COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 07, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
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. | ||
Entity Address, Address Line Two | 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 966,366,719 | ||
Documents Incorporated by Reference | Certain information contained in the registrant's Proxy Statement for the 2021 Annual Meeting of Stockholders is incorporated herein by reference in Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant's fiscal year to which this report relates. | ||
Entity Central Index Key | 0000845877 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
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 | ||
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 | 9,235,578 | ||
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 | ||
5.750% Non-Cumulative Preferred Stock, Series E | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.750% Non-Cumulative Preferred Stock, Series E | ||
Trading Symbol | AGM.PRE | ||
Security Exchange Name | NYSE | ||
5.250% Non-Cumulative Preferred Stock, Series F | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.250% Non-Cumulative Preferred Stock, Series F | ||
Trading Symbol | AGM.PRF | ||
Security Exchange Name | NYSE | ||
4.875% Non-Cumulative Preferred Stock, Series G | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.875% Non-Cumulative Preferred Stock, Series G | ||
Trading Symbol | AGM.PRG | ||
Security Exchange Name | NYSE | ||
Class B voting common stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 500,301 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Washington DC, DC, USA |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 908,785 | $ 1,033,941 |
Loans: | ||
Loans held for investment, at amortized cost | 8,314,096 | 7,261,933 |
Loans held for investment in consolidated trusts, at amortized cost | 948,623 | 1,287,045 |
Allowance for losses | (14,041) | (13,832) |
Total loans, net of allowance | 9,248,678 | 8,535,146 |
Financial derivatives, at fair value | 19,139 | 17,468 |
Interest receivable (includes $10,418 and $16,401, respectively, related to consolidated trusts) | 177,355 | 186,429 |
Guarantee and commitment fees receivable | 45,538 | 37,113 |
Deferred tax asset, net | 15,558 | 18,321 |
Prepaid expenses and other assets | 45,318 | 24,545 |
Total Assets | 25,145,491 | 24,355,501 |
Liabilities: | ||
Notes payable | 22,716,156 | 21,848,917 |
Debt securities of consolidated trusts held by third parties | 981,379 | 1,323,786 |
Financial derivatives, at fair value | 34,248 | 29,892 |
Accrued interest payable (includes $9,353 and $18,018, respectively, related to consolidated trusts) | 83,992 | 92,738 |
Guarantee and commitment obligation | 43,926 | 35,535 |
Accounts payable and accrued expenses | 79,427 | 28,879 |
Reserve for losses | 1,950 | 3,277 |
Total Liabilities | 23,941,078 | 23,363,024 |
Commitments and Contingencies | ||
Common stock: | ||
Additional paid-in capital | 125,993 | 122,899 |
Accumulated other comprehensive income/(loss), net of tax | 3,853 | (13,923) |
Retained earnings | 579,270 | 509,560 |
Total Equity | 1,204,413 | 992,477 |
Total Liabilities and Equity | 25,145,491 | 24,355,501 |
Series C | ||
Preferred stock: | ||
Preferred stock | 73,382 | 73,382 |
Series D | ||
Preferred stock: | ||
Preferred stock | 96,659 | 96,659 |
Series E | ||
Preferred stock: | ||
Preferred stock | 77,003 | 77,003 |
Series F | ||
Preferred stock: | ||
Preferred stock | 116,160 | 116,160 |
Series G | ||
Preferred stock: | ||
Preferred stock | 121,327 | 0 |
Class A voting common stock | ||
Common stock: | ||
Common Stock | 1,031 | 1,031 |
Class B voting common stock | ||
Common stock: | ||
Common Stock | 500 | 500 |
Class C non-voting common stock | ||
Common stock: | ||
Common Stock | 9,235 | 9,206 |
Investment securities: | ||
Assets: | ||
Available-for-sale, at fair value | 3,836,391 | 3,853,692 |
Held-to-maturity, at amortized cost | 44,970 | 45,032 |
Other investments | 1,229 | 0 |
Total Securities | 3,882,590 | 3,898,724 |
Farmer Mac Guaranteed Securities: | ||
Assets: | ||
Available-for-sale, at fair value | 6,328,559 | 6,947,701 |
Held-to-maturity, at amortized cost | 2,033,239 | 1,175,792 |
Total Securities | 8,361,798 | 8,123,493 |
USDA Securities: | ||
Assets: | ||
Held-to-maturity, at amortized cost | 2,436,331 | 2,473,626 |
Trading, at fair value | 4,401 | 6,695 |
Total Securities | $ 2,440,732 | $ 2,480,321 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest receivable - consolidated trusts amount | $ 177,355 | $ 186,429 |
Accrued interest payable - consolidated trusts amount | $ 83,992 | $ 92,738 |
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 |
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 |
Series E | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 3,180,000 | 3,180,000 |
Preferred stock, shares issued (in shares) | 3,180,000 | 3,180,000 |
Preferred stock, shares outstanding (in shares) | 3,180,000 | 3,180,000 |
Series F | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
Series G | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 5,000,000 | 5,000,000 |
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 |
Class B voting common stock | ||
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) | 9,235,205 | 9,205,897 |
Consolidated VIE | ||
Interest receivable - consolidated trusts amount | $ 10,418 | $ 16,401 |
Accrued interest payable - consolidated trusts amount | 9,619 | 14,370 |
Available-for-Sale Securities | ||
Amortized cost of available-for-sale investment securities | 3,834,714 | 3,843,666 |
Farmer Mac Guaranteed Securities: | ||
Amortized cost of available-for-sale investment securities | $ 6,135,807 | $ 6,594,992 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
Investments and cash equivalents | $ 18,660 | $ 42,144 | $ 81,522 |
Farmer Mac Guaranteed Securities and USDA Securities | 163,547 | 227,691 | 333,896 |
Loans | 242,582 | 233,699 | 229,675 |
Total interest income | 424,789 | 503,534 | 645,093 |
Total interest expense | 204,014 | 312,946 | 471,958 |
Net interest income | 220,775 | 190,588 | 173,135 |
Release of/(provision for) losses | 860 | (7,805) | (3,504) |
Net interest income after release of/(provision for) losses | 221,635 | 182,783 | 169,631 |
Non-interest income/(expense): | |||
Guarantee and commitment fees | 12,669 | 12,549 | 13,666 |
(Losses)/gains on financial derivatives | (3,348) | (246) | 5,282 |
Gain on sale of mortgage loans | 6,539 | 0 | 0 |
(Losses)/gains on trading securities | (115) | 50 | 326 |
Gains/(losses) on sale of available-for-sale investment securities | 253 | 0 | (236) |
Gains on sale of real estate owned | 0 | 463 | 0 |
Release of/(provision for) reserve for losses | 1,327 | (250) | 3 |
Other income | 2,069 | 3,487 | 1,904 |
Non-interest income | 19,394 | 16,053 | 20,945 |
Operating expenses: | |||
Compensation and employee benefits | 42,847 | 36,502 | 28,762 |
General and administrative | 27,507 | 21,976 | 20,311 |
Regulatory fees | 3,062 | 2,925 | 2,788 |
Real estate owned operating costs, net | 0 | 0 | 64 |
Operating expenses | 73,416 | 61,403 | 51,925 |
Income before income taxes | 167,613 | 137,433 | 138,651 |
Income tax expense | 35,353 | 28,785 | 29,105 |
Net income | 132,260 | 108,648 | 109,546 |
Preferred stock dividends | (24,677) | (17,805) | (13,940) |
Loss on retirement of preferred stock | 0 | (1,667) | (1,956) |
Net income attributable to common stockholders | $ 107,583 | $ 89,176 | $ 93,650 |
Earnings per common share: | |||
Basic earnings per common share (in dollars per share) | $ 10 | $ 8.31 | $ 8.76 |
Diluted earnings per common share (in dollars per share) | $ 9.92 | $ 8.27 | $ 8.69 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 132,260 | $ 108,648 | $ 109,546 |
Other comprehensive income/(loss) before taxes: | |||
Net unrealized gains/(losses) on available-for-sale securities | 8,867 | 37,291 | (22,831) |
Net changes in held-to-maturity securities | (8,451) | (12,677) | (13,415) |
Net unrealized gains/(losses) on cash flow hedges | 22,084 | (21,780) | (15,801) |
Other comprehensive income/(loss) before tax | 22,500 | 2,834 | (52,047) |
Income tax (expense)/benefit related to other comprehensive income/(loss) | (4,724) | (596) | 10,930 |
Other comprehensive income/(loss) net of tax | 17,776 | 2,238 | (41,117) |
Comprehensive income | $ 150,036 | $ 110,886 | $ 68,429 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | 5.700% Non-Cumulative Preferred Stock, Series D | Series B | Class C non-voting common stock | Series E | 5.250% Non-Cumulative Preferred Stock, Series F | Series A | Series G | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock5.700% Non-Cumulative Preferred Stock, Series D | Preferred StockSeries B | Preferred StockSeries E | Preferred Stock5.250% Non-Cumulative Preferred Stock, Series F | Preferred StockSeries A | Preferred StockSeries G | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Common StockClass C non-voting common stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in CapitalClass C non-voting common stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | 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] | ||||||||||||||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||||||||||||||||||||||||
Net income (loss) | $ 109,546 | 109,546 | ||||||||||||||||||||||||||||
Other comprehensive (loss)/income net of tax | (41,117) | (41,117) | ||||||||||||||||||||||||||||
Cash dividends, preferred stock | (13,940) | |||||||||||||||||||||||||||||
Cash dividends, common stock | (29,954) | |||||||||||||||||||||||||||||
Issuance of common stock (in shares) | 4,000 | 43 | ||||||||||||||||||||||||||||
Issuance of common stock | $ 96,659 | $ 87 | $ 96,659 | $ 43 | $ 44 | |||||||||||||||||||||||||
Redemption of stock (in shares) | (3,000) | |||||||||||||||||||||||||||||
Redemption of stock | $ (73,044) | $ (73,044) | ||||||||||||||||||||||||||||
Loss on retirement of preferred stock | (1,956) | (1,956) | ||||||||||||||||||||||||||||
Stock-based compensation cost | 2,258 | 2,258 | ||||||||||||||||||||||||||||
Other stock-based award activity | (1,820) | (1,820) | ||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 9,400 | 9,400 | 10,712 | 10,712 | ||||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | 799,276 | $ (2,099) | $ 797,177 | $ 228,374 | $ 228,374 | $ 10,712 | $ 10,712 | 119,304 | $ 119,304 | (16,161) | $ (16,161) | 457,047 | $ (2,099) | $ 454,948 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income (loss) | 108,648 | 108,648 | ||||||||||||||||||||||||||||
Other comprehensive (loss)/income net of tax | 2,238 | 2,238 | ||||||||||||||||||||||||||||
Cash dividends, preferred stock | (17,805) | |||||||||||||||||||||||||||||
Cash dividends, common stock | (34,333) | |||||||||||||||||||||||||||||
Issuance of common stock (in shares) | 3,180 | 4,800 | 29 | |||||||||||||||||||||||||||
Issuance of common stock | 85 | $ 77,003 | $ 116,160 | $ 77,003 | $ 116,160 | $ 29 | 56 | |||||||||||||||||||||||
Redemption of stock (in shares) | (2,400) | |||||||||||||||||||||||||||||
Redemption of stock | $ (58,333) | $ (58,333) | ||||||||||||||||||||||||||||
Repurchase of Class C Common Stock (in shares) | (4) | |||||||||||||||||||||||||||||
Repurchase of Class C Common Stock | (235) | $ (4) | $ (231) | |||||||||||||||||||||||||||
Loss on retirement of preferred stock | (1,667) | (1,667) | ||||||||||||||||||||||||||||
Stock-based compensation cost | 4,128 | 4,128 | ||||||||||||||||||||||||||||
Other stock-based award activity | (589) | (589) | ||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 14,980 | 10,737 | ||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | 992,477 | $ 363,204 | $ 10,737 | 122,899 | (13,923) | 509,560 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income (loss) | 132,260 | 132,260 | ||||||||||||||||||||||||||||
Other comprehensive (loss)/income net of tax | 17,776 | 17,776 | ||||||||||||||||||||||||||||
Cash dividends, preferred stock | (24,677) | |||||||||||||||||||||||||||||
Cash dividends, common stock | (37,873) | |||||||||||||||||||||||||||||
Issuance of common stock (in shares) | 5,000 | 29 | ||||||||||||||||||||||||||||
Issuance of common stock | $ 145 | $ 121,327 | $ 121,327 | $ 29 | $ 116 | |||||||||||||||||||||||||
Loss on retirement of preferred stock | 0 | |||||||||||||||||||||||||||||
Stock-based compensation cost | 4,310 | 4,310 | ||||||||||||||||||||||||||||
Other stock-based award activity | (1,332) | (1,332) | ||||||||||||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 19,980 | 10,766 | ||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 1,204,413 | $ 484,531 | $ 10,766 | $ 125,993 | $ 3,853 | $ 579,270 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends per common share (in dollars per share) | $ 0.88 | $ 0.80 | $ 0.70 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 132,260 | $ 108,648 | $ 109,546 |
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 | 17,314 | 8,343 | (10,399) |
Amortization of debt premiums, discounts, and issuance costs | 6,780 | 21,319 | 50,052 |
Net change in fair value of trading securities, hedged assets, and financial derivatives | 203,758 | (256,466) | (220,080) |
Gain on sale of real estate owned | 0 | (463) | 0 |
Gain on the sale of available-for-sale investment securities | (253) | 0 | 0 |
Gain on the sale of mortgage loans | (6,539) | 0 | 0 |
Total (release)/provision for allowance for losses | (2,187) | 8,055 | 3,501 |
Excess tax benefits related to stock-based awards | 292 | (440) | 449 |
Deferred income taxes | (1,960) | (2,406) | 789 |
Other | 0 | 0 | 236 |
Stock-based compensation expense | 4,311 | 4,128 | 2,258 |
Purchases of loans held for sale | 0 | (59,150) | 0 |
Proceeds from the sale of loans held for sale | 0 | 15,000 | 0 |
Proceeds from repayment of loans purchased as held for sale | 46,968 | 59,370 | 54,195 |
Net change in: | |||
Interest receivable | 6,945 | 11,054 | (19,080) |
Guarantee and commitment fees receivable | (34) | 164 | (59) |
Other assets | (9,830) | (3,348) | (2,744) |
Accrued interest payable | (8,746) | (14,221) | 10,216 |
Other liabilities | 2,378 | 5,866 | 1,421 |
Custodial deposit liability | 44,955 | 0 | 0 |
Net cash provided by/(used in) operating activities | 436,412 | (94,547) | (19,699) |
Cash flows from investing activities: | |||
Purchases of other investment securities | (1,229) | 0 | 0 |
Purchases of loans held for investment | (3,029,668) | (3,167,198) | (2,234,715) |
Purchases of defaulted loans | (8,713) | (6,272) | (469) |
Proceeds from repayment of loans purchased as held for investment | 1,889,408 | 1,715,663 | 758,192 |
Proceeds from sale of loans previously classified as held for investment | 301,393 | 0 | 0 |
Proceeds from sale of available-for-sale investment securities | 257,524 | 0 | 12,367 |
Proceeds from sale of Farmer Mac Guaranteed Securities | 113,175 | 165,054 | 321,414 |
Proceeds from sale of real estate owned | 0 | 4,169 | 0 |
Net cash used in investing activities | (1,096,196) | (1,736,091) | (2,384,587) |
Cash flows from financing activities: | |||
Proceeds from issuance of discount notes | 61,112,365 | 68,548,733 | 64,642,545 |
Proceeds from issuance of medium-term notes | 11,173,147 | 13,509,754 | 10,195,775 |
Payments to redeem discount notes | (60,743,066) | (68,960,492) | (64,079,322) |
Payments to redeem medium-term notes | (10,586,370) | (10,414,765) | (7,970,126) |
Payments to third parties on debt securities of consolidated trusts | (480,272) | (504,807) | (181,493) |
Proceeds from common stock issuance | 117 | 56 | 44 |
Retirement of preferred stock | 0 | (60,000) | (75,000) |
Proceeds from preferred stock issuance, net of stock issuance costs | 121,327 | 193,163 | 96,659 |
Tax payments related to share-based awards | (1,305) | (560) | (1,777) |
Purchases of common stock | 0 | (235) | 0 |
Dividends paid on common and preferred stock | (61,315) | (50,649) | (43,894) |
Net cash provided by financing activities | 534,628 | 2,260,198 | 2,583,411 |
Net change in cash and cash equivalents | (125,156) | 429,560 | 179,125 |
Cash and cash equivalents at beginning of period | 1,033,941 | 604,381 | 425,256 |
Cash and cash equivalents at end of period | 908,785 | 1,033,941 | 604,381 |
Cash paid during the period for: | |||
Interest | 198,593 | 283,335 | 365,526 |
Income taxes | 36,300 | 30,000 | 23,100 |
Non-cash activity: | |||
Loans acquired and securitized as Farmer Mac Guaranteed Securities | 113,175 | 165,054 | 321,414 |
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 | 113,175 | 165,054 | 263,561 |
Reclassification of defaulted loans from loans held for investment in consolidated trusts to loans held for investment | 24,690 | 47,036 | 5,479 |
Reclassification of loans held for sale to loans held for investment | 0 | 44,150 | 0 |
Reclassification of loans held for investment to loans held for sale | 301,551 | 0 | 0 |
Net assets obtained in securitization | 15,369 | 0 | 0 |
Capitalized interest | 1,259 | 1,348 | 0 |
(Recovery)/charge-off from the allowance for losses | (1,054) | 5,759 | 0 |
Loan payoff not yet received | (7,500) | 0 | 0 |
Purchases of securities - traded, not yet settled | 1,980 | 0 | 0 |
Available-for-sale securities | |||
Cash flows from investing activities: | |||
Purchases of securities | (2,004,911) | (2,852,658) | (2,166,376) |
Proceeds from repayment of securities | 1,740,000 | 1,961,895 | 1,425,402 |
Farmer Mac Guaranteed Securities and USDA Securities | |||
Cash flows from investing activities: | |||
Purchases of securities | (4,380,901) | (2,074,701) | (2,691,104) |
Proceeds from repayment of securities | $ 4,027,726 | $ 2,517,957 | $ 2,190,702 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION The Federal Agricultural Mortgage Corporation ("Farmer Mac") is a stockholder-owned, federally chartered instrumentality of the United States established under Title VIII of the Farm Credit Act of 1971, as amended (12 U.S.C. Ā§Ā§ 2279aa et seq.), which is sometimes referred to as Farmer Mac's charter. Farmer Mac was originally created by the United States Congress to provide a secondary market for a variety of loans made to borrowers in rural America. This secondary market is designed to increase the availability of long-term credit at stable interest rates to America's rural communities and to provide rural borrowers with the benefits of capital markets pricing and product innovation. Farmer Mac's secondary market activities include: ā¢ purchasing eligible loans directly from lenders; ā¢ providing advances against eligible loans by purchasing obligations secured by those loans; ā¢ securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and ā¢ issuing long-term standby purchase commitments ("LTSPCs") for eligible loans. Farmer Mac conducts its secondary market activities through two lines of business ā Agricultural Finance and Rural Infrastructure Finance. For more information about those lines of business and the segments within them, see Note 14 - Business Segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Farmer Mac conform with accounting principles generally accepted in the United States of America ("generally accepted accounting principles" or "GAAP"). The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following are the significant accounting policies that Farmer Mac follows in preparing and presenting its consolidated financial statements: (a) 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, 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 Securities included in the Agricultural Finance line of business. