 and December 31, 2019: Table 9.4 As of March 31, 2020 As of December 31, 2019 Fair Value Carrying Fair Value Carrying (in thousands) Financial assets: Cash and cash equivalents $ 1,231,585 $ 1,231,585 $ 604,381 $ 604,381 Investment securities 3,006,320 3,006,189 3,005,828 3,004,875 Farmer Mac Guaranteed Securities 9,067,242 9,035,069 8,606,451 8,590,476 USDA Securities 2,344,548 2,278,019 2,294,671 2,241,073 Loans 7,553,328 7,315,224 7,317,091 6,981,440 Financial derivatives 12,692 12,692 10,519 10,519 Guarantee and commitment fees receivable 32,420 37,521 36,732 38,442 Financial liabilities: Notes payable 20,975,163 20,665,020 19,234,079 19,098,648 Debt securities of consolidated trusts held by third parties 1,605,021 1,549,527 1,663,177 1,616,504 Financial derivatives 53,795 53,795 27,042 27,042 Guarantee and commitment obligations 30,838 35,939 34,990 36,700 The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as Level 1. The fair value of investments in U.S. Treasuries are valued based on unadjusted quoted prices in active markets and are classified as Level 1. A significant portion of Farmer Mac's investment portfolio is valued using a reputable nationally recognized third-party pricing service. The prices obtained are non-binding and generally representative of recent market trades and are classified as Level 2. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as Level 3. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation |
Business Segment Reporting
Business Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT REPORTING | BUSINESS SEGMENT REPORTING The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three months ended March 31, 2020 and 2019: Table 10.1 Core Earnings by Business Segment For the Three Months Ended March 31, 2020 Farm & Ranch USDA Guarantees Rural Utilities Institutional Credit Corporate Reconciling Consolidated Net Income (in thousands) Net interest income $ 16,365 $ 4,541 $ 4,747 $ 13,804 $ 1,855 $ — $ 41,312 Less: reconciling adjustments (1)(2)(3) (1,427) 84 173 3,898 123 (2,851) — Net effective spread 14,938 4,625 4,920 17,702 1,978 (2,851) — Guarantee and commitment fees (2) 4,317 235 335 9 — (1,700) 3,196 Other income/(expense) (3) 1,169 112 7 — (129) (9,050) (7,891) Non-interest income/(loss) 5,486 347 342 9 (129) (10,750) (4,695) Provision for loan losses (808) — (2,125) (491) (14) — (3,438) Provision for reserve for losses (4) — (389) — — — (393) Other non-interest expense (5,997) (1,818) (1,604) (2,363) (4,433) — (16,215) Non-interest expense (4) (6,001) (1,818) (1,993) (2,363) (4,433) — (16,608) Core earnings before income taxes 13,615 3,154 1,144 14,857 (2,598) (13,601) (5) 16,571 Income tax (expense)/benefit (2,859) (662) (240) (3,120) 283 2,857 (3,741) Core earnings before preferred stock dividends 10,756 2,492 904 11,737 (2,315) (10,744) (5) 12,830 Preferred stock dividends — — — — (3,431) — (3,431) Segment core earnings/(losses) $ 10,756 $ 2,492 $ 904 $ 11,737 $ (5,746) $ (10,744) (5) $ 9,399 Total assets at carrying value $ 5,457,134 $ 2,341,698 $ 1,964,901 $ 9,049,154 $ 4,367,223 $ — $ 23,180,110 Total on- and off-balance sheet program assets at principal balance $ 7,811,594 $ 2,646,206 $ 2,385,411 $ 8,696,101 $ — $ — $ 21,539,312 (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 on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5) 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 March 31, 2019 Farm & Ranch USDA Guarantees Rural Institutional Credit Corporate Reconciling Adjustments Consolidated Net Income (in thousands) Net interest income $ 15,282 $ 4,442 $ (274) $ 18,187 $ 2,962 $ — $ 40,599 Less: reconciling adjustments (1)(2)(3) (2,545) (478) 3,507 (1,814) (468) 1,798 — Net effective spread 12,737 3,964 3,233 16,373 2,494 1,798 — Guarantee and commitment fees (2) 4,744 224 363 88 — (1,906) 3,513 Other income/(expense) (3) 480 — 7 — 22 (332) 177 Non-interest income/(loss) 5,224 224 370 88 22 (2,238) 3,690 Release of losses 264 — — — — — 264 Release of reserve for losses 129 — — — — — 129 Other non-interest expense (4,799) (1,428) (866) (2,159) (3,638) — (12,890) Non-interest expense (4) (4,670) (1,428) (866) (2,159) (3,638) — (12,761) Core earnings before income taxes 13,555 2,760 2,737 14,302 (1,122) (440) (5) 31,792 Income tax (expense)/benefit (2,847) (580) (575) (3,003) 290 93 (6,622) Core earnings before preferred stock dividends 10,708 2,180 2,162 11,299 (832) (347) (5) 25,170 Preferred stock dividends — — — — (3,296) — (3,296) Segment core earnings/(losses) $ 10,708 $ 2,180 $ 2,162 $ 11,299 $ (4,128) $ (347) (5) $ 21,874 Total assets at carrying value $ 4,698,250 $ 2,191,896 $ 1,443,393 $ 8,502,084 $ 2,962,154 $ — $ 19,797,777 Total on- and off-balance sheet program assets at principal balance $ 7,215,585 $ 2,484,779 $ 2,074,714 $ 8,731,835 $ — $ — $ 20,506,913 (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 on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5) 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities. The consolidated financial statements also include the accounts of Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary. |
Earnings Per Common Share | Earnings Per Common ShareBasic earnings per common share ("EPS") is based on the daily weighted-average number of shares of common stock outstanding. Diluted earnings per common share is based on the daily weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive stock appreciation rights ("SARs") and unvested restricted stock awards. |
Comprehensive Income | Comprehensive IncomeComprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes. |
Allowance for Expected Credit Losses and Reserve for Credit Losses | Allowance for Losses and Reserve for LossesOn January 1, 2020, Farmer Mac adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ("CECL"). Under CECL, Farmer Mac's allowance for credit losses represents the difference between the carrying amount of the related financial instruments and the present value of their expected cash flows discounted at their effective interest rates, as of the respective balance sheet date. Under CECL, Farmer Mac's reserve for losses represents the difference between the outstanding amount of off-balance sheet credit exposures and the present value of their expected cash flows discounted at their effective interest rates. Farmer Mac maintains an allowance for losses to cover current expected credit losses as of the balance sheet date for on-balance sheet investment securities, loans held for investment, and Farmer Mac Guaranteed Securities (collectively referred to as "allowance for losses"). Additionally, Farmer Mac maintains a reserve for losses to cover current expected credit losses as of the balance sheet date for off-balance sheet loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (collectively referred to as "reserve for losses"). Both the allowance for losses and reserve for losses are based on historical information and reasonable and supportable forecasts. Farmer Mac has never experienced a credit loss in its Rural Utilities line of business. Upon the adoption of CECL, Farmer Mac is now required to measure its expected credit losses for the expected life of all financial instruments, including its Rural Utilities loans. To estimate expected credit losses on these loans, Farmer Mac relies upon industry historical credit loss data from ratings agencies and publicly available information as disclosed in the securities filings of other major lenders who serve the utilities industry. The allowance for losses increases through periodic provisions for loan losses that are charged against net interest income and the reserve for losses increases through provisions for losses that are charged to non-interest expense. Both the allowance for losses and reserve for losses are decreased by charge-offs for realized losses, net of recoveries. Releases from the allowance for losses or reserve for losses occur when the estimate of expected credit losses as of the end of a period is less than the estimate at the beginning of the period. The total allowance for losses consists of the allowance for losses and the reserve for losses. Charge-offs Farmer Mac records a charge-off against the allowance for losses principally when a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The loss equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs. Estimation Methodology Farmer Mac bases its methodology for determining its current estimate of expected losses on a statistical model, which incorporates credit loss history and reasonable and supportable forecasts. Farmer Mac's estimation methodology is comprised of the following key components: • An economic model for each of our portfolios, including Farm & Ranch, Rural Utilities, and Institutional Credit; • A migration matrix for each portfolio that reasonably predicts the movement of each financial asset among various risk categories over the course of each asset's expected life. The migration matrix forms the basis for our estimate of the probability of default of each financial asset; • A loss-given-default ("LGD") model that reasonably predicts the amount of loss that Farmer Mac would incur upon the default of each financial asset; • An economic factor forecast that updates the migration matrix model and the LGD model with current assumptions for the economic indicators that Farmer Mac has determined are most correlated with or relevant to the performance of each portfolio of assets; including Gross Domestic Product ("GDP"), credit spreads, unemployment rates, land values, and commodity prices; and • A discounted cash flow analysis, which relies upon each of the above model outputs, plus the contractual terms of each financial asset, and the effective interest rate of each financial asset. Management evaluates these assumptions by considering many relevant factors, including: • economic conditions; • geographic and agricultural commodity/product concentrations in the portfolio; • the credit profile of the portfolio, including risk ratings and financial metrics; • delinquency trends of the portfolio; • historical charge-off and recovery activities of the portfolio; and • other factors to capture current portfolio trends and characteristics that differ from historical experience. Management believes that its methodology produces a reasonable estimate of expected credit losses, as of the balance sheet date, for the expected life of all of its financial assets. Allowance for Loss on Available-for-Sale (AFS) Securities To measure current expected credit losses on impaired AFS securities, Farmer Mac first considers those impaired securities that: 1) Farmer Mac does not intend to sell, and 2) it is not more likely than not that Farmer Mac will be required to sell before recovering its amortized cost basis. In assessing whether a credit loss exists, Farmer Mac compares the present value, discounted at the security's effective interest rate, of cash flows expected to be collected from an impaired AFS debt security to its amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis of the impaired security, a credit loss exists and Farmer Mac records an allowance for loss for that credit loss. However, the amount of that allowance is limited by the amount that the security’s fair value is less than its amortized cost basis. Accrued interest receivable is recorded separately on the Consolidated Balance Sheet, and the allowance for credit losses excludes uncollectible accrued interest receivable. Collateral Dependent Assets ("CDAs") |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates. January 1, 2020 In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below. ASU 2017-08 , Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update. January 1, 2020 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added. January 1, 2020 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings: Table 1.5 December 31, 2019 Transition Adjustment January 1, 2020 (in thousands) Allowance: Farm & Ranch: Loans $ 10,454 $ (3,909) $ 6,545 Long-term standby purchase commitments and guarantees 2,164 (148) 2,016 Rural Utilities: Loans — 5,378 5,378 Long-term standby purchase commitments — 1,011 1,011 Farmer Mac Guaranteed Securities: AgVantage — 315 315 Investment Securities — 9 9 Total Allowance $ 12,618 $ 2,656 $ 15,274 Retained Earnings $ 457,047 $ (2,099) $ 454,948 Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this ASU. |
Reclassifications | ReclassificationsCertain reclassifications of prior period information were made to conform to the current period presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Consolidation of Variable Interest Entities | The following tables present, by line of business, details about the consolidation of VIEs: Table 1.1 Consolidation of Variable Interest Entities As of March 31, 2020 Farm & Ranch USDA Guarantees Corporate Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,540,689 $ — $ — $ 1,540,689 Debt securities of consolidated trusts held by third parties (1) 1,549,527 — — 1,549,527 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value (2) — 33,512 — 33,512 Maximum exposure to loss (3) — 33,440 — 33,440 Investment securities: Carrying value (4) — — 1,291,950 1,291,950 Maximum exposure to loss (3) (4) — — 1,302,410 1,302,410 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3) (5) 97,302 370,903 — 468,205 (1) Includes borrower remittances of $8.8 million. The borrower remittances had not been passed through to third party investors as of March 31, 2020. (2) Includes $0.1 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. (3) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4) Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities. (5) The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party. Consolidation of Variable Interest Entities As of December 31, 2019 Farm & Ranch USDA Guarantees Corporate Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,600,917 $ — $ — $ 1,600,917 Debt securities of consolidated trusts held by third parties (1) 1,616,504 — — 1,616,504 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value (2) — 32,041 — 32,041 Maximum exposure to loss (3) — 31,887 — 31,887 Investment securities: Carrying value (4) — — 1,117,203 1,117,203 Maximum exposure to loss (3) (4) — — 1,120,765 1,120,765 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3) (5) 107,322 389,216 — 496,538 (1) Includes borrower remittances of $15.6 million. The borrower remittances had not been passed through to third party investors as of December 31, 2019. (2) Includes $0.2 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. (3) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4) Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities. (5) The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party. |
Basic and Diluted EPS | The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2020 and 2019: Table 1.2 For the Three Months Ended March 31, 2020 March 31, 2019 Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 9,399 10,712 $ 0.88 $ 21,874 10,670 $ 2.05 Effect of dilutive securities (1) SARs and restricted stock — 70 (0.01) — 107 (0.02) Diluted EPS $ 9,399 10,782 $ 0.87 $ 21,874 10,777 $ 2.03 (1) For the three months ended March 31, 2020 and 2019, SARs and restricted stock of 87,148 and 56,976, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended March 31, 2020 and 2019, contingent shares of unvested restricted stock of 12,680 and 12,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met. |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2020 and 2019: Table 1.3 As of March 31, 2020 As of March 31, 2019 Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total (in thousands) For the Three Months Ended: Beginning Balance $ (43,397) $ 32,845 $ (5,609) $ (16,161) $ (25,360) $ 43,443 $ 6,873 $ 24,956 Other comprehensive (loss)/income before reclassifications (77,685) — (22,668) (100,353) 3,318 — (4,095) (777) Amounts reclassified from AOCI (776) (4,494) 347 (4,923) (758) (1,787) (380) (2,925) Net comprehensive (loss)/income (78,461) (4,494) (22,321) (105,276) 2,560 (1,787) (4,475) (3,702) Ending Balance $ (121,858) $ 28,351 $ (27,930) $ (121,437) $ (22,800) $ 41,656 $ 2,398 $ 21,254 |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2020 and 2019: Table 1.4 For the Three Months Ended March 31, 2020 March 31, 2019 Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax (in thousands) Other comprehensive income: Available-for-sale-securities: Unrealized holding (losses)/gains on available-for-sale securities $ (98,334) $ (20,649) $ (77,685) $ 4,200 $ 882 $ 3,318 Less reclassification adjustments included in: Net interest income (1) (969) (203) (766) (953) (200) (753) Other income (2) (13) (3) (10) (6) (1) (5) Total $ (99,316) $ (20,855) $ (78,461) $ 3,241 $ 681 $ 2,560 Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (3) (5,688) (1,194) (4,494) (2,262) (475) (1,787) Total $ (5,688) $ (1,194) $ (4,494) $ (2,262) $ (475) $ (1,787) Cash flow hedges Unrealized (losses)/gains on cash flow hedges $ (28,695) $ (6,027) $ (22,668) $ (5,184) $ (1,089) $ (4,095) Less reclassification adjustments included in: Net interest income (4) 439 92 347 (481) (101) (380) Total $ (28,256) $ (5,935) $ (22,321) $ (5,665) $ (1,190) $ (4,475) Other comprehensive (loss)/income $ (133,260) $ (27,984) $ (105,276) $ (4,686) $ (984) $ (3,702) (1) Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. (2) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (3) Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. (4) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. |
Recently Adopted Accounting Guidance and Recently Issued Accounting Guidance, Note Yet Adopted Within Out Consolidated Financial Statements | Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This Update required entities to measure all expected credit losses for financial assets held at amortized cost at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts, as well as requiring entities to use forward-looking information to form their credit loss estimates. January 1, 2020 In first quarter 2020 Farmer Mac adopted the new guidance. The cumulative-effect adjustment to retained earnings as of January 1, 2020 reflected application of the new guidance and did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. For more information on the transition adjustment see Table 1.5 below. ASU 2017-08 , Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. There is no required accounting change for securities held at a discount in this Update. January 1, 2020 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements, including the consideration of costs and benefits. Certain disclosure requirements were either removed, modified, or added. January 1, 2020 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. The following table presents the impact of adopting CECL on January 1, 2020 on our allowance and retained earnings: Table 1.5 December 31, 2019 Transition Adjustment January 1, 2020 (in thousands) Allowance: Farm & Ranch: Loans $ 10,454 $ (3,909) $ 6,545 Long-term standby purchase commitments and guarantees 2,164 (148) 2,016 Rural Utilities: Loans — 5,378 5,378 Long-term standby purchase commitments — 1,011 1,011 Farmer Mac Guaranteed Securities: AgVantage — 315 315 Investment Securities — 9 9 Total Allowance $ 12,618 $ 2,656 $ 15,274 Retained Earnings $ 457,047 $ (2,099) $ 454,948 Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Farmer Mac is currently evaluating the impact of the discontinuation of LIBOR on the consolidated financial statements and the applicability of the optional guidance provided by this ASU. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Farmer Mac Investment Securities | The following tables set forth information about Farmer Mac's investment securities as of March 31, 2020 and December 31, 2019: Table 2.1 As of March 31, 2020 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (24) $ — $ (2,955) $ 16,721 Floating rate asset-backed securities 10,521 — 10,521 — — (18) 10,503 Floating rate Government/GSE guaranteed mortgage-backed securities 1,783,998 295 1,784,293 — 4,985 (11,279) 1,777,999 Fixed rate GSE guaranteed mortgage-backed securities 306 — 306 — 29 — 335 Fixed rate U.S. Treasuries 1,140,465 4,409 1,144,874 — 10,725 — 1,155,599 Total available-for-sale 2,954,990 4,704 2,959,694 (24) 15,739 (14,252) 2,961,157 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 — 45,032 — 131 — 45,163 Total investment securities $ 3,000,022 $ 4,704 $ 3,004,726 $ (24) $ 15,870 $ (14,252) $ 3,006,320 (1) Amounts presented exclude $8.3 million of accrued interest receivable on investment securities as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The held-to-maturity investment securities had a weighted average yield of 3.0% as of March 31, 2020. As of December 31, 2019 Amount Outstanding Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ — $ (788) $ 18,912 Floating rate asset-backed securities 11,092 — 11,092 — (7) 11,085 Floating rate Government/GSE guaranteed mortgage-backed securities 1,633,731 1,174 1,634,905 2,414 (4,736) 1,632,583 Fixed rate GSE guaranteed mortgage-backed securities 315 — 315 25 — 340 Fixed rate U.S. Treasuries 1,295,210 208 1,295,418 1,520 (15) 1,296,923 Total available-for-sale 2,960,048 1,382 2,961,430 3,959 (5,546) 2,959,843 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (1) 45,032 — 45,032 953 — 45,985 Total investment securities $ 3,005,080 $ 1,382 $ 3,006,462 $ 4,912 $ (5,546) $ 3,005,828 (1) The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019. The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2020 and December 31, 2019: Table 3.1 As of March 31, 2020 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,120 $ (110) $ 1,415,010 $ (640) $ 31,294 $ — $ 1,445,664 Farmer Mac Guaranteed USDA Securities 33,440 73 33,513 — 879 — 34,392 Total Farmer Mac Guaranteed Securities 1,448,560 (37) 1,448,523 (640) 32,173 — 1,480,056 USDA Securities 2,234,027 35,584 2,269,611 — 68,166 (1,637) 2,336,140 Total held-to-maturity $ 3,682,587 $ 35,547 $ 3,718,134 $ (640) $ 100,339 $ (1,637) $ 3,816,196 Available-for-sale: AgVantage $ 7,273,414 $ (111) $ 7,273,303 $ (166) $ 378,974 $ (64,925) $ 7,587,186 Trading: USDA Securities (3) $ 7,835 $ 433 $ 8,268 $ — $ 149 $ (9) $ 8,408 (1) Amounts presented exclude $35.9 million, $40.6 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The trading USDA securities had a weighted average yield of 5.19% as of March 31, 2020. As of December 31, 2019 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,584 $ (174) $ 1,415,410 $ 15,300 $ (164) $ 1,430,546 Farmer Mac Guaranteed USDA Securities 31,887 154 32,041 839 — 32,880 Total Farmer Mac Guaranteed Securities 1,447,471 (20) 1,447,451 16,139 (164) 1,463,426 USDA Securities 2,190,671 41,489 2,232,160 54,356 (758) 2,285,758 Total held-to-maturity $ 3,638,142 $ 41,469 $ 3,679,611 $ 70,495 $ (922) $ 3,749,184 Available-for-sale: AgVantage $ 7,017,095 $ (124) $ 7,016,971 $ 161,316 $ (35,262) $ 7,143,025 Trading: USDA Securities (1) $ 8,400 $ 479 $ 8,879 $ 61 $ (27) $ 8,913 (1) The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019. |