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary. Securities for which Farmer Mac has the intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Securities for which Farmer Mac does not have the positive intent and ability to hold to maturity are classified as available-for-sale or trading and are carried at estimated fair value. Unrealized gains and losses on available-for-sale securities are reported as a component of accumulated other comprehensive income in stockholders' equity. For securities classified as trading, unrealized gains and losses are included in earnings. Gains and losses on the sale of available-for-sale and trading securities are determined using the specific identification cost method. Farmer Mac determines the fair value of investment securities using quoted market prices, when available. Farmer Mac determines the fair values of certain investment securities for which quoted market prices are not available, Farmer Mac Guaranteed Securities, and USDA Securities based on the present value of the associated expected future cash flows. In estimating the present value of the expected future cash flows, management is required to make estimates and assumptions. The key estimates and assumptions include discount rates and collateral repayment rates. Premiums, discounts, and other deferred costs are amortized to interest income using the effective interest method. Farmer Mac generally receives compensation when loans with yield maintenance provisions underlying Farmer Mac Guaranteed Securities prepay. These yield maintenance payments mitigate Farmer Mac's exposure to reinvestment risk and are calculated such that, when reinvested with the prepaid principal, they should generate substantially the same cash flows that would have been generated had the loans not prepaid. Yield maintenance payments are recognized as interest income in the consolidated statements of operations upon receipt. Interest Income Recognition on IO-FMGS Farmer Mac recognizes interest income for its IO-FMGS by applying the effective yield methodology required by GAAP for financial assets that are either not of high credit quality at the time of acquisition or can be contractually prepaid or otherwise settled in such a way that Farmer Mac would not recover substantially all of its recorded investment. The amount of periodic interest income recognized is determined by applying the IO-FMGS effective interest rate to its amortized cost basis (or āreference amountā). At the time of acquisition, the effective interest rate is calculated by solving for the single discount rate that equates the present value of Farmer Mac's best estimate of the amount and timing of the cash flows expected to be collected from the IO-FMGS to its purchase cost. To prepare its best estimate of cash flows expected to be collected, Farmer Mac develops a number of assumptions about the future performance of the pool of mortgage loans that serve as collateral, including assumptions about the timing and amount of prepayments and credit losses. In each subsequent quarterly reporting period, the amount and timing of cash flows expected to be collected from the IO-FMGS are re-estimated based upon current information and events. Loans for which Farmer Mac has the positive intent and ability to hold for the foreseeable future are classified as held for investment and reported at their unpaid principal balance, net of unamortized purchase discounts or premiums. Loans for which Farmer Mac does not have the positive intent and ability to hold for the foreseeable future are classified as held for sale and reported at the lower of cost or fair value determined on a pooled basis. Farmer Mac de-recognizes sold loans, and recognizes any associated gain or loss, when they have been legally isolated from Farmer Mac, the buyer has the right to pledge or exchange them, and Farmer Mac does not maintain effective control over them. When Farmer Mac consolidates a trust, it recognizes the loans underlying the trust in the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost." See Note 2(o) for more information on the accounting policy related to consolidation. Non-accrual Loans Non-accrual loans are loans for which it is probable that Farmer Mac will be unable to collect all amounts due according to the contractual terms of the loan agreement and include all loans 90 days or more past due. When a loan becomes 90 days past due, interest accrual on the loan is discontinued and interest previously accrued is reversed against interest income in the current period. The interest on such loans is accounted for on the cash basis until a loan qualifies for return to accrual status. Loans are returned to accrual status when all the principal and interest payments contractually due are collected and certain performance criteria are met. Troubled Debt Restructuring ("TDR") A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. Farmer Mac has granted a concession when, as a result of the restructuring, it does not expect to collect all amounts due in a timely manner, including interest accrued at the original contract rate. In making its determination of whether a borrower is experiencing financial difficulties, Farmer Mac considers several factors, including whether (1) the borrower has declared or is in the process of declaring bankruptcy, (2) there is substantial doubt as to whether the borrower will continue to be a going concern, and (3) the borrower can obtain funds from other sources at an effective interest rate at or near a current market interest rate for debt with similar risk characteristics. Farmer Mac is required to perform under its guarantee obligation when the underlying loans for the off-balance sheet Farmer Mac Guaranteed Securities do not make their scheduled installment payments. When a loan underlying an Agricultural Finance Guaranteed Security becomes 90 days or more past due, Farmer Mac may, in its sole discretion, repurchase the loan from the trust and generally does repurchase such loans, thereby reducing the principal balance of the outstanding Farm & Ranch Guaranteed Security. When Farmer Mac purchases a delinquent loan underlying a Farmer Mac Guaranteed Security, Farmer Mac stops accruing the guarantee fee upon loan purchase. If Farmer Mac repurchases a loan that is collateral for a Farmer Mac Guaranteed Security, Farmer Mac would have the right to enforce the terms of the loan, and in the event of a default, would have access to the underlying collateral. Farmer Mac typically recovers its investment in the defaulted loans purchased either through borrower payments, loan payoffs, payments by third parties, or foreclosure and sale of the collateral securing the loans. Farmer Mac has recourse to the USDA for any amounts advanced for the timely payment of principal and interest on Farmer Mac Guaranteed USDA Securities. That recourse is the USDA guarantee, a full-faith-and-credit obligation of the United States that becomes enforceable if a lender fails to repurchase the USDA-guaranteed portion from its owner within 30 days after written demand from the owner when (a) the borrower under the guaranteed loan is in default not less than 60 days in the payment of any principal or interest due on the USDA-guaranteed portion, or (b) the lender has failed to remit to the owner the payment made by the borrower on the USDA-guaranteed portion or any related loan subsidy within 30 days after the lender's receipt of the payment. Transfers of Financial Assets Farmer Mac accounts for transfers of financial assets as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of Farmer Mac's continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales are included in āGain on sale of mortgage loansā in the accompanying consolidated statements of operations. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the consolidated balance sheets at fair value. In the fourth quarter of 2021, Farmer Mac executed a structured securitization of a $299.4 million pool of Farm & Ranch loans. The securitization consisted of two classes of securities, Class A and Class B. The Class A securities are backed by 92.5% of the pool and is guaranteed by Farmer Mac. The Class B Tranche is backed by the remaining 7.5% of the pool. Credit losses on the entire pool are first allocated to the Class B securities. As a result of the transaction, Farmer Mac recognized the following: 1. A guarantee asset and liability related to the guarantee fees and the obligation to stand ready to perform on the guarantee to the Class A security holders. 2. A servicing asset related to Farmer Macās role as Master and Central Servicer. Farmer Mac will earn a related servicing fee. 3. A retained interest-only strip (IO-FMGS) security. The above assets and liabilities were initially recorded on the consolidated balance sheets at fair value. For more information on fair value measurement see Footnote 13. The securitization trust used to effect this transaction was a variable interest entity that Farmer Mac does not consolidate. See Table 2.4 below for more information about these trusts. Gains or losses arising from securitization are recorded as the difference between the transferred loansā carrying values and the sum of (a) the initial fair value of the assets or liabilities received and (b) net cash proceeds. For the year ended December 31, 2021, Farmer Mac recorded $6.5 million in gains attributable to securitization activity. These gains were reported in āGain on sale of mortgage loansā in the consolidated statements of operations. Farmer Mac enters into financial derivative transactions principally 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, not for trading or speculative purposes. Farmer Mac enters into interest rate swap contracts to adjust the characteristics of its short-term debt to match more closely the cash flow and duration characteristics of its longer-term loans and other assets, and also to adjust the characteristics of its long-term debt to match more closely the cash flow and duration characteristics of its short-term assets, thereby reducing interest rate risk and, often times, deriving an overall lower effective cost of borrowing than would otherwise be available to Farmer Mac in the conventional debt market. Accounting for financial derivatives differs depending on whether a derivative is designated in a hedge accounting relationship. Derivative instruments designated in fair value hedge accounting relationships mitigate exposure to changes in the fair value of assets or liabilities. Derivative instruments designated in cash flow hedge accounting relationships mitigate exposure to the variability in expected future cash flows or other forecasted transactions. In order to qualify for fair value or cash flow hedge accounting treatment, documentation must indicate the intention to designate the derivative as a hedge of a specific asset, or liability, or a future cash flow. Effectiveness of the hedge is assessed before the end of the quarter of inception and monitored over the life of the hedging relationship. Changes in the fair values of financial derivatives not designated as cash flow or fair value hedges were reported in "(Losses)/gains on financial derivatives" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of hedged items related to the risk being hedged are reported in "Net interest income" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge relationships are also recorded in "Net interest income" in the consolidated statements of operations. For financial derivatives designated in cash flow hedge relationships, the unrealized gain or loss on the derivative is recorded in other comprehensive income. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. See Notes 6 and 13 for more information on financial derivatives. Current Expected Credit Loss ("CECL") On January 1, 2020, Farmer Mac adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 credit 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 credit 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 credit 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 Infrastructure Finance line of business. Upon the adoption of CECL, Farmer Mac measures its expected credit losses for the expected life of all financial instruments, including its Rural Infrastructure Finance 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, under CECL Farmer Mac records a charge-off from the allowance for losses when either a) a loan, or a portion of a loan, is deemed uncollectible; or b) a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The charge-off equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs. Estimation Methodology, under CECL 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 includes the following key components: ā¢ An economic model for each portfolio, including Agricultural Finance loans (Corporate AgFinance and Farm & Ranch), Rural Infrastructure Finance loans (Rural Utilities and Renewable Energy), and AgVantage Securities; ā¢ 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); ā¢ 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; ā¢ 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 ā¢ 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: ā¢ economic conditions; ā¢ geographic and agricultural commodity/product concentrations in the portfolio; ā¢ the credit profile of the portfolio, including risk ratings and financial metrics; ā¢ delinquency trends of the portfolio; ā¢ historical charge-off and recovery activities of the portfolio; and ā¢ 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, under CECL 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 securityās 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"), under CECL 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. Probable Incurred Credit Loss (prior to January 1, 2020) Prior to January 1, 2020, Farmer Mac maintained an allowance for losses to cover estimated probable losses incurred as of the balance sheet date on loans held ("allowance for loan losses") and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities ("reserve for losses") based on available information. Disaggregation by: commodity type, portfolio, and risk rating; was performed, where appropriate, in analyzing the need for an allowance for losses. General Allowance for Loss, for Probable Incurred Credit Losses Prior to January 1, 2020, Farmer Mac's methodology to determine its allowance for losses incorporated Farmer Mac's automated loan classification system. That system scored loans based on criteria such as historical repayment performance, indicators of current financial condition, loan seasoning, loan size and loan-to-value ratio. The previous allowance methodology captured the migration of loan scores across concurrent and overlapping 3-year time horizons and calculated loss rates separately within each loan classification for (1) loans underlying LTSPCs and (2) loans held and loans underlying Farm & Ranch Guaranteed Securities. The calculated loss rates were applied to the current classification distribution of unimpaired loans in Farmer Mac's portfolio to estimate inherent losses, under the assumption that the historical credit losses and trends used to calculate loss rates would continue in the future. Management evaluated those assumptions through considering many relevant factors, including: ā¢ economic conditions; ā¢ geographic and agricultural commodity/product concentrations in the portfolio; ā¢ the credit profile of the portfolio; ā¢ delinquency trends of the portfolio; ā¢ historical charge-off and recovery activities of the portfolio; and ā¢ other factors to capture current portfolio trends and characteristics that differ from historical experience. Prior to January 1, 2020, Management believed that its use of that methodology produced a reasonable estimate of probable losses incurred as of the balance sheet date, for all loans held in the Farm & Ranch portfolio and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs. Prior to January 1, 2020, Farmer Mac separately evaluated the Rural Utilities loans it owned to determine if there were any probable losses inherent in those assets. Specific Allowance for Impaired Loans Prior to January 1, 2020, Farmer Mac analyzed individual loans for impairment. Those individual loans included loans 90 days or more past due, in foreclosure, restructured, in bankruptcy and certain performing loans that had previously been delinquent or were secured by real estate that produced agricultural commodities or products then under stress. 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 years ended December 31, 2021, 2020, and 2019: Table 2.1 For the Years Ended December 31, 2021 2020 2019 Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 107,583 10,758 $ 10.00 $ 89,176 10,728 $ 8.31 $ 93,650 10,696 $ 8.76 Effect of dilutive securities (1) SARs and restricted stock ā 88 (0.08) ā 58 (0.04) ā 82 (0.07) Diluted EPS $ 107,583 10,846 $ 9.92 $ 89,176 10,786 $ 8.27 $ 93,650 10,778 $ 8.69 (1) For the years ended December 31, 2021, 2020, and 2019, SARs and restricted stock of 39,326, 74,336, and 43,374, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the years ended December 31, 2021, 2020, and 2019, contingent shares of unvested restricted stock of 18,183, 12,680, and 10,349, 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. Deferred federal income tax assets and liabilities are established for temporary differences between financial and taxable income and are measured using the current enacted statutory tax rate. Income tax expense is equal to the income taxes payable in the current year plus the net change in the deferred tax asset or liability balance. Deferred tax assets are measured at rates in effect when they arise. To the extent rates change, the deferred tax asset will be adjusted to reflect the new rate. A increase in corporate tax rates would result in an increase in the value of the deferred tax asset. Farmer Mac evaluates its tax positions quarterly to identify and recognize any liabilities related to uncertain tax positions in its federal income tax returns. Farmer Mac uses a two-step approach in which income tax benefits are recognized if, based on the technical merits of a tax position, it is more likely than not (a probability of greater than 50%) that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation process. The amount of tax benefit recognized is then measured at the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. Farmer Mac's policy for recording interest and penalties associated with uncertain tax positions is to record them as a component of income tax expense. Farmer Mac establishes a valuation allowance for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining its deferred tax asset valuation allowance, Farmer Mac considered its taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback and carryforward periods available under the tax law and the impact of possible tax planning strategies. Farmer Mac accounts for its stock-based employee compensation plans using the grant date fair value method of accounting. Farmer Mac measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award determined using the Black-Scholes option pricing model. The cost is recognized over the period during which an employee is required to provide service in exchange for the award. For performance-based grants, Farmer Mac recognizes the grant-date fair value over the vesting period as long as it remains probable that the performance conditions will be met. If the service or performance conditions are not met, Farmer Mac reverses previously recognized compensation expense upon forfeiture. Farmer Mac recognized $4.3 million, $4.1 million, and $2.3 million of compensation expense related to SARs and non-vested restricted stock awards for 2021, 2020, and 2019, respectively. 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 years ended December 31, 2021, 2020, and 2019. Table 2.2 Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total (in thousands) Balance as of January 1, 2019 $ (25,360) $ 43,443 $ 6,873 $ 24,956 Other comprehensive loss before reclassifications (14,976) ā (11,561) (26,537) Amounts reclassified from AOCI (3,061) (10,598) (921) (14,580) Net comprehensive loss (18,037) (10,598) (12,482) (41,117) Balance as of December 31, 2019 $ (43,397) $ 32,845 $ (5,609) $ (16,161) Other comprehensive income/(loss) before reclassifications 32,739 ā (21,606) 11,133 Amounts reclassified from AOCI (3,279) (10,016) 4,400 (8,895) Net comprehensive income/(loss) 29,460 (10,016) (17,206) 2,238 Balance as of December 31, 2020 $ (13,937) $ 22,829 $ (22,815) $ (13,923) Other comprehensive income before reclassifications 9,114 ā 11,602 20,716 Amounts reclassified from AOCI (2,109) (6,676) 5,845 (2,940) Net comprehensive income/(loss) 7,005 (6,676) 17,447 17,776 Balance as of December 31, 2021 $ (6,932) $ 16,153 $ (5,368) $ 3,853 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 years ended December 31, 2021, 2020, and 2019: Table 2.3 For the Years Ended December 31, 2021 2020 2019 Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax (in thousands) Other comprehensive income: Available-for-sale-securities: Unrealized holding gains/(losses) on available-for-sale securities $ 11,537 $ 2,423 $ 9,114 $ 41,442 $ 8,703 $ 32,739 $ (18,958) $ (3,982) $ (14,976) Less reclassification adjustments included in: Net interest income (1) (2,333) (490) (1,843) (3,895) (818) (3,077) (3,834) (805) (3,029) (Gains)/losses on sale of available-for-sale investment securities (2) (253) (53) (200) ā ā ā 236 50 186 Other income (3) (84) (18) (66) (256) (54) (202) (275) (57) (218) Total $ 8,867 $ 1,862 $ 7,005 $ 37,291 $ 7,831 $ 29,460 $ (22,831) $ (4,794) $ (18,037) Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (4) (8,451) (1,775) (6,676) (12,677) (2,661) (10,016) (13,415) (2,817) (10,598) Total $ (8,451) $ (1,775) $ (6,676) $ (12,677) $ (2,661) $ (10,016) $ (13,415) $ (2,817) $ (10,598) Cash flow hedges Unrealized gains/(losses) on cash flow hedges $ 14,685 $ 3,083 $ 11,602 $ (27,350) $ (5,744) $ (21,606) $ (14,635) $ (3,074) $ (11,561) Less reclassification adjustments included in: Net interest income (5) 7,399 1,554 5,845 5,570 1,170 4,400 (1,166) (245) (921) Total $ 22,084 $ 4,637 $ 17,447 $ (21,780) $ (4,574) $ (17,206) $ (15,801) $ (3,319) $ (12,482) Other comprehensive income/(loss) $ 22,500 $ 4,724 $ 17,776 $ 2,834 $ 596 $ 2,238 $ (52,047) $ (10,930) $ (41,117) (1) Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. (2) Represents unrealized gains and losses on sales of available-for-sale securities. (3) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (4) 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. (5) Relates to the |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Farmer Mac considers an entity to be a related party if (1) the entity holds at least 5% of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac. As provided by Farmer Mac's statutory charter, only banks, insurance companies, and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock and only institutions of the Farm Credit System may hold Farmer Mac's Class B voting common stock. Farmer Mac's