Schedule of Unrealized Losses on Available-for-Sale Investment Securities | As of March 31, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2020 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 16,721 $ (2,955) Floating rate asset-backed securities 2,544 (9) 7,959 (9) Floating rate Government/GSE guaranteed mortgage-backed securities 871,617 (6,208) 411,651 (5,071) Total $ 874,161 $ (6,217) $ 436,331 $ (8,035) Number of securities in loss position 65 67 As of December 31, 2019 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 18,912 $ (788) Floating rate asset-backed securities 2,583 (1) 8,502 (6) Floating rate Government/GSE guaranteed mortgage-backed securities 841,993 (2,244) 436,621 (2,492) Fixed rate U.S. Treasuries 35,107 (15) — — Total $ 879,683 $ (2,260) $ 464,035 $ (3,286) Number of securities in loss position 57 62 As of March 31, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2020 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: USDA Securities $ — $ — $ 25,066 $ (1,637) Total held-to-maturity $ — $ — $ 25,066 $ (1,637) Available-for-sale: AgVantage $ 244,823 $ (540) $ 830,797 $ (64,385) As of December 31, 2019 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: AgVantage $ — $ — $ 301,836 $ (164) USDA Securities — — 27,089 (758) Total held-to-maturity $ — $ — $ 328,925 $ (922) Available-for-sale: AgVantage $ 225,239 $ (2,203) $ 1,394,802 $ (33,059) |
Schedule of Available-for-Sale Securities Maturities | The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2020 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 1,013,044 $ 1,021,217 2.03% Due after one year through five years 399,388 399,311 2.02% Due after five years through ten years 808,042 804,652 2.03% Due after ten years 739,220 735,977 1.91% Total $ 2,959,694 $ 2,961,157 2.00% The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2020 Available-for-Sale Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 1,202,779 $ 1,207,673 1.82 % Due after one year through five years 3,358,079 3,479,730 2.77 % Due after five years through ten years 1,181,538 1,259,191 2.86 % Due after ten years 1,530,907 1,640,758 3.10 % Total $ 7,273,303 $ 7,587,352 2.70 % (1) Amounts presented exclude $35.9 million of accrued interest receivable. (2) Amounts presented exclude $0.2 million related to the allowance for losses. As of March 31, 2020 Held-to-Maturity Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 655,928 $ 660,512 2.57 % Due after one year through five years 840,702 869,401 3.27 % Due after five years through ten years 210,888 216,447 3.34 % Due after ten years 2,010,616 2,070,476 3.52 % Total $ 3,718,134 $ 3,816,836 3.29 % (1) Amounts presented exclude $40.6 million of accrued interest receivable. (2) Amounts presented exclude $0.6 million related to the allowance for losses. |
Farmer Mac Guaranteed Securit_2
Farmer Mac Guaranteed Securities and USDA Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Farmer Mac Guaranteed Securities and USDA Securities | The following tables set forth information about Farmer Mac's investment securities as of March 31, 2020 and December 31, 2019: Table 2.1 As of March 31, 2020 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (24) $ — $ (2,955) $ 16,721 Floating rate asset-backed securities 10,521 — 10,521 — — (18) 10,503 Floating rate Government/GSE guaranteed mortgage-backed securities 1,783,998 295 1,784,293 — 4,985 (11,279) 1,777,999 Fixed rate GSE guaranteed mortgage-backed securities 306 — 306 — 29 — 335 Fixed rate U.S. Treasuries 1,140,465 4,409 1,144,874 — 10,725 — 1,155,599 Total available-for-sale 2,954,990 4,704 2,959,694 (24) 15,739 (14,252) 2,961,157 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 — 45,032 — 131 — 45,163 Total investment securities $ 3,000,022 $ 4,704 $ 3,004,726 $ (24) $ 15,870 $ (14,252) $ 3,006,320 (1) Amounts presented exclude $8.3 million of accrued interest receivable on investment securities as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the consolidated statement of operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The held-to-maturity investment securities had a weighted average yield of 3.0% as of March 31, 2020. As of December 31, 2019 Amount Outstanding Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ — $ (788) $ 18,912 Floating rate asset-backed securities 11,092 — 11,092 — (7) 11,085 Floating rate Government/GSE guaranteed mortgage-backed securities 1,633,731 1,174 1,634,905 2,414 (4,736) 1,632,583 Fixed rate GSE guaranteed mortgage-backed securities 315 — 315 25 — 340 Fixed rate U.S. Treasuries 1,295,210 208 1,295,418 1,520 (15) 1,296,923 Total available-for-sale 2,960,048 1,382 2,961,430 3,959 (5,546) 2,959,843 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (1) 45,032 — 45,032 953 — 45,985 Total investment securities $ 3,005,080 $ 1,382 $ 3,006,462 $ 4,912 $ (5,546) $ 3,005,828 (1) The held-to-maturity investment securities had a weighted average yield of 3.3% as of December 31, 2019. The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2020 and December 31, 2019: Table 3.1 As of March 31, 2020 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,120 $ (110) $ 1,415,010 $ (640) $ 31,294 $ — $ 1,445,664 Farmer Mac Guaranteed USDA Securities 33,440 73 33,513 — 879 — 34,392 Total Farmer Mac Guaranteed Securities 1,448,560 (37) 1,448,523 (640) 32,173 — 1,480,056 USDA Securities 2,234,027 35,584 2,269,611 — 68,166 (1,637) 2,336,140 Total held-to-maturity $ 3,682,587 $ 35,547 $ 3,718,134 $ (640) $ 100,339 $ (1,637) $ 3,816,196 Available-for-sale: AgVantage $ 7,273,414 $ (111) $ 7,273,303 $ (166) $ 378,974 $ (64,925) $ 7,587,186 Trading: USDA Securities (3) $ 7,835 $ 433 $ 8,268 $ — $ 149 $ (9) $ 8,408 (1) Amounts presented exclude $35.9 million, $40.6 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of March 31, 2020. (2) Represents the amount of impairment that has resulted from credit-related factors, and therefore was recognized in the statement of financial operations as a provision for losses. Amount excludes unrealized losses relating to non-credit factors. (3) The trading USDA securities had a weighted average yield of 5.19% as of March 31, 2020. As of December 31, 2019 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 1,415,584 $ (174) $ 1,415,410 $ 15,300 $ (164) $ 1,430,546 Farmer Mac Guaranteed USDA Securities 31,887 154 32,041 839 — 32,880 Total Farmer Mac Guaranteed Securities 1,447,471 (20) 1,447,451 16,139 (164) 1,463,426 USDA Securities 2,190,671 41,489 2,232,160 54,356 (758) 2,285,758 Total held-to-maturity $ 3,638,142 $ 41,469 $ 3,679,611 $ 70,495 $ (922) $ 3,749,184 Available-for-sale: AgVantage $ 7,017,095 $ (124) $ 7,016,971 $ 161,316 $ (35,262) $ 7,143,025 Trading: USDA Securities (1) $ 8,400 $ 479 $ 8,879 $ 61 $ (27) $ 8,913 (1) The trading USDA securities had a weighted average yield of 5.20% as of December 31, 2019. |
Schedule of Unrealized Losses on Available-for-Sale Investment Securities | As of March 31, 2020 and December 31, 2019, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2020 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 16,721 $ (2,955) Floating rate asset-backed securities 2,544 (9) 7,959 (9) Floating rate Government/GSE guaranteed mortgage-backed securities 871,617 (6,208) 411,651 (5,071) Total $ 874,161 $ (6,217) $ 436,331 $ (8,035) Number of securities in loss position 65 67 As of December 31, 2019 Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (dollars in thousands) Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 18,912 $ (788) Floating rate asset-backed securities 2,583 (1) 8,502 (6) Floating rate Government/GSE guaranteed mortgage-backed securities 841,993 (2,244) 436,621 (2,492) Fixed rate U.S. Treasuries 35,107 (15) — — Total $ 879,683 $ (2,260) $ 464,035 $ (3,286) Number of securities in loss position 57 62 As of March 31, 2020 and December 31, 2019, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2020 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: USDA Securities $ — $ — $ 25,066 $ (1,637) Total held-to-maturity $ — $ — $ 25,066 $ (1,637) Available-for-sale: AgVantage $ 244,823 $ (540) $ 830,797 $ (64,385) As of December 31, 2019 Held-to-Maturity and Available-for-Sale Securities Unrealized loss position for Unrealized loss position for Fair Value Unrealized Fair Value Unrealized (in thousands) Held-to-maturity: AgVantage $ — $ — $ 301,836 $ (164) USDA Securities — — 27,089 (758) Total held-to-maturity $ — $ — $ 328,925 $ (922) Available-for-sale: AgVantage $ 225,239 $ (2,203) $ 1,394,802 $ (33,059) |
Schedule of Available-for-Sale and Held-to-Maturity Securities Maturities | The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2020 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2020 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 1,013,044 $ 1,021,217 2.03% Due after one year through five years 399,388 399,311 2.02% Due after five years through ten years 808,042 804,652 2.03% Due after ten years 739,220 735,977 1.91% Total $ 2,959,694 $ 2,961,157 2.00% The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2020 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2020 Available-for-Sale Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 1,202,779 $ 1,207,673 1.82 % Due after one year through five years 3,358,079 3,479,730 2.77 % Due after five years through ten years 1,181,538 1,259,191 2.86 % Due after ten years 1,530,907 1,640,758 3.10 % Total $ 7,273,303 $ 7,587,352 2.70 % (1) Amounts presented exclude $35.9 million of accrued interest receivable. (2) Amounts presented exclude $0.2 million related to the allowance for losses. As of March 31, 2020 Held-to-Maturity Securities Amortized Cost (1) Fair Value (2) Weighted- (dollars in thousands) Due within one year $ 655,928 $ 660,512 2.57 % Due after one year through five years 840,702 869,401 3.27 % Due after five years through ten years 210,888 216,447 3.34 % Due after ten years 2,010,616 2,070,476 3.52 % Total $ 3,718,134 $ 3,816,836 3.29 % (1) Amounts presented exclude $40.6 million of accrued interest receivable. (2) Amounts presented exclude $0.6 million related to the allowance for losses. |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position | The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of March 31, 2020 and December 31, 2019: Table 4.1 As of March 31, 2020 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Pay fixed non-callable $ 5,099,293 $ 4,339 $ (6,583) 2.42% 1.54% 11.64 Receive fixed non-callable 2,201,500 1,303 (9,730) 1.66% 2.06% 2.22 Receive fixed callable 413,000 4,954 (26) 1.36% 1.95% 3.38 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 458,000 1,434 (11,391) 2.31% 1.22% 5.36 No hedge designation: Interest rate swaps: Pay fixed non-callable 339,721 — (22,683) 3.54% 1.69% 5.32 Receive fixed non-callable 3,111,639 — — 1.17% 1.39% 1.01 Receive fixed callable 500,000 604 — 1.52% 1.75% 0.86 Basis swaps 2,850,000 58 (3,385) 1.49% 0.66% 0.91 Treasury futures 18,500 (114) 138.07 Credit valuation adjustment — 117 Total financial derivatives $ 14,991,653 $ 12,692 $ (53,795) Collateral (held)/pledged (2,525) 225,404 Net amount $ 10,167 $ 171,609 As of December 31, 2019 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Pay fixed non-callable $ 4,955,686 $ 7,163 $ (3,281) 2.47% 1.93% 11.26 Receive fixed non-callable 1,413,200 76 (5,329) 1.88% 2.13% 1.25 Receive fixed callable 524,000 476 (772) 1.52% 1.91% 2.83 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 428,000 1,882 (1,514) 2.36% 2.12% 5.43 No hedge designation: Interest rate swaps: Pay fixed non-callable 342,745 7 (14,046) 3.55% 2.00% 5.51 Receive fixed non-callable 3,124,148 49 (1,637) 1.88% 2.06% 1.66 Receive fixed callable 525,000 79 (80) 1.64% 1.68% 0.83 Basis swaps 2,670,000 787 (395) 1.86% 1.76% 0.90 Treasury futures 39,400 — (51) 128.29 Credit valuation adjustment — 63 Total financial derivatives $ 14,022,179 $ 10,519 $ (27,042) Collateral (held)/pledged (2,685) 132,129 Net amount $ 7,834 $ 105,087 |
Schedule of Net Income/(Expense) Recognized | The following table summarizes the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the three months ended March 31, 2020 and 2019: Table 4.2 For the Three Months Ended March 31, 2020 Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives Net Interest Income Non-Interest Income Total Interest Income Farmer Mac Guaranteed Securities and USDA Securities Interest Income Loans Total Interest Expense Losses on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations $ 71,517 $ 60,596 $ (108,542) $ (9,298) $ 14,273 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (6,152) (1,877) 1,634 — (6,395) Recognized on hedged items 31,826 8,677 (14,276) — 26,227 Discount amortization recognized on hedged items — — (180) — (180) Income/(expense) related to interest settlements on fair value hedging relationships $ 25,674 $ 6,800 $ (12,822) $ — $ 19,652 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ (293,932) $ (145,906) $ 58,934 $ — $ (380,904) Recognized on hedged items 290,379 145,409 (60,565) — 375,223 (Losses)/gains on fair value hedging relationships $ (3,553) $ (497) $ (1,631) $ — $ (5,681) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ (439) $ — $ (439) Recognized on hedged items — — (2,123) — (2,123) Discount amortization recognized on hedged items — — (1) — (1) Expense recognized on cash flow hedges $ — $ — $ (2,563) $ — $ (2,563) Losses on financial derivatives not designated in hedging relationships: Losses on interest rate swaps $ — $ — $ — $ (6,550) $ (6,550) Interest expense on interest rate swaps — — — (862) (862) Treasury futures — — — (1,886) (1,886) Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ (9,298) $ (9,298) For The Three Months Ended March 31, 2019 Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives Net Interest Income Non-Interest Income Total Interest Income Interest Income Loans Total Interest Expense Losses on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations: $ 85,411 $ 51,397 $ (114,916) $ (360) $ 21,532 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 1,550 (22) (3,218) — (1,690) Recognized on hedged items 24,565 4,555 (9,922) — 19,198 Discount amortization recognized on hedged items — — (149) — (149) Income/(expense) related to interest settlements on fair value hedging relationships $ 26,115 $ 4,533 $ (13,289) $ — $ 17,359 Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ (58,987) $ (20,082) $ 8,978 $ — $ (70,091) Recognized on hedged items 59,352 16,237 (8,197) — 67,392 Gains/(losses) on fair value hedging relationships $ 365 $ (3,845) $ 781 $ — $ (2,699) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ 481 $ — $ 481 Recognized on hedged items — — (2,688) — (2,688) Discount amortization recognized on hedged items — — (1) — (1) Expense recognized on cash flow hedges $ — $ — $ (2,208) $ — $ (2,208) Losses on financial derivatives not designated in hedge relationships: Gains on interest rate swaps $ — $ — $ — $ 2,168 $ 2,168 Interest expense on interest rate swaps — — — (2,300) (2,300) Treasury futures — — — (228) (228) Losses on financial derivatives not designated in hedge relationships $ — $ — $ — $ (360) $ (360) |
Schedule of Hedged Items in Fair Value Hedging Relationships | The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2020 and December 31, 2019: Table 4.3 Hedged Items in Fair Value Relationship Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 (in thousands) Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value $ 4,281,350 $ 4,092,611 $ 470,588 $ 180,215 Loans held for investment, at amortized cost 1,330,359 1,050,335 183,315 37,907 Notes Payable (1) (2,680,981) (2,761,052) (68,045) (7,433) (1) Carrying amount represents amortized cost. |
Schedule of Credit Exposure to Interest Rate Swap Counterparties | The following table shows Farmer Mac's credit exposure to interest rate swap counterparties as of March 31, 2020 and December 31, 2019: Table 4.4 March 31, 2020 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swap $ 118,349 $ 116,517 $ 1,832 Liabilities: Derivatives Interest rate swap $ 780,184 $ 776,764 $ 3,420 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. December 31, 2019 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swaps $ 56,139 $ 53,771 $ 2,368 Liabilities: Derivatives Interest rate swaps $ 305,584 $ 291,326 $ 14,258 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Composition of Loan Balances | The following table displays the composition of the loan balances as of March 31, 2020 and December 31, 2019: Table 5.1 As of March 31, 2020 (1) As of December 31, 2019 (2) Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Farm & Ranch $ 3,817,693 $ 1,540,689 $ 5,358,382 $ 3,675,640 $ 1,600,917 $ 5,276,557 Rural Utilities 1,789,726 — 1,789,726 1,671,293 — 1,671,293 Total unpaid principal balance (3) 5,607,419 1,540,689 7,148,108 5,346,933 1,600,917 6,947,850 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments 181,972 — 181,972 44,044 — 44,044 Total loans 5,789,391 1,540,689 7,330,080 5,390,977 1,600,917 6,991,894 Allowance for losses (13,663) (1,193) (14,856) (8,853) (1,601) (10,454) Total loans, net of allowance $ 5,775,728 $ 1,539,496 $ 7,315,224 $ 5,382,124 $ 1,599,316 $ 6,981,440 (1) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained an allowance for losses to cover estimated probable incurred losses on loans held. |
Schedule Allowance for Losses | The following table is a summary, by asset type, of the allowance for losses as of March 31, 2020 and December 31, 2019: Table 5.2 March 31, 2020 (1) December 31, 2019 (2) Allowance for Losses Allowance for Losses (in thousands) Loans: Farm & Ranch $ 7,353 $ 10,454 Rural Utilities 7,503 — Total $ 14,856 $ 10,454 (1) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held. The following is a summary of the changes in the allowance for losses for the three month period ended March 31, 2020 and 2019: Table 5.3 For the Three Months Ended March 31, 2020 (1) March 31, 2019 (2) Allowance for Losses Allowance for Losses (in thousands) Farm & Ranch: Balance as of December 31, $ 10,454 $ 7,017 Cumulative effect adjustment from adoption of current expected credit loss standard (3,909) — Balance as of January 1, 6,545 7,017 Provision for/(release of) losses $ 808 $ (264) Charge-offs — — Ending Balance (3) $ 7,353 $ 6,753 Rural Utilities: Balance as of December 31, $ — $ — Cumulative effect adjustment from adoption of current expected credit loss standard 5,378 — Balance as of January 1, 5,378 — Provision for/(release of) losses $ 2,125 $ — Charge-offs — — Ending Balance (4) $ 7,503 $ — (1) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held. (3) Allowance for losses includes $2.2 million for collateral dependent assets secured by commercial real estate. |
Schedule of Past Due Financing Receivables | The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2020: Table 5.4 As of March 31, 2020 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Nonaccrual loans (2)(3) Total Loans (in thousands) Loans: Farm & Ranch $ 5,206,313 $ 4,821 $ 3,024 $ 22,152 $ 29,997 $ 122,072 $ 5,358,382 Rural Utilities 1,789,726 — — — — — 1,789,726 Total $ 6,996,039 $ 4,821 $ 3,024 $ 22,152 $ 29,997 $ 122,072 $ 7,148,108 (1) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (2) 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. (3) Includes $24.0 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2020, Farmer Mac received $1.0 million in interest on nonaccrual loans. Table 5.8 90-Day Delinquencies (1) Net Credit Losses/(Recoveries) As of For the Three Months Ended December 31, 2019 March 31, 2019 (in thousands) Farm & Ranch loans $ 57,719 $ — (1) 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. The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of March 31, 2020: Table 6.7 As of March 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Farm and Ranch: LTSPCs and Farmer Mac Guaranteed Securities $ 2,434,531 $ 6,183 $ 7,893 $ 4,605 $ 18,681 $ 2,453,212 Rural Utilities: LTSPCs $ 595,685 $ — $ — $ — $ — $ 595,685 (1) Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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. Table 6.9 90-Day Delinquencies (1) Net Credit Losses/(Recoveries) As of For the Three Months Ended December 31, 2019 March 31, 2019 (in thousands) Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities $ 3,235 $ — (1) Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs 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. |
Schedule of Allowance for Losses by Impairment Method and Commodity | The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019: Table 5.5 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Ending Balance: Collectively evaluated for impairment $ 2,664,362 $ 1,161,900 $ 871,341 $ 356,920 $ 10,360 $ 4,597 $ 5,069,480 Individually evaluated for impairment 108,815 51,256 39,962 7,044 — — 207,077 Total Farm & Ranch loans $ 2,773,177 $ 1,213,156 $ 911,303 $ 363,964 $ 10,360 $ 4,597 $ 5,276,557 Allowance for Losses: Collectively evaluated for impairment $ 1,880 $ 1,362 $ 714 $ 249 $ 47 $ 4 $ 4,256 Individually evaluated for impairment 2,628 1,008 2,447 115 — — 6,198 Total Farm & Ranch loans $ 4,508 $ 2,370 $ 3,161 $ 364 $ 47 $ 4 $ 10,454 The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019: Table 6.8 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Ending Balance: Collectively evaluated for impairment: $ 1,151,983 $ 511,991 $ 581,377 $ 167,395 $ 66,106 $ 2,760 $ 2,481,612 Individually evaluated for impairment: 5,698 2,114 10,207 706 — 56 18,781 Total Farm & Ranch $ 1,157,681 $ 514,105 $ 591,584 $ 168,101 $ 66,106 $ 2,816 $ 2,500,393 Allowance for Losses: Collectively evaluated for impairment: $ 599 $ 96 $ 308 $ 50 $ 767 $ 1 $ 1,821 Individually evaluated for impairment: 97 43 189 14 — — 343 Total Farm & Ranch $ 696 $ 139 $ 497 $ 64 $ 767 $ 1 $ 2,164 |
Schedule of Impaired Financing Receivables | The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of December 31, 2019: Table 5.6 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Impaired Loans: With no specific allowance: Recorded investment $ 30,846 $ 16,696 $ 3,195 $ 1,398 $ — $ 56 $ 52,191 Unpaid principal balance 30,741 16,638 3,185 1,394 — 56 52,014 With a specific allowance: Recorded investment (1) 84,044 36,852 47,113 6,376 — — 174,385 Unpaid principal balance 83,772 36,732 46,984 6,356 — — 173,844 Associated allowance 2,725 1,051 2,636 129 — — 6,541 Total: Recorded investment 114,890 53,548 50,308 7,774 — 56 226,576 Unpaid principal balance 114,513 53,370 50,169 7,750 — 56 225,858 Associated allowance 2,725 1,051 2,636 129 — — 6,541 Recorded investment of loans on nonaccrual status (2) $ 34,037 $ 22,849 $ 28,441 $ 2,454 $ — $ — $ 87,781 (1) Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $159.1 million (70%) of impaired loans as of December 31, 2019, which resulted in a specific allowance of $3.0 million. (2) Includes $30.1 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status. The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2019: Table 5.7 March 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) For the Three Months Ended: Average recorded investment in impaired loans $ 88,653 $ 40,495 $ 28,123 $ 7,730 $ — $ 65 $ 165,066 Income recognized on impaired loans 322 299 113 67 — — 801 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of March 31, 2020, by year of origination: Table 5.9 As of March 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Farm & Ranch: Internally Assigned Risk Rating: Acceptable $ 286,971 $ 819,220 $ 588,761 $ 688,649 $ 555,678 $ 1,452,711 $ 468,114 $ 4,860,104 Special mention (1) 9,916 159,523 36,786 20,937 32,227 18,283 9,230 286,902 Substandard (2) — 4,431 16,938 58,407 41,973 78,189 11,438 211,376 Total $ 296,887 $ 983,174 $ 642,485 $ 767,993 $ 629,878 $ 1,549,183 $ 488,782 $ 5,358,382 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Farm & Ranch net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Utilities: Internally Assigned Risk Rating: Acceptable $ 152,385 $ 836,763 $ 8,337 $ 92,568 $ 31,829 $ 662,830 $ — $ 1,784,712 Special mention (1) — — — — — — — — Substandard (2) — — — — — 5,014 — 5,014 Total $ 152,385 $ 836,763 $ 8,337 $ 92,568 $ 31,829 $ 667,844 $ — $ 1,789,726 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Rural Utilities net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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. The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019: Table 5.10 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Internally Assigned Risk Rating (1) Acceptable $ 2,556,956 $ 1,050,160 $ 825,234 $ 343,329 $ 10,360 $ 4,597 $ 4,790,636 Special mention (2) 107,406 111,739 46,107 13,591 — — 278,843 Substandard (3) 108,815 51,257 39,962 7,044 — — 207,078 Total $ 2,773,177 $ 1,213,156 $ 911,303 $ 363,964 $ 10,360 $ 4,597 $ 5,276,557 Commodity analysis of past due loans (1) $ 21,167 $ 15,828 $ 19,354 $ 1,370 $ — $ — $ 57,719 (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. The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of March 31, 2020, by year of origination: Table 6.10 As of March 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 31,243 $ 219,342 $ 183,228 $ 249,022 $ 225,466 $ 1,132,870 $ 173,082 $ 2,214,253 Special mention (1) — 3,600 7,843 29,982 17,482 68,709 10,379 137,995 Substandard (2) — — 3,393 16,435 16,282 60,133 4,721 100,964 Total $ 31,243 $ 222,942 $ 194,464 $ 295,439 $ 259,230 $ 1,261,712 $ 188,182 $ 2,453,212 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Farm & Ranch net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Utilities LTSPCs: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 595,685 $ — $ 595,685 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 595,685 $ — $ 595,685 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Rural Utilities net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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. The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019: Table 6.11 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Internally Assigned Risk Rating (1) Acceptable $ 1,033,002 $ 484,601 $ 521,341 $ 161,361 $ 66,106 $ 2,594 $ 2,269,005 Special mention (2) 68,372 22,909 35,618 1,612 — — 128,511 Substandard (3) 56,307 6,595 34,625 5,128 — 222 102,877 Total $ 1,157,681 $ 514,105 $ 591,584 $ 168,101 $ 66,106 $ 2,816 $ 2,500,393 Commodity analysis of past due loans (1) $ 1,493 $ 196 $ 1,066 $ 480 $ — $ — $ 3,235 (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. |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of March 31, 2020 and December 31, 2019, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1 Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities As of March 31, 2020 As of December 31, 2019 (in thousands) Farm & Ranch: Farmer Mac Guaranteed Securities $ 97,302 $ 107,322 USDA Guarantees: Farmer Mac Guaranteed USDA Securities 370,903 389,216 Institutional Credit: AgVantage Securities 7,567 7,567 Total off-balance sheet Farmer Mac Guaranteed Securities $ 475,772 $ 504,105 Table 6.3 As of March 31, 2020 As of December 31, 2019 (dollars in thousands) Guarantee and commitment obligation $ 2,080 $ 2,230 Weighted average remaining maturity: Farmer Mac Guaranteed Securities 9.7 years 9.8 years AgVantage Securities 4.7 years 5.0 years |
Schedule of Cash Flows Related To Transfer of Securitizations | The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2 For the Three Months Ended March 31, 2020 March 31, 2019 (in thousands) Proceeds from new securitizations $ 28,050 $ 116,708 Guarantee fees received 466 442 |
Schedule of Long-Term Standby Purchase Commitments | The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs: Table 6.4 As of March 31, 2020 As of December 31, 2019 (dollars in thousands) Guarantee and commitment obligation (1) $ 33,859 $ 34,470 Maximum principal amount 2,951,595 3,002,349 Weighted-average remaining maturity 15.2 years 15.2 years (1) Relates to LTSPCs issued or modified on or after January 1, 2003. |
Schedule of Reserve for Losses | The following table is a summary, by asset type, of the reserve for losses as of March 31, 2020 and December 31, 2019: Table 6.5 March 31, 2020 (1) December 31, 2019 (2) Reserve for Losses Reserve for Losses (in thousands) Farm & Ranch: LTSPCs and Farmer Mac Guaranteed Securities $ 2,020 $ 2,164 Rural Utilities LTSPCs 1,400 — Total $ 3,420 $ 2,164 (1) Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities. The following is a summary of the changes in the reserve for losses for the three month period ended March 31, 2020 and 2019: Table 6.6 For the Three Months Ended March 31, 2020 (1) March 31, 2019 (2) Reserve for Losses Reserve for Losses (in thousands) Farm & Ranch: Balance as of December 31, $ 2,164 $ 2,167 Cumulative effect adjustment from adoption of current expected credit loss standard (148) — Balance as of January 1, 2,016 2,167 Provision for/(release of) losses $ 4 $ (129) Charge-offs — — Ending Balance $ 2,020 $ 2,038 Rural Utilities: Balance as of December 31, $ — $ — Cumulative effect adjustment from adoption of current expected credit loss standard 1,011 — Balance as of January 1, 1,011 — Provision for/(release of) losses $ 389 $ — Charge-offs — — Ending Balance $ 1,400 $ — (1) Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. (2) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020, Farmer Mac maintained a reserve for losses to cover estimated probable incurred losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities. |
Schedule of Past Due Financing Receivables | The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2020: Table 5.4 As of March 31, 2020 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Nonaccrual loans (2)(3) Total Loans (in thousands) Loans: Farm & Ranch $ 5,206,313 $ 4,821 $ 3,024 $ 22,152 $ 29,997 $ 122,072 $ 5,358,382 Rural Utilities 1,789,726 — — — — — 1,789,726 Total $ 6,996,039 $ 4,821 $ 3,024 $ 22,152 $ 29,997 $ 122,072 $ 7,148,108 (1) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (2) 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. (3) Includes $24.0 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2020, Farmer Mac received $1.0 million in interest on nonaccrual loans. Table 5.8 90-Day Delinquencies (1) Net Credit Losses/(Recoveries) As of For the Three Months Ended December 31, 2019 March 31, 2019 (in thousands) Farm & Ranch loans $ 57,719 $ — (1) 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. The following table presents the unpaid principal balances by delinquency status of Farm & Ranch loans underlying LTSPCs. Farm & Ranch Farmer Mac Guaranteed Securities, Rural Utilities loans underlying LTSPCs, and non-performing assets as of March 31, 2020: Table 6.7 As of March 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Farm and Ranch: LTSPCs and Farmer Mac Guaranteed Securities $ 2,434,531 $ 6,183 $ 7,893 $ 4,605 $ 18,681 $ 2,453,212 Rural Utilities: LTSPCs $ 595,685 $ — $ — $ — $ — $ 595,685 (1) Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days of 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. Table 6.9 90-Day Delinquencies (1) Net Credit Losses/(Recoveries) As of For the Three Months Ended December 31, 2019 March 31, 2019 (in thousands) Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities $ 3,235 $ — (1) Includes loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs 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. |
Schedule of Allowance for Losses by Impairment Method and Commodity | The following tables present the unpaid principal balances of loans held and the related total allowance for losses by impairment method and commodity type as of December 31, 2019: Table 5.5 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Ending Balance: Collectively evaluated for impairment $ 2,664,362 $ 1,161,900 $ 871,341 $ 356,920 $ 10,360 $ 4,597 $ 5,069,480 Individually evaluated for impairment 108,815 51,256 39,962 7,044 — — 207,077 Total Farm & Ranch loans $ 2,773,177 $ 1,213,156 $ 911,303 $ 363,964 $ 10,360 $ 4,597 $ 5,276,557 Allowance for Losses: Collectively evaluated for impairment $ 1,880 $ 1,362 $ 714 $ 249 $ 47 $ 4 $ 4,256 Individually evaluated for impairment 2,628 1,008 2,447 115 — — 6,198 Total Farm & Ranch loans $ 4,508 $ 2,370 $ 3,161 $ 364 $ 47 $ 4 $ 10,454 The following tables present the unpaid principal balances of Farm & Ranch loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related reserve for losses by impairment method and commodity type as of December 31, 2019: Table 6.8 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Ending Balance: Collectively evaluated for impairment: $ 1,151,983 $ 511,991 $ 581,377 $ 167,395 $ 66,106 $ 2,760 $ 2,481,612 Individually evaluated for impairment: 5,698 2,114 10,207 706 — 56 18,781 Total Farm & Ranch $ 1,157,681 $ 514,105 $ 591,584 $ 168,101 $ 66,106 $ 2,816 $ 2,500,393 Allowance for Losses: Collectively evaluated for impairment: $ 599 $ 96 $ 308 $ 50 $ 767 $ 1 $ 1,821 Individually evaluated for impairment: 97 43 189 14 — — 343 Total Farm & Ranch $ 696 $ 139 $ 497 $ 64 $ 767 $ 1 $ 2,164 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of March 31, 2020, by year of origination: Table 5.9 As of March 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Farm & Ranch: Internally Assigned Risk Rating: Acceptable $ 286,971 $ 819,220 $ 588,761 $ 688,649 $ 555,678 $ 1,452,711 $ 468,114 $ 4,860,104 Special mention (1) 9,916 159,523 36,786 20,937 32,227 18,283 9,230 286,902 Substandard (2) — 4,431 16,938 58,407 41,973 78,189 11,438 211,376 Total $ 296,887 $ 983,174 $ 642,485 $ 767,993 $ 629,878 $ 1,549,183 $ 488,782 $ 5,358,382 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Farm & Ranch net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Utilities: Internally Assigned Risk Rating: Acceptable $ 152,385 $ 836,763 $ 8,337 $ 92,568 $ 31,829 $ 662,830 $ — $ 1,784,712 Special mention (1) — — — — — — — — Substandard (2) — — — — — 5,014 — 5,014 Total $ 152,385 $ 836,763 $ 8,337 $ 92,568 $ 31,829 $ 667,844 $ — $ 1,789,726 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Rural Utilities net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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. The following table presents credit quality indicators related to Farm & Ranch loans held as of December 31, 2019: Table 5.10 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Internally Assigned Risk Rating (1) Acceptable $ 2,556,956 $ 1,050,160 $ 825,234 $ 343,329 $ 10,360 $ 4,597 $ 4,790,636 Special mention (2) 107,406 111,739 46,107 13,591 — — 278,843 Substandard (3) 108,815 51,257 39,962 7,044 — — 207,078 Total $ 2,773,177 $ 1,213,156 $ 911,303 $ 363,964 $ 10,360 $ 4,597 $ 5,276,557 Commodity analysis of past due loans (1) $ 21,167 $ 15,828 $ 19,354 $ 1,370 $ — $ — $ 57,719 (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. The following tables present credit quality indicators related to Farm & Ranch loans underlying LTSPCs, Farm & Ranch Farmer Mac Guaranteed Securities, and Rural Utilities loans underlying LTSPCs as of March 31, 2020, by year of origination: Table 6.10 As of March 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Farm & Ranch LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 31,243 $ 219,342 $ 183,228 $ 249,022 $ 225,466 $ 1,132,870 $ 173,082 $ 2,214,253 Special mention (1) — 3,600 7,843 29,982 17,482 68,709 10,379 137,995 Substandard (2) — — 3,393 16,435 16,282 60,133 4,721 100,964 Total $ 31,243 $ 222,942 $ 194,464 $ 295,439 $ 259,230 $ 1,261,712 $ 188,182 $ 2,453,212 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Farm & Ranch net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Utilities LTSPCs: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 595,685 $ — $ 595,685 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 595,685 $ — $ 595,685 Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period recoveries — — — — — — — — Current period Rural Utilities net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) 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. The following table presents credit quality indicators related to Farm & Ranch loans underlying LTSPCs and off-balance sheet Farm & Ranch Farmer Mac Guaranteed Securities as of December 31, 2019: Table 6.11 As of December 31, 2019 Crops Permanent Livestock Part-time Ag. Storage and Other Total (in thousands) Internally Assigned Risk Rating (1) Acceptable $ 1,033,002 $ 484,601 $ 521,341 $ 161,361 $ 66,106 $ 2,594 $ 2,269,005 Special mention (2) 68,372 22,909 35,618 1,612 — — 128,511 Substandard (3) 56,307 6,595 34,625 5,128 — 222 102,877 Total $ 1,157,681 $ 514,105 $ 591,584 $ 168,101 $ 66,106 $ 2,816 $ 2,500,393 Commodity analysis of past due loans (1) $ 1,493 $ 196 $ 1,066 $ 480 $ — $ — $ 3,235 (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. |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables set forth information related to Farmer Mac's borrowings as of March 31, 2020 and December 31, 2019: Table 7.1 March 31, 2020 Outstanding as of March 31 Average Outstanding During the Quarter Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 2,598,091 0.82 % $ 2,043,407 1.52 % Medium-term notes 1,203,723 1.18 % 971,050 1.79 % Current portion of medium-term notes 7,346,370 1.39 % Total due within one year $ 11,148,184 1.24 % Due after one year: Medium-term notes due in: Two years $ 3,381,965 1.64 % Three years 1,588,751 1.90 % Four years 1,311,362 2.13 % Five years 1,027,532 1.95 % Thereafter 2,207,226 2.57 % Total due after one year 9,516,836 2.00 % Total $ 20,665,020 1.59 % December 31, 2019 Outstanding as of December 31 Average Outstanding During the Year Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 2,194,177 1.72 % $ 1,977,214 2.25 % Medium-term notes 1,152,770 1.98 % 1,780,517 2.33 % Current portion of medium-term notes 6,672,135 1.85 % Total due within one year $ 10,019,082 1.84 % Due after one year: Medium-term notes due in: Two years $ 3,700,835 2.04 % Three years 1,594,709 2.15 % Four years 1,205,276 2.27 % Five years 760,887 2.25 % Thereafter 1,817,859 2.89 % Total due after one year 9,079,566 2.28 % Total $ 19,098,648 2.05 % Table 7.2 Debt Callable in 2020 as of March 31, 2020, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2021 $ 731,715 1.56 % 2022 209,852 1.80 % 2023 49,959 1.34 % 2024 206,716 2.12 % Thereafter 397,740 2.59 % Total $ 1,595,982 1.91 % |
Schedule of Long-Term Debt Instruments | The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2020, including callable and non-callable medium-term notes, assuming callable notes are redeemed at the initial call date: Table 7.3 Earliest Interest Rate Reset Date, or Debt Maturities, of Borrowings Outstanding Amount Weighted-Average Rate (dollars in thousands) Debt with interest rate resets, or debt maturities in: 2020 $ 11,565,193 1.13 % 2021 3,038,940 1.97 % 2022 1,483,282 2.02 % 2023 1,489,184 2.10 % 2024 945,152 2.04 % Thereafter 2,143,269 2.67 % Total $ 20,665,020 1.59 % |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 9.1 Assets and Liabilities Measured at Fair Value as of March 31, 2020 Level 1 Level 2 Level 3 (1) Total (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 16,721 $ 16,721 Floating rate asset-backed securities — 10,503 — 10,503 Floating rate Government/GSE guaranteed mortgage-backed securities — 1,777,999 — 1,777,999 Fixed rate GSE guaranteed mortgage-backed securities — 335 — 335 Fixed rate U.S. Treasuries 1,155,599 — — 1,155,599 Total Investment Securities 1,155,599 1,788,837 16,721 2,961,157 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 7,587,186 7,587,186 Total Farmer Mac Guaranteed Securities — — 7,587,186 7,587,186 USDA Securities: Trading — — 8,408 8,408 Total USDA Securities — — 8,408 8,408 Financial derivatives — 12,692 — 12,692 Total Assets at fair value $ 1,155,599 $ 1,801,529 $ 7,612,315 $ 10,569,443 Liabilities: Financial derivatives $ 114 $ 53,681 $ — $ 53,795 Total Liabilities at fair value $ 114 $ 53,681 $ — $ 53,795 (1) Level 3 assets represent 33% of total assets and 72% of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 (1) Total (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ — $ — $ 18,912 $ 18,912 Floating rate asset-backed securities — 11,085 — 11,085 Floating rate Government/GSE guaranteed mortgage-backed securities — 1,632,583 — 1,632,583 Fixed rate GSE guaranteed mortgage-backed securities — 340 — 340 Fixed rate U.S. Treasuries 1,296,923 — — 1,296,923 Total available-for-sale 1,296,923 1,644,008 18,912 2,959,843 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 7,143,025 7,143,025 Total Farmer Mac Guaranteed Securities — — 7,143,025 7,143,025 USDA Securities: Trading — — 8,913 8,913 Total USDA Securities — — 8,913 8,913 Financial derivatives — 10,519 — 10,519 Total Assets at fair value $ 1,296,923 $ 1,654,527 $ 7,170,850 $ 10,122,300 Liabilities: Financial derivatives $ 51 $ 26,991 $ — $ 27,042 Total Liabilities at fair value $ 51 $ 26,991 $ — $ 27,042 (1) Level 3 assets represent 33% of total assets and 71% of financial instruments measured at fair value. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three months ended March 31, 2020 and 2019. Table 9.2 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2020 Beginning Purchases Sales Settlements Allowance for Losses Realized and Unrealized Losses Ending (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,912 $ — $ — $ — $ (24) $ — $ (2,167) $ 16,721 Total available-for-sale 18,912 — — — (24) — (2,167) 16,721 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 7,143,025 483,580 — (227,255) (166) 290,380 (102,378) 7,587,186 Total available-for-sale 7,143,025 483,580 — (227,255) (166) 290,380 (102,378) 7,587,186 USDA Securities: Trading 8,913 — — (611) — 106 — 8,408 Total USDA Securities 8,913 — — (611) 106 — 8,408 Total Assets at fair value $ 7,170,850 $ 483,580 $ — $ (227,866) $ (190) $ 290,486 $ (104,545) $ 7,612,315 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2019 Beginning Purchases Sales Settlements Realized and Unrealized Gains included Unrealized Gains included in Other Ending (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,715 $ — $ — $ — $ — $ 197 $ 18,912 Total available-for-sale 18,715 — — — — 197 18,912 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,974,497 776,332 — (371,733) 59,352 3,176 6,441,624 Total available-for-sale 5,974,497 776,332 — (371,733) 59,352 3,176 6,441,624 USDA Securities: Available-for-sale — 18,928 (18,928) — — — — Trading 9,999 — — (556) 44 — 9,487 Total USDA Securities 9,999 18,928 (18,928) (556) 44 — 9,487 Total Assets at fair value $ 6,003,211 $ 795,260 $ (18,928) $ (372,289) $ 59,396 $ 3,373 $ 6,470,023 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2020 and December 31, 2019: Table 9.3 As of March 31, 2020 Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average) (in thousands) Assets: Investment securities: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 16,721 Indicative bids Range of broker quotes 85.0% - 85.0% (85.0%) Farmer Mac Guaranteed Securities: AgVantage $ 7,587,186 Discounted cash flow Discount rate 1.1% - 2.2% (1.4%) USDA Securities $ 8,408 Discounted cash flow Discount rate 1.6% - 2.2% (1.6%) CPR 13% - 23% (21%) As of December 31, 2019 Financial Instruments Fair Value Valuation Technique Unobservable Input Range (Weighted-Average) (in thousands) Assets: Investment securities: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,912 Indicative bids Range of broker quotes 96.0% - 96.0% (96.0%) Farmer Mac Guaranteed Securities: AgVantage $ 7,143,025 Discounted cash flow Discount rate 2.3% - 5.5% (2.6%) USDA Securities $ 8,913 Discounted cash flow Discount rate 2.3% - 2.6% (2.1%) CPR 10% - 21% (19%) |