statutory charter also provides that Class A stockholders elect 5 members of Farmer Mac's 15-member board of directors and that Class B stockholders elect 5 members of the board of directors. Farmer Mac generally requires financial institutions to own a requisite amount of common stock, based on the size and type of institution, to participate in the Agricultural Finance line of business. As a result of these requirements, Farmer Mac conducts business with related parties in the normal course of Farmer Mac's business. All related party transactions were conducted with terms and conditions comparable to those available to any other participant in Farmer Mac's lines of business not related to Farmer Mac. Zions Bancorporation, National Association : Farmer Mac considers Zions Bancorporation, National Association and its affiliates ("Zions") a related party because Zions owns approximately 31.2% of Farmer Mac's Class A voting common stock. The following transactions occurred between Farmer Mac and Zions during 2021, 2020, and 2019: Table 3.1 For the Years Ended December 31, 2021 2020 2019 (in thousands) Unpaid Principal Balance: Purchases: Loans $ 214,319 $ 177,143 $ 129,040 USDA Securities 9,565 10,764 8,875 Sales of Farmer Mac Guaranteed Securities ā 41,247 163,134 The purchases of loans from Zions under the Agricultural Finance line of business represented approximately 8.0%, 7.1%, and 9.5% of Agricultural Finance mortgage loan purchases for the years ended December 31, 2021, 2020, and 2019, respectively, and 5.6%, 6.2% and 7.6%, respectively, of total Agricultural Finance mortgage loan business volume (excluding AgVantage and USDA Securities). The purchases of USDA Securities from Zions represented approximately 2.1%, 1.4%, and 2.1% of total purchases of USDA Securities for the years ended December 31, 2021, 2020, and 2019, respectively. Outstanding Agricultural Finance mortgage loans purchased, USDA Securities, and AgVantage securities purchased from Zions represented 3.4% and 4.1%, respectively, of Farmer Mac's outstanding business volume as of December 31, 2021 and 2020. Zions retained servicing fees of $11.0 million, $11.8 million, and $12.2 million in 2021, 2020, and 2019, respectively, for its work as a Farmer Mac servicer. National Rural Utilities Cooperative Financial Corporation : Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party because CFC owns approximately 7.9% of Farmer Mac's Class A voting common stock and because a member of Farmer Mac's board of directors has an affiliation with CFC. The following transactions occurred between Farmer Mac and CFC during 2021, 2020, and 2019: Table 3.2 Farmer Mac Loan Purchases and Guarantees For the Years Ended December 31, 2021 2020 2019 (in thousands) Unpaid Principal Balance: Loans $ 127,117 $ 272,943 $ 85,000 Unfunded Commitments 321 19,500 ā On-balance sheet AgVantage Securities 1,450,000 250,000 575,000 Total purchases and guarantees $ 1,577,438 $ 542,443 $ 660,000 The transactions with CFC represented 36.9% of Farmer Mac's loan purchase volume under the Rural Infrastructure Finance line of business for 2021, compared to 36.7% of Rural Infrastructure Finance loan purchase volume for 2020 and 9.8% for 2019. These transactions represented 37.0%, 19.2%, and 25.5% of AgVantage securities volume for 2021, 2020, and 2019, respectively, and represented 18.4%, 9.5%, and 12.5% of total purchases, guarantees, LTSPCs, and unfunded commitments for 2021, 2020, and 2019, respectively. Of Farmer Mac's total outstanding business volume as of December 31, 2021 and 2020, Rural Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 19.5% and 19.2%, respectively. Farmer Mac had interest receivable of $7.8 million and $5.3 million as of December 31, 2021 and 2020, respectively, and earned interest income of $50.0 million, $63.1 million, and $97.3 million during 2021, 2020, and 2019, respectively, related to its AgVantage transactions with CFC. As of both December 31, 2021 and 2020, Farmer Mac had $0.1 million of commitment fees receivable from CFC and earned commitment fees of $1.2 million , $1.3 million, and $1.7 million, respectively for 2021, 2020, and 2019. CFC retained servicing fees of $3.3 million, $3.3 million and $3.2 million in 2021, 2020, and 2019, respectively, for its work as a Farmer Mac central servicer. CoBank : Farmer Mac considers CoBank a related party because CoBank owns approximately 32.6% of Farmer Mac's Class B voting common stock and because a member of Farmer Mac's board of directors had an affiliation with CoBank through the end of 2019. Farmer Mac purchased $207.5 million, $416.8 million, and $776.4 million of loans and participations from CoBank, under the Rural Infrastructure Finance line of business in 2021, 2020, and 2019, respectively. The transactions with CoBank represented 60.2%, 56.0%, and 89.1% of Farmer Mac's loan purchase transactions under the Rural Infrastructure Finance line of business for 2021, 2020, and 2019, respectively. During 2021, Farmer Mac entered into $72.0 million of unfunded commitments with CoBank, in which Farmer Mac earns a nominal unused commitment fee. Of Farmer Mac's total outstanding business volume as of December 31, 2021 and 2020, CoBank's Rural Infrastructure Finance loans and unfunded commitments represented 5.6% and 5.1%, respectively, of total outstanding volume. CoBank retained servicing fees of $3.2 million, $2.3 million, and $1.2 million in 2021, 2020, and 2019, respectively, for its work as a Farmer Mac central servicer. AgFirst Farm Credit Bank : Farmer Mac considers AgFirst Farm Credit Bank ("AgFirst") a related party because AgFirst owns approximately 16.8% of Farmer Mac's Class B voting common stock. AgFirst entered into $11.0 million, $32.5 million, and $26.7 million of Agricultural Finance LTSPC transactions in 2021, 2020, and 2019, respectively, and the aggregate balance of Agricultural Finance LTSPCs outstanding as of December 31, 2021 and 2020 was $363.9 million and $331.2 million, respectively. In each of 2021, 2020, and 2019, Farmer Mac received $1.2 million in commitment fees from AgFirst, and had $0.1 million of commitment fees receivable as of both December 31, 2021 and 2020. AgFirst owns certain securities backed by rural housing loans. Farmer Mac guarantees the last ten percent of losses (based on the original principal balance at the time of pooling) from each loan in the pool backing those securities. As of December 31, 2021 and 2020, the outstanding balance of those securities owned by AgFirst was $4.0 million and $5.5 million, respectively. Farmer Mac received guarantee fees of $19,000, $25,000, and $29,000 in 2021, 2020, and 2019, respectively, on those securities. Farm Credit Bank of Texas : Farmer Mac considers Farm Credit Bank of Texas a related party because the bank owns approximately 7.7% of Farmer Mac's Class B voting common stock. Farmer Mac received from Farm Credit Bank of Texas commitment fees of $1.9 million, $1.2 million, and $1.1 million in 2021, 2020, and 2019, respectively. The aggregate amount of Agricultural Finance LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2021 and 2020 was $625.6 million and $304.9 million, respectively. In each of 2021, 2020, and 2019, Farm Credit Bank of Texas retained $0.1 million in servicing fees for its work as a Farmer Mac central servicer. Other Related Party Transactions : Farmer Mac considers Bath State Bank and Farm Credit of Florida related parties because a member of Farmer Mac's board of directors is affiliated with those entities. Farmer Mac purchased $2.3 million, $9.2 million, and $4.0 million in USDA Securities from Bath State Bank in 2021, 2020, and 2019, respectively. Farmer Mac purchased $5.0 million in Agricultural Finance mortgage loans from Bath State Bank in 2021. Farmer Mac did not purchase any Agricultural Finance mortgage loans from Bath State Bank in 2020 or 2019. Farmer Mac purchased $1.1 million and $0.2 million of Agricultural Finance mortgage loans from Farm Credit of Florida in 2021 and 2020, respectively. Farmer Mac did not purchase any loans from Farm Credit of Florida in 2019. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of December 31, 2021 and December 31, 2020: Table 4.1 As of December 31, 2021 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 $ ā $ 19,700 $ (52) $ ā $ (394) $ 19,254 Floating rate Government/GSE guaranteed mortgage-backed securities 2,168,016 90 2,168,106 ā 11,821 (1,096) 2,178,831 Fixed rate GSE guaranteed mortgage-backed securities 451,660 12,525 464,185 ā 382 (5,730) 458,837 Fixed rate U.S. Treasuries 1,180,000 2,723 1,182,723 ā ā (3,254) 1,179,469 Total available-for-sale 3,819,376 15,338 3,834,714 (52) 12,203 (10,474) 3,836,391 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 44,970 ā 44,970 ā 1,612 ā 46,582 Total held-to-maturity $ 44,970 $ ā $ 44,970 $ ā $ 1,612 $ ā $ 46,582 (1) Amounts presented exclude $4.3 million of accrued interest receivable on investment securities as of December 31, 2021. (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 1.5% as of December 31, 2021. As of December 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 $ ā $ 19,700 $ (36) $ ā $ (493) $ 19,171 Floating rate asset-backed securities 6,232 ā 6,232 ā ā (1) 6,231 Floating rate Government/GSE guaranteed mortgage-backed securities 2,350,963 (44) 2,350,919 ā 12,150 (3,043) 2,360,026 Fixed rate GSE guaranteed mortgage-backed securities 279 ā 279 ā 34 ā 313 Fixed rate U.S. Treasuries 1,449,408 17,128 1,466,536 ā 1,458 (43) 1,467,951 Total available-for-sale 3,826,582 17,084 3,843,666 (36) 13,642 (3,580) 3,853,692 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 ā 45,032 ā 1,201 ā 46,233 Total held-to-maturity $ 45,032 $ ā $ 45,032 $ ā $ 1,201 $ ā $ 46,233 (1) Amounts presented exclude $9.0 million of accrued interest receivable on investment securities as of December 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 1.5% as of December 31, 2020. During the year ended December 31, 2021, Farmer Mac received proceeds of $257.5 million, from the sale of securities from its available-for-sale investment portfolio, resulting in gains of $0.3 million. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the year ended December 31, 2020. During the year ended December 31, 2019, Farmer Mac received proceeds of $12.4 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized losses of $0.2 million. As of December 31, 2021 and December 31, 2020, unrealized losses on available-for-sale investment securities were as follows: Table 4.2 As of December 31, 2021 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 $ ā $ ā $ 19,254 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 459,195 (619) 37,307 (477) Fixed rate Government/GSE guaranteed mortgage-backed securities 406,805 (5,730) ā ā Fixed rate U.S. Treasuries 1,123,439 (3,070) 51,031 (184) Total $ 1,989,439 $ (9,419) $ 107,592 $ (1,055) Number of securities in loss position 69 24 As of December 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 $ ā $ ā $ 19,171 $ (493) Floating rate asset-backed securities ā ā 6,231 (1) Floating rate Government/GSE guaranteed mortgage-backed securities 172,842 (593) 324,423 (2,450) Fixed rate U.S. Treasuries 364,320 (43) ā ā Total $ 537,162 $ (636) $ 349,825 $ (2,944) Number of securities in loss position 27 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 December 31, 2021 and December 31, 2020, 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 December 31, 2021 and December 31, 2020, 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 December 31, 2021 that is, on average, approximately 99.0% 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 December 31, 2021 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 4.3 As of December 31, 2021 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 646,946 $ 646,518 1.23% Due after one year through five years 812,878 810,767 0.42% Due after five years through ten years 1,712,906 1,710,515 0.88% Due after ten years 661,984 668,591 0.64% Total $ 3,834,714 $ 3,836,391 0.80% The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of December 31, 2021 and December 31, 2020: Table 5.1 As of December 31, 2021 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 2,003,486 $ ā $ 2,003,486 $ (132) $ 10,097 $ (12,764) $ 2,000,687 Farmer Mac Guaranteed USDA Securities 29,859 26 29,885 ā 1,162 ā 31,047 Total Farmer Mac Guaranteed Securities 2,033,345 26 2,033,371 (132) 11,259 (12,764) 2,031,734 USDA Securities 2,411,649 24,682 2,436,331 ā 95,741 ā 2,532,072 Total held-to-maturity $ 4,444,994 $ 24,708 $ 4,469,702 $ (132) $ 107,000 $ (12,764) $ 4,563,806 Available-for-sale: AgVantage $ 6,122,240 $ 1,270 $ 6,123,510 $ (263) $ 212,908 $ (20,010) $ 6,316,145 Farmer Mac Guaranteed Securities (3) ā 12,297 12,297 ā 117 ā 12,414 Total available-for-sale $ 6,122,240 $ 13,567 $ 6,135,807 $ (263) $ 213,025 $ (20,010) $ 6,328,559 Trading: USDA Securities (4) $ 4,299 $ 134 $ 4,433 $ ā $ 1 $ (33) $ 4,401 (1) Amounts presented exclude $29.8 million, $42.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2021. (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) Fair value includes $12.4 million of an interest-only security with a notional amount of $275.4 million. (4) The trading USDA securities had a weighted average yield of 5.05% as of December 31, 2021. As of December 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 $ 1,141,430 $ (55) $ 1,141,375 $ (120) $ 23,986 $ (61) $ 1,165,180 Farmer Mac Guaranteed USDA Securities 34,456 81 34,537 ā 1,273 ā 35,810 Total Farmer Mac Guaranteed Securities 1,175,886 26 1,175,912 (120) 25,259 (61) 1,200,990 USDA Securities 2,446,550 27,076 2,473,626 ā 157,748 (560) 2,630,814 Total held-to-maturity $ 3,622,436 $ 27,102 $ 3,649,538 $ (120) $ 183,007 $ (621) $ 3,831,804 Available-for-sale: AgVantage $ 6,593,518 $ 1,474 $ 6,594,992 $ (310) $ 368,257 $ (15,238) $ 6,947,701 Trading: USDA Securities (3) $ 6,413 $ 198 $ 6,611 $ ā $ 84 $ ā $ 6,695 (1) Amounts presented exclude $32.3 million, $44.7 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 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 5.05% as of December 31, 2020. As of December 31, 2021 and December 31, 2020, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 5.2 As of December 31, 2021 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 $ 1,387,236 $ (12,764) $ ā $ ā USDA Securities ā ā ā ā Total held-to-maturity $ 1,387,236 $ (12,764) $ ā $ ā Available-for-sale: AgVantage $ 1,867,364 $ (17,263) $ 90,971 $ (2,747) As of December 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: AgVantage $ 49,939 $ (61) $ ā $ ā USDA Securities ā ā 21,061 (560) Total held-to-maturity $ 49,939 $ (61) $ 21,061 $ (560) Available-for-sale: AgVantage $ 133,703 $ (231) $ 981,757 $ (15,007) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to December 31, 2021 and December 31, 2020, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both December 31, 2021 and December 31, 2020 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 Securities in the Agricultural Finance line of business is covered by the full faith and credit guarantee of the United States of America. The unrealized losses from AgVantage securities were on 13 and 11 available-for-sale securities as of December 31, 2021 and December 31, 2020, respectively. There were 10 and 2 held-to-maturity AgVantage securities with an unrealized loss as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021 and December 31, 2020, 2 and 7 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. During the three years ended December 31, 2021, 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 December 31, 2021 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 5.3 As of December 31, 2021 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,401,396 $ 1,408,170 1.80 % Due after one year through five years 2,142,369 2,194,055 2.52 % Due after five years through ten years 1,008,986 1,034,586 2.21 % Due after ten years 1,583,056 1,691,748 2.46 % Total $ 6,135,807 $ 6,328,559 2.28 % (1) Amounts presented exclude $29.8 million of accrued interest receivable. As of December 31, 2021 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,146,637 $ 1,146,747 0.65 % Due after one year through five years 904,570 902,695 2.09 % Due after five years through ten years 253,388 262,906 2.76 % Due after ten years 2,165,107 2,251,458 3.15 % Total $ 4,469,702 $ 4,563,806 2.26 % (1) Amounts presented exclude $42.1 million of accrued interest receivable. |
Farmer Mac Guaranteed Securitie
Farmer Mac Guaranteed Securities and USDA Securities | 12 Months Ended |
Dec. 31, 2021 | |
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 available-for-sale and held-to-maturity investment securities as of December 31, 2021 and December 31, 2020: Table 4.1 As of December 31, 2021 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 $ ā $ 19,700 $ (52) $ ā $ (394) $ 19,254 Floating rate Government/GSE guaranteed mortgage-backed securities 2,168,016 90 2,168,106 ā 11,821 (1,096) 2,178,831 Fixed rate GSE guaranteed mortgage-backed securities 451,660 12,525 464,185 ā 382 (5,730) 458,837 Fixed rate U.S. Treasuries 1,180,000 2,723 1,182,723 ā ā (3,254) 1,179,469 Total available-for-sale 3,819,376 15,338 3,834,714 (52) 12,203 (10,474) 3,836,391 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 44,970 ā 44,970 ā 1,612 ā 46,582 Total held-to-maturity $ 44,970 $ ā $ 44,970 $ ā $ 1,612 $ ā $ 46,582 (1) Amounts presented exclude $4.3 million of accrued interest receivable on investment securities as of December 31, 2021. (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 1.5% as of December 31, 2021. As of December 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 $ ā $ 19,700 $ (36) $ ā $ (493) $ 19,171 Floating rate asset-backed securities 6,232 ā 6,232 ā ā (1) 6,231 Floating rate Government/GSE guaranteed mortgage-backed securities 2,350,963 (44) 2,350,919 ā 12,150 (3,043) 2,360,026 Fixed rate GSE guaranteed mortgage-backed securities 279 ā 279 ā 34 ā 313 Fixed rate U.S. Treasuries 1,449,408 17,128 1,466,536 ā 1,458 (43) 1,467,951 Total available-for-sale 3,826,582 17,084 3,843,666 (36) 13,642 (3,580) 3,853,692 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 ā 45,032 ā 1,201 ā 46,233 Total held-to-maturity $ 45,032 $ ā $ 45,032 $ ā $ 1,201 $ ā $ 46,233 (1) Amounts presented exclude $9.0 million of accrued interest receivable on investment securities as of December 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 1.5% as of December 31, 2020. During the year ended December 31, 2021, Farmer Mac received proceeds of $257.5 million, from the sale of securities from its available-for-sale investment portfolio, resulting in gains of $0.3 million. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the year ended December 31, 2020. During the year ended December 31, 2019, Farmer Mac received proceeds of $12.4 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized losses of $0.2 million. As of December 31, 2021 and December 31, 2020, unrealized losses on available-for-sale investment securities were as follows: Table 4.2 As of December 31, 2021 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 $ ā $ ā $ 19,254 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 459,195 (619) 37,307 (477) Fixed rate Government/GSE guaranteed mortgage-backed securities 406,805 (5,730) ā ā Fixed rate U.S. Treasuries 1,123,439 (3,070) 51,031 (184) Total $ 1,989,439 $ (9,419) $ 107,592 $ (1,055) Number of securities in loss position 69 24 As of December 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 $ ā $ ā $ 19,171 $ (493) Floating rate asset-backed securities ā ā 6,231 (1) Floating rate Government/GSE guaranteed mortgage-backed securities 172,842 (593) 324,423 (2,450) Fixed rate U.S. Treasuries 364,320 (43) ā ā Total $ 537,162 $ (636) $ 349,825 $ (2,944) Number of securities in loss position 27 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 December 31, 2021 and December 31, 2020, 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 December 31, 2021 and December 31, 2020, 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 December 31, 2021 that is, on average, approximately 99.0% 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 December 31, 2021 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 4.3 As of December 31, 2021 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 646,946 $ 646,518 1.23% Due after one year through five years 812,878 810,767 0.42% Due after five years through ten years 1,712,906 1,710,515 0.88% Due after ten years 661,984 668,591 0.64% Total $ 3,834,714 $ 3,836,391 0.80% The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of December 31, 2021 and December 31, 2020: Table 5.1 As of December 31, 2021 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 2,003,486 $ ā $ 2,003,486 $ (132) $ 10,097 $ (12,764) $ 2,000,687 Farmer Mac Guaranteed USDA Securities 29,859 26 29,885 ā 1,162 ā 31,047 Total Farmer Mac Guaranteed Securities 2,033,345 26 2,033,371 (132) 11,259 (12,764) 2,031,734 USDA Securities 2,411,649 24,682 2,436,331 ā 95,741 ā 2,532,072 Total held-to-maturity $ 4,444,994 $ 24,708 $ 4,469,702 $ (132) $ 107,000 $ (12,764) $ 4,563,806 Available-for-sale: AgVantage $ 6,122,240 $ 1,270 $ 6,123,510 $ (263) $ 212,908 $ (20,010) $ 6,316,145 Farmer Mac Guaranteed Securities (3) ā 12,297 12,297 ā 117 ā 12,414 Total available-for-sale $ 6,122,240 $ 13,567 $ 6,135,807 $ (263) $ 213,025 $ (20,010) $ 6,328,559 Trading: USDA Securities (4) $ 4,299 $ 134 $ 4,433 $ ā $ 1 $ (33) $ 4,401 (1) Amounts presented exclude $29.8 million, $42.