Fair Value, by Balance Sheet Grouping | The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2020 and December 31, 2019: Table 9.4 As of March 31, 2020 As of December 31, 2019 Fair Value Carrying Fair Value Carrying (in thousands) Financial assets: Cash and cash equivalents $ 1,231,585 $ 1,231,585 $ 604,381 $ 604,381 Investment securities 3,006,320 3,006,189 3,005,828 3,004,875 Farmer Mac Guaranteed Securities 9,067,242 9,035,069 8,606,451 8,590,476 USDA Securities 2,344,548 2,278,019 2,294,671 2,241,073 Loans 7,553,328 7,315,224 7,317,091 6,981,440 Financial derivatives 12,692 12,692 10,519 10,519 Guarantee and commitment fees receivable 32,420 37,521 36,732 38,442 Financial liabilities: Notes payable 20,975,163 20,665,020 19,234,079 19,098,648 Debt securities of consolidated trusts held by third parties 1,605,021 1,549,527 1,663,177 1,616,504 Financial derivatives 53,795 53,795 27,042 27,042 Guarantee and commitment obligations 30,838 35,939 34,990 36,700 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three months ended March 31, 2020 and 2019: Table 10.1 Core Earnings by Business Segment For the Three Months Ended March 31, 2020 Farm & Ranch USDA Guarantees Rural Utilities Institutional Credit Corporate Reconciling Consolidated Net Income (in thousands) Net interest income $ 16,365 $ 4,541 $ 4,747 $ 13,804 $ 1,855 $ — $ 41,312 Less: reconciling adjustments (1)(2)(3) (1,427) 84 173 3,898 123 (2,851) — Net effective spread 14,938 4,625 4,920 17,702 1,978 (2,851) — Guarantee and commitment fees (2) 4,317 235 335 9 — (1,700) 3,196 Other income/(expense) (3) 1,169 112 7 — (129) (9,050) (7,891) Non-interest income/(loss) 5,486 347 342 9 (129) (10,750) (4,695) Provision for loan losses (808) — (2,125) (491) (14) — (3,438) Provision for reserve for losses (4) — (389) — — — (393) Other non-interest expense (5,997) (1,818) (1,604) (2,363) (4,433) — (16,215) Non-interest expense (4) (6,001) (1,818) (1,993) (2,363) (4,433) — (16,608) Core earnings before income taxes 13,615 3,154 1,144 14,857 (2,598) (13,601) (5) 16,571 Income tax (expense)/benefit (2,859) (662) (240) (3,120) 283 2,857 (3,741) Core earnings before preferred stock dividends 10,756 2,492 904 11,737 (2,315) (10,744) (5) 12,830 Preferred stock dividends — — — — (3,431) — (3,431) Segment core earnings/(losses) $ 10,756 $ 2,492 $ 904 $ 11,737 $ (5,746) $ (10,744) (5) $ 9,399 Total assets at carrying value $ 5,457,134 $ 2,341,698 $ 1,964,901 $ 9,049,154 $ 4,367,223 $ — $ 23,180,110 Total on- and off-balance sheet program assets at principal balance $ 7,811,594 $ 2,646,206 $ 2,385,411 $ 8,696,101 $ — $ — $ 21,539,312 (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 on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5) 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 March 31, 2019 Farm & Ranch USDA Guarantees Rural Institutional Credit Corporate Reconciling Adjustments Consolidated Net Income (in thousands) Net interest income $ 15,282 $ 4,442 $ (274) $ 18,187 $ 2,962 $ — $ 40,599 Less: reconciling adjustments (1)(2)(3) (2,545) (478) 3,507 (1,814) (468) 1,798 — Net effective spread 12,737 3,964 3,233 16,373 2,494 1,798 — Guarantee and commitment fees (2) 4,744 224 363 88 — (1,906) 3,513 Other income/(expense) (3) 480 — 7 — 22 (332) 177 Non-interest income/(loss) 5,224 224 370 88 22 (2,238) 3,690 Release of losses 264 — — — — — 264 Release of reserve for losses 129 — — — — — 129 Other non-interest expense (4,799) (1,428) (866) (2,159) (3,638) — (12,890) Non-interest expense (4) (4,670) (1,428) (866) (2,159) (3,638) — (12,761) Core earnings before income taxes 13,555 2,760 2,737 14,302 (1,122) (440) (5) 31,792 Income tax (expense)/benefit (2,847) (580) (575) (3,003) 290 93 (6,622) Core earnings before preferred stock dividends 10,708 2,180 2,162 11,299 (832) (347) (5) 25,170 Preferred stock dividends — — — — (3,296) — (3,296) Segment core earnings/(losses) $ 10,708 $ 2,180 $ 2,162 $ 11,299 $ (4,128) $ (347) (5) $ 21,874 Total assets at carrying value $ 4,698,250 $ 2,191,896 $ 1,443,393 $ 8,502,084 $ 2,962,154 $ — $ 19,797,777 Total on- and off-balance sheet program assets at principal balance $ 7,215,585 $ 2,484,779 $ 2,074,714 $ 8,731,835 $ — $ — $ 20,506,913 (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 on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5) 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. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | Mar. 31, 2020subsidiary |
Accounting Policies [Abstract] | |
Number of subsidiaries | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Consolidation of Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | $ 5,789,391 | $ 5,390,977 |
Notes payable | 20,665,020 | 19,098,648 |
Farm & Ranch | ||
Variable Interest Entity [Line Items] | ||
Borrower remittances | 8,800 | 15,600 |
USDA Guarantees | ||
Variable Interest Entity [Line Items] | ||
Unamortized premiums and discounts | 100 | (200) |
On-Balance Sheet: | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 1,540,689 | 1,600,917 |
Notes payable | 1,549,527 | 1,616,504 |
Off-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 468,205 | 496,538 |
Farmer Mac Guaranteed Securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 33,512 | 32,041 |
Maximum exposure to loss | 33,440 | 31,887 |
Debt Securities | ||
Variable Interest Entity [Line Items] | ||
Unamortized premiums and discounts | (4,704) | (1,382) |
Debt Securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 1,291,950 | 1,117,203 |
Maximum exposure to loss | 1,302,410 | 1,120,765 |
Corporate | On-Balance Sheet: | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
Notes payable | 0 | 0 |
Corporate | Off-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 0 | 0 |
Corporate | Farmer Mac Guaranteed Securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Corporate | Debt Securities | On-Balance Sheet: | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 1,291,950 | 1,117,203 |
Maximum exposure to loss | 1,302,410 | 1,120,765 |
Operating Segments | On-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 1,540,689 | 1,600,917 |
Notes payable | 1,549,527 | 1,616,504 |
Operating Segments | On-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
Notes payable | 0 | 0 |
Operating Segments | Off-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 97,302 | 107,322 |
Operating Segments | Off-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 370,903 | 389,216 |
Operating Segments | Farmer Mac Guaranteed Securities | On-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Operating Segments | Farmer Mac Guaranteed Securities | On-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 33,512 | 32,041 |
Maximum exposure to loss | 33,440 | 31,887 |
Operating Segments | Debt Securities | On-Balance Sheet: | Farm & Ranch | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Operating Segments | Debt Securities | On-Balance Sheet: | USDA Guarantees | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | 0 |
Maximum exposure to loss | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic EPS | ||
Net income attributable to common stockholders | $ 9,399 | $ 21,874 |
Weighted-Average Shares (in shares) | 10,712,000 | 10,670,000 |
Dollars per share (in dollars per share) | $ 0.88 | $ 2.05 |
Effect of dilutive securities | ||
SARs and restricted stock (in shares) | 70,000 | 107,000 |
SARs and restricted stock (in dollars per share) | $ (0.01) | $ (0.02) |
Net income, Diluted EPS | $ 9,399 | $ 21,874 |
Weighted-Average Shares, Diluted EPS (in shares) | 10,782,000 | 10,777,000 |
Diluted EPS (in dollars per share) | $ 0.87 | $ 2.03 |
Stock Appreciation Rights and Restricted Stock | ||
Effect of dilutive securities | ||
Antidilutive securities excluded from earnings per share (in shares) | 87,148 | 56,976 |
Performance Shares | ||
Effect of dilutive securities | ||
Antidilutive securities excluded from earnings per share (in shares) | 12,680 | 12,284 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 799,276 | $ 752,557 |
Other comprehensive (loss)/income before reclassifications | (100,353) | (777) |
Amounts reclassified from AOCI | (4,923) | (2,925) |
Other comprehensive loss net of tax | (105,276) | (3,702) |
Ending balance | 693,617 | 763,298 |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (43,397) | (25,360) |
Other comprehensive (loss)/income before reclassifications | (77,685) | 3,318 |
Amounts reclassified from AOCI | (776) | (758) |
Other comprehensive loss net of tax | (78,461) | 2,560 |
Ending balance | (121,858) | (22,800) |
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Held-to-Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 32,845 | 43,443 |
Other comprehensive (loss)/income before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | (4,494) | (1,787) |
Other comprehensive loss net of tax | (4,494) | (1,787) |
Ending balance | 28,351 | 41,656 |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (5,609) | 6,873 |
Other comprehensive (loss)/income before reclassifications | (22,668) | (4,095) |
Amounts reclassified from AOCI | 347 | (380) |
Other comprehensive loss net of tax | (22,321) | (4,475) |
Ending balance | (27,930) | 2,398 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (16,161) | 24,956 |
Other comprehensive loss net of tax | (105,276) | (3,702) |
Ending balance | $ (121,437) | $ 21,254 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Before Tax | ||
Unrealized holding (losses)/gains on available-for-sale-securities, before tax | $ (98,334) | $ 4,200 |
Other comprehensive loss before tax | (133,260) | (4,686) |
Provision (Benefit) | ||
Unrealized holding (losses)/gains on available-for-sale securities, provision (benefit) | (20,649) | 882 |
Other comprehensive (loss)/income provision (benefit) | (27,984) | (984) |
After Tax | ||
Unrealized holding (losses)/gains on available-for-sale securities, after tax | (77,685) | 3,318 |
Reclassification adjustments, after tax | (4,923) | (2,925) |
Other comprehensive income before reclassifications | (100,353) | (777) |
Other comprehensive loss net of tax | (105,276) | (3,702) |
Cash Flow Hedges | ||
Before Tax | ||
Unrealized (losses)/gains on cash flow hedges, before tax | (28,695) | (5,184) |
Other comprehensive loss before tax | (28,256) | (5,665) |
Provision (Benefit) | ||
Unrealized (losses)/gains on cash flow hedges, provision (benefit) | (6,027) | (1,089) |
Other comprehensive (loss)/income provision (benefit) | (5,935) | (1,190) |
After Tax | ||
Reclassification adjustments, after tax | 347 | (380) |
Other comprehensive income before reclassifications | (22,668) | (4,095) |
Other comprehensive loss net of tax | (22,321) | (4,475) |
Available-for-Sale Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||
Before Tax | ||
Other comprehensive loss before tax | (99,316) | 3,241 |
Provision (Benefit) | ||
Other comprehensive (loss)/income provision (benefit) | (20,855) | 681 |
After Tax | ||
Reclassification adjustments, after tax | (776) | (758) |
Other comprehensive income before reclassifications | (77,685) | 3,318 |
Other comprehensive loss net of tax | (78,461) | 2,560 |
Held-to-Maturity Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | ||
Before Tax | ||
Other comprehensive loss before tax | (5,688) | (2,262) |
Provision (Benefit) | ||
Other comprehensive (loss)/income provision (benefit) | (1,194) | (475) |
After Tax | ||
Reclassification adjustments, after tax | (4,494) | (1,787) |
Other comprehensive income before reclassifications | 0 | 0 |
Other comprehensive loss net of tax | (4,494) | (1,787) |
Net Interest Income | Available-for-Sale Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||
Before Tax | ||
Reclassification adjustments, before tax | (969) | (953) |
Provision (Benefit) | ||
Reclassification adjustments, provision (benefit) | (203) | (200) |
After Tax | ||
Reclassification adjustments, after tax | (766) | (753) |
Net Interest Income | Held-to-Maturity Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||
Before Tax | ||
Reclassification adjustments, before tax | (5,688) | (2,262) |
Provision (Benefit) | ||
Reclassification adjustments, provision (benefit) | (1,194) | (475) |
After Tax | ||
Reclassification adjustments, after tax | (4,494) | (1,787) |
Other Income | Available-for-Sale Securities | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||
Before Tax | ||
Reclassification adjustments, before tax | (13) | (6) |
Provision (Benefit) | ||
Reclassification adjustments, provision (benefit) | (3) | (1) |
After Tax | ||
Reclassification adjustments, after tax | (10) | (5) |
Interest Expense | Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
Before Tax | ||
Reclassification adjustments, before tax | 439 | (481) |
Provision (Benefit) | ||
Reclassification adjustments, provision (benefit) | 92 | (101) |
After Tax | ||
Reclassification adjustments, after tax | $ 347 | $ (380) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - CECL Adoption (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | $ 14,856 | $ 10,454 | ||||
Long-term standby purchase commitments and guarantees | 3,420 | 2,164 | ||||
Securities borrowed, allowance for credit loss | 0 | |||||
Total Allowance | 12,618 | |||||
Retained earnings | 455,545 | 457,047 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Securities borrowed, allowance for credit loss | $ 9 | |||||
Total Allowance | 2,656 | |||||
Retained earnings | (2,099) | |||||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Securities borrowed, allowance for credit loss | 9 | |||||
Total Allowance | 15,274 | |||||
Retained earnings | 454,948 | |||||
Farm & Ranch | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | 7,353 | 10,454 | ||||
Long-term standby purchase commitments and guarantees | 2,020 | 2,016 | 2,164 | $ 2,038 | $ 2,167 | $ 2,167 |
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | (3,909) | |||||
Long-term standby purchase commitments and guarantees | (148) | |||||
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | 6,545 | |||||
Long-term standby purchase commitments and guarantees | 2,016 | |||||
Rural Utilities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | 7,503 | 0 | ||||
Long-term standby purchase commitments and guarantees | $ 1,400 | 1,011 | 0 | $ 0 | $ 0 | $ 0 |
Rural Utilities | Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | 5,378 | |||||
Long-term standby purchase commitments and guarantees | 1,011 | |||||
Rural Utilities | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | 5,378 | |||||
Long-term standby purchase commitments and guarantees | 1,011 | |||||
Institutional Credit | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | $ 0 | |||||
Institutional Credit | Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | 315 | |||||
Institutional Credit | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Allowance for losses | $ 315 |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Held-to-maturity: | ||
Allowance for losses | $ (640) | |
Debt Securities | ||
Available-for-sale: | ||
Amount Outstanding | 2,954,990 | $ 2,960,048 |
Unamortized Premium/(Discount) | 4,704 | 1,382 |
Amortized Cost | 2,959,694 | 2,961,430 |
Allowance for losses | (24) | |
Unrealized Gains | 15,739 | 3,959 |
Unrealized Losses | (14,252) | (5,546) |
Fair Value | 2,961,157 | 2,959,843 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 4,704 | 1,382 |
Total investment securities | ||
Amount Outstanding | 3,000,022 | 3,005,080 |
Unamortized Premium/(Discount) | 4,704 | 1,382 |
Amortized Cost | 3,004,726 | 3,006,462 |
Allowance for losses | (24) | |
Unrealized Gains | 15,870 | 4,912 |
Unrealized Losses | (14,252) | (5,546) |
Fair Value | 3,006,320 | 3,005,828 |
Accrued interest excluded | 8,300 | |
Available-for-Sale Securities | Debt Securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 4,704 | 1,382 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 4,704 | 1,382 |
Total investment securities | ||
Unamortized Premium/(Discount) | 4,704 | 1,382 |
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Available-for-sale: | ||
Amount Outstanding | 19,700 | 19,700 |
Amortized Cost | 19,700 | 19,700 |
Allowance for losses | (24) | |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2,955) | (788) |
Fair Value | 16,721 | 18,912 |
Floating Interest Rate | Floating rate asset-backed securities | ||
Available-for-sale: | ||
Amount Outstanding | 10,521 | 11,092 |
Amortized Cost | 10,521 | 11,092 |
Allowance for losses | 0 | |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (18) | (7) |
Fair Value | 10,503 | 11,085 |
Floating Interest Rate | Government/GSE Guaranteed Mortgage Backed Securities | ||
Available-for-sale: | ||
Amount Outstanding | 1,783,998 | 1,633,731 |
Amortized Cost | 1,784,293 | 1,634,905 |
Allowance for losses | 0 | |
Unrealized Gains | 4,985 | 2,414 |
Unrealized Losses | (11,279) | (4,736) |
Fair Value | 1,777,999 | 1,632,583 |
Floating Interest Rate | Available-for-Sale Securities | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Total investment securities | ||
Unamortized Premium/(Discount) | 0 | 0 |
Floating Interest Rate | Available-for-Sale Securities | Floating rate asset-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Total investment securities | ||
Unamortized Premium/(Discount) | 0 | 0 |
Floating Interest Rate | Available-for-Sale Securities | Government/GSE Guaranteed Mortgage Backed Securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 295 | 1,174 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 295 | 1,174 |
Total investment securities | ||
Unamortized Premium/(Discount) | 295 | 1,174 |
Fixed Interest Rate | Government/GSE Guaranteed Mortgage Backed Securities | ||
Available-for-sale: | ||
Amount Outstanding | 306 | 315 |
Amortized Cost | 306 | 315 |
Allowance for losses | 0 | |
Unrealized Gains | 29 | 25 |
Unrealized Losses | 0 | 0 |
Fair Value | 335 | 340 |
Held-to-maturity: | ||
Amount Outstanding | 45,032 | 45,032 |
Amortized Cost | 45,032 | 45,032 |
Allowance for losses | 0 | |
Unrealized Gains | 131 | 953 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 45,163 | $ 45,985 |
Total investment securities | ||
Held-to-maturity investment securities weighted average yield | 3.00% | 3.30% |
Fixed Interest Rate | Fixed rate U.S. Treasuries | ||
Available-for-sale: | ||
Amount Outstanding | $ 1,140,465 | $ 1,295,210 |
Amortized Cost | 1,144,874 | 1,295,418 |
Allowance for losses | 0 | |
Unrealized Gains | 10,725 | 1,520 |
Unrealized Losses | 0 | (15) |
Fair Value | 1,155,599 | 1,296,923 |
Fixed Interest Rate | Available-for-Sale Securities | Government/GSE Guaranteed Mortgage Backed Securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Total investment securities | ||
Unamortized Premium/(Discount) | 0 | 0 |
Fixed Interest Rate | Available-for-Sale Securities | Fixed rate U.S. Treasuries | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 4,409 | 208 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 4,409 | 208 |
Total investment securities | ||
Unamortized Premium/(Discount) | 4,409 | 208 |
Fixed Interest Rate | Held-to-Maturity Securities | Government/GSE Guaranteed Mortgage Backed Securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Total investment securities | ||
Unamortized Premium/(Discount) | $ 0 | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | Mar. 31, 2020 |
Debt Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Average percent of amortized cost for securities in unrealized loss positions for more than 12 months | 98.20% |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Unrealized loss position for less than 12 months | ||
Fair Value | $ 874,161 | $ 879,683 |
Unrealized Loss | (6,217) | (2,260) |
Unrealized loss position for more than 12 months | ||
Fair Value | 436,331 | 464,035 |
Unrealized Loss | $ (8,035) | $ (3,286) |
Debt Securities | ||
Unrealized loss position for less than 12 months | ||
Number of securities in loss position | security | 65 | 57 |
Unrealized loss position for more than 12 months | ||
Number of securities in loss position | security | 67 | 62 |
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Unrealized loss position for less than 12 months | ||
Fair Value | $ 0 | $ 0 |
Unrealized Loss | 0 | 0 |
Unrealized loss position for more than 12 months | ||
Fair Value | 16,721 | 18,912 |
Unrealized Loss | (2,955) | (788) |
Floating Interest Rate | Floating rate asset-backed securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 2,544 | 2,583 |
Unrealized Loss | (9) | (1) |
Unrealized loss position for more than 12 months | ||
Fair Value | 7,959 | 8,502 |
Unrealized Loss | (9) | (6) |
Floating Interest Rate | Government/GSE Guaranteed Mortgage Backed Securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 871,617 | 841,993 |
Unrealized Loss | (6,208) | (2,244) |