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2021. (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) Fair value includes $12.4 million of an interest-only security with a notional amount of $275.4 million. (4) The trading USDA securities had a weighted average yield of 5.05% as of December 31, 2021. As of December 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 $ 1,141,430 $ (55) $ 1,141,375 $ (120) $ 23,986 $ (61) $ 1,165,180 Farmer Mac Guaranteed USDA Securities 34,456 81 34,537 ā 1,273 ā 35,810 Total Farmer Mac Guaranteed Securities 1,175,886 26 1,175,912 (120) 25,259 (61) 1,200,990 USDA Securities 2,446,550 27,076 2,473,626 ā 157,748 (560) 2,630,814 Total held-to-maturity $ 3,622,436 $ 27,102 $ 3,649,538 $ (120) $ 183,007 $ (621) $ 3,831,804 Available-for-sale: AgVantage $ 6,593,518 $ 1,474 $ 6,594,992 $ (310) $ 368,257 $ (15,238) $ 6,947,701 Trading: USDA Securities (3) $ 6,413 $ 198 $ 6,611 $ ā $ 84 $ ā $ 6,695 (1) Amounts presented exclude $32.3 million, $44.7 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 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 5.05% as of December 31, 2020. As of December 31, 2021 and December 31, 2020, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 5.2 As of December 31, 2021 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 $ 1,387,236 $ (12,764) $ ā $ ā USDA Securities ā ā ā ā Total held-to-maturity $ 1,387,236 $ (12,764) $ ā $ ā Available-for-sale: AgVantage $ 1,867,364 $ (17,263) $ 90,971 $ (2,747) As of December 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: AgVantage $ 49,939 $ (61) $ ā $ ā USDA Securities ā ā 21,061 (560) Total held-to-maturity $ 49,939 $ (61) $ 21,061 $ (560) Available-for-sale: AgVantage $ 133,703 $ (231) $ 981,757 $ (15,007) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to December 31, 2021 and December 31, 2020, as applicable. The unrealized losses on the held-to-maturity USDA Securities as of both December 31, 2021 and December 31, 2020 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 Securities in the Agricultural Finance line of business is covered by the full faith and credit guarantee of the United States of America. The unrealized losses from AgVantage securities were on 13 and 11 available-for-sale securities as of December 31, 2021 and December 31, 2020, respectively. There were 10 and 2 held-to-maturity AgVantage securities with an unrealized loss as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021 and December 31, 2020, 2 and 7 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. During the three years ended December 31, 2021, 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 December 31, 2021 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 5.3 As of December 31, 2021 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,401,396 $ 1,408,170 1.80 % Due after one year through five years 2,142,369 2,194,055 2.52 % Due after five years through ten years 1,008,986 1,034,586 2.21 % Due after ten years 1,583,056 1,691,748 2.46 % Total $ 6,135,807 $ 6,328,559 2.28 % (1) Amounts presented exclude $29.8 million of accrued interest receivable. As of December 31, 2021 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,146,637 $ 1,146,747 0.65 % Due after one year through five years 904,570 902,695 2.09 % Due after five years through ten years 253,388 262,906 2.76 % Due after ten years 2,165,107 2,251,458 3.15 % Total $ 4,469,702 $ 4,563,806 2.26 % (1) Amounts presented exclude $42.1 million of accrued interest receivable. |
Financial Derivatives
Financial Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL DERIVATIVES | FINANCIAL DERIVATIVES Farmer 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. Certain financial derivatives are designated as fair value hedges of fixed rate assets, classified as available-for-sale, to protect against fair value changes in the assets related to changes in a benchmark interest rate (e.g., LIBOR or SOFR). Certain other financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt. Certain financial derivatives are not designated in hedge accounting relationships. Farmer Mac manages the interest rate risk related to loans it has committed to acquire, but has not yet permanently funded, primarily through the use of forward sale contracts on the debt of other GSEs and futures contracts involving U.S. Treasury securities. Farmer Mac uses forward sale contracts on GSE securities to reduce its interest rate exposure to changes in both U.S. Treasury rates and spreads on Farmer Mac debt. Farmer Mac aims to achieve a duration-matched hedge ratio between the hedged item and the hedge instrument. Gains or losses generated by these hedge transactions are expected to offset changes in funding costs. All financial derivatives are recorded on the balance sheet at fair value as a freestanding asset or liability. 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 December 31, 2021 and December 31, 2020: Table 6.1 As of December 31, 2021 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Pay fixed non-callable $ 6,238,438 $ 11,554 $ (583) 2.06% 0.13% 11.64 Receive fixed non-callable 5,884,529 15 (8,383) 0.17% 0.88% 2.27 Receive fixed callable 1,571,577 103 (17,612) 0.01% 0.80% 4.17 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 570,000 6,905 (2,763) 1.93% 0.49% 5.72 No hedge designation: Interest rate swaps: Pay fixed non-callable 229,062 ā (4,641) 3.22% 0.16% 4.95 Receive fixed non-callable 1,377,250 ā ā 0.13% 0.43% 0.97 Basis swaps 1,608,911 489 (280) 0.17% 0.20% 3.31 Treasury futures 67,600 73 ā 130.58 Credit valuation adjustment ā 14 Total financial derivatives $ 17,547,367 $ 19,139 $ (34,248) Collateral (held)/pledged ā 194,519 Net amount $ 19,139 $ 160,271 As of December 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 $ 5,463,303 $ 10,157 $ (2,585) 2.26% 0.21% 11.95 Receive fixed non-callable 2,611,029 2 (8,755) 0.32% 1.61% 2.10 Receive fixed callable 343,500 3,108 (4) 0.16% 1.78% 3.16 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 472,000 2,584 (8,771) 2.04% 0.57% 6.04 No hedge designation: Interest rate swaps: Pay fixed non-callable 339,090 ā (9,675) 2.38% 0.19% 4.23 Receive fixed non-callable 2,359,220 ā ā 0.16% 0.87% 1.07 Receive fixed callable 200,000 1 (12) 0.13% 0.15% 0.72 Basis swaps 3,628,911 1,617 (43) 0.18% 0.23% 2.03 Treasury futures 30,500 ā (82) 137.81 Credit valuation adjustment (1) 35 Total financial derivatives $ 15,447,553 $ 17,468 $ (29,892) Collateral (held)/pledged (1,345) 212,263 Net amount $ 16,123 $ 182,371 As of December 31, 2021, Farmer Mac expects to reclassify $4.6 million after-tax from accumulated other comprehensive income to earnings over the next twelve months related to cash flow hedges. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges after December 31, 2021. During the years ended December 31, 2021 and 2020, 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 tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the years ended December 31, 2021, 2020, and 2019: Table 6.2 For the Year Ended December 31, 2021 Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives Net Interest Income Non-Interest Income Total Interest Income Investments and Cash Equivalents 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 $ 18,660 $ 163,547 $ 242,582 $ (204,014) $ (3,348) $ 217,427 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (1,002) (85,302) (27,167) 42,591 ā (70,880) Recognized on hedged items 1,792 119,896 46,842 (51,484) ā 117,046 Discount amortization recognized on hedged items ā ā ā (1,118) ā (1,118) Income/(expense) related to interest settlements on fair value hedging relationships $ 790 $ 34,594 $ 19,675 $ (10,011) $ ā $ 45,048 Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ 1,688 $ 177,077 $ 97,459 $ (98,332) $ ā $ 177,892 Recognized on hedged items (1,218) (176,304) (97,502) 95,617 ā (179,407) Gains/(losses) on fair value hedging relationships $ 470 $ 773 $ (43) $ (2,715) $ ā $ (1,515) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ ā $ ā $ ā $ (7,399) $ ā $ (7,399) Recognized on hedged items ā ā ā (2,657) ā (2,657) Discount amortization recognized on hedged items ā ā ā (37) ā (37) Expense recognized on cash flow hedges $ ā $ ā $ ā $ (10,093) $ ā $ (10,093) Losses on financial derivatives not designated in hedging relationships: Losses on interest rate swaps $ ā $ ā $ ā $ ā $ (5,816) $ (5,816) Interest expense on interest rate swaps ā ā ā ā 3,259 3,259 Treasury futures ā ā ā ā (791) (791) Losses on financial derivatives not designated in hedge relationships $ ā $ ā $ ā $ ā $ (3,348) $ (3,348) For The Year Ended December 31, 2020 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: $ 227,691 $ 233,699 $ (312,946) $ (246) $ 148,198 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (60,056) (19,135) 26,386 ā (52,805) Recognized on hedged items 126,170 40,793 (51,230) ā 115,733 Discount amortization recognized on hedged items ā ā (745) ā (745) Income/(expense) related to interest settlements on fair value hedging relationships $ 66,114 $ 21,658 $ (25,589) $ ā $ 62,183 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ (206,281) $ (76,565) $ 43,332 $ ā $ (239,514) Recognized on hedged items 202,624 73,426 (45,720) ā 230,330 (Losses)/gains on fair value hedging relationships $ (3,657) $ (3,139) $ (2,388) $ ā $ (9,184) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ ā $ ā $ (5,570) $ ā $ (5,570) Recognized on hedged items ā ā (4,553) ā (4,553) Discount amortization recognized on hedged items ā ā (13) ā (13) Expense recognized on cash flow hedges $ ā $ ā $ (10,136) $ ā $ (10,136) (Losses)/gains on financial derivatives not designated in hedge relationships: Losses on interest rate swaps $ ā $ ā $ ā $ (4,204) $ (4,204) Interest expense on interest rate swaps ā ā ā 5,808 5,808 Treasury futures ā ā ā (1,850) (1,850) (Losses)/gains on financial derivatives not designated in hedge relationships $ ā $ ā $ ā $ (246) $ (246) For The Year Ended December 31, 2019 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 Gains/(losses) on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations $ 333,896 $ 229,675 $ (471,958) $ 5,282 $ 96,895 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (2,177) (2,053) (6,227) ā (10,457) Recognized on hedged items 118,609 26,352 (45,309) ā 99,652 Discount amortization recognized on hedged items ā ā (631) ā (631) Income/(expense) related to interest settlements on fair value hedging relationships $ 116,432 $ 24,299 $ (52,167) $ ā $ 88,564 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ (184,478) $ (50,141) $ 18,401 $ ā $ (216,218) Recognized on hedged items 181,144 43,194 (16,027) ā 208,311 (Losses)/gains on fair value hedging relationships $ (3,334) $ (6,947) $ 2,374 $ ā $ (7,907) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ ā $ ā $ 1,166 $ ā $ 1,166 Recognized on hedged items ā ā (10,569) ā (10,569) Discount amortization recognized on hedged items ā ā (4) ā (4) Expense recognized on cash flow hedges $ ā $ ā $ (9,407) $ ā $ (9,407) Gains on financial derivatives not designated in hedging relationships: Gains on interest rate swaps $ ā $ ā $ ā $ 10,321 $ 10,321 Interest expense on interest rate swaps ā ā ā (4,213) (4,213) Treasury futures ā ā ā (826) (826) Gains on financial derivatives not designated in hedge relationships $ ā $ ā $ ā $ 5,282 $ 5,282 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 December 31, 2021 and December 31, 2020: Table 6.3 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) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in thousands) Investment securities, Available-for-Sale, at fair value $ 458,653 $ ā $ (1,218) $ ā Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value (1) 4,276,002 4,244,027 206,520 382,825 Loans held for investment, at amortized cost (2) 1,668,142 1,692,609 13,832 111,333 Notes Payable (3) (7,083,535) (3,006,140) 42,377 (53,240) (1) Includes $1.3 million and $1.6 million of hedging adjustments on discontinued hedging relationships as of December 31, 2021 and December 31, 2020, respectively. (2) Includes $1.2 million and $1.4 million of hedging adjustments on a discontinued hedging relationship as of December 31, 2021 and December 31, 2020, respectively. (3) Carrying amount represents amortized cost. The following table shows Farmer Mac's credit exposure to interest rate swap counterparties as of December 31, 2021 and December 31, 2020: Table 6.4 December 31, 2021 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swap $ 91,130 $ 91,130 $ ā Liabilities: Derivatives Interest rate swap $ 404,063 $ 386,249 $ 17,814 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. December 31, 2020 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swaps $ 112,287 $ 111,761 $ 526 Liabilities: Derivatives Interest rate swaps $ 620,236 $ 595,867 $ 24,369 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. As of December 31, 2021, Farmer Mac held no cash or investment securities as collateral for its derivatives in net asset positions, compared to $1.3 million of cash and no investment securities as collateral for its derivatives in net asset positions as of December 31, 2020. Farmer Mac posted $16.6 million cash and $177.9 million of investment securities as of December 31, 2021 and posted $11.2 million cash and $201.1 million investment securities as of December 31, 2020. 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 December 31, 2021 or December 31, 2020, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral. As of December 31, 2021 and December 31, 2020, 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 $17.5 billion notional amount of interest rate swaps outstanding as of December 31, 2021, $14.9 billion were cleared through the swap clearinghouse, the Chicago Mercantile Exchange ("CME"). Of Farmer Mac's $15.4 billion notional amount of interest rate swaps outstanding as of December 31, 2020, $12.8 billion were cleared through the CME. During 2021 and throughout 2020, Farmer Mac continued the use of non-cleared basis swaps to prepare for the transition away from the use of LIBOR as a reference rate. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2021 | |
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 25.0 years. The following tables set forth information related to Farmer Mac's borrowings as of December 31, 2021 and December 31, 2020: Table 7.1 December 31, 2021 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 $ 2,167,979 0.05 % $ 1,822,714 0.08 % Medium-term notes 837,580 0.09 % 1,956,870 0.12 % Current portion of medium-term notes 3,981,240 0.75 % Total due within one year $ 6,986,799 0.45 % Due after one year: Medium-term notes due in: Two years $ 4,179,985 0.81 % Three years 2,554,906 0.87 % Four years 2,119,805 0.85 % Five years 2,810,894 1.07 % Thereafter 4,106,144 1.69 % Total due after one year $ 15,771,734 1.10 % Total principal net of discounts $ 22,758,533 0.90 % Hedging adjustments (42,377) Total $ 22,716,156 December 31, 2020 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 $ 1,797,175 0.11 % $ 2,343,702 0.63 % Medium-term notes 2,645,146 0.19 % 1,593,253 0.60 % Current portion of medium-term notes 6,304,061 0.90 % Total due within one year $ 10,746,382 0.59 % Due after one year: Medium-term notes due in: Two years $ 3,004,203 1.00 % Three years 2,809,551 1.24 % Four years 927,119 1.67 % Five years 1,342,250 1.03 % Thereafter 2,966,172 1.92 % Total due after one year $ 11,049,295 1.37 % Total principal net of discounts $ 21,795,677 0.98 % Hedging adjustments 53,240 Total $ 21,848,917 The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the years ended December 31, 2021 and 2020 was $2.4 billion and $2.6 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 2022 as of December 31, 2021: Table 7.2 Debt Callable in 2022 as of December 31, 2021, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2023 $ 243,795 0.42 % 2024 318,346 0.40 % 2025 372,048 0.92 % 2026 1,060,594 1.08 % Thereafter 1,368,758 1.67 % Total $ 3,363,541 1.19 % The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of December 31, 2021, 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: 2022 $ 8,795,560 0.43 % 2023 3,588,630 0.91 % 2024 2,489,936 0.89 % 2025 1,859,428 0.92 % 2026 2,632,015 1.10 % Thereafter 3,392,964 1.96 % Total principal net of discounts $ 22,758,533 0.90 % During the years ended December 31, 2021 and 2020, Farmer Mac called $2.0 billion and $3.1 billion of callable medium-term notes, respectively. Authority to Borrow from the U.S. Treasury Farmer Mac's statutory charter authorizes it, upon satisfying certain conditions, 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 to fulfill 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 December 31, 2021, Farmer Mac had not used this borrowing authority. Gains on Repurchase of Outstanding Debt During the year ended December 31, 2021, Farmer Mac repurchased $23.0 million of outstanding debt at a gain of $14,000; no outstanding debt repurchases were made in the years ended December 31, 2020 and 2019. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LOANS | LOANS Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of both December 31, 2021 and December 31, 2020, Farmer Mac had no loans held for sale. Farmer Mac did not record any lower of cost or fair value adjustments during the year ended December 31, 2021 related to its loans held for sale. The following table includes loans held for investment and displays the composition of the loan balances as of December 31, 2021 and December 31, 2020: Table 8.1 As of December 31, 2021 As of December 31, 2020 Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Agricultural Finance mortgage loans $ 5,898,370 $ 948,623 $ 6,846,993 $ 4,889,393 $ 1,287,045 $ 6,176,438 Rural Infrastructure Finance loans 2,389,136 ā 2,389,136 2,260,412 ā 2,260,412 Total unpaid principal balance (1) 8,287,506 948,623 9,236,129 7,149,805 1,287,045 8,436,850 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments 26,590 ā 26,590 112,128 ā 112,128 Total loans 8,314,096 948,623 9,262,719 7,261,933 1,287,045 8,548,978 Allowance for losses (13,477) (564) (14,041) (12,943) (889) (13,832) Total loans, net of allowance $ 8,300,619 $ 948,059 $ 9,248,678 $ 7,248,990 $ 1,286,156 $ 8,535,146 (1) 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 December 31, 2021 and December 31, 2020: Table 8.2 December 31, 2021 December 31, 2020 Allowance for Losses Allowance for Losses (in thousands) Loans: Agricultural Finance mortgage loans $ 3,442 $ 3,745 Rural Infrastructure Finance loans 10,599 10,087 Total $ 14,041 $ 13,832 The following is a summary of the changes in the allowance for losses for each year in the three-year period ended December 31, 2021: Table 8.3 Agricultural Finance mortgage loans Rural Infrastructure Finance loans Allowance for Losses Allowance for Losses (in thousands) Balance as of December 31, 2018 (1) $ 7,017 $ ā Provision for losses 3,504 ā Charge-offs (67) ā Balance as of December 31, 2019 (1) $ 10,454 $ ā Cumulative effect adjustment from adoption of current expected credit loss standard (3,909) 5,378 Adjusted Beginning Balance $ 6,545 $ 5,378 Provision for losses 2,959 4,709 Charge-offs (5,759) ā Balance as of December 31, 2020 (2)(3)(4) $ 3,745 $ 10,087 (Release of)/provision for losses (1,357) 512 Recovery 1,054 ā Charge-offs ā ā Balance as of December 31, 2021 (3)(4) $ 3,442 $ 10,599 (1) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held. (2) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020. (3) As of both December 31, 2021 and 2020, allowance for losses for Agricultural Finance mortgage loans includes no allowance, for collateral dependent assets secured by agricultural real estate. (4) As of both December 31, 2021 and 2020, allowance for losses for Rural Infrastructure Finance loans includes no allowance for collateral dependent assets. The provision to the allowance for Rural Infrastructure Finance loan losses of $0.5 million recorded during the year ended 2021 was primarily attributable to the impact of the Texas Arctic Freeze, partially offset by the impact of improving economic factor forecasts. The $1.4 million release from the allowance for the Agricultural Finance mortgage loan portfolio during the year ended 2021 was primarily attributable to a recovery on the payoff of the agricultural storage and processing loan secured by a specialized poultry facility that had been partially charged off in 2020 and improving economic factor forecasts. The provision to the allowance for Rural Infrastructure Finance loan losses of $4.7 million recorded during the year ended December 31, 2020 was primarily attributable to the impact of net new loan volume in the portfolio and the impact of economic factor forecasts, especially continued expected higher unemployment, as a result of the COVID-19 pandemic and the resulting economic volatility. The provision to the allowance for Agricultural Finance mortgage loans of $3.0 million recorded during the year ended December 31, 2020 was primarily related to an agricultural storage and processing loan secured by a specialized poultry facility that Farmer Mac has deemed to be a CDA. The provision was more than offset by charge-offs from the allowance of $5.8 million, primarily related to the specialized poultry loan because a portion of the loan was deemed to be uncollectible. The provision to the allowance for loan losses recorded during 2019 was primarily attributable to a specific reserve on a single specialized poultry loan, a decrease in overall credit quality, and net portfolio growth. The allowance for losses in the Agricultural Finance mortgage loan portfolio, as a percentage of outstanding loan volume, increased slightly from the previous year. The total provision for losses increased by $3.2 million, during 2019 as compared to 2018, primarily due to the specific reserve on the agricultural storage and processing loan secured by a specialized poultry facility loan mentioned above and a decrease in overall credit quality combined with net portfolio growth. The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of December 31, 2021 and December 31, 2020: Table 8.4 As of December 31, 2021 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance mortgage loans $ 6,715,070 $ 4,548 $ 568 $ ā $ 5,116 $ 126,807 $ 6,846,993 Rural Infrastructure Finance loans 2,389,136 ā ā ā ā ā 2,389,136 Total $ 9,104,206 $ 4,548 $ 568 $ ā $ 5,116 $ 126,807 $ 9,236,129 (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) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3) 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. (4) Includes $31.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2021, Farmer Mac received $5.0 million, in interest on nonaccrual loans. As of December 31, 2020 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance mortgage loans $ 6,055,154 $ 4,582 $ 632 $ 1,072 $ 6,286 $ 114,998 $ 6,176,438 Rural Infrastructure Finance loans 2,260,412 ā ā ā ā ā 2,260,412 Total $ 8,315,566 $ 4,582 $ 632 $ 1,072 $ 6,286 $ 114,998 $ 8,436,850 (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) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3) 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. (4) Includes $44.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2020, Farmer Mac received $4.4 million in interest on nonaccrual loans. Credit Quality Indicators The following tables present credit quality indicators related to Farm & Ranch loans and Rural Infrastructure loans held as of December 31, 2021 and December 31, 2020, by year of origination: Table 8.5 As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance mortgage loans (1) : Internally Assigned Risk Rating: Acceptable $ 2,138,060 $ 1,541,509 $ 540,139 $ 324,917 $ 303,852 $ 1,004,709 $ 545,370 $ 6,398,556 Special mention (2) 84,795 50,057 51,200 48,078 9,132 14,646 4,771 262,679 Substandard (3) 1,654 4,997 26,237 27,109 38,703 75,780 11,278 185,758 Total $ 2,224,509 $ 1,596,563 $ 617,576 $ 400,104 $ 351,687 $ 1,095,135 $ 561,419 $ 6,846,993 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā (1,054) ā ā (1,054) Current period Agricultural Finance recoveries $ ā $ ā $ ā $ ā $ (1,054) $ ā $ ā $ (1,054) (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. As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 242,570 $ 612,366 $ 774,941 $ 8,100 $ 86,878 $ 628,903 $ 12,578 $ 2,366,336 Special mention (2) ā ā ā ā ā ā ā ā Substandard (3) ā 22,800 ā ā ā ā ā 22,800 Total $ 242,570 $ 635,166 $ 774,941 $ 8,100 $ 86,878 $ 628,903 $ 12,578 $ 2,389,136 For the Year Ended Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. As of December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance mortgage loans (1) : Internally Assigned Risk Rating: Acceptable $ 1,947,618 $ 774,315 $ 484,345 $ 500,768 $ 465,277 $ 1,068,693 $ 535,742 $ 5,776,758 Special mention (2) 70,171 79,744 18,317 8,530 13,111 21,328 7,656 218,857 Substandard (3) 3,400 5,821 21,879 52,709 37,173 50,582 9,259 180,823 Total $ 2,021,189 $ 859,880 $ 524,541 $ 562,007 $ 515,561 $ 1,140,603 $ 552,657 $ 6,176,438 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ 5,365 $ ā $ 394 $ ā $ 5,759 Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ 5,365 $ ā $ 394 $ ā $ 5,759 (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. As of December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 667,489 $ 809,921 $ 8,260 $ 89,842 $ 31,275 $ 641,145 $ 12,480 $ 2,260,412 Special mention (2) ā ā ā ā ā ā ā ā Substandard (3) ā ā ā ā ā ā ā ā Total $ 667,489 $ 809,921 $ 8,260 $ 89,842 $ 31,275 $ 641,145 $ 12,480 $ 2,260,412 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock Farmer Mac has three classes of common stock outstanding: ā¢ Class A voting common stock, which may be held only by banks, insurance companies, and other financial institutions or similar entities that are not institutions of the Farm Credit System. By federal statute, no holder of Class A voting common stock may directly or indirectly be a beneficial owner of more than 33% of the outstanding shares of Class A voting common stock. ā¢ Class B voting common stock, which may be held only by institutions of the Farm Credit System. There are no restrictions on the maximum holdings of Class B voting common stock. ā¢ Class C non-voting common stock, which has no ownership restrictions. During 2021, 2020, and 2019, Farmer Mac paid a quarterly dividend of $0.88, $0.80, and $0.70 per share on all classes of its common stock. Farmer Mac's ability to declare and pay dividends on its common stock could be restricted if it fails to comply with applicable capital requirements. 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. In March 2021, Farmer Mac's board of directors reinstated the share repurchase program on its previous terms (with a remaining authorization of up to $9.8 million in stock repurchases) and extended the expiration date of the program to March 2023. Farmer Mac did not repurchase any shares of its Class C non-voting common stock during 2021. As of December 31, 2021, 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. Preferred Stock In May 2021, Farmer Mac issued 5.0 million shares of 4.875% non-cumulative perpetual Series G preferred stock, par value $25.00 per share. Farmer Mac incurred direct costs of $3.7 million related to the issuance of the Series G preferred stock. The dividend rate on the Series G preferred stock will remain at a non-cumulative, fixed rate of 4.875% per year, when, as, and if a dividend is declared by the Board of Directors of Farmer Mac, for so long as the Series G preferred stock remains outstanding. The Series G preferred stock has no maturity date, but Farmer Mac has the option to redeem the preferred stock at any time on any dividend payment date on and after July 17, 2026. The following table presents the Series C Preferred Stock, the Series D Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock, and the Series G Preferred Stock (collectively referred to as the "Outstanding Preferred Stock") as of December 31, 2021: Table 9.1 Name Issuance Date Issuance Cost Shares Issued Annual Dividend Rate (3) Liquidation Value Redemption Date (4) Series C (1) June 20, 2014 $ 1,618,583 3,000,000 6.000 % $ 25.00 July 18, 2024 Series D (2) May 13, 2019 $ 3,340,456 4,000,000 5.700 % $ 25.00 July 17, 2024 Series E May 20, 2020 $ 2,496,750 3,180,000 5.750 % $ 25.00 July 17, 2025 Series F August 20, 2020 $ 3,839,902 4,800,000 5.250 % $ 25.00 October 17, 2025 Series G May 27, 2021 $ 3,661,677 5,000,000 4.875 % $ 25.00 July 17, 2026 (1) The Series C Preferred Stock pays an annual dividend rate of 6.00% from the date of issuance to and including the quarterly payment date occurring on July 17, 2024, and thereafter, at a floating rate equal to three-month LIBOR plus 3.26%. (2) Farmer Mac has the option to redeem the preferred stock on any quarterly dividend payment date on and after July 17, 2024. (3) Dividends on all series of Outstanding Preferred Stock are non-cumulative, which means that if Farmer Mac's board of directors has not declared a dividend before the applicable dividend payment date for any dividend period, such dividend will not be paid or cumulate, and Farmer Mac will have no obligation to pay dividends for such dividend period, whether or not dividends on any series of Outstanding Preferred Stock are declared for any future dividend period. (4) Farmer Mac has the right but not the obligation to redeem. The following tables present the quarterly dividends paid by Farmer Mac on its outstanding preferred during 2021, 2020, and 2019: Table 9.2 2021 1st Quarter 2nd Quarter (1) 3rd Quarter 4th Quarter 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C $ 0.3750 $ 0.3750 $ 0.3750 $ 0.3750 5.700% Non-Cumulative Preferred Stock, Series D 0.3563 0.3563 0.3563 0.3563 5.750% Non-Cumulative Preferred Stock, Series E 0.3594 0.3594 0.3594 0.3594 5.250% Non-Cumulative Preferred Stock, Series F 0.3281 0.3281 0.3281 0.3281 4.875% Non-Cumulative Preferred Stock, Series G ā 0.1693 0.3047 0.3047 (1) For second quarter 2021, dividend payment includes $0.1693 per share on the Series G Preferred Stock for the period from but not including May 27, 2021 (issuance date) to and including July 17, 2021. 2020 1st Quarter 2nd Quarter (1) 3rd Quarter (2)(3) 4th Quarter 5.875% Non-Cumulative Preferred Stock, Series A $ 0.3672 $ 0.3672 $ 0.2530 $ ā 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 0.3750 0.3750 0.3750 0.3750 5.700% Non-Cumulative Preferred Stock, Series D 0.3563 0.3563 0.3563 0.3563 5.750% Non-Cumulative Preferred Stock, Series E ā 0.2276 0.3594 0.3594 5.250% Non-Cumulative Preferred Stock, Series F ā ā 0.2078 0.3281 (1) For second quarter 2020, dividend payment includes $0.2276 per share on the Series E Preferred Stock for the period from but not including May 20, 2020 (issuance date) to and including July 17, 2020. (2) For third quarter 2020 dividend payment includes $0.2530 per share on the Series A Preferred Stock for the period from but not including July 17, 2020 to and including the September 19, 2020 redemption date. (3) For third quarter 2020, dividend payment includes $0.2078 per share on the Series F Preferred Stock for the period from but not including August 20, 2020 (issuance date) to and including October 17, 2020. 2019 1st Quarter 2nd Quarter (1)(2) 3rd Quarter 4th Quarter 5.875% Non-Cumulative Preferred Stock, Series A $ 0.3672 $ 0.3672 $ 0.3672 $ 0.3672 6.875% Non-Cumulative Preferred Stock, Series B 0.4297 0.2626 ā ā 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 0.3750 0.3750 0.3750 0.3750 5.700% Non-Cumulative Preferred Stock, Series D ā 0.2533 0.3563 0.3563 (1) For second quarter 2019, dividend payment includes $0.2626 per share on the Series B Preferred Stock for the period from but not including April 17, 2019 to and including the June 12, 2019 redemption date. (2) For second quarter 2019, dividend payment includes $0.2533 per share on the Series D Preferred Stock for the period from but not including May 13, 2019 (issuance date) to and including July 17, 2019. Equity-Based Incentive Compensation Plans Farmer Mac's Amended and Restated 2008 Omnibus Incentive Compensation Plan authorizes the grant of restricted stock and SARs, among other alternative forms of equity-based compensation, to Farmer Mac's directors, officers, and employees. SARs awarded to officers and employees vest annually in thirds. Farmer Mac has not granted SARs to directors since 2008. If not exercised or cancelled earlier due to the termination of employment, SARs granted to officers or employees expire after 10 years from the grant date. For all SARs granted, the exercise price is equal to the closing price of Farmer Mac's Class C non-voting common stock on the date of grant. SARs granted during 2021 have an exercise price of $88.68 per share, SARs granted during 2020 have an exercise price ranging from $72.26 to $75.16 per share, and SARs granted during 2019 have an exercise price of $82.76 per share. During 2021, 2020, and 2019, restricted stock awards were granted to employees, officers, and directors with vesting periods of one The following tables summarize SARs and non-vested restricted stock activity for the years ended December 31, 2021, 2020, and 2019: Table 9.3 For the Years Ended December 31, 2021 2020 2019 SARs Weighted- SARs Weighted- SARs Weighted- Outstanding, beginning of year 116,417 $ 57.16 98,836 $ 46.47 124,960 $ 38.38 Granted 28,575 88.68 34,881 74.80 24,582 82.76 Exercised (14,583) 38.99 (15,912) 26.93 (40,851) 35.61 Canceled ā ā (1,388) 86.15 (9,855) 79.45 Outstanding, end of year 130,409 66.10 116,417 57.16 98,836 46.47 Exercisable at end of year 72,106 52.85 66,602 42.08 72,696 34.07 For the Years Ended December 31, 2021 2020 2019 Non-vested Weighted- Non-vested Weighted- Non-vested Weighted- Outstanding, beginning of year 83,956 $ 71.76 62,597 $ 75.81 80,153 $ 60.98 Granted 53,358 88.92 53,471 66.02 41,735 80.51 Canceled (1,184) 79.82 (4,042) 69.66 (17,054) 74.97 Vested and issued (32,239) 77.98 (28,070) 70.13 (42,237) 52.65 Outstanding, end of year 103,891 78.55 83,956 71.76 62,597 75.81 The cancellations of SARs and non-vested restricted stock during 2021, 2020, and 2019 were due to unvested awards terminating in accordance with the provisions of the applicable equity compensation plans or award agreements upon directors' or employees' departures from Farmer Mac. Cash is not received from exercises of SARs or the vesting and issuance of restricted stock. During 2021, 2020, and 2019 the reduction of income taxes payable as a result of the deduction for the exercise of SARs and the vesting or accelerated tax elections of restricted stock was $0.9 million, $0.5 million, and $1.0 million, respectively. During 2021, 2020, and 2019 , Farmer Mac recorded a net decrease to additional paid-in capital of $1.3 million, $0.6 million, and $1.8 million, respectively, related to stock-based compensation awards. As of December 31, 2021, Farmer Mac had no stock options outstanding. The following tables summarize information regarding SARs and non-vested restricted stock outstanding as of December 31, 2021: Table 9.4 SARs: Outstanding Exercisable Vested or Expected to Vest Range of SARs Weighted- SARs Weighted- SARs Weighted- $10.00 - $24.99 3,000 0.2 years 3,000 0.2 years 3,000 0.2 years 25.00 - 39.99 37,037 2.7 years 37,037 2.7 years 37,037 2.7 years 40.00 - 54.99 ā 0.0 years ā 0.0 years ā 0.0 years 55.00 - 69.99 3,381 5.3 years 3,381 5.3 years 3,381 5.3 years 70.00 - 84.99 52,458 7.9 years 22,730 7.7 years 52,458 7.9 years 85.00 - 99.99 34,533 8.7 years 5,958 6.3 years 34,533 8.7 years 130,409 72,106 130,409 Non-vested Restricted Stock: Outstanding Expected to Vest Weighted- Non-vested Restricted Stock Weighted-Average Remaining Contractual Non-vested Restricted Stock Weighted-Average Remaining Contractual $50.00 - $64.99 18,580 1.3 years 18,580 1.3 years 65.00 - 79.99 25,314 0.9 years 25,314 0.9 years 80.00 - 94.99 58,872 1.7 years 58,872 1.7 years 95.00-109.99 1,125 1.5 years 1,125 1.5 years 103,891 103,891 As of December 31, 2021 and 2020, the intrinsic value of SARs, and non-vested restricted stock outstanding, exercisable, and vested or expected to vest was $20.4 million and $8.5 million, respectively. During 2021, 2020, and 2019, the total intrinsic value of SARs exercised was $0.9 million, $0.7 million, and $1.9 million, respectively. As of December 31, 2021, there was $3.3 million of total unrecognized compensation cost related to non-vested SARs and restricted stock awards. This cost is expected to be recognized over a weighted-average period of 1.8 years. The weighted-average grant date fair values of SARs and restricted stock awards granted in 2021, 2020, and 2019 were $65.48, $45.91, and $58.27 per share, respectively. Under the fair value-based method of accounting for stock-based compensation cost, Farmer Mac recognized compensation expense of $4.3 million, $4.1 million, and $2.3 million during 2021, 2020, and 2019, respectively. The fair value of SARs was estimated using the Black-Scholes option pricing model based on the following assumptions: Table 9.5 For the Year Ended December 31, 2021 2020 2019 Risk-free interest rate 0.9% 0.9% 2.5% Expected years until exercise 6 years 6 years 6 years Expected stock volatility 39.1% 34.3% 33.8% Dividend yield 4.0% 4.2% 3.4% The risk-free interest rates used in the model were based on the U.S. Treasury yield curve in effect at the grant date. Farmer Mac used historical data to estimate the timing of option exercises and stock option cancellation rates used in the model. Expected volatilities were based on historical volatility of Farmer Mac's Class C non-voting common stock. The dividend yields were based on the expected dividends as a percentage of the value of Farmer Mac's Class C non-voting common stock on the grant date. Because restricted stock awards will be issued upon vesting regardless of the stock price, expected stock volatility is not considered in determining grant date fair value. Restricted stock awards also accrue dividends which are paid at vesting. The weighted-average grant date fair value of the restricted stock awarded in 2021, 2020, and 2019 was $88.92, $66.02, and $80.51 per share, respectively, which is based on the closing price of the stock on the date granted. 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 December 31, 2021 and December 31, 2020, 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 December 31, 2021, Farmer Mac's minimum capital requirement was $713.8 million and its core capital level was $1.2 billion, which was $486.8 million above the minimum capital requirement as of that date. As of December 31, 2020, Farmer Mac's minimum capital requirement was $680.9 million and its core capital level was $1.0 billion, which was $325.5 million above the minimum capital requirement as of that date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Farmer Mac is subject to federal corporate income taxes but is exempt from state and local corporate income taxes. The components of the federal corporate income tax expense for the years ended December 31, 2021, 2020, and 2019 were as follows: Table 10.1 For the Year Ended December 31, 2021 2020 2019 (in thousands) Current income tax expense $ 37,314 $ 30,634 $ 28,316 Deferred income tax expense (1,961) (1,849) 789 Income tax expense $ 35,353 $ 28,785 $ 29,105 A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2021, 2020, and 2019 is as follows: Table 10.2 For the Year Ended December 31, 2021 2020 2019 (dollars in thousands) Tax expense at statutory rate $ 35,198 $ 28,861 $ 29,117 Excess tax benefits related to stock-based awards (300) (9) (449) Valuation allowance ā ā 49 Other 455 (67) 388 Income tax expense $ 35,353 $ 28,785 $ 29,105 Statutory tax rate 21.0 % 21.0 % 21.0 % The components of the deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows: Table 10.3 As of December 31, 2021 2020 (in thousands) Deferred tax assets: Basis differences related to financial derivatives $ 63,982 $ 100,099 Allowance for losses 3,452 3,690 Unrealized losses on cash flow hedges 1,427 6,065 Compensation and Benefits 1,281 1,020 Stock-based compensation 1,462 1,027 Capital loss carryforwards 32 86 Valuation allowance (32) (86) Other 394 341 Total deferred tax assets 71,998 112,242 Deferred tax liability: Basis differences related to hedged items 53,945 91,460 Unrealized gains on available-for-sale securities 2,451 2,364 Other 44 97 Total deferred tax liability 56,440 93,921 Net deferred tax asset $ 15,558 $ 18,321 After the evaluation of both positive and negative objective evidence regarding the likelihood that its deferred tax assets will be realized, Farmer Mac established a valuation allowance of $32,000 and $86,000 as of December 31, 2021 and 2020, respectively, which was attributable to capital loss carryforwards on investment securities. Farmer Mac did not establish a valuation allowance for the remainder of its deferred tax assets because it believes it is more likely than not that those deferred tax assets will be realized. As of December 31, 2021, no capital loss carryforwards expired. As of December 31, 2021, the amount of capital loss carryforwards was $0.2 million. These capital loss carryforwards will expire beginning in 2024 . As of December 31, 2021 and 2020, Farmer Mac did not identify any uncertain tax positions. Farmer Mac did not have any unrecognized tax benefits for the years ended December 31, 2021, 2020, and 2019. Tax years 2018 through 2021 remain subject to examination. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITSFarmerĀ Mac makes contributions to a defined contribution retirement plan for all of its employees. Farmer Mac contributed 13.2% of the lesser of an employee's gross salary and the maximum compensation permitted under the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") ($290,000 for 2021, $285,000 for 2020, and $280,000 for 2019), plus 5.7% of the difference between: (1) the lesser of the gross salary and the amount established under EGTRRA and (2) the Social Security Taxable Wage Base. Employees are fully vested after having been employed for approximately 3 years.Ā Ā Expenses for this plan for the years ended DecemberĀ 31, 2021, 2020, and 2019 were $2.7 million, $2.2 million, and $1.9 million, respectively.Farmer Mac established a Nonqualified Deferred Compensation Plan ("NQDC Plan") for its executive officers effective May 1, 2017. Under the NQDC Plan, Farmer Mac credits the account of each participant each calendar year with an amount equal to 18.9% of the difference between: (1)Ā the amount established under EGTRRA and (2)Ā a participantās gross annual base salary, which for purposes of calculating employer credits under the NQDC Plan is capped at $700,000 for Farmer Macās Chief Executive Officer and $500,000 for all other participants. This fixed contribution percentage is the same formula used for determining employer contributions to Farmer Macās defined contribution retirement plan based on an employeeās gross annual base salary that is above the amount established under EGTRRA for that year. Expenses for the NQDC Plan were $0.2 million, $0.2 million, and $0.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Guarantees and Commitments