Unrealized loss position for more than 12 months | ||
Fair Value | 411,651 | 436,621 |
Unrealized Loss | $ (5,071) | (2,492) |
Fixed Interest Rate | Fixed rate U.S. Treasuries | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 35,107 | |
Unrealized Loss | (15) | |
Unrealized loss position for more than 12 months | ||
Fair Value | 0 | |
Unrealized Loss | $ 0 |
Investment Securities - Debt Ma
Investment Securities - Debt Maturities (Details) - Debt Securities - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 1,013,044 | |
Due after one year through five years | 399,388 | |
Due after five years through ten years | 808,042 | |
Due after ten years | 739,220 | |
Amortized Cost | 2,959,694 | $ 2,961,430 |
Fair Value | ||
Due within one year | 1,021,217 | |
Due after one year through five years | 399,311 | |
Due after five years through ten years | 804,652 | |
Due after ten years | 735,977 | |
Total | $ 2,961,157 | $ 2,959,843 |
Weighted- Average Yield | ||
Due within one year | 2.03% | |
Due after one year through five years | 2.02% | |
Due after five years through ten years | 2.03% | |
Due after ten years | 1.91% | |
Total | 2.00% |
Farmer Mac Guaranteed Securit_3
Farmer Mac Guaranteed Securities and USDA Securities - Farmer Mac Guaranteed Securities and USDA Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 |
Held-to-maturity: | |||
Allowance for losses | $ (640) | ||
Farmer Mac Guaranteed Securities and USDA Securities | |||
Held-to-maturity: | |||
Unpaid Principal Balance | 3,682,587 | $ 3,638,142 | |
Amortized Cost | 3,718,134 | 3,679,611 | |
Allowance for losses | (600) | ||
Unrealized Gains | 100,339 | 70,495 | |
Unrealized Losses | (1,637) | (922) | |
Fair Value | 3,816,196 | ||
Fair Value | 3,816,836 | 3,749,184 | |
Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unpaid Principal Balance | 1,448,560 | 1,447,471 | |
Amortized Cost | 1,448,523 | 1,447,451 | |
Allowance for losses | (640) | ||
Unrealized Gains | 32,173 | 16,139 | |
Unrealized Losses | 0 | (164) | |
Fair Value | 1,480,056 | ||
Fair Value | 1,463,426 | ||
Available-for-sale: | |||
Amortized Cost | 7,273,303 | ||
Fair Value | 7,587,352 | ||
USDA Securities: | |||
Trading: | |||
Fair Value | 8,408 | 8,913 | |
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities and USDA Securities | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | 35,547 | 41,469 | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | 35,547 | 41,469 | |
Trading: | |||
Unamortized Premium/(Discount) | 35,547 | 41,469 | |
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | (37) | (20) | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | (37) | (20) | |
Trading: | |||
Unamortized Premium/(Discount) | (37) | (20) | |
Institutional Credit | |||
Trading: | |||
Available-for-sale, accrued interest excluded | 35,900 | ||
Held-to-maturity, accrued interest excluded | 40,600 | ||
Trading securities, accrued interest excluded | 200 | ||
Institutional Credit | Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unpaid Principal Balance | 1,415,120 | 1,415,584 | |
Amortized Cost | 1,415,010 | 1,415,410 | |
Allowance for losses | (640) | ||
Unrealized Gains | 31,294 | 15,300 | |
Unrealized Losses | 0 | (164) | |
Fair Value | 1,445,664 | ||
Fair Value | 1,430,546 | ||
Available-for-sale: | |||
Unpaid Principal Balance | 7,273,414 | 7,017,095 | |
Amortized Cost | 7,273,303 | 7,016,971 | |
Allowance for losses | (166) | ||
Unrealized Gains | 378,974 | 161,316 | |
Unrealized Losses | (64,925) | (35,262) | |
Fair Value | 7,587,186 | 7,143,025 | |
Institutional Credit | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | (110) | (174) | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | (110) | (174) | |
Trading: | |||
Unamortized Premium/(Discount) | (110) | (174) | |
Institutional Credit | Available-for-Sale Securities | Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | (111) | (124) | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | (111) | (124) | |
Trading: | |||
Unamortized Premium/(Discount) | (111) | (124) | |
USDA Guarantees | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | (100) | 200 | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | (100) | 200 | |
Trading: | |||
Unamortized Premium/(Discount) | (100) | 200 | |
USDA Guarantees | Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unpaid Principal Balance | 33,440 | 31,887 | |
Amortized Cost | 33,513 | 32,041 | |
Allowance for losses | 0 | ||
Unrealized Gains | 879 | 839 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 34,392 | ||
Fair Value | 32,880 | ||
USDA Guarantees | USDA Securities: | |||
Held-to-maturity: | |||
Unpaid Principal Balance | 2,234,027 | 2,190,671 | |
Amortized Cost | 2,269,611 | 2,232,160 | |
Allowance for losses | 0 | ||
Unrealized Gains | 68,166 | 54,356 | |
Unrealized Losses | (1,637) | (758) | |
Fair Value | 2,336,140 | ||
Fair Value | 2,285,758 | ||
Trading: | |||
Unpaid Principal Balance | 7,835 | 8,400 | |
Amortized Cost | 8,268 | 8,879 | |
Allowance for losses | 0 | ||
Unrealized Gains | 149 | $ 61 | |
Unrealized Losses | (9) | $ (27) | |
Fair Value | $ 8,408 | $ 8,913 | |
Trading securities, weighted-average yield | 5.19% | 5.20% | |
USDA Guarantees | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | $ 73 | $ 154 | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | 73 | 154 | |
Trading: | |||
Unamortized Premium/(Discount) | 73 | 154 | |
USDA Guarantees | Held-to-Maturity Securities | USDA Securities: | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | 35,584 | 41,489 | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | 35,584 | 41,489 | |
Trading: | |||
Unamortized Premium/(Discount) | 35,584 | 41,489 | |
USDA Guarantees | Trading Securities | USDA Securities: | |||
Held-to-maturity: | |||
Unamortized Premium/(Discount) | 433 | 479 | |
Available-for-sale: | |||
Unamortized Premium/(Discount) | 433 | 479 | |
Trading: | |||
Unamortized Premium/(Discount) | $ 433 | $ 479 |
Farmer Mac Guaranteed Securit_4
Farmer Mac Guaranteed Securities and USDA Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Unrealized loss position for less than 12 months | ||
Fair Value | $ 874,161 | $ 879,683 |
Unrealized Loss | (6,217) | (2,260) |
Unrealized loss position for more than 12 months | ||
Fair Value | 436,331 | 464,035 |
Unrealized Loss | (8,035) | (3,286) |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Unrealized loss position for more than 12 months | ||
Fair Value | 25,066 | 328,925 |
Unrealized Loss | (1,637) | (922) |
Institutional Credit | Farmer Mac Guaranteed Securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 0 | |
Unrealized Loss | 0 | |
Unrealized loss position for more than 12 months | ||
Fair Value | 301,836 | |
Unrealized Loss | (164) | |
Unrealized loss position for less than 12 months | ||
Fair Value | 244,823 | 225,239 |
Unrealized Loss | (540) | (2,203) |
Unrealized loss position for more than 12 months | ||
Fair Value | 830,797 | 1,394,802 |
Unrealized Loss | (64,385) | (33,059) |
USDA Guarantees | USDA Securities: | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Unrealized loss position for more than 12 months | ||
Fair Value | 25,066 | 27,089 |
Unrealized Loss | $ (1,637) | $ (758) |
Farmer Mac Guaranteed Securit_5
Farmer Mac Guaranteed Securities and USDA Securities - Narrative (Details) - Institutional Credit - Farmer Mac Guaranteed Securities - security | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 9 | 17 |
Held-to-maturity, securities in unrealized loss positions | 0 | 4 |
Number of securities in loss position | 6 | 13 |
Farmer Mac Guaranteed Securit_6
Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Available-for-sale Securities (Details) - Farmer Mac Guaranteed Securities $ in Thousands | Mar. 31, 2020USD ($) |
Amortized Cost | |
Due within one year | $ 1,202,779 |
Due after one year through five years | 3,358,079 |
Due after five years through ten years | 1,181,538 |
Due after ten years | 1,530,907 |
Amortized Cost | 7,273,303 |
Fair Value | |
Due within one year | 1,207,673 |
Due after one year through five years | 3,479,730 |
Due after five years through ten years | 1,259,191 |
Due after ten years | 1,640,758 |
Total | $ 7,587,352 |
Weighted- Average Yield | |
Due within one year | 1.82% |
Due after one year through five years | 2.77% |
Due after five years through ten years | 2.86% |
Due after ten years | 3.10% |
Total | 2.70% |
Farmer Mac Guaranteed Securit_7
Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Held-to-maturity Securities (Details) - Farmer Mac Guaranteed Securities and USDA Securities - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due within one year | $ 655,928 | |
Due after one year through five years | 840,702 | |
Due after five years through ten years | 210,888 | |
Due after ten years | 2,010,616 | |
Amortized Cost | 3,718,134 | $ 3,679,611 |
Fair Value | ||
Due within one year | 660,512 | |
Due after one year through five years | 869,401 | |
Due after five years through ten years | 216,447 | |
Due after ten years | 2,070,476 | |
Total | $ 3,816,836 | $ 3,749,184 |
Weighted- Average Yield | ||
Due within one year | 2.57% | |
Due after one year through five years | 3.27% | |
Due after five years through ten years | 3.34% | |
Due after ten years | 3.52% | |
Total | 3.29% |
Financial Derivatives - Schedul
Financial Derivatives - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Notional Disclosures [Abstract] | ||
Notional Amount | $ 14,991,653 | $ 14,022,179 |
Fair Value | ||
Asset | 12,692 | 10,519 |
Collateral (held)/pledged | (2,525) | (2,685) |
Net amount | 10,167 | 7,834 |
(Liability) | (53,795) | (27,042) |
Collateral (held)/pledged | 225,404 | 132,129 |
Net amount | 171,609 | 105,087 |
Designated as Hedging Instrument | Fair value hedges: | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | 5,099,293 | 4,955,686 |
Fair Value | ||
Asset | 4,339 | 7,163 |
(Liability) | $ (6,583) | $ (3,281) |
Weighted- Average Pay Rate | 2.42% | 2.47% |
Weighted- Average Receive Rate | 1.54% | 1.93% |
Weighted- Average Remaining Term (in years) | 11 years 7 months 20 days | 11 years 3 months 3 days |
Designated as Hedging Instrument | Fair value hedges: | Receive fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 2,201,500 | $ 1,413,200 |
Fair Value | ||
Asset | 1,303 | 76 |
(Liability) | $ (9,730) | $ (5,329) |
Weighted- Average Pay Rate | 1.66% | 1.88% |
Weighted- Average Receive Rate | 2.06% | 2.13% |
Weighted- Average Remaining Term (in years) | 2 years 2 months 19 days | 1 year 3 months |
Designated as Hedging Instrument | Fair value hedges: | Receive fixed callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 413,000 | $ 524,000 |
Fair Value | ||
Asset | 4,954 | 476 |
(Liability) | $ (26) | $ (772) |
Weighted- Average Pay Rate | 1.36% | 1.52% |
Weighted- Average Receive Rate | 1.95% | 1.91% |
Weighted- Average Remaining Term (in years) | 3 years 4 months 17 days | 2 years 9 months 29 days |
Designated as Hedging Instrument | Cash flow hedges: | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 458,000 | $ 428,000 |
Fair Value | ||
Asset | 1,434 | 1,882 |
(Liability) | $ (11,391) | $ (1,514) |
Weighted- Average Pay Rate | 2.31% | 2.36% |
Weighted- Average Receive Rate | 1.22% | 2.12% |
Weighted- Average Remaining Term (in years) | 5 years 4 months 9 days | 5 years 5 months 4 days |
Not Designated as Hedging Instrument | ||
Fair Value | ||
Credit valuation adjustment | $ 0 | $ 0 |
Credit valuation adjustment | 117 | 63 |
Not Designated as Hedging Instrument | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | 339,721 | 342,745 |
Fair Value | ||
Asset | 0 | 7 |
(Liability) | $ (22,683) | $ (14,046) |
Weighted- Average Pay Rate | 3.54% | 3.55% |
Weighted- Average Receive Rate | 1.69% | 2.00% |
Weighted- Average Remaining Term (in years) | 5 years 3 months 25 days | 5 years 6 months 3 days |
Not Designated as Hedging Instrument | Receive fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 3,111,639 | $ 3,124,148 |
Fair Value | ||
Asset | 0 | 49 |
(Liability) | $ 0 | $ (1,637) |
Weighted- Average Pay Rate | 1.17% | 1.88% |
Weighted- Average Receive Rate | 1.39% | 2.06% |
Weighted- Average Remaining Term (in years) | 1 year 3 days | 1 year 7 months 28 days |
Not Designated as Hedging Instrument | Receive fixed callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 500,000 | $ 525,000 |
Fair Value | ||
Asset | 604 | 79 |
(Liability) | $ 0 | $ (80) |
Weighted- Average Pay Rate | 1.52% | 1.64% |
Weighted- Average Receive Rate | 1.75% | 1.68% |
Weighted- Average Remaining Term (in years) | 10 months 9 days | 9 months 29 days |
Not Designated as Hedging Instrument | Basis swaps | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 2,850,000 | $ 2,670,000 |
Fair Value | ||
Asset | 58 | 787 |
(Liability) | $ (3,385) | $ (395) |
Weighted- Average Pay Rate | 1.49% | 1.86% |
Weighted- Average Receive Rate | 0.66% | 1.76% |
Weighted- Average Remaining Term (in years) | 10 months 28 days | 10 months 24 days |
Not Designated as Hedging Instrument | Treasury futures | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 18,500 | $ 39,400 |
Fair Value | ||
Asset | 0 | |
(Liability) | $ (114) | $ (51) |
Weighted- Average Forward Price (in dollars per share) | $ 138.07 | $ 128.29 |
Financial Derivatives - Narrati
Financial Derivatives - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Gain expected to be reclassified from AOCI to earnings over next 12 months | $ 5,200,000 | ||
Gain (loss) from interest rate swaps designated as cash flow hedges reclassified to earnings | 0 | $ 0 | |
Investments held as collateral | 0 | $ 0 | |
Cash posted as collateral | 225,404,000 | 132,129,000 | |
Financial derivatives in net payable position | 0 | 0 | |
Notional amount | 14,991,653,000 | 14,022,179,000 | |
Cash | |||
Derivative [Line Items] | |||
Cash held as collateral | 2,500,000 | 2,700,000 | |
Cash posted as collateral | 19,300,000 | 500,000 | |
Available-for-Sale Securities | |||
Derivative [Line Items] | |||
Cash posted as collateral | 206,100,000 | 131,700,000 | |
Exchange Cleared | |||
Derivative [Line Items] | |||
Notional amount | 11,900,000,000 | 11,000,000,000 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 15,000,000,000 | $ 14,000,000,000 |
Financial Derivatives - Sched_2
Financial Derivatives - Schedule of Net Income/(Expense) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | $ 71,517 | $ 85,411 |
Interest Income Loans | 60,596 | 51,397 |
Total Interest Expense | (108,542) | (114,916) |
Losses on financial derivatives | (9,298) | (360) |
Total | 14,273 | 21,532 |
Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 375,223 | 67,392 |
(Losses)/gains on fair value hedging relationships | (5,681) | (2,699) |
Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Discount amortization recognized on hedged items | (1) | (1) |
Interest settlements reclassified from AOCI into net income on derivatives | (439) | 481 |
Recognized on hedged items | (2,123) | (2,688) |
Expense recognized on cash flow hedges | (2,563) | (2,208) |
Designated as Hedging Instrument | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 26,227 | 19,198 |
Discount amortization recognized on hedged items | (180) | (149) |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | (9,298) | (360) |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 290,379 | 59,352 |
(Losses)/gains on fair value hedging relationships | (3,553) | 365 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Designated as Hedging Instrument | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 31,826 | 24,565 |
Discount amortization recognized on hedged items | 0 | 0 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | 0 | 0 |
Interest Income Loans | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 145,409 | 16,237 |
(Losses)/gains on fair value hedging relationships | (497) | (3,845) |
Interest Income Loans | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Interest Income Loans | Designated as Hedging Instrument | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 8,677 | 4,555 |
Discount amortization recognized on hedged items | 0 | 0 |
Interest Income Loans | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | 0 | 0 |
Total Interest Expense | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | (60,565) | (8,197) |
(Losses)/gains on fair value hedging relationships | (1,631) | 781 |
Total Interest Expense | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Discount amortization recognized on hedged items | (1) | (1) |
Interest settlements reclassified from AOCI into net income on derivatives | (439) | 481 |
Recognized on hedged items | (2,123) | (2,688) |
Expense recognized on cash flow hedges | (2,563) | (2,208) |
Total Interest Expense | Designated as Hedging Instrument | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | (14,276) | (9,922) |
Discount amortization recognized on hedged items | (180) | (149) |
Total Interest Expense | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | 0 | 0 |
Losses on financial derivatives | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 0 | 0 |
(Losses)/gains on fair value hedging relationships | 0 | 0 |
Losses on financial derivatives | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Losses on financial derivatives | Designated as Hedging Instrument | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 0 | 0 |
Discount amortization recognized on hedged items | 0 | 0 |
Losses on financial derivatives | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | (9,298) | (360) |
Interest Rate Swap | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | (6,395) | (1,690) |
Income/(expense) related to interest settlements on fair value hedging relationships | 19,652 | 17,359 |
Recognized on derivatives | (380,904) | (70,091) |
Interest Rate Swap | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Interest Expense | (862) | (2,300) |
Losses on financial derivatives | (6,550) | 2,168 |
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | (6,152) | 1,550 |
Income/(expense) related to interest settlements on fair value hedging relationships | 25,674 | 26,115 |
Recognized on derivatives | (293,932) | (58,987) |
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Interest Expense | 0 | 0 |
Losses on financial derivatives | 0 | 0 |
Interest Rate Swap | Interest Income Loans | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | (1,877) | (22) |
Income/(expense) related to interest settlements on fair value hedging relationships | 6,800 | 4,533 |
Recognized on derivatives | (145,906) | (20,082) |
Interest Rate Swap | Interest Income Loans | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Interest Expense | 0 | 0 |
Losses on financial derivatives | 0 | 0 |
Interest Rate Swap | Total Interest Expense | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | 1,634 | (3,218) |
Income/(expense) related to interest settlements on fair value hedging relationships | (12,822) | (13,289) |
Recognized on derivatives | 58,934 | 8,978 |
Interest Rate Swap | Total Interest Expense | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Interest Expense | 0 | 0 |
Losses on financial derivatives | 0 | 0 |
Interest Rate Swap | Losses on financial derivatives | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | 0 | 0 |
Income/(expense) related to interest settlements on fair value hedging relationships | 0 | 0 |
Recognized on derivatives | 0 | 0 |
Interest Rate Swap | Losses on financial derivatives | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Interest Expense | (862) | (2,300) |
Losses on financial derivatives | (6,550) | 2,168 |
Treasury futures | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | (1,886) | (228) |
Treasury futures | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | 0 | 0 |
Treasury futures | Interest Income Loans | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | 0 | 0 |
Treasury futures | Total Interest Expense | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | 0 | 0 |
Treasury futures | Losses on financial derivatives | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Losses on financial derivatives | $ (1,886) | $ (228) |
Financial Derivatives - Hedged
Financial Derivatives - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | $ 1,330,359 | $ 1,050,335 |
Hedged Asset | 183,315 | 37,907 |
Long-term Debt | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | (2,680,981) | (2,761,052) |
Hedged Liability | (68,045) | (7,433) |
Farmer Mac Guaranteed Securities | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | 4,281,350 | 4,092,611 |
Hedged Asset | $ 470,588 | $ 180,215 |
Financial Derivatives - Sched_3
Financial Derivatives - Schedule of Credit Exposure to Interest Rate Swap Counterparties (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Liabilities derivatives interest rate swaps | $ 53,795 | $ 27,042 |
Gross Amount Recognized | Including Accrued Interest | ||
Derivative [Line Items] | ||
Assets derivatives interest rate swaps | 118,349 | 56,139 |
Liabilities derivatives interest rate swaps | 780,184 | 305,584 |
Counterparty Netting | Including Accrued Interest | ||
Derivative [Line Items] | ||
Assets derivatives interest rate swaps | 116,517 | 53,771 |
Liabilities derivatives interest rate swaps | 776,764 | 291,326 |
Net Amount Presented in the Consolidated Balance Sheet | Including Accrued Interest | ||
Derivative [Line Items] | ||
Assets derivatives interest rate swaps | 1,832 | 2,368 |
Liabilities derivatives interest rate swaps | $ 3,420 | $ 14,258 |
Loans - Schedule of Composition
Loans - Schedule of Composition of Loan Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 5,789,391 | $ 5,390,977 | ||
Total loans, net of allowance | 7,315,224 | 6,981,440 | ||
Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 7,148,108 | 6,947,850 | ||
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 181,972 | 44,044 | ||
Total loans | 7,330,080 | 6,991,894 | ||
Allowance for losses | (14,856) | (10,454) | ||
Total loans, net of allowance | 7,315,224 | 6,981,440 | ||
Farm & Ranch | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for losses | $ (6,753) | $ (7,017) | ||
Farm & Ranch | Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 5,358,382 | 5,276,557 | ||
Rural Utilities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for losses | $ 0 | $ 0 | ||
Rural Utilities | Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 1,789,726 | 1,671,293 | ||
Unsecuritized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 5,607,419 | 5,346,933 | ||
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 181,972 | 44,044 | ||
Total loans | 5,789,391 | 5,390,977 | ||
Allowance for losses | (13,663) | (8,853) | ||
Total loans, net of allowance | 5,775,728 | 5,382,124 | ||
Unsecuritized | Farm & Ranch | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 3,817,693 | 3,675,640 | ||
Unsecuritized | Rural Utilities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 1,789,726 | 1,671,293 | ||
In Consolidated Trusts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 1,540,689 | 1,600,917 | ||
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 0 | 0 | ||
Total loans | 1,540,689 | 1,600,917 | ||
Allowance for losses | (1,193) | (1,601) | ||
Total loans, net of allowance | 1,539,496 | 1,599,316 | ||
In Consolidated Trusts | Farm & Ranch | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | 1,540,689 | 1,600,917 | ||
In Consolidated Trusts | Rural Utilities | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | $ 0 | $ 0 |
Loans - Allowance for Losses (D
Loans - Allowance for Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for losses | $ 14,856 | $ 10,454 | |
Farm & Ranch | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for losses | 7,353 | 10,454 | |
Farm & Ranch | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for losses | $ (3,909) | ||
Rural Utilities | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for losses | $ 7,503 | $ 0 | |
Rural Utilities | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for losses | $ 5,378 |
Loans - Changes in the Allowanc
Loans - Changes in the Allowance for Losses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 10,454,000 | |
Provision for/(release of) losses | 3,438,000 | $ (264,000) |
Provision for/(release of) losses | 3,831,000 | (393,000) |
Ending balance | 14,856,000 | |
Farm & Ranch | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 7,017,000 | |
Beginning balance | 10,454,000 | |
Provision for/(release of) losses | 808,000 | |
Provision for/(release of) losses | (264,000) | |
Charge-offs | 0 | 0 |
Ending balance | 6,753,000 | |
Ending balance | 7,353,000 | |
Farm & Ranch | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision for/(release of) losses | 2,200,000 | |
Rural Utilities | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 0 | |
Beginning balance | 0 | |
Provision for/(release of) losses | 2,125,000 | |
Provision for/(release of) losses | 0 | |
Charge-offs | 0 | 0 |
Ending balance | $ 0 | |
Ending balance | 7,503,000 | |
Rural Utilities | Collateral Pledged | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision for/(release of) losses | $ 0 |
Loans - Unpaid Principal Balanc
Loans - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, not past due | $ 6,996,039 | |
Financing receivables, past due | 29,997 | |
Nonaccrual loans | 122,072 | $ 87,781 |
Gross financing receivables | 7,148,108 | |
Nonaccrual loans with no associated allowance | 24,000 | |
Interest received on nonaccrual loans | 1,000 | |
Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, not past due | 5,206,313 | |
Financing receivables, past due | 29,997 | |
Nonaccrual loans | 122,072 | |
Gross financing receivables | 5,358,382 | |
Rural Utilities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, not past due | 1,789,726 | |
Financing receivables, past due | 0 | |
Nonaccrual loans | 0 | |
Gross financing receivables | 1,789,726 | |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 4,821 | |
30-59 Days | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 4,821 | |
30-59 Days | Rural Utilities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0 | |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 3,024 | |
60-89 Days | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 3,024 | |
60-89 Days | Rural Utilities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 0 | |
90 Days and Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 22,152 | |
90 Days and Greater | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | 22,152 | |
90 Days and Greater | Rural Utilities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivables, past due | $ 0 |
Loans - Schedule of Allowance f
Loans - Schedule of Allowance for Losses by Impairment Method and Commodity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Ending Balance: | ||
Total | $ 7,148,108 | |
Allowance for Losses: | ||
Total | $ 14,856 | $ 10,454 |
On-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 5,069,480 | |
Individually evaluated for impairment: | 207,077 | |
Total | 5,276,557 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 4,256 | |
Individually evaluated for impairment: | 6,198 | |
Total | 10,454 | |
On-Balance Sheet: | Crops | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 2,664,362 | |
Individually evaluated for impairment: | 108,815 | |
Total | 2,773,177 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 1,880 | |
Individually evaluated for impairment: | 2,628 | |
Total | 4,508 | |
On-Balance Sheet: | Permanent Plantings | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 1,161,900 | |
Individually evaluated for impairment: | 51,256 | |
Total | 1,213,156 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 1,362 | |
Individually evaluated for impairment: | 1,008 | |
Total | 2,370 | |
On-Balance Sheet: | Livestock | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 871,341 | |
Individually evaluated for impairment: | 39,962 | |
Total | 911,303 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 714 | |
Individually evaluated for impairment: | 2,447 | |
Total | 3,161 | |
On-Balance Sheet: | Part-time Farm | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 356,920 | |
Individually evaluated for impairment: | 7,044 | |
Total | 363,964 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 249 | |
Individually evaluated for impairment: | 115 | |
Total | 364 | |
On-Balance Sheet: | Ag. Storage and Processing | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 10,360 | |
Individually evaluated for impairment: | 0 | |
Total | 10,360 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 47 | |
Individually evaluated for impairment: | 0 | |
Total | 47 | |
On-Balance Sheet: | Other | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 4,597 | |
Individually evaluated for impairment: | 0 | |
Total | 4,597 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 4 | |
Individually evaluated for impairment: | 0 | |
Total | $ 4 |
Loans - Schedule of Impaired Fi
Loans - Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | $ 52,191 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 52,014 | ||
Impaired loan, with a specific allowance, recorded investment | 174,385 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 173,844 | ||
Impaired loans, associated allowance | 6,541 | ||
Recorded investment | 226,576 | ||
Unpaid principal balance | 225,858 | ||
Recorded investment of loans on nonaccrual status | $ 122,072 | 87,781 | |
Average recorded investment in impaired loans | $ 165,066 | ||
Income recognized on impaired loans | 801 | ||
Less than 90 days past due | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment of loans on nonaccrual status | 30,100 | ||
Crops | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | 30,846 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 30,741 | ||
Impaired loan, with a specific allowance, recorded investment | 84,044 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 83,772 | ||
Impaired loans, associated allowance | 2,725 | ||
Recorded investment | 114,890 | ||
Unpaid principal balance | 114,513 | ||
Recorded investment of loans on nonaccrual status | 34,037 | ||
Average recorded investment in impaired loans | 88,653 | ||
Income recognized on impaired loans | 322 | ||
Permanent Plantings | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | 16,696 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 16,638 | ||
Impaired loan, with a specific allowance, recorded investment | 36,852 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 36,732 | ||
Impaired loans, associated allowance | 1,051 | ||
Recorded investment | 53,548 | ||
Unpaid principal balance | 53,370 | ||
Recorded investment of loans on nonaccrual status | 22,849 | ||
Average recorded investment in impaired loans | 40,495 | ||
Income recognized on impaired loans | 299 | ||
Livestock | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | 3,195 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 3,185 | ||
Impaired loan, with a specific allowance, recorded investment | 47,113 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 46,984 | ||
Impaired loans, associated allowance | 2,636 | ||
Recorded investment | 50,308 | ||
Unpaid principal balance | 50,169 | ||
Recorded investment of loans on nonaccrual status | 28,441 | ||
Average recorded investment in impaired loans | 28,123 | ||
Income recognized on impaired loans | 113 | ||
Part-time Farm | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | 1,398 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 1,394 | ||
Impaired loan, with a specific allowance, recorded investment | 6,376 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 6,356 | ||
Impaired loans, associated allowance | 129 | ||
Recorded investment | 7,774 | ||
Unpaid principal balance | 7,750 | ||
Recorded investment of loans on nonaccrual status | 2,454 | ||
Average recorded investment in impaired loans | 7,730 | ||
Income recognized on impaired loans | 67 | ||
Ag. Storage and Processing | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | 0 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 0 | ||
Impaired loan, with a specific allowance, recorded investment | 0 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 0 | ||
Impaired loans, associated allowance | 0 | ||
Recorded investment | 0 | ||
Unpaid principal balance | 0 | ||
Recorded investment of loans on nonaccrual status | 0 | ||
Average recorded investment in impaired loans | 0 | ||
Income recognized on impaired loans | 0 | ||
Other | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, with no specific allowance, recorded investment | 56 | ||
Impaired loans, with no specific allowance, unpaid principal balance | 56 | ||
Impaired loan, with a specific allowance, recorded investment | 0 | ||
Impaired loans, with a specific allowance, unpaid principal balance | 0 | ||
Impaired loans, associated allowance | 0 | ||
Recorded investment | 56 | ||
Unpaid principal balance | 56 | ||
Recorded investment of loans on nonaccrual status | 0 | ||
Average recorded investment in impaired loans | 65 | ||
Income recognized on impaired loans | $ 0 | ||
Collateral Dependent Not Individually Analyzed | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans, associated allowance | 3,000 | ||
Recorded investment | $ 159,100 | ||
Impaired loans, impairment analysis performed percent | 70.00% |
Loans (Details)
Loans (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, past due | $ 29,997,000 | |
Loans subject to removal-of-account provisions | $ 0 | |
On-Balance Sheet: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, past due | $ 57,719,000 |
Loans - Schedule of Past Due Fi
Loans - Schedule of Past Due Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90-Days Delinquencies | $ 29,997 | ||
On-Balance Sheet: | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
90-Days Delinquencies | $ 57,719 | ||
Net credit losses (recoveries) | $ 0 |
Loans - Schedule of Financing R
Loans - Schedule of Financing Receivables Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Total | |||
Total | $ 7,148,108 | ||
Total | 7,148,108 | ||
90-Days Delinquencies | 29,997 | ||
Farm & Ranch | |||
2020 | |||
Total | 296,887 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2019 | |||
Total | 983,174 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2018 | |||
Total | 642,485 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2017 | |||
Total | 767,993 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2016 | |||
Total | 629,878 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Prior | |||
Total | 1,549,183 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 488,782 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Total | |||
Total | 5,358,382 | ||
Current period charge-offs | 0 | $ 0 | |
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Total | 5,358,382 | ||
90-Days Delinquencies | 29,997 | ||
Rural Utilities | |||
2020 | |||
Total | 152,385 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2019 | |||
Total | 836,763 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2018 | |||
Total | 8,337 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2017 | |||
Total | 92,568 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2016 | |||
Total | 31,829 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Prior | |||
Total | 667,844 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Total | |||
Total | 1,789,726 | ||
Current period charge-offs | 0 | $ 0 | |
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Total | 1,789,726 | ||
90-Days Delinquencies | 0 | ||
Acceptable | Farm & Ranch | |||
2020 | |||
Total | 286,971 | ||
2019 | |||
Total | 819,220 | ||
2018 | |||
Total | 588,761 | ||
2017 | |||
Total | 688,649 | ||
2016 | |||
Total | 555,678 | ||
Prior | |||
Total | 1,452,711 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 468,114 | ||
Total | |||
Total | 4,860,104 | ||
Total | 4,860,104 | ||
Acceptable | Rural Utilities | |||
2020 | |||
Total | 152,385 | ||
2019 | |||
Total | 836,763 | ||
2018 | |||
Total | 8,337 | ||
2017 | |||
Total | 92,568 | ||
2016 | |||
Total | 31,829 | ||
Prior | |||
Total | 662,830 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Total | 1,784,712 | ||
Total | 1,784,712 | ||
Special mention(1) | Farm & Ranch | |||
2020 | |||
Total | 9,916 | ||
2019 | |||
Total | 159,523 | ||
2018 | |||
Total | 36,786 | ||
2017 | |||
Total | 20,937 | ||
2016 | |||
Total | 32,227 | ||
Prior | |||
Total | 18,283 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 9,230 | ||
Total | |||
Total | 286,902 | ||
Total | 286,902 | ||
Special mention(1) | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Total | 0 | ||
Total | 0 | ||
Substandard(2) | Farm & Ranch | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 4,431 | ||
2018 | |||
Total | 16,938 | ||
2017 | |||
Total | 58,407 | ||
2016 | |||
Total | 41,973 | ||
Prior | |||
Total | 78,189 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 11,438 | ||
Total | |||
Total | 211,376 | ||
Total | 211,376 | ||
Substandard(2) | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 5,014 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Total | 5,014 | ||
Total | $ 5,014 | ||
On-Balance Sheet: | |||
Total | |||
Total | $ 5,276,557 | ||
Total | 5,276,557 | ||
90-Days Delinquencies | 57,719 | ||
On-Balance Sheet: | Acceptable | |||
Total | |||
Total | 4,790,636 | ||
Total | 4,790,636 | ||
On-Balance Sheet: | Special mention(1) | |||
Total | |||
Total | 278,843 | ||
Total | 278,843 | ||
On-Balance Sheet: | Substandard(2) | |||
Total | |||
Total | 207,078 | ||
Total | 207,078 | ||
On-Balance Sheet: | Crops | |||
Total | |||
Total | 2,773,177 | ||
Total | 2,773,177 | ||
90-Days Delinquencies | 21,167 | ||
On-Balance Sheet: | Crops | Acceptable | |||
Total | |||
Total | 2,556,956 | ||
Total | 2,556,956 | ||
On-Balance Sheet: | Crops | Special mention(1) | |||
Total | |||
Total | 107,406 | ||
Total | 107,406 | ||
On-Balance Sheet: | Crops | Substandard(2) | |||
Total | |||
Total | 108,815 | ||
Total | 108,815 | ||
On-Balance Sheet: | Permanent Plantings | |||
Total | |||
Total | 1,213,156 | ||
Total | 1,213,156 | ||
90-Days Delinquencies | 15,828 | ||
On-Balance Sheet: | Permanent Plantings | Acceptable | |||
Total | |||
Total | 1,050,160 | ||
Total | 1,050,160 | ||
On-Balance Sheet: | Permanent Plantings | Special mention(1) | |||
Total | |||
Total | 111,739 | ||
Total | 111,739 | ||
On-Balance Sheet: | Permanent Plantings | Substandard(2) | |||
Total | |||
Total | 51,257 | ||
Total | 51,257 | ||
On-Balance Sheet: | Livestock | |||
Total | |||
Total | 911,303 | ||
Total | 911,303 | ||
90-Days Delinquencies | 19,354 | ||
On-Balance Sheet: | Livestock | Acceptable | |||
Total | |||
Total | 825,234 | ||
Total | 825,234 | ||
On-Balance Sheet: | Livestock | Special mention(1) | |||
Total | |||
Total | 46,107 | ||
Total | 46,107 | ||
On-Balance Sheet: | Livestock | Substandard(2) | |||
Total | |||
Total | 39,962 | ||
Total | 39,962 | ||
On-Balance Sheet: | Part-time Farm | |||
Total | |||
Total | 363,964 | ||
Total | 363,964 | ||
90-Days Delinquencies | 1,370 | ||
On-Balance Sheet: | Part-time Farm | Acceptable | |||
Total | |||
Total | 343,329 | ||
Total | 343,329 | ||
On-Balance Sheet: | Part-time Farm | Special mention(1) | |||
Total | |||
Total | 13,591 | ||
Total | 13,591 | ||
On-Balance Sheet: | Part-time Farm | Substandard(2) | |||
Total | |||
Total | 7,044 | ||
Total | 7,044 | ||
On-Balance Sheet: | Ag. Storage and Processing | |||
Total | |||
Total | 10,360 | ||
Total | 10,360 | ||
90-Days Delinquencies | 0 | ||
On-Balance Sheet: | Ag. Storage and Processing | Acceptable | |||
Total | |||
Total | 10,360 | ||
Total | 10,360 | ||
On-Balance Sheet: | Ag. Storage and Processing | Special mention(1) | |||
Total | |||
Total | 0 | ||
Total | 0 | ||
On-Balance Sheet: | Ag. Storage and Processing | Substandard(2) | |||
Total | |||
Total | 0 | ||
Total | 0 | ||
On-Balance Sheet: | Other | |||
Total | |||
Total | 4,597 | ||
Total | 4,597 | ||
90-Days Delinquencies | 0 | ||
On-Balance Sheet: | Other | Acceptable | |||
Total | |||
Total | 4,597 | ||
Total | 4,597 | ||
On-Balance Sheet: | Other | Special mention(1) | |||
Total | |||
Total | 0 | ||
Total | 0 | ||
On-Balance Sheet: | Other | Substandard(2) | |||
Total | |||
Total | 0 | ||
Total | $ 0 |
Guarantees - Off-Balance Sheet
Guarantees - Off-Balance Sheet Guaranteed Securities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 475,772 | $ 504,105 |
Farm & Ranch | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | 97,302 | 107,322 |
USDA Guarantees | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | 370,903 | 389,216 |
Institutional Credit | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 7,567 | $ 7,567 |
Guarantees - Significant Cash F
Guarantees - Significant Cash Flows Received From and Paid to Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Proceeds from sale of Farmer Mac Guaranteed Securities | $ 28,050 | $ 116,708 |
Guarantee fees received | $ 466 | $ 442 |
Guarantees - Schedule of Underl
Guarantees - Schedule of Underlying Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed Securities - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Guarantee and commitment obligation | $ 2,080 | $ 2,230 |
Weighted-average remaining maturity | 9 years 8 months 12 days | 9 years 9 months 18 days |
Institutional Credit | ||
Guarantor Obligations [Line Items] | ||
Weighted-average remaining maturity | 4 years 8 months 12 days | 5 years |
Guarantees - Schedule of Long-T
Guarantees - Schedule of Long-Term Standby Purchase Commitments (Details) - LTSPCs - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | ||
Maximum principal amount | $ 2,951,595 | $ 3,002,349 |
Weighted-average remaining maturity | 15 years 2 months 12 days | 15 years 2 months 12 days |
Guarantee obligations issued after January 1, 2003 | ||
Guarantor Obligations [Line Items] | ||
Guarantee and commitment obligation | $ 33,859 | $ 34,470 |
Guarantees - Reserve For Losses
Guarantees - Reserve For Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | ||||||
Reserve for losses | $ 3,420 | $ 2,164 | ||||
Provision for/(release of) losses | 393 | $ (129) | ||||
Farm & Ranch | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for losses | 2,020 | 2,038 | $ 2,016 | 2,164 | $ 2,167 | $ 2,167 |
Provision for/(release of) losses | 4 | (129) | ||||
Charge-offs | 0 | 0 | ||||
Rural Utilities | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for losses | 1,400 | 0 | $ 1,011 | 0 | $ 0 | $ 0 |
Provision for/(release of) losses | 389 | 0 | ||||
Charge-offs | 0 | $ 0 | ||||
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for losses | 2,020 | 2,164 | ||||
Charge-offs | 0 | |||||
LTSPCs | Rural Utilities | ||||||
Guarantor Obligations [Line Items] | ||||||
Reserve for losses | 1,400 | $ 0 | ||||
Charge-offs | $ 0 |
Guarantees - Changes in Reserve
Guarantees - Changes in Reserve for Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 2,164 | |
Provision for/(release of) losses | 393 | $ (129) |
Ending balance | 3,420 | |
Farm & Ranch | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 2,164 | 2,167 |
Provision for/(release of) losses | 4 | (129) |
Charge-offs | 0 | 0 |
Ending balance | 2,020 | 2,038 |
Rural Utilities | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 0 | 0 |
Provision for/(release of) losses | 389 | 0 |
Charge-offs | 0 | 0 |
Ending balance | $ 1,400 | $ 0 |
Guarantees - Unpaid Principal B
Guarantees - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Guarantor Obligations [Line Items] | ||
Financing receivable, not past due | $ 6,996,039 | |
Financing receivables, past due | 29,997 | |
Recorded investment of loans on nonaccrual status | 122,072 | $ 87,781 |
Gross financing receivables | 7,148,108 | |
30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 4,821 | |
60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 3,024 | |
90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 22,152 | |
Farm & Ranch | ||
Guarantor Obligations [Line Items] | ||
Financing receivable, not past due | 5,206,313 | |
Financing receivables, past due | 29,997 | |
Recorded investment of loans on nonaccrual status | 122,072 | |
Gross financing receivables | 5,358,382 | |
Farm & Ranch | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 4,821 | |
Farm & Ranch | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 3,024 | |
Farm & Ranch | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 22,152 | |
Rural Utilities | ||
Guarantor Obligations [Line Items] | ||
Financing receivable, not past due | 1,789,726 | |
Financing receivables, past due | 0 | |
Recorded investment of loans on nonaccrual status | 0 | |
Gross financing receivables | 1,789,726 | |
Rural Utilities | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 0 | |
Rural Utilities | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 0 | |
Rural Utilities | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 0 | |
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | ||
Guarantor Obligations [Line Items] | ||
Financing receivable, not past due | 2,434,531 | |
Financing receivables, past due | 18,681 | |
Gross financing receivables | 2,453,212 | |
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 6,183 | |
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 7,893 | |
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 4,605 | |
LTSPCs | Rural Utilities | ||
Guarantor Obligations [Line Items] | ||
Financing receivable, not past due | 595,685 | |
Financing receivables, past due | 0 | |
Gross financing receivables | 595,685 | |
LTSPCs | Rural Utilities | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 0 | |
LTSPCs | Rural Utilities | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | 0 | |
LTSPCs | Rural Utilities | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Financing receivables, past due | $ 0 |
Guarantees - Schedule of Allowa
Guarantees - Schedule of Allowance for Losses by Impairment Method and Commodity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Ending Balance: | ||
Total | $ 7,148,108 | |
Allowance for Losses: | ||
Total | $ 14,856 | $ 10,454 |
Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 2,481,612 | |
Individually evaluated for impairment: | 18,781 | |
Total | 2,500,393 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 1,821 | |
Individually evaluated for impairment: | 343 | |
Total | 2,164 | |
Crops | Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 1,151,983 | |
Individually evaluated for impairment: | 5,698 | |
Total | 1,157,681 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 599 | |
Individually evaluated for impairment: | 97 | |
Total | 696 | |
Permanent Plantings | Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 511,991 | |
Individually evaluated for impairment: | 2,114 | |
Total | 514,105 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 96 | |
Individually evaluated for impairment: | 43 | |
Total | 139 | |
Livestock | Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 581,377 | |
Individually evaluated for impairment: | 10,207 | |
Total | 591,584 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 308 | |
Individually evaluated for impairment: | 189 | |
Total | 497 | |
Part-time Farm | Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 167,395 | |
Individually evaluated for impairment: | 706 | |
Total | 168,101 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 50 | |
Individually evaluated for impairment: | 14 | |
Total | 64 | |
Ag. Storage and Processing | Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 66,106 | |
Individually evaluated for impairment: | 0 | |
Total | 66,106 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 767 | |
Individually evaluated for impairment: | 0 | |
Total | 767 | |
Other | Off-Balance Sheet: | ||
Ending Balance: | ||
Collectively evaluated for impairment: | 2,760 | |
Individually evaluated for impairment: | 56 | |
Total | 2,816 | |
Allowance for Losses: | ||
Collectively evaluated for impairment: | 1 | |
Individually evaluated for impairment: | 0 | |
Total | $ 1 |
Guarantees - Schedule of Past D
Guarantees - Schedule of Past Due Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | |||
90-Days Delinquencies | $ 29,997 | ||
Off-Balance Sheet: | |||
Guarantor Obligations [Line Items] | |||
90-Days Delinquencies | $ 3,235 | ||
Net credit losses (recoveries) | $ 0 |
Guarantees - Credit Quality Ind
Guarantees - Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Total | |||
Gross financing receivables | $ 7,148,108 | ||
Gross financing receivables | 7,148,108 | ||
Financing receivables, past due | 29,997 | ||
Off-Balance Sheet: | |||
Total | |||
Gross financing receivables | $ 2,500,393 | ||
Gross financing receivables | 2,500,393 | ||
Financing receivables, past due | 3,235 | ||
Off-Balance Sheet: | Crops | |||
Total | |||
Gross financing receivables | 1,157,681 | ||
Gross financing receivables | 1,157,681 | ||
Financing receivables, past due | 1,493 | ||
Off-Balance Sheet: | Permanent Plantings | |||
Total | |||
Gross financing receivables | 514,105 | ||
Gross financing receivables | 514,105 | ||
Financing receivables, past due | 196 | ||
Off-Balance Sheet: | Livestock | |||
Total | |||
Gross financing receivables | 591,584 | ||
Gross financing receivables | 591,584 | ||
Financing receivables, past due | 1,066 | ||
Off-Balance Sheet: | Part-time Farm | |||
Total | |||
Gross financing receivables | 168,101 | ||
Gross financing receivables | 168,101 | ||
Financing receivables, past due | 480 | ||
Off-Balance Sheet: | Ag. Storage and Processing | |||
Total | |||
Gross financing receivables | 66,106 | ||
Gross financing receivables | 66,106 | ||
Financing receivables, past due | 0 | ||
Off-Balance Sheet: | Other | |||
Total | |||
Gross financing receivables | 2,816 | ||
Gross financing receivables | 2,816 | ||
Financing receivables, past due | 0 | ||
Farm & Ranch | |||
2020 | |||
Total | 296,887 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2019 | |||
Total | 983,174 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2018 | |||
Total | 642,485 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2017 | |||
Total | 767,993 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2016 | |||
Total | 629,878 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Prior | |||
Total | 1,549,183 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 488,782 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Total | |||
Gross financing receivables | 5,358,382 | ||
Current period charge-offs | 0 | $ 0 | |
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Gross financing receivables | 5,358,382 | ||
Financing receivables, past due | 29,997 | ||
Rural Utilities | |||
2020 | |||
Total | 152,385 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2019 | |||
Total | 836,763 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2018 | |||
Total | 8,337 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2017 | |||
Total | 92,568 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
2016 | |||
Total | 31,829 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Prior | |||
Total | 667,844 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Total | |||
Gross financing receivables | 1,789,726 | ||
Current period charge-offs | 0 | $ 0 | |
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Gross financing receivables | 1,789,726 | ||
Financing receivables, past due | 0 | ||
Acceptable | Off-Balance Sheet: | |||
Total | |||
Gross financing receivables | 2,269,005 | ||
Gross financing receivables | 2,269,005 | ||
Acceptable | Off-Balance Sheet: | Crops | |||
Total | |||
Gross financing receivables | 1,033,002 | ||
Gross financing receivables | 1,033,002 | ||
Acceptable | Off-Balance Sheet: | Permanent Plantings | |||
Total | |||
Gross financing receivables | 484,601 | ||
Gross financing receivables | 484,601 | ||
Acceptable | Off-Balance Sheet: | Livestock | |||
Total | |||
Gross financing receivables | 521,341 | ||
Gross financing receivables | 521,341 | ||
Acceptable | Off-Balance Sheet: | Part-time Farm | |||
Total | |||
Gross financing receivables | 161,361 | ||
Gross financing receivables | 161,361 | ||
Acceptable | Off-Balance Sheet: | Ag. Storage and Processing | |||
Total | |||
Gross financing receivables | 66,106 | ||
Gross financing receivables | 66,106 | ||
Acceptable | Off-Balance Sheet: | Other | |||
Total | |||
Gross financing receivables | 2,594 | ||
Gross financing receivables | 2,594 | ||
Acceptable | Farm & Ranch | |||
2020 | |||
Total | 286,971 | ||
2019 | |||
Total | 819,220 | ||
2018 | |||
Total | 588,761 | ||
2017 | |||
Total | 688,649 | ||
2016 | |||
Total | 555,678 | ||
Prior | |||
Total | 1,452,711 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 468,114 | ||
Total | |||
Gross financing receivables | 4,860,104 | ||
Gross financing receivables | 4,860,104 | ||
Acceptable | Rural Utilities | |||
2020 | |||
Total | 152,385 | ||
2019 | |||
Total | 836,763 | ||
2018 | |||
Total | 8,337 | ||
2017 | |||
Total | 92,568 | ||
2016 | |||
Total | 31,829 | ||
Prior | |||
Total | 662,830 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Gross financing receivables | 1,784,712 | ||
Gross financing receivables | 1,784,712 | ||
Special mention(1) | Off-Balance Sheet: | |||
Total | |||
Gross financing receivables | 128,511 | ||
Gross financing receivables | 128,511 | ||
Special mention(1) | Off-Balance Sheet: | Crops | |||
Total | |||
Gross financing receivables | 68,372 | ||
Gross financing receivables | 68,372 | ||
Special mention(1) | Off-Balance Sheet: | Permanent Plantings | |||
Total | |||
Gross financing receivables | 22,909 | ||
Gross financing receivables | 22,909 | ||
Special mention(1) | Off-Balance Sheet: | Livestock | |||
Total | |||
Gross financing receivables | 35,618 | ||
Gross financing receivables | 35,618 | ||
Special mention(1) | Off-Balance Sheet: | Part-time Farm | |||
Total | |||
Gross financing receivables | 1,612 | ||
Gross financing receivables | 1,612 | ||
Special mention(1) | Off-Balance Sheet: | Ag. Storage and Processing | |||
Total | |||
Gross financing receivables | 0 | ||
Gross financing receivables | 0 | ||
Special mention(1) | Off-Balance Sheet: | Other | |||
Total | |||
Gross financing receivables | 0 | ||
Gross financing receivables | 0 | ||
Special mention(1) | Farm & Ranch | |||
2020 | |||
Total | 9,916 | ||
2019 | |||
Total | 159,523 | ||
2018 | |||
Total | 36,786 | ||
2017 | |||
Total | 20,937 | ||
2016 | |||
Total | 32,227 | ||
Prior | |||
Total | 18,283 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 9,230 | ||
Total | |||
Gross financing receivables | 286,902 | ||
Gross financing receivables | 286,902 | ||
Special mention(1) | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Gross financing receivables | 0 | ||
Gross financing receivables | 0 | ||
Substandard(2) | Off-Balance Sheet: | |||
Total | |||
Gross financing receivables | 102,877 | ||
Gross financing receivables | 102,877 | ||
Substandard(2) | Off-Balance Sheet: | Crops | |||
Total | |||
Gross financing receivables | 56,307 | ||
Gross financing receivables | 56,307 | ||
Substandard(2) | Off-Balance Sheet: | Permanent Plantings | |||
Total | |||
Gross financing receivables | 6,595 | ||
Gross financing receivables | 6,595 | ||
Substandard(2) | Off-Balance Sheet: | Livestock | |||
Total | |||
Gross financing receivables | 34,625 | ||
Gross financing receivables | 34,625 | ||
Substandard(2) | Off-Balance Sheet: | Part-time Farm | |||
Total | |||
Gross financing receivables | 5,128 | ||
Gross financing receivables | 5,128 | ||
Substandard(2) | Off-Balance Sheet: | Ag. Storage and Processing | |||
Total | |||
Gross financing receivables | 0 | ||
Gross financing receivables | 0 | ||
Substandard(2) | Off-Balance Sheet: | Other | |||
Total | |||
Gross financing receivables | 222 | ||
Gross financing receivables | $ 222 | ||
Substandard(2) | Farm & Ranch | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 4,431 | ||
2018 | |||
Total | 16,938 | ||
2017 | |||
Total | 58,407 | ||
2016 | |||
Total | 41,973 | ||
Prior | |||
Total | 78,189 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 11,438 | ||
Total | |||
Gross financing receivables | 211,376 | ||
Gross financing receivables | 211,376 | ||
Substandard(2) | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 5,014 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Gross financing receivables | 5,014 | ||
Gross financing receivables | 5,014 | ||
LTSPCs and Farmer Mac Guaranteed Securities | Farm & Ranch | |||
2020 | |||
Total | 31,243 | ||
Current period net charge-offs | 0 | ||
2019 | |||
Total | 222,942 | ||
Current period net charge-offs | 0 | ||
2018 | |||
Total | 194,464 | ||
Current period net charge-offs | 0 | ||
2017 | |||
Total | 295,439 | ||
Current period net charge-offs | 0 | ||
2016 | |||
Total | 259,230 | ||
Current period net charge-offs | 0 | ||
Prior | |||
Total | 1,261,712 | ||
Current period net charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 188,182 | ||
Current period net charge-offs | 0 | ||
Total | |||
Gross financing receivables | 2,453,212 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Gross financing receivables | 2,453,212 | ||
Financing receivables, past due | 18,681 | ||
LTSPCs and Farmer Mac Guaranteed Securities | Acceptable | Farm & Ranch | |||
2020 | |||
Total | 31,243 | ||
2019 | |||
Total | 219,342 | ||
2018 | |||
Total | 183,228 | ||
2017 | |||
Total | 249,022 | ||
2016 | |||
Total | 225,466 | ||
Prior | |||
Total | 1,132,870 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 173,082 | ||
Total | |||
Gross financing receivables | 2,214,253 | ||
Gross financing receivables | 2,214,253 | ||
LTSPCs and Farmer Mac Guaranteed Securities | Special mention(1) | Farm & Ranch | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 3,600 | ||
2018 | |||
Total | 7,843 | ||
2017 | |||
Total | 29,982 | ||
2016 | |||
Total | 17,482 | ||
Prior | |||
Total | 68,709 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 10,379 | ||
Total | |||
Gross financing receivables | 137,995 | ||
Gross financing receivables | 137,995 | ||
LTSPCs and Farmer Mac Guaranteed Securities | Substandard(2) | Farm & Ranch | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 3,393 | ||
2017 | |||
Total | 16,435 | ||
2016 | |||
Total | 16,282 | ||
Prior | |||
Total | 60,133 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 4,721 | ||
Total | |||
Gross financing receivables | 100,964 | ||
Gross financing receivables | 100,964 | ||
LTSPCs | Rural Utilities | |||
2020 | |||
Total | 0 | ||
Current period net charge-offs | 0 | ||
2019 | |||
Total | 0 | ||
Current period net charge-offs | 0 | ||
2018 | |||
Total | 0 | ||
Current period net charge-offs | 0 | ||
2017 | |||
Total | 0 | ||
Current period net charge-offs | 0 | ||
2016 | |||
Total | 0 | ||
Current period net charge-offs | 0 | ||
Prior | |||
Total | 595,685 | ||
Current period net charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Current period net charge-offs | 0 | ||
Total | |||
Gross financing receivables | 595,685 | ||
Current period charge-offs | 0 | ||
Current period recoveries | 0 | ||
Current period net charge-offs | 0 | ||
Gross financing receivables | 595,685 | ||
Financing receivables, past due | 0 | ||
LTSPCs | Acceptable | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 595,685 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Gross financing receivables | 595,685 | ||
Gross financing receivables | 595,685 | ||
LTSPCs | Special mention(1) | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Gross financing receivables | 0 | ||
Gross financing receivables | 0 | ||
LTSPCs | Substandard(2) | Rural Utilities | |||
2020 | |||
Total | 0 | ||
2019 | |||
Total | 0 | ||
2018 | |||
Total | 0 | ||
2017 | |||
Total | 0 | ||
2016 | |||
Total | 0 | ||
Prior | |||
Total | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | ||
Total | |||
Gross financing receivables | 0 | ||
Gross financing receivables | $ 0 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Medium term notes called during the period | $ 762,400,000 | $ 47,100,000 |
Maximum borrowing capacity from U.S. Treasury | 1,500,000,000 | |
Outstanding debt repurchases | $ 0 | 0 |
Discount Notes | ||
Debt Instrument [Line Items] | ||
Maturities of notes | 1 year | |
Medium-term Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Maturities of notes | 6 months | |
Medium-term Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Maturities of notes | 15 years | |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Maximum amount of discount notes outstanding at any month end | $ 2,600,000,000 | $ 1,900,000,000 |
Notes Payable - Borrowings (Det
Notes Payable - Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Due within one year: | ||
Current portion of medium-term notes | $ 11,148,184 | $ 10,019,082 |
Weighted - average rate (as a percent) | 1.24% | 1.84% |
Medium-term notes due in: | ||
Two years | $ 3,381,965 | $ 3,700,835 |
Three years | 1,588,751 | 1,594,709 |
Four years | 1,311,362 | 1,205,276 |
Five years | 1,027,532 | 760,887 |
Thereafter | 2,207,226 | 1,817,859 |
Total due after one year | 9,516,836 | 9,079,566 |
Total | $ 20,665,020 | $ 19,098,648 |
Weighted - Average Rate (as a percent) | 2.00% | 2.28% |
Total Weighted - Average Rate (as a percent) | 1.59% | 2.05% |
2021 | ||
Medium-term notes due in: | ||
Weighted - Average Rate (as a percent) | 1.64% | 2.04% |
2022 | ||
Medium-term notes due in: | ||
Weighted - Average Rate (as a percent) | 1.90% | 2.15% |
2023 | ||
Medium-term notes due in: | ||
Weighted - Average Rate (as a percent) | 2.13% | 2.27% |
2024 | ||
Medium-term notes due in: | ||
Weighted - Average Rate (as a percent) | 1.95% | 2.25% |
Thereafter | ||
Medium-term notes due in: | ||
Weighted - Average Rate (as a percent) | 2.57% | 2.89% |
Notes Payable to Banks | ||
Due within one year: | ||
Current portion of medium-term notes | $ 2,598,091 | $ 2,194,177 |
Weighted - average rate (as a percent) | 0.82% | 1.72% |
Short-term debt, average outstanding during the quarter | $ 2,043,407 | $ 1,977,214 |
Weighted - average rate, average outstanding during the quarter (as a percent) | 1.52% | 2.25% |
Medium-term Notes | ||
Due within one year: | ||
Current portion of medium-term notes | $ 1,203,723 | $ 1,152,770 |
Weighted - average rate (as a percent) | 1.18% | 1.98% |
Short-term debt, average outstanding during the quarter | $ 971,050 | $ 1,780,517 |
Weighted - average rate, average outstanding during the quarter (as a percent) | 1.79% | 2.33% |
Long-term Debt | ||
Due within one year: | ||
Current portion of medium-term notes | $ 7,346,370 | $ 6,672,135 |
Weighted - average rate (as a percent) | 1.39% | 1.85% |
Notes Payable - Callable Medium
Notes Payable - Callable Medium-Term Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Two years | $ 3,381,965 | $ 3,700,835 |
Three years | 1,588,751 | 1,594,709 |
Four years | 1,311,362 | 1,205,276 |
Five years | 1,027,532 | 760,887 |
Thereafter | 2,207,226 | 1,817,859 |
Total | $ 20,665,020 | $ 19,098,648 |
Weighted - Average Rate (as a percent) | 2.00% | 2.28% |
Call Option | ||
Debt Instrument [Line Items] | ||
Two years | $ 731,715 | |
Three years | 209,852 | |
Four years | 49,959 | |
Five years | 206,716 | |
Thereafter | 397,740 | |
Total | $ 1,595,982 | |
Weighted - Average Rate (as a percent) | 1.91% | |
Call Option | 2021 | ||
Debt Instrument [Line Items] | ||
Weighted - Average Rate (as a percent) | 1.56% | |
Call Option | 2022 | ||
Debt Instrument [Line Items] | ||
Weighted - Average Rate (as a percent) | 1.80% | |
Call Option | 2023 | ||
Debt Instrument [Line Items] | ||
Weighted - Average Rate (as a percent) | 1.34% | |
Call Option | 2024 | ||
Debt Instrument [Line Items] | ||
Weighted - Average Rate (as a percent) | 2.12% | |
Call Option | Thereafter | ||
Debt Instrument [Line Items] | ||
Weighted - Average Rate (as a percent) | 2.59% |
Notes Payable - Earliest Intere
Notes Payable - Earliest Interest Reset Date of Borrowing Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Two years | $ 3,381,965 | $ 3,700,835 |
Three years | 1,588,751 | 1,594,709 |
Four years | 1,311,362 | 1,205,276 |
Five years | 1,027,532 | 760,887 |
Thereafter | 2,207,226 | 1,817,859 |
Total | $ 20,665,020 | $ 19,098,648 |
Short-term debt, weighted average rate (as a percent) | 1.24% | 1.84% |
Weighted - Average Rate (as a percent) | 2.00% | 2.28% |
Total Weighted - Average Rate (as a percent) | 1.59% | 2.05% |
2020 | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 11,565,193 | |
Short-term debt, weighted average rate (as a percent) | 1.13% | |
2021 | ||
Debt Instrument [Line Items] | ||
Two years | $ 3,038,940 | |
Weighted - Average Rate (as a percent) | 1.97% | |
2022 | ||
Debt Instrument [Line Items] | ||
Three years | $ 1,483,282 | |
Weighted - Average Rate (as a percent) | 2.02% | |
2023 | ||
Debt Instrument [Line Items] | ||
Four years | $ 1,489,184 | |
Weighted - Average Rate (as a percent) | 2.10% | |
2024 | ||
Debt Instrument [Line Items] | ||
Five years | $ 945,152 | |
Weighted - Average Rate (as a percent) | 2.04% | |
Thereafter | ||
Debt Instrument [Line Items] | ||
Thereafter | $ 2,143,269 | |
Weighted - Average Rate (as a percent) | 2.67% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 54 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 14, 2019 | Sep. 30, 2015 | |
Class of Stock [Line Items] | ||||||||
Quarterly dividend on all classes of common stock (in dollars per share) | $ 0.80 | $ 0.70 | $ 0.70 | $ 0.70 | $ 0.70 | |||
Capital required for capital adequacy | $ 649,300,000 | $ 618,800,000 | $ 649,300,000 | |||||
Capital | 815,100,000 | 815,400,000 | 815,100,000 | |||||
Excess capital | $ 165,800,000 | $ 196,600,000 | $ 165,800,000 | |||||
Class C non-voting common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Stock authorized for repurchase | $ 10,000,000 | $ 25,000,000 | ||||||
Shares repurchased (in shares) | 4 | 673 | ||||||
Shares repurchased | $ 200,000 | $ 19,800,000 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Financial derivatives | $ 10,167 | $ 7,834 |
Liabilities: | ||
Financial derivatives | 171,609 | 105,087 |
Debt Securities | ||
Assets: | ||
Available-for-sale, at fair value | 2,961,157 | 2,959,843 |
Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,352 | |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-sale, at fair value | 2,961,157 | |
Trading | 8,408 | 8,913 |
Financial derivatives | 12,692 | 10,519 |
Total Assets at fair value | 10,569,443 | 10,122,300 |
Liabilities: | ||
Financial derivatives | 53,795 | 27,042 |
Total Liabilities at fair value | 53,795 | 27,042 |
Fair Value, Measurements, Recurring | USDA Securities: | ||
Assets: | ||
Trading | 8,408 | 8,913 |
Fair Value, Measurements, Recurring | Debt Securities | ||
Assets: | ||
Available-for-sale, at fair value | 2,959,843 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Available-for-sale, at fair value | 1,155,599 | |
Trading | 0 | 0 |
Financial derivatives | 0 | 0 |
Total Assets at fair value | 1,155,599 | 1,296,923 |
Liabilities: | ||
Financial derivatives | 114 | 51 |
Total Liabilities at fair value | 114 | 51 |
Fair Value, Measurements, Recurring | Level 1 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Debt Securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,296,923 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Available-for-sale, at fair value | 1,788,837 | |
Trading | 0 | 0 |
Financial derivatives | 12,692 | 10,519 |
Total Assets at fair value | 1,801,529 | 1,654,527 |
Liabilities: | ||
Financial derivatives | 53,681 | 26,991 |
Total Liabilities at fair value | 53,681 | 26,991 |
Fair Value, Measurements, Recurring | Level 2 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Debt Securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,644,008 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Available-for-sale, at fair value | 16,721 | |
Trading | 8,408 | 8,913 |
Financial derivatives | 0 | 0 |
Total Assets at fair value | 7,612,315 | 7,170,850 |
Liabilities: | ||
Financial derivatives | 0 | 0 |
Total Liabilities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | USDA Securities: | ||
Assets: | ||
Trading | 8,408 | 8,913 |
Fair Value, Measurements, Recurring | Level 3 | Debt Securities | ||
Assets: | ||
Available-for-sale, at fair value | 18,912 | |
Institutional Credit | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,186 | 7,143,025 |
Institutional Credit | Fair Value, Measurements, Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,186 | 7,143,025 |
Institutional Credit | Fair Value, Measurements, Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Institutional Credit | Fair Value, Measurements, Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Institutional Credit | Fair Value, Measurements, Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,186 | 7,143,025 |
USDA Guarantees | Fair Value, Measurements, Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,186 | 7,143,025 |
USDA Guarantees | Fair Value, Measurements, Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
USDA Guarantees | Fair Value, Measurements, Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
USDA Guarantees | Fair Value, Measurements, Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 7,587,186 | 7,143,025 |
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 16,721 | 18,912 |
Floating Interest Rate | Floating rate asset-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 10,503 | 11,085 |
Floating Interest Rate | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,777,999 | 1,632,583 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 16,721 | 18,912 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Floating rate asset-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 10,503 | 11,085 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,777,999 | 1,632,583 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Floating rate asset-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Floating rate asset-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 10,503 | 11,085 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,777,999 | 1,632,583 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 16,721 | 18,912 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Floating rate asset-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 335 | 340 |
Fixed Interest Rate | Fixed rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 1,155,599 | 1,296,923 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 335 | 340 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Fixed rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 1,155,599 | 1,296,923 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 1 | Fixed rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 1,155,599 | 1,296,923 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 335 | 340 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 2 | Fixed rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Government/GSE Guaranteed Mortgage Backed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Fair Value, Measurements, Recurring | Level 3 | Fixed rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | $ 0 | $ 0 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - Level 3 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of level three fair value assets and liabilities | 33.00% | 33.00% |
Financial instruments level three percent | 72.00% | 71.00% |
Fair Value Disclosures - Unobse
Fair Value Disclosures - Unobservable Input Reconciliation (Details) - Level 3 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 7,170,850 | $ 6,003,211 |
Purchases | 483,580 | 795,260 |
Sales | 0 | (18,928) |
Settlements | (227,866) | (372,289) |
Allowance for losses | (190) | |
Realized and Unrealized Gains included in Income | 290,486 | 59,396 |
Unrealized Gains included in Other Comprehensive Income | (104,545) | 3,373 |
Ending Balance | 7,612,315 | 6,470,023 |
Available-for-Sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 18,912 | 18,715 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Allowance for losses | (24) | |
Realized and Unrealized Gains included in Income | 0 | 0 |
Unrealized Gains included in Other Comprehensive Income | (2,167) | 197 |
Ending Balance | 16,721 | 18,912 |
Available-for-Sale Securities | Farmer Mac Guaranteed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 7,143,025 | 5,974,497 |
Purchases | 483,580 | 776,332 |
Sales | 0 | 0 |
Settlements | (227,255) | (371,733) |
Allowance for losses | (166) | |
Realized and Unrealized Gains included in Income | 290,380 | 59,352 |
Unrealized Gains included in Other Comprehensive Income | (102,378) | 3,176 |
Ending Balance | 7,587,186 | 6,441,624 |
USDA Securities: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 8,913 | |
Ending Balance | 8,408 | |
Institutional Credit | Available-for-Sale Securities | Farmer Mac Guaranteed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 7,143,025 | 5,974,497 |
Purchases | 483,580 | 776,332 |
Sales | 0 | 0 |
Settlements | (227,255) | (371,733) |
Allowance for losses | (166) | |
Realized and Unrealized Gains included in Income | 290,380 | 59,352 |
Unrealized Gains included in Other Comprehensive Income | (102,378) | 3,176 |
Ending Balance | 7,587,186 | 6,441,624 |
USDA Guarantees | Available-for-Sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | |
Purchases | 18,928 | |
Sales | (18,928) | |
Settlements | 0 | |
Realized and Unrealized Gains included in Income | 0 | |
Unrealized Gains included in Other Comprehensive Income | 0 | |
Ending Balance | 0 | |
USDA Guarantees | Trading | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 8,913 | 9,999 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (611) | (556) |
Allowance for losses | 0 | |
Realized and Unrealized Gains included in Income | 106 | 44 |
Unrealized Gains included in Other Comprehensive Income | 0 | 0 |
Ending Balance | 8,408 | 9,487 |
USDA Guarantees | USDA Securities: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 8,913 | 9,999 |
Purchases | 0 | 18,928 |
Sales | 0 | (18,928) |
Settlements | (611) | (556) |
Allowance for losses | ||
Realized and Unrealized Gains included in Income | 106 | 44 |
Unrealized Gains included in Other Comprehensive Income | 0 | 0 |
Ending Balance | 8,408 | 9,487 |
Floating Interest Rate | Available-for-Sale Securities | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 18,912 | 18,715 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Allowance for losses | (24) | |
Realized and Unrealized Gains included in Income | 0 | 0 |
Unrealized Gains included in Other Comprehensive Income | (2,167) | 197 |
Ending Balance | $ 16,721 | $ 18,912 |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information (Details) - Fair Value, Measurements, Recurring - Level 3 $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | $ 7,612,315 | $ 7,170,850 | $ 6,470,023 | $ 6,003,211 |
Floating rate auction-rate certificates backed by Government guaranteed student loans | Floating Interest Rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 16,721 | 18,912 | ||
USDA Securities: | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 8,408 | 8,913 | ||
Institutional Credit | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 7,587,186 | 7,143,025 | ||
USDA Guarantees | USDA Securities: | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | $ 8,408 | $ 8,913 | $ 9,487 | $ 9,999 |
Measurement Input, Range of Broker Quotes | Minimum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Valuation, Market Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.850 | 0.960 | ||
Measurement Input, Range of Broker Quotes | Maximum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Valuation, Market Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.850 | 0.960 | ||
Measurement Input, Range of Broker Quotes | Weighted Average | Floating rate auction-rate certificates backed by Government guaranteed student loans | Valuation, Market Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.850 | 0.960 | ||
Measurement Input, Discount Rate | Minimum | Institutional Credit | Farmer Mac Guaranteed Securities | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.011 | 0.023 | ||
Measurement Input, Discount Rate | Minimum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.016 | 0.023 | ||
Measurement Input, Discount Rate | Maximum | Institutional Credit | Farmer Mac Guaranteed Securities | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.022 | 0.055 | ||
Measurement Input, Discount Rate | Maximum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.022 | 0.026 | ||
Measurement Input, Discount Rate | Weighted Average | Institutional Credit | Farmer Mac Guaranteed Securities | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.014 | 0.026 | ||
Measurement Input, Discount Rate | Weighted Average | USDA Guarantees | USDA Securities: | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.016 | 0.021 | ||
Measurement Input, Constant Prepayment Rate | Minimum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.13 | 0.10 | ||
Measurement Input, Constant Prepayment Rate | Maximum | USDA Guarantees | USDA Securities: | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.23 | 0.21 | ||
Measurement Input, Constant Prepayment Rate | Weighted Average | USDA Guarantees | USDA Securities: | Valuation, Cost Approach | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.21 | 0.19 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Carrying Value and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial derivatives | $ 10,167 | $ 7,834 |
Guarantee and commitment fees receivable | 37,521 | 38,442 |
Financial derivatives | 171,609 | 105,087 |
Guarantee and commitment obligation | 35,939 | 36,700 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,231,585 | 604,381 |
Loans | 7,553,328 | 7,317,091 |
Financial derivatives | 12,692 | 10,519 |
Guarantee and commitment fees receivable | 32,420 | 36,732 |
Notes payable | 20,975,163 | 19,234,079 |
Debt securities of consolidated trusts held by third parties | 1,605,021 | 1,663,177 |
Financial derivatives | 53,795 | 27,042 |
Guarantee and commitment obligation | 30,838 | 34,990 |
Fair Value | Debt Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 3,006,320 | 3,005,828 |
Fair Value | Farmer Mac Guaranteed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 9,067,242 | 8,606,451 |
Fair Value | USDA Securities: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 2,344,548 | 2,294,671 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,231,585 | 604,381 |
Loans | 7,315,224 | 6,981,440 |
Financial derivatives | 12,692 | 10,519 |
Guarantee and commitment fees receivable | 37,521 | 38,442 |
Notes payable | 20,665,020 | 19,098,648 |
Debt securities of consolidated trusts held by third parties | 1,549,527 | 1,616,504 |
Financial derivatives | 53,795 | 27,042 |
Guarantee and commitment obligation | 35,939 | 36,700 |
Carrying Amount | Debt Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 3,006,189 | 3,004,875 |
Carrying Amount | Farmer Mac Guaranteed Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 9,035,069 | 8,590,476 |
Carrying Amount | USDA Securities: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 2,278,019 | $ 2,241,073 |
Business Segment Reporting - Co
Business Segment Reporting - Core Earnings - Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | $ 41,312 | $ 40,599 | |
Less: reconciling adjustments | 0 | 0 | |
Net effective spread | 0 | 0 | |
Guarantee and commitment fees | 3,196 | 3,513 | |
Other income/(expense) | (7,891) | 177 | |
Non-interest income/(loss) | (4,695) | 3,690 | |
(Provision for)/release of losses | (3,438) | 264 | |
Provision for reserve for losses | (393) | 129 | |
Other non-interest expense | (16,215) | (12,890) | |
Non-interest expense | (16,608) | (12,761) | |
Core earnings before income taxes | 16,571 | 31,792 | |
Income tax (expense)/benefit | (3,741) | (6,622) | |
Core earnings before preferred stock dividends | 12,830 | 25,170 | |
Preferred stock dividends | (3,431) | (3,296) | |
Segment core earnings/(losses) | 9,399 | 21,874 | |
Total assets at carrying value | 23,180,110 | 19,797,777 | $ 21,709,374 |
Total on- and off-balance sheet program assets at principal balance | 21,539,312 | 20,506,913 | |
Corporate | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 1,855 | 2,962 | |
Less: reconciling adjustments | 123 | (468) | |
Net effective spread | 1,978 | 2,494 | |
Guarantee and commitment fees | 0 | 0 | |
Other income/(expense) | (129) | 22 | |
Non-interest income/(loss) | (129) | 22 | |
(Provision for)/release of losses | (14) | 0 | |
Provision for reserve for losses | 0 | 0 | |
Other non-interest expense | (4,433) | (3,638) | |
Non-interest expense | (4,433) | (3,638) | |
Core earnings before income taxes | (2,598) | (1,122) | |
Income tax (expense)/benefit | 283 | 290 | |
Core earnings before preferred stock dividends | (2,315) | (832) | |
Preferred stock dividends | (3,431) | (3,296) | |
Segment core earnings/(losses) | (5,746) | (4,128) | |
Total assets at carrying value | 4,367,223 | 2,962,154 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | |
Reconciling Adjustments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 0 | 0 | |
Less: reconciling adjustments | (2,851) | 1,798 | |
Net effective spread | (2,851) | 1,798 | |
Guarantee and commitment fees | (1,700) | (1,906) | |
Other income/(expense) | (9,050) | (332) | |
Non-interest income/(loss) | (10,750) | (2,238) | |
(Provision for)/release of losses | 0 | 0 | |
Provision for reserve for losses | 0 | 0 | |
Other non-interest expense | 0 | 0 | |
Non-interest expense | 0 | 0 | |
Core earnings before income taxes | (13,601) | (440) | |
Income tax (expense)/benefit | 2,857 | 93 | |
Core earnings before preferred stock dividends | (10,744) | (347) | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | (10,744) | (347) | |
Total assets at carrying value | 0 | 0 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | |
Farm & Ranch | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
(Provision for)/release of losses | (808) | ||
Provision for reserve for losses | (4) | 129 | |
Farm & Ranch | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 16,365 | 15,282 | |
Less: reconciling adjustments | (1,427) | (2,545) | |
Net effective spread | 14,938 | 12,737 | |
Guarantee and commitment fees | 4,317 | 4,744 | |
Other income/(expense) | 1,169 | 480 | |
Non-interest income/(loss) | 5,486 | 5,224 | |
(Provision for)/release of losses | (808) | 264 | |
Provision for reserve for losses | (4) | 129 | |
Other non-interest expense | (5,997) | (4,799) | |
Non-interest expense | (6,001) | (4,670) | |
Core earnings before income taxes | 13,615 | 13,555 | |
Income tax (expense)/benefit | (2,859) | (2,847) | |
Core earnings before preferred stock dividends | 10,756 | 10,708 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 10,756 | 10,708 | |
Total assets at carrying value | 5,457,134 | 4,698,250 | |
Total on- and off-balance sheet program assets at principal balance | 7,811,594 | 7,215,585 | |
USDA Guarantees | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 4,541 | 4,442 | |
Less: reconciling adjustments | 84 | (478) | |
Net effective spread | 4,625 | 3,964 | |
Guarantee and commitment fees | 235 | 224 | |
Other income/(expense) | 112 | 0 | |
Non-interest income/(loss) | 347 | 224 | |
(Provision for)/release of losses | 0 | 0 | |
Provision for reserve for losses | 0 | 0 | |
Other non-interest expense | (1,818) | (1,428) | |
Non-interest expense | (1,818) | (1,428) | |
Core earnings before income taxes | 3,154 | 2,760 | |
Income tax (expense)/benefit | (662) | (580) | |
Core earnings before preferred stock dividends | 2,492 | 2,180 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 2,492 | 2,180 | |
Total assets at carrying value | 2,341,698 | 2,191,896 | |
Total on- and off-balance sheet program assets at principal balance | 2,646,206 | 2,484,779 | |
Rural Utilities | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
(Provision for)/release of losses | (2,125) | ||
Provision for reserve for losses | (389) | 0 | |
Rural Utilities | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 4,747 | (274) | |
Less: reconciling adjustments | 173 | 3,507 | |
Net effective spread | 4,920 | 3,233 | |
Guarantee and commitment fees | 335 | 363 | |
Other income/(expense) | 7 | 7 | |
Non-interest income/(loss) | 342 | 370 | |
(Provision for)/release of losses | (2,125) | 0 | |
Provision for reserve for losses | (389) | 0 | |
Other non-interest expense | (1,604) | (866) | |
Non-interest expense | (1,993) | (866) | |
Core earnings before income taxes | 1,144 | 2,737 | |
Income tax (expense)/benefit | (240) | (575) | |
Core earnings before preferred stock dividends | 904 | 2,162 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 904 | 2,162 | |
Total assets at carrying value | 1,964,901 | 1,443,393 | |
Total on- and off-balance sheet program assets at principal balance | 2,385,411 | 2,074,714 | |
Institutional Credit | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 13,804 | 18,187 | |
Less: reconciling adjustments | 3,898 | (1,814) | |
Net effective spread | 17,702 | 16,373 | |
Guarantee and commitment fees | 9 | 88 | |
Other income/(expense) | 0 | 0 | |
Non-interest income/(loss) | 9 | 88 | |
(Provision for)/release of losses | (491) | 0 | |
Provision for reserve for losses | 0 | 0 | |
Other non-interest expense | (2,363) | (2,159) | |
Non-interest expense | (2,363) | (2,159) | |
Core earnings before income taxes | 14,857 | 14,302 | |
Income tax (expense)/benefit | (3,120) | (3,003) | |
Core earnings before preferred stock dividends | 11,737 | 11,299 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 11,737 | 11,299 | |
Total assets at carrying value | 9,049,154 | 8,502,084 | |
Total on- and off-balance sheet program assets at principal balance | $ 8,696,101 | $ 8,731,835 |
Uncategorized Items - agm-20200
Label | Element | Value |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | $ (2,099,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 797,177,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 119,304,000 |
Common Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 10,712,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 10,712,000 |
Preferred Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 9,400,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 228,374,000 |
Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | (2,099,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 454,948,000 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (16,161,000) |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Rural Utilities [Member] | ||
Allowance for Loan and Lease Losses, Real Estate | us-gaap_AllowanceForLoanAndLeaseLossesRealEstate | 0 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | Farm & Ranch [Member] | ||
Allowance for Loan and Lease Losses, Real Estate | us-gaap_AllowanceForLoanAndLeaseLossesRealEstate | 0 |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Rural Utilities [Member] | ||
Allowance for Loan and Lease Losses, Real Estate | us-gaap_AllowanceForLoanAndLeaseLossesRealEstate | 0 |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Farm & Ranch [Member] | ||
Allowance for Loan and Lease Losses, Real Estate | us-gaap_AllowanceForLoanAndLeaseLossesRealEstate | 7,017,000 |
Accounting Standards Update 2016-13 [Member] | Rural Utilities [Member] | ||
Reserve for losses | agm_ReserveForLosses | 0 |
Accounting Standards Update 2016-13 [Member] | Farm & Ranch [Member] | ||
Reserve for losses | agm_ReserveForLosses | $ 0 |