Guarantees and Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
GUARANTEES AND COMMITMENTS | GUARANTEES AND COMMITMENTS Farmer Mac offers two credit enhancement alternatives to direct loan purchases that allow approved lenders the ability to retain the cash flow benefits of their loans and increase their liquidity and lending capacity: (1) Farmer Mac Guaranteed Securities and (2) LTSPCs, both of which are available through each of the Agricultural Finance and Rural Infrastructure Finance lines of business. The contractual terms of Farmer Mac's off-balance sheet guarantees and LTSPCs range from less than 1 year to 30 years. However, the actual term of each guarantee or LTSPC may be significantly less than the contractual term based on the prepayment characteristics of the related loans. Farmer Mac's maximum potential exposure under these off-balance sheet guarantees and LTSPCs is the unpaid principal balance of the underlying loans. Guarantees issued or modified on or after January 1, 2003 are recorded in the consolidated balance sheets. Farmer Mac's maximum potential exposure was $3.8 billion and $3.3 billion as of December 31, 2021 and 2020, respectively. Farmer Mac's maximum potential exposure for guarantees issued before January 1, 2003, which are not recorded on the consolidated balance sheets, was $7.8 million and $10.8 million as of December 31, 2021 and 2020, respectively. The maximum exposure from these guarantees and LTSPCs is not representative of the actual loss Farmer Mac is likely to incur, based on historical loss experience. In the event Farmer Mac was required to make payments under its guarantees or LTSPCs, Farmer Mac would have the right to enforce the terms of the loans, and in the event of default, would have access to the underlying collateral. For information on Farmer Mac's methodology for determining the reserve for losses for its financial guarantees, see Note 2(h). The following table presents changes in Farmer Mac's guarantee and commitment obligations in the consolidated balance sheets for the years ended December 31, 2021, 2020, and 2019: Table 12.1 For the Years Ended December 31, 2021 2020 2019 (in thousands) Beginning balance, January 1 $ 35,535 $ 36,700 $ 38,683 Additions to the guarantee and commitment obligation (1) 15,648 5,210 4,398 Amortization of the guarantee and commitment obligation (7,257) (6,375) (6,381) Ending balance, December 31 $ 43,926 $ 35,535 $ 36,700 (1) Represents the fair value of the guarantee and commitment obligation at inception. Off-Balance Sheet Farmer Mac Guaranteed Securities 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 December 31, 2021 and December 31, 2020, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 12.2 Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities As of December 31, 2021 As of December 31, 2020 (in thousands) Agricultural Finance Farmer Mac Guaranteed Securities $ 578,358 $ 378,610 Rural Infrastructure Finance Farmer Mac Guaranteed Securities 2,755 4,412 Total off-balance sheet Farmer Mac Guaranteed Securities $ 581,113 $ 383,022 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 12.3 For the Years Ended December 31, 2021 2020 2019 (in thousands) Proceeds from new securitizations $ 404,568 $ 165,054 $ 321,414 Guarantee fees received 1,029 1,365 1,413 Servicing fees received 199 ā ā Interest-only Farmer Mac Guaranteed Securities income 47 ā ā 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 12.4 As of December 31, 2021 As of December 31, 2020 (dollars in thousands) Guarantee and commitment obligation $ 7,355 $ 1,625 Weighted average remaining maturity: Farmer Mac Guaranteed Securities 21.7 years 9.5 years AgVantage Securities 3.0 years 4.0 years Long-Term Standby Purchase Commitments Farmer Mac has recorded a liability for its obligation to stand ready under the commitment 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 as of December 31, 2021 and 2020: Table 12.5 As of December 31, 2021 As of December 31, 2020 (dollars in thousands) Guarantee and commitment obligation (1) $ 36,571 $ 33,909 Maximum principal amount 3,191,061 2,881,856 Weighted-average remaining maturity 15.5 years 15.3 years (1) Relates to LTSPCs issued or modified on or after January 1, 2003. Commitments Farmer Mac enters into mandatory and optional delivery commitments to purchase loans. Most loan purchase commitments entered into by Farmer Mac are mandatory commitments, in which Farmer Mac charges a fee to extend or cancel the commitment. As of December 31, 2021 and 2020, commitments to purchase Farm & Ranch loans and USDA Guarantees totaled $78.4 million and $125.8 million, respectively, all of which were mandatory commitments. As of December 31, 2021, there were no commitments to purchase Rural Utilities loans. Any optional loan purchase commitments are sold forward under optional commitments to deliver Farmer Mac Guaranteed Securities that may be canceled by Farmer Mac without penalty. Reserve for Losses The following table is a summary, by asset type, of the reserve for losses as of December 31, 2021 and December 31, 2020: Table 12.6 December 31, 2021 December 31, 2020 Reserve for Losses Reserve for Losses (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 1,068 $ 2,097 Rural Infrastructure Finance LTSPCs 882 1,180 Total $ 1,950 $ 3,277 The following is a summary of the changes in the reserve for losses for each year in the three-year period ended December 31, 2021: Table 12.7 Agricultural Finance Rural Infrastructure Finance Reserve for Losses Reserve for Losses (in thousands) Balance as of December 31, 2018 (1) $ 2,167 $ ā Release of losses (3) ā Balance as of December 31, 2019 (1) $ 2,164 $ ā Cumulative effect adjustment from adoption of current expected credit loss standard (148) 1,011 Adjusted Beginning Balance $ 2,016 $ 1,011 Provision for losses 81 169 Balance as of December 31, 2020 (2) $ 2,097 $ 1,180 Release of losses (1,029) (298) Balance as of December 31, 2021 (2) $ 1,068 $ 882 (1) 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 Agricultural Finance Farmer Mac Guaranteed Securities. (2) Reserve for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," in first quarter 2020. The release from the reserve for losses in both the Agricultural Finance and Rural Infrastructure Finance LTSPC and Farmer Mac Guaranteed portfolios recorded during the year ended December 31, 2021 was primarily due to improving economic factor forecasts and ratings upgrades. The provision to the reserve for losses recorded during the year ended December 31, 2020 was primarily due to credit downgrades in the LTSPC portfolio. The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Utilities loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of December 31, 2021 and December 31, 2020: Table 12.8 As of December 31, 2021 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 2,953,091 $ 8,068 $ ā $ 3,597 $ 11,665 $ 2,964,756 Rural Infrastructure: LTSPCs $ 556,837 $ ā $ ā $ ā $ ā $ 556,837 (1) Includes loans underlying off-balance sheet Agricultural Finance 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. As of December 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 2,389,777 $ 2,189 $ 1,344 $ 11,433 $ 14,966 $ 2,404,743 Rural Infrastructure: LTSPCs $ 556,425 $ ā $ ā $ ā $ ā $ 556,425 (1) Includes loans underlying off-balance sheet Agricultural Finance 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. Credit Quality Indicators The following tables present credit quality indicators related to Agricultural Finance and Rural Utilities loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of December 31, 2021 and December 31, 2020, by year of origination: Table 12.9 As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 376,027 $ 537,521 $ 244,365 $ 188,452 $ 235,865 $ 1,013,937 $ 252,039 $ 2,848,206 Special mention (1) ā 5,270 ā 6,808 3,154 38,042 2,354 55,628 Substandard (2) ā 1,307 724 5,038 12,793 37,326 3,734 60,922 Total $ 376,027 $ 544,098 $ 245,089 $ 200,298 $ 251,812 $ 1,089,305 $ 258,127 $ 2,964,756 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2021 Year of Origination: 2021 2020 20 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance LTSPCs: Internally Assigned Risk Rating: Acceptable $ ā $ ā $ ā $ ā $ ā $ 499,594 $ 57,243 $ 556,837 Special mention (1) ā ā ā ā ā ā ā ā Substandard (2) ā ā ā ā ā ā ā ā Total $ ā $ ā $ ā $ ā $ ā $ 499,594 $ 57,243 $ 556,837 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 178,213 $ 213,620 $ 183,948 $ 237,042 $ 207,296 $ 969,860 $ 211,620 $ 2,201,599 Special mention (1) 3,920 1,742 1,502 5,603 19,644 50,004 10,058 92,473 Substandard (2) 264 10,250 12,611 14,578 7,841 60,602 4,525 110,671 Total $ 182,397 $ 225,612 $ 198,061 $ 257,223 $ 234,781 $ 1,080,466 $ 226,203 $ 2,404,743 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance LTSPCs: Internally Assigned Risk Rating: Acceptable $ ā $ ā $ ā $ ā $ ā $ 549,405 $ 7,020 $ 556,425 Special mention (1) ā ā ā ā ā ā ā ā Substandard (2) ā ā ā ā ā ā ā ā Total $ ā $ ā $ ā $ ā $ ā $ 549,405 $ 7,020 $ 556,425 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 and December 31, 2020, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 13.1 Assets and Liabilities Measured at Fair Value as of December 31, 2021 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 $ ā $ ā $ 19,254 $ 19,254 Floating rate Government/GSE guaranteed mortgage-backed securities ā 2,178,831 ā 2,178,831 Fixed rate GSE guaranteed mortgage-backed securities ā 458,837 ā 458,837 Fixed rate U.S. Treasuries 1,179,469 ā ā 1,179,469 Total Available-for-sale Investment Securities 1,179,469 2,637,668 19,254 3,836,391 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage ā ā 6,316,145 6,316,145 Farmer Mac Guaranteed Securities ā ā 12,414 12,414 Total Farmer Mac Guaranteed Securities ā ā 6,328,559 6,328,559 USDA Securities: Trading ā ā 4,401 4,401 Total USDA Securities ā ā 4,401 4,401 Financial derivatives 73 19,066 ā 19,139 Guarantee Asset ā ā 6,237 6,237 Total Assets at fair value $ 1,179,542 $ 2,656,734 $ 6,358,451 $ 10,194,727 Liabilities: Financial derivatives $ ā $ 34,248 $ ā $ 34,248 Total Liabilities at fair value $ ā $ 34,248 $ ā $ 34,248 Non-recurring: Assets Mortgage Servicing Rights $ ā $ ā $ 2,681 $ 2,681 Total non-recurring assets at fair value $ ā $ ā $ 2,681 $ 2,681 (1) Level 3 assets represent 25% of total assets and 62% of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value as of December 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 $ ā $ ā $ 19,171 $ 19,171 Floating rate asset-backed securities ā 6,231 ā 6,231 Floating rate Government/GSE guaranteed mortgage-backed securities ā 2,360,026 ā 2,360,026 Fixed rate GSE guaranteed mortgage-backed securities ā 313 ā 313 Fixed rate U.S. Treasuries 1,467,951 ā ā 1,467,951 Total Available-for-sale Investment Securities 1,467,951 2,366,570 19,171 3,853,692 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage ā ā 6,947,701 6,947,701 Total Farmer Mac Guaranteed Securities ā ā 6,947,701 6,947,701 USDA Securities: Trading ā ā 6,695 6,695 Total USDA Securities ā ā 6,695 6,695 Financial derivatives ā 17,468 ā 17,468 Total Assets at fair value $ 1,467,951 $ 2,384,038 $ 6,973,567 $ 10,825,556 Liabilities: Financial derivatives $ 82 $ 29,810 $ ā $ 29,892 Total Liabilities at fair value $ 82 $ 29,810 $ ā $ 29,892 (1) Level 3 assets represent 29% of total assets and 65% of financial instruments measured at fair value. There were no material assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2021 or December 31, 2020. 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 years ended December 31, 2021 and 2020, there were no transfers within the fair value hierarchy. 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 years ended December 31, 2021 and 2020. Table 13.2 Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2021 Beginning Balance Purchases Sales Settlements Allowance for Losses Realized and Unrealized gains Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,171 $ ā $ ā $ ā $ (16) $ ā $ 99 $ 19,254 Total available-for-sale 19,171 ā ā ā (16) ā 99 19,254 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 6,947,701 1,143,115 ā (1,614,598) 47 (176,064) 15,944 6,316,145 Farmer Mac Guaranteed Securities ā 12,560 ā (263) ā ā 117 12,414 Total available-for-sale 6,947,701 1,155,675 ā (1,614,861) 47 (176,064) 16,061 6,328,559 USDA Securities: Trading 6,695 ā ā (2,178) ā (116) ā 4,401 Total USDA Securities 6,695 ā ā (2,178) (116) ā 4,401 Guarantee and commitment obligations: Guarantee Asset ā 6,237 ā ā ā ā ā 6,237 Total Guarantee and commitment obligations ā 6,237 ā ā ā ā ā 6,237 Total Assets at fair value $ 6,973,567 $ 1,161,912 $ ā $ (1,617,039) $ 31 $ (176,180) $ 16,160 $ 6,358,451 Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2020 Beginning Balance Purchases Sales Settlements Allowance for Losses Realized and Unrealized gains Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,912 $ ā $ ā $ ā $ (36) $ ā $ 295 $ 19,171 Total available-for-sale 18,912 ā ā ā (36) ā 295 19,171 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 7,143,025 974,237 ā (1,397,861) (309) 202,706 25,903 6,947,701 Total available-for-sale 7,143,025 974,237 ā (1,397,861) (309) 202,706 25,903 6,947,701 USDA Securities: Trading 8,913 ā ā (2,269) ā 51 ā 6,695 Total USDA Securities 8,913 ā ā (2,269) 51 ā 6,695 Total Assets at fair value $ 7,170,850 $ 974,237 $ ā $ (1,400,130) $ (345) $ 202,757 $ 26,198 $ 6,973,567 Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2019 Beginning Balance Purchases Sales Settlements Realized and Unrealized gains/(losses) Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,715 $ ā $ ā $ ā $ ā $ 197 $ 18,912 Total available-for-sale 18,715 ā ā ā ā 197 18,912 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,974,497 2,033,713 ā (1,020,294) 181,144 (26,035) 7,143,025 Total available-for-sale 5,974,497 2,033,713 ā (1,020,294) 181,144 (26,035) 7,143,025 USDA Securities: Available-for-sale ā 57,853 (57,853) ā ā ā ā Trading 9,999 ā ā (1,412) 326 ā 8,913 Total USDA Securities 9,999 57,853 (57,853) (1,412) 326 ā 8,913 Total Assets at fair value $ 6,003,211 $ 2,091,566 $ (57,853) $ (1,021,706) $ 181,470 $ (25,838) $ 7,170,850 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 December 31, 2021 and December 31, 2020: Table 13.3 As of December 31, 2021 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 $ 19,254 Indicative bids Range of broker quotes 98.0% - 98.0% (98.0%) Farmer Mac Guaranteed Securities: AgVantage $ 6,316,145 Discounted cash flow Discount rate 0.9% - 2.1% (1.7%) Farmer Mac Guaranteed Securities $ 12,414 Discounted cash flow Discount rate 2.3% - 2.8% (2.6%) CPR 8% USDA Securities $ 4,401 Discounted cash flow Discount rate 1.4% - 3.1% (2.8%) CPR 25% - 42% (39%) Guarantee Asset $ 6,237 Discounted cash flow Discount rate 5.4% - 5.8% (5.6%) CPR 7% - 12% (8%) As of December 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 $ 19,171 Indicative bids Range of broker quotes 97.5% - 97.5% (97.5%) Farmer Mac Guaranteed Securities: AgVantage $ 6,947,701 Discounted cash flow Discount rate 0.8% - 2.3% (1.3%) USDA Securities $ 6,695 Discounted cash flow Discount rate 0.9% - 1.9% (1.4%) CPR 25% - 49% (44%) 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 do not 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 December 31, 2021 and December 31, 2020: Table 13.4 As of December 31, 2021 As of December 31, 2020 Fair Value Carrying Fair Value Carrying (in thousands) Financial assets: Cash and cash equivalents $ 908,785 $ 908,785 $ 1,033,941 $ 1,033,941 Investment securities 3,884,202 3,882,590 3,899,925 3,898,724 Farmer Mac Guaranteed Securities 8,360,293 8,361,798 8,148,691 8,123,493 USDA Securities 2,536,473 2,440,732 2,637,509 2,480,321 Loans 9,814,642 9,248,678 9,167,525 8,535,146 Financial derivatives 19,139 19,139 17,468 17,468 Guarantee and commitment fees receivable 42,533 45,538 34,115 37,113 Financial liabilities: Notes payable 22,716,791 22,716,156 22,130,263 21,848,917 Debt securities of consolidated trusts held by third parties 1,005,306 981,379 1,390,330 1,323,786 Financial derivatives 34,248 34,248 29,892 29,892 Guarantee and commitment obligations 40,920 43,926 32,537 35,535 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 |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT REPORTING | BUSINESS SEGMENT REPORTING The following table presents the alignment of the Farmer Mac's seven segments: Agricultural Finance Rural Infrastructure Finance Treasury Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Corporate The financial information presented below reflects the accounts of Farmer Mac and its subsidiaries on a consolidated basis. Accordingly, the core earnings for Farmer Mac's segments would differ from any stand-alone financial statements of Farmer Mac's subsidiaries. These differences would be due to various factors, including the exclusion of unrealized gains and losses related to fair value changes of trading assets and financial derivatives, as well as the allocation of certain expenses such as operating expenses, dividends and interest expense related to the issuance of capital and the issuance of indebtedness managed at the corporate level. The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the years ended December 31, 2021, 2020 and 2019. The amounts for the years ended December 31, 2020 and 2019 have been revised to conform to the current year's segment alignment. Table 14.1 Core Earnings by Business Segment For the Year Ended December 31, 2021 Agricultural Finance Rural Infrastructure Treasury Corporate Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Reconciling Consolidated Net Income (in thousands) Net interest income $ 118,289 $ 27,081 $ 8,224 $ 1,219 $ 65,405 $ 557 $ ā $ ā $ 220,775 Less: reconciling adjustments (1)(2)(3) (4,753) ā (157) ā 4,803 ā ā 107 ā Net effective spread 113,536 27,081 8,067 1,219 70,208 557 ā 107 ā Guarantee and commitment fees 16,178 48 1,287 20 ā ā ā (4,864) 12,669 Gain on sale of mortgage loans 6,539 ā ā ā ā ā ā ā 6,539 Other income/(expense) (3) 1,966 ā 5 ā ā ā (291) (2,821) (1,141) Total revenues 138,219 27,129 9,359 1,239 70,208 557 (291) (7,578) 238,842 Release of/(provision for) losses 1,574 (210) (291) (198) ā (15) ā ā 860 Release of reserve for losses 1,034 ā 293 ā ā ā ā ā 1,327 Operating expenses ā ā ā ā ā ā (73,416) ā (73,416) Total non-interest expense 1,034 ā 293 ā ā ā (73,416) ā (72,089) Core earnings before income taxes 140,827 26,919 9,361 1,041 70,208 542 (73,707) (7,578) (4) 167,613 Income tax (expense)/benefit (29,574) (5,653) (1,965) (219) (14,744) (114) 15,325 1,591 (35,353) Core earnings before preferred stock dividends 111,253 21,266 7,396 822 55,464 428 (58,382) (5,987) (4) 132,260 Preferred stock dividends ā ā ā ā ā ā (24,677) ā (24,677) Segment core earnings/(losses) $ 111,253 $ 21,266 $ 7,396 $ 822 $ 55,464 $ 428 $ (83,059) $ (5,987) (4) $ 107,583 Total Assets $ 13,112,193 $ 1,507,848 $ 5,344,707 $ 87,553 $ ā $ 5,037,636 $ 55,554 $ ā 25,145,491 Total on- and off-balance sheet program assets at principal balance $ 16,094,640 $ 1,537,834 $ 5,895,226 $ 86,763 $ ā $ ā $ ā $ ā 23,614,463 (1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. Core Earnings by Business Segment For the Year Ended December 31, 2020 Agricultural Finance Rural Infrastructure Treasury Corporate Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Reconciling Consolidated Net Income (in thousands) Net interest income $ 96,355 $ 21,441 $ 7,083 $ 303 $ 66,446 $ (1,040) $ ā $ ā $ 190,588 Less: reconciling adjustments (1)(2)(3) (6,197) ā (207) ā 12,772 ā ā (6,368) ā Net effective spread 90,158 21,441 6,876 303 79,218 (1,040) ā (6,368) ā Guarantee and commitment fees 17,800 5 1,345 ā ā ā ā (6,601) 12,549 Other income/(expense) (3) 3,652 ā 32 ā ā ā (534) 604 3,754 Total revenues 111,610 21,446 8,253 303 79,218 (1,040) (534) (12,365) 206,891 (Provision for)/release of losses (2,941) 36 (4,763) (110) ā (27) ā ā (7,805) Provision for reserve for losses (80) ā (170) ā ā ā ā ā (250) Operating expenses ā ā ā ā ā ā (61,403) ā (61,403) Total non-interest expense (80) ā (170) ā ā ā (61,403) ā (61,653) Core earnings before income taxes 108,589 21,482 3,320 193 79,218 (1,067) (61,937) (12,365) (4) 137,433 Income tax (expense)/benefit (22,802) (4,511) (697) (41) (16,636) 224 13,082 2,596 (28,785) Core earnings before preferred stock dividends 85,787 16,971 2,623 152 62,582 (843) (48,855) (9,769) (4) 108,648 Preferred stock dividends ā ā ā ā ā ā (17,805) ā (17,805) Loss on retirement of preferred stock ā ā ā ā ā ā ā (1,667) (1,667) Segment core earnings/(losses) $ 85,787 $ 16,971 $ 2,623 $ 152 $ 62,582 $ (843) $ (66,660) $ (11,436) (4) $ 89,176 Total Assets $ 12,373,781 $ 1,663,581 $ 4,760,585 $ 73,493 $ ā $ 5,441,426 $ 42,635 $ ā $ 24,355,501 Total on- and off-balance sheet program assets at principal balance $ 14,872,894 $ 1,664,115 $ 5,314,051 $ 73,035 $ ā $ ā $ ā $ ā $ 21,924,095 (1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. Core Earnings by Business Segment For the Year Ended December 31, 2019 Agricultural Finance Rural Infrastructure Treasury Corporate Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Reconciling Consolidated Net Income (in thousands) Net interest income $ 83,226 $ 13,757 $ 5,242 $ 22 70,500 $ 388 $ ā $ ā $ 173,135 Less: reconciling adjustments (1)(2)(3) (7,095) ā (176) ā 2,744 ā ā 4,527 ā Net effective spread 76,131 13,757 5,066 22 73,244 388 ā 4,527 ā Guarantee and commitment fees 19,551 ā 1,784 ā ā ā ā (7,669) 13,666 Other income/(expense) (3) 1,571 ā 37 ā ā ā 167 5,501 7,276 Total revenues 97,253 13,757 6,887 22 73,244 388 167 2,359 194,077 Provision for losses (3,165) (339) ā ā ā ā ā ā (3,504) Release of reserve for losses 3 ā ā ā ā ā ā ā 3 Operating expenses ā ā ā ā ā ā (51,925) ā (51,925) Total non-interest expense 3 ā ā ā ā ā (51,925) ā (51,922) Core earnings before income taxes 94,091 13,418 6,887 22 73,244 388 (51,758) 2,359 (4) 138,651 Income tax (expense)/benefit (19,759) (2,818) (1,446) (5) (15,381) (82) 10,881 (495) (29,105) Core earnings before preferred stock dividends 74,332 10,600 5,441 17 57,863 306 (40,877) 1,864 (4) 109,546 Preferred stock dividends ā ā ā ā ā ā (13,940) ā (13,940) Loss on retirement of preferred stock ā ā ā ā $ ā ā ā (1,956) (1,956) Segment core earnings/(losses) $ 74,332 $ 10,600 $ 5,441 $ 17 $ 57,863 $ 306 $ (54,817) $ (92) (4) $ 93,650 Total Assets $ 11,889,538 $ 1,338,114 $ 4,625,125 $ 9,802 $ ā $ 3,809,891 $ 36,904 $ ā $ 21,709,374 Total on- and off-balance sheet program assets at principal balance $ 14,559,268 $ 1,328,602 $ 5,220,270 $ 9,802 $ ā $ ā $ ā $ ā $ 21,117,942 (1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries during the year: (1)Ā Farmer Mac Mortgage Securities Corporation, whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; and (2)Ā Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Securities included in the Agricultural Finance line of business. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary. |
Cash and Cash Equivalents | Cash and Cash EquivalentsFarmer Mac considers highly liquid investment securities with maturities at the time of purchase of three months or less to be cash equivalents. |
Investment Securities, Farmer Mac Guaranteed Securities, and USDA Securities | Investment Securities, Farmer Mac Guaranteed Securities, and USDA Securities Securities for which Farmer Mac has the intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Securities for which Farmer Mac does not have the positive intent and ability to hold to maturity are classified as available-for-sale or trading and are carried at estimated fair value. Unrealized gains and losses on available-for-sale securities are reported as a component of accumulated other comprehensive income in stockholders' equity. For securities classified as trading, unrealized gains and losses are included in earnings. Gains and losses on the sale of available-for-sale and trading securities are determined using the specific identification cost method. Farmer Mac determines the fair value of investment securities using quoted market prices, when available. Farmer Mac determines the fair values of certain investment securities for which quoted market prices are not available, Farmer Mac Guaranteed Securities, and USDA Securities based on the present value of the associated expected future cash flows. In estimating the present value of the expected future cash flows, management is required to make estimates and assumptions. The key estimates and assumptions include discount rates and collateral repayment rates. Premiums, discounts, and other deferred costs are amortized to interest income using the effective interest method. Farmer Mac generally receives compensation when loans with yield maintenance provisions underlying Farmer Mac Guaranteed Securities prepay. These yield maintenance payments mitigate Farmer Mac's exposure to reinvestment risk and are calculated such that, when reinvested with the prepaid principal, they should generate substantially the same cash flows that would have been generated had the loans not prepaid. Yield maintenance payments are recognized as interest income in the consolidated statements of operations upon receipt. Interest Income Recognition on IO-FMGS |
Loans | Loans Loans for which Farmer Mac has the positive intent and ability to hold for the foreseeable future are classified as held for investment and reported at their unpaid principal balance, net of unamortized purchase discounts or premiums. Loans for which Farmer Mac does not have the positive intent and ability to hold for the foreseeable future are classified as held for sale and reported at the lower of cost or fair value determined on a pooled basis. Farmer Mac de-recognizes sold loans, and recognizes any associated gain or loss, when they have been legally isolated from Farmer Mac, the buyer has the right to pledge or exchange them, and Farmer Mac does not maintain effective control over them. When Farmer Mac consolidates a trust, it recognizes the loans underlying the trust in the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost." See Note 2(o) for more information on the accounting policy related to consolidation. Non-accrual Loans Non-accrual loans are loans for which it is probable that Farmer Mac will be unable to collect all amounts due according to the contractual terms of the loan agreement and include all loans 90 days or more past due. When a loan becomes 90 days past due, interest accrual on the loan is discontinued and interest previously accrued is reversed against interest income in the current period. The interest on such loans is accounted for on the cash basis until a loan qualifies for return to accrual status. Loans are returned to accrual status when all the principal and interest payments contractually due are collected and certain performance criteria are met. Troubled Debt Restructuring ("TDR") A modification to the contractual terms of a loan that results in granting a concession to a borrower experiencing financial difficulties is considered a TDR. Farmer Mac has granted a concession when, as a result of the restructuring, it does not expect to collect all amounts due in a timely manner, including interest accrued at the original contract rate. In making its determination of whether a borrower is experiencing financial difficulties, Farmer Mac considers several factors, including whether (1) the borrower has declared or is in the process of declaring bankruptcy, (2) there is substantial doubt as to whether the borrower will continue to be a going concern, and (3) the borrower can obtain funds from other sources at an effective interest rate at or near a current market interest rate for debt with similar risk characteristics. |
Securitization | SecuritizationSecuritization involves the transfer of financial assets to another entity in exchange for cash and/or beneficial interests in the assets transferred. Farmer Mac or third parties transfer agricultural mortgage loans, Rural Utilities loans, or USDA securities into trusts that are used as vehicles for the securitization of the transferred financial assets. The trusts issue Farmer Mac Guaranteed Securities that are beneficial interests in the assets of the trusts, to either Farmer Mac or third-party investors. Farmer Mac guarantees the timely payment of principal and interest on the securities issued by the trusts and receives guarantee fees as compensation for its guarantee. Farmer Mac recognizes guarantee fees on the accrual basis over the terms of the Farmer Mac Guaranteed Securities, which generally coincide with the terms of the underlying loans. As such, no guarantee fees are unearned at the end of any reporting period. Farmer Mac is required to perform under its guarantee obligation when the underlying loans for the off-balance sheet Farmer Mac Guaranteed Securities do not make their scheduled installment payments. When a loan underlying an Agricultural Finance Guaranteed Security becomes 90 days or more past due, Farmer Mac may, in its sole discretion, repurchase the loan from the trust and generally does repurchase such loans, thereby reducing the principal balance of the outstanding Farm & Ranch Guaranteed Security. When Farmer Mac purchases a delinquent loan underlying a Farmer Mac Guaranteed Security, Farmer Mac stops accruing the guarantee fee upon loan purchase. If Farmer Mac repurchases a loan that is collateral for a Farmer Mac Guaranteed Security, Farmer Mac would have the right to enforce the terms of the loan, and in the event of a default, would have access to the underlying collateral. Farmer Mac typically recovers its investment in the defaulted loans purchased either through borrower payments, loan payoffs, payments by third parties, or foreclosure and sale of the collateral securing the loans. Farmer Mac has recourse to the USDA for any amounts advanced for the timely payment of principal and interest on Farmer Mac Guaranteed USDA Securities. That recourse is the USDA guarantee, a full-faith-and-credit obligation of the United States that becomes enforceable if a lender fails to repurchase the USDA-guaranteed portion from its owner within 30 days after written demand from the owner when (a) the borrower under the guaranteed loan is in default not less than 60 days in the payment of any principal or interest due on the USDA-guaranteed portion, or (b) the lender has failed to remit to the owner the payment made by the borrower on the USDA-guaranteed portion or any related loan subsidy within 30 days after the lender's receipt of the payment. Transfers of Financial Assets Farmer Mac accounts for transfers of financial assets as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of Farmer Mac's continuing involvement with the assets transferred. Gains and losses stemming from transfers reported as sales are included in āGain on sale of mortgage loansā in the accompanying consolidated statements of operations. Assets obtained and liabilities incurred in connection with transfers reported as sales are initially recognized in the consolidated balance sheets at fair value. In the fourth quarter of 2021, Farmer Mac executed a structured securitization of a $299.4 million pool of Farm & Ranch loans. The securitization consisted of two classes of securities, Class A and Class B. The Class A securities are backed by 92.5% of the pool and is guaranteed by Farmer Mac. The Class B Tranche is backed by the remaining 7.5% of the pool. Credit losses on the entire pool are first allocated to the Class B securities. As a result of the transaction, Farmer Mac recognized the following: 1. A guarantee asset and liability related to the guarantee fees and the obligation to stand ready to perform on the guarantee to the Class A security holders. 2. A servicing asset related to Farmer Macās role as Master and Central Servicer. Farmer Mac will earn a related servicing fee. 3. A retained interest-only strip (IO-FMGS) security. The above assets and liabilities were initially recorded on the consolidated balance sheets at fair value. For more information on fair value measurement see Footnote 13. The securitization trust used to effect this transaction was a variable interest entity that Farmer Mac does not consolidate. See Table 2.4 below for more information about these trusts. Gains or losses arising from securitization are recorded as the difference between the transferred loansā carrying values and the sum of (a) the initial fair value of the assets or liabilities received and (b) net cash proceeds. For the year ended December 31, 2021, Farmer Mac recorded $6.5 million in gains attributable to securitization activity. These gains were reported in āGain on sale of mortgage loansā in the consolidated statements of operations. |
Financial Derivatives | Financial Derivatives Farmer Mac enters into financial derivative transactions principally 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, not for trading or speculative purposes. Farmer Mac enters into interest rate swap contracts to adjust the characteristics of its short-term debt to match more closely the cash flow and duration characteristics of its longer-term loans and other assets, and also to adjust the characteristics of its long-term debt to match more closely the cash flow and duration characteristics of its short-term assets, thereby reducing interest rate risk and, often times, deriving an overall lower effective cost of borrowing than would otherwise be available to Farmer Mac in the conventional debt market. Accounting for financial derivatives differs depending on whether a derivative is designated in a hedge accounting relationship. Derivative instruments designated in fair value hedge accounting relationships mitigate exposure to changes in the fair value of assets or liabilities. Derivative instruments designated in cash flow hedge accounting relationships mitigate exposure to the variability in expected future cash flows or other forecasted transactions. In order to qualify for fair value or cash flow hedge accounting treatment, documentation must indicate the intention to designate the derivative as a hedge of a specific asset, or liability, or a future cash flow. Effectiveness of the hedge is assessed before the end of the quarter of inception and monitored over the life of the hedging relationship. Changes in the fair values of financial derivatives not designated as cash flow or fair value hedges were reported in "(Losses)/gains on financial derivatives" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of hedged items related to the risk being hedged are reported in "Net interest income" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge relationships are also recorded in "Net interest income" in the consolidated statements of operations. For financial derivatives designated in cash flow hedge relationships, the unrealized gain or loss on the derivative is recorded in other comprehensive income. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. See Notes 6 and 13 for more information on financial derivatives. |
Notes Payable | Notes PayableDebt issuance costs and premiums and discounts are deferred and amortized to interest expense using the effective interest method over the contractual life of the related debt. |
Allowance for Losses and Reserve for Losses | Allowance for Losses and Reserve for Losses Current Expected Credit Loss ("CECL") On January 1, 2020, Farmer Mac adopted Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. 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 credit 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 credit 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 credit 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 Infrastructure Finance line of business. Upon the adoption of CECL, Farmer Mac measures its expected credit losses for the expected life of all financial instruments, including its Rural Infrastructure Finance 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, under CECL Farmer Mac records a charge-off from the allowance for losses when either a) a loan, or a portion of a loan, is deemed uncollectible; or b) a loss has been confirmed through the receipt of assets, generally the underlying collateral, in full satisfaction of the loan. The charge-off equals the excess of the recorded investment in the loan over the fair value of the collateral less estimated selling costs. Estimation Methodology, under CECL 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 includes the following key components: ā¢ An economic model for each portfolio, including Agricultural Finance loans (Corporate AgFinance and Farm & Ranch), Rural Infrastructure Finance loans (Rural Utilities and Renewable Energy), and AgVantage Securities; ā¢ 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); ā¢ 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; ā¢ 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 ā¢ 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: ā¢ economic conditions; ā¢ geographic and agricultural commodity/product concentrations in the portfolio; ā¢ the credit profile of the portfolio, including risk ratings and financial metrics; ā¢ delinquency trends of the portfolio; ā¢ historical charge-off and recovery activities of the portfolio; and ā¢ 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, under CECL 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 securityās 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"), under CECL 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. Probable Incurred Credit Loss (prior to January 1, 2020) Prior to January 1, 2020, Farmer Mac maintained an allowance for losses to cover estimated probable losses incurred as of the balance sheet date on loans held ("allowance for loan losses") and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities ("reserve for losses") based on available information. Disaggregation by: commodity type, portfolio, and risk rating; was performed, where appropriate, in analyzing the need for an allowance for losses. General Allowance for Loss, for Probable Incurred Credit Losses Prior to January 1, 2020, Farmer Mac's methodology to determine its allowance for losses incorporated Farmer Mac's automated loan classification system. That system scored loans based on criteria such as historical repayment performance, indicators of current financial condition, loan seasoning, loan size and loan-to-value ratio. The previous allowance methodology captured the migration of loan scores across concurrent and overlapping 3-year time horizons and calculated loss rates separately within each loan classification for (1) loans underlying LTSPCs and (2) loans held and loans underlying Farm & Ranch Guaranteed Securities. The calculated loss rates were applied to the current classification distribution of unimpaired loans in Farmer Mac's portfolio to estimate inherent losses, under the assumption that the historical credit losses and trends used to calculate loss rates would continue in the future. Management evaluated those assumptions through considering many relevant factors, including: ā¢ economic conditions; ā¢ geographic and agricultural commodity/product concentrations in the portfolio; ā¢ the credit profile of the portfolio; ā¢ delinquency trends of the portfolio; ā¢ historical charge-off and recovery activities of the portfolio; and ā¢ other factors to capture current portfolio trends and characteristics that differ from historical experience. Prior to January 1, 2020, Management believed that its use of that methodology produced a reasonable estimate of probable losses incurred as of the balance sheet date, for all loans held in the Farm & Ranch portfolio and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs. Prior to January 1, 2020, Farmer Mac separately evaluated the Rural Utilities loans it owned to determine if there were any probable losses inherent in those assets. Specific Allowance for Impaired Loans Prior to January 1, 2020, Farmer Mac analyzed individual loans for impairment. Those individual loans included loans 90 days or more past due, in foreclosure, restructured, in bankruptcy and certain performing loans that had previously been delinquent or were secured by real estate that produced agricultural commodities or products then under stress. |
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.Ā Ā 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. |
Income Taxes | Income Taxes Deferred federal income tax assets and liabilities are established for temporary differences between financial and taxable income and are measured using the current enacted statutory tax rate. Income tax expense is equal to the income taxes payable in the current year plus the net change in the deferred tax asset or liability balance. Deferred tax assets are measured at rates in effect when they arise. To the extent rates change, the deferred tax asset will be adjusted to reflect the new rate. A increase in corporate tax rates would result in an increase in the value of the deferred tax asset. Farmer Mac evaluates its tax positions quarterly to identify and recognize any liabilities related to uncertain tax positions in its federal income tax returns. Farmer Mac uses a two-step approach in which income tax benefits are recognized if, based on the technical merits of a tax position, it is more likely than not (a probability of greater than 50%) that the tax position would be sustained upon examination by the taxing authority, which includes all related appeals and litigation process. The amount of tax benefit recognized is then measured at the largest amount of tax benefit that is greater than 50% likely to be realized upon settlement with the taxing authority, considering all information available at the reporting date. Farmer Mac's policy for recording interest and penalties associated with uncertain tax positions is to record them as a component of income tax expense. Farmer Mac establishes a valuation allowance for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining its deferred tax asset valuation allowance, Farmer Mac considered its taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback and carryforward periods available under the tax law and the impact of possible tax planning strategies. |
Stock-based Compensation | Stock-Based Compensation Farmer Mac accounts for its stock-based employee compensation plans using the grant date fair value method of accounting. Farmer Mac measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award determined using the Black-Scholes option pricing model. The cost is recognized over the period during which an employee is required to provide service in exchange for the award. For performance-based grants, Farmer Mac recognizes the grant-date fair value over the vesting period as long as it remains probable that the performance conditions will be met. If the service or performance conditions are not met, Farmer Mac reverses previously recognized compensation expense upon forfeiture. Farmer Mac recognized $4.3 million, $4.1 million, and $2.3 million of compensation expense related to SARs and non-vested restricted stock awards for 2021, 2020, and 2019, respectively. |
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. |
Guarantees | GuaranteesFarmer Mac accounts for its LTSPCs as guarantees. LTSPCs and securitization trusts where Farmer Mac is not the primary beneficiary result in the creation of off-balance sheet obligations for Farmer Mac. Farmer Mac records, at the inception of an off-balance sheet guarantee or LTSPC, a liability for the fair value of its obligation to stand ready to perform under the terms of each guarantee or LTSPC and an asset that is equal to the fair value of the fees that will be received over the life of each guarantee or LTSPC. The fair values of the guarantee obligation and asset at inception 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. Because the cash flows of these instruments may be interest rate path dependent, these values and projected discount rates are derived using a Monte Carlo simulation model. The guarantee obligation and corresponding asset are later amortized into guarantee and commitment fee income in relation to the decrease in the unpaid principal balance on the underlying Agricultural Finance real estate mortgage loans and Rural Infrastructure Finance loans. |
Fair Value Measurement | Fair Value Measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, Farmer Mac uses various valuation approaches, including market and income based approaches. When available, the fair value of Farmer Mac's financial instruments is based on quoted market prices, valuation techniques that use observable market-based inputs, or unobservable inputs that are corroborated by market data. Pricing information obtained from third parties is internally validated for reasonableness before use in the consolidated financial statements. Fair value measurements related to financial instruments that are reported at fair value in the consolidated financial statements each period are referred to as recurring fair value measurements. Fair value measurements related to financial instruments that are not reported at fair value each period but are subject to fair value adjustments in certain circumstances are referred to as nonrecurring fair value measurements. Fair Value Classification and Transfers The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. The hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The following three levels are used to classify fair value measurements: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 Prices or valuations that require unobservable inputs that are significant to the fair value measurement. Farmer Mac performs a detailed analysis of the assets and liabilities carried at fair value to determine the appropriate level based on the transparency of the inputs used in the valuation techniques. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Farmer Mac's assessment of the significance of a particular input to the fair value measurement of an instrument requires judgment and consideration of factors specific to the instrument. While Farmer Mac believes its valuation methods are appropriate and consistent with those of other market participants, using different methodologies or assumptions to determine fair value could result in a materially different estimate of fair value for some financial instruments. The following is a description of the fair value techniques used for instruments measured at fair value as well as the general classification of those instruments under the valuation hierarchy described above. Recurring Fair Value Measurements and Classification Available-for-Sale and Trading Investment Securities The fair value of investments in U.S. Treasuries is based on unadjusted quoted prices in active markets. Farmer Mac classifies these fair value measurements as "Level 1." For a significant portion of Farmer Mac's investment portfolio, including most asset-backed securities, senior agency debt securities, and Government/GSE guaranteed mortgage-backed securities, fair value is primarily determined using a reputable and nationally recognized third-party pricing service. The prices obtained are non-binding and generally representative of recent market trades. The fair value of certain asset-backed and Government guaranteed mortgage-backed securities are estimated based on quotations from brokers or dealers. Farmer Mac corroborates its primary valuation source by obtaining a secondary price from another independent third-party pricing service. Farmer Mac classifies these fair value measurements as "Level 2." For certain investment securities that are thinly traded or not quoted, Farmer Mac estimates fair value using internally-developed models that employ a discounted cash flow approach. Farmer Mac maximizes the use of observable market data, including prices of financial instruments with similar maturities and characteristics, interest rate yield curves, measures of volatility, and prepayment rates. Farmer Mac generally considers a market to be thinly traded or not quoted if the following conditions exist: (1) there are few transactions for the financial instruments; (2) the prices in the market are not current; (3) the price quotes vary significantly either over time or among independent pricing services or dealers; or (4) there is limited availability of public market information. Farmer Mac classifies these fair value measurements as "Level 3." Available-for-Sale and Trading Farmer Mac Guaranteed Securities and USDA Securities Farmer Mac estimates the fair value of its Farmer Mac Guaranteed Securities and USDA Securities by discounting the projected cash flows of these instruments at discount rates commensurate with the risks involved. 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. Farmer Mac classifies these fair value measurements as Level 3 because there is limited market activity and therefore little or no price transparency. Financial Derivatives The fair value of exchange-traded U.S. Treasury futures is based on unadjusted quoted prices for identical financial instruments. Farmer Mac classifies these fair value measurements as Level 1. Farmer Mac's derivative portfolio consists primarily of interest rate swaps and forward sales contracts on the debt of other GSEs. Farmer Mac estimates the fair value of these financial instruments primarily based upon the counterparty valuations. Farmer Mac internally values its derivative portfolio using a discounted cash flow valuation technique and obtains a secondary valuation for certain interest rate swaps to corroborate the counterparty valuations. Farmer Mac also regularly reviews the counterparty valuations as part of the collateral exchange process. Farmer Mac classifies these fair value measurements as Level 2. See Note 13 for more information regarding fair value measurement. |
Consolidation of Variable Interest Entities | Consolidation of Variable Interest Entities Farmer Mac has a variable interest in various entities that are considered to be VIEs. These interests include investments in securities issued by VIEs, such as Farmer Mac agricultural mortgage-backed securities created pursuant to Farmer Mac's securitization transactions and mortgage and asset-backed trusts that Farmer Mac did not create. The consolidation model uses a qualitative evaluation that requires consolidation of an entity when the reporting enterprise both: (1) has the power to direct matters which significantly impact the activities and success of the entity, and (2) has exposure to benefits and/or losses that could potentially be significant to the entity. The reporting enterprise that meets both these conditions is deemed the primary beneficiary of the VIE. Upon consolidation of a VIE, Farmer Mac accounts for the incremental assets and liabilities initially at their carrying amounts. The VIEs in which Farmer Mac has a variable interest are limited to securitization trusts. The major factor in determining if Farmer Mac is the primary beneficiary is whether Farmer Mac has the power to direct the activities of the trust that potentially have the most significant impact on the economic performance of the trust. Generally, the ability to make decisions regarding default mitigation is evidence of that power. Farmer Mac determined that it is the primary beneficiary for the securitization trusts related to most Agricultural Finance securitization transactions because of its rights as guarantor under both programs to control the default mitigation activities of the trusts. For certain securitization trusts created when loans subject to LTSPCs were converted to Agricultural Finance Guaranteed Securities, Farmer Mac determined that it was not the primary beneficiary since the power to make decisions regarding default mitigation was shared among unrelated parties. For these trusts, the shared power provisions are substantive with respect to decision-making power and relate to the same activity (i.e., default mitigation). For similar securitization transactions where the power to make decisions regarding default mitigation was shared with a related party, Farmer Mac determined that it was the primary beneficiary because the applicable accounting guidance does not permit parties within a related party group to conclude that the power is shared. In the event that a related party status changes, consolidation or deconsolidation of these securitization trusts could occur. For those trusts that Farmer Mac is the primary beneficiary, the assets and liabilities are presented on the consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost" and "Debt securities of consolidated trusts held by third parties," respectively. These assets can only be used to satisfy the obligations of the related trust. For those trusts in which Farmer Mac has a variable interest but is not the primary beneficiary, Farmer Mac's interests are presented as either "Farmer Mac Guaranteed Securities," "USDA Securities," or "Investment securities" on the consolidated balance sheets. Farmer Mac's involvement in VIEs classified as Farmer Mac Guaranteed Securities or USDA Securities include securitization trusts under the Agricultural Finance line of business. In the case of USDA guaranteed trusts, Farmer Mac is not determined to be the primary beneficiary because it does not have the decision-making power over default mitigation activities. Based on the USDA's program authority over the servicing and default mitigation activities of the USDA guaranteed portions of loans, Farmer Mac believes that the USDA has the power to direct the activities that most significantly impact the trust's economic performance. Farmer Mac does not have exposure to losses that could be significant to the trust and there are no triggers that would result in Farmer Mac superseding the USDA's authority with regard to directing the activities of the trust. For VIEs classified as investment securities, which include auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE") guaranteed mortgage-backed securities, Farmer Mac is determined not to be the primary beneficiary because of the lack of voting rights or other powers to direct the activities of the trust. In fourth quarter 2021, Farmer Mac executed a structured securitization of a $299.4 million pool of Farm & Ranch loans. For more information about this securitization, see Note 2(e) - Securitization. The securitization trust used to effect this transaction was a variable interest entity that Farmer Mac has not consolidated. Farmer Mac determined that it was not the primary beneficiary of the securitization trust because the subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause. |
Custodial Deposit Liability | Custodial Deposit Liability During 2021, Farmer Mac acquired the loan servicing rights for a sizeable portion of its Agricultural Finance loan and USDA Guaranteed Securities portfolios. In connection with this acquisition, Farmer Mac now collects cash from borrowers in advance of the borrower's contractual payment date. Farmer Mac's policy is to include the cash in the consolidated balance sheet as "Cash and cash equivalents" with an offsetting liability to "Accounts payable and accrued expenses" until the payment is contractually due, at which point the payment is applied to the loan. The net change in the amount of this custodial cash will also be disclosed in the consolidated statements of cash flows as "Custodial deposit liability." |
Business Segments | Business Segments During fourth quarter 2021, Farmer Mac's Chief Operating Decision Maker ("CODM") ā its President and Chief Executive Officer ā began reviewing financial information of seven operating segments, which are reportable segments. Prior to fourth quarter 2021, the CODM reviewed the financial information of five reportable segments. The CODM reviews the financial information of the seven segments to make decisions about allocating resources and to assess the financial performance of those segments. Prior to fourth quarter 2021, the five segments were: Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit, and Corporate. Beginning in fourth quarter 2021, the seven reportable segments are: Farm & Ranch, Corporate AgFinance, Rural Utilities, Renewable Energy, Funding, Investments, and Corporate. The purpose of the new alignment of the company's segments is for the CODM to review and analyze financial performance according to the type of customer and market rather than according to the type of product offerings. Additionally, the financial information for the Funding and Investments segments allow the CODM to review the results of the company's Treasury activities. All operating expenses are managed at the enterprise level and are reported within the Corporate segment rather than allocated to any of the other segments. The operations and financial results of the Farm & Ranch and Corporate AgFinance segments are within our Agricultural Finance line of business. Beginning in fourth quarter 2021, the Farm & Ranch segment includes the financial results of the USDA Securities portfolio and Farm & Ranch loans. Also beginning in the fourth quarter of 2021, the Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production. The Rural Utilities and Renewable Energy segments are within our Rural Infrastructure Finance line of business. Beginning in fourth quarter 2021, the Rural Utilities segment includes loans to rural electric generation and transmission cooperatives, distribution cooperatives, and telecommunications providers, as well as AgVantage securities secured by those types of loans. The Renewable Energy segment includes loans to rural electric solar and wind energy projects. Prior to fourth quarter 2021, the financial results of all of the company's AgVantage Securities portfolio were included within the Institutional Credit segment. The Funding segment includes the financial results of the company's debt issuance, hedging, asset/liability management, and capital allocation strategies. The company allocates interest expense to each of the other segments (except Corporate) using a funds transfer pricing process. That process also allocates the benefits and costs from the company's funding and hedging strategies to the Funding segment. The Investments segment includes the financial results of the company's investment portfolio, which is held for liquidity purposes. Interest expense is allocated to the Investments segment using the same funds transfer pricing process that is used to allocate interest expense to the other segments. The Corporate segment includes all of the company's operating expenses, including compensation, general and administrative expenses, and regulatory fees. The Corporate segment also includes items of other income and preferred stock dividend expense. Farmer Mac uses the non-GAAP financial measure "core earnings" to measure corporate economic performance and develop financial plans because, in management's view, core earnings is a useful alternative measure in understanding Farmer Mac's economic performance, transaction economics, and business trends. The main difference between core earnings and net income attributable to common stockholders is that core earnings excludes the effects of fair value fluctuations, which are not expected to have a cumulative net impact on financial condition or results of operations reported in accordance with generally accepted accounting principles if the related financial instruments are held to maturity, as is generally expected. Core earnings also differs from net income attributable to common stockholders by excluding specified infrequent or unusual transactions that Farmer Mac believes are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. This corporate economic performance measure may not be comparable to similarly labeled measures disclosed by other companies. Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest earning assets and the related net funding costs of these assets. Net effective spread differs from net interest income and net interest yield because it excludes: (1) the amortization of premiums and discounts on assets consolidated at fair value that are amortized as adjustments to yield in interest income over the contractual or estimated remaining lives of the underlying assets; (2) interest income and interest expense related to consolidated trusts with beneficial interests owned by third parties, which are presented on Farmer Mac's consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost"; and (3) the fair value changes of financial derivatives and the corresponding assets or liabilities designated in a fair value hedge accounting relationship. |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2020-04 and 2021-01 , 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. January 1, 2020 Farmer Mac adopted optional expedients specific to discounting transition on a retrospective basis, and as a result of this election, the discounting transition did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basic and Diluted EPS | The following schedule reconciles basic and diluted EPS for the years ended December 31, 2021, 2020, and 2019: Table 2.1 For the Years Ended December 31, 2021 2020 2019 Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 107,583 10,758 $ 10.00 $ 89,176 10,728 $ 8.31 $ 93,650 10,696 $ 8.76 Effect of dilutive securities (1) SARs and restricted stock ā 88 (0.08) ā 58 (0.04) ā 82 (0.07) Diluted EPS $ 107,583 10,846 $ 9.92 $ 89,176 10,786 $ 8.27 $ 93,650 10,778 $ 8.69 (1) For the years ended December 31, 2021, 2020, and 2019, SARs and restricted stock of 39,326, 74,336, and 43,374, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the years ended December 31, 2021, 2020, and 2019, contingent shares of unvested restricted stock of 18,183, 12,680, and 10,349, 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 years ended December 31, 2021, 2020, and 2019. Table 2.2 Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total (in thousands) Balance as of January 1, 2019 $ (25,360) $ 43,443 $ 6,873 $ 24,956 Other comprehensive loss before reclassifications (14,976) ā (11,561) (26,537) Amounts reclassified from AOCI (3,061) (10,598) (921) (14,580) Net comprehensive loss (18,037) (10,598) (12,482) (41,117) Balance as of December 31, 2019 $ (43,397) $ 32,845 $ (5,609) $ (16,161) Other comprehensive income/(loss) before reclassifications 32,739 ā (21,606) 11,133 Amounts reclassified from AOCI (3,279) (10,016) 4,400 (8,895) Net comprehensive income/(loss) 29,460 (10,016) (17,206) 2,238 Balance as of December 31, 2020 $ (13,937) $ 22,829 $ (22,815) $ (13,923) Other comprehensive income before reclassifications 9,114 ā 11,602 20,716 Amounts reclassified from AOCI (2,109) (6,676) 5,845 (2,940) Net comprehensive income/(loss) 7,005 (6,676) 17,447 17,776 Balance as of December 31, 2021 $ (6,932) $ 16,153 $ (5,368) $ 3,853 |
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 years ended December 31, 2021, 2020, and 2019: Table 2.3 For the Years Ended December 31, 2021 2020 2019 Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax (in thousands) Other comprehensive income: Available-for-sale-securities: Unrealized holding gains/(losses) on available-for-sale securities $ 11,537 $ 2,423 $ 9,114 $ 41,442 $ 8,703 $ 32,739 $ (18,958) $ (3,982) $ (14,976) Less reclassification adjustments included in: Net interest income (1) (2,333) (490) (1,843) (3,895) (818) (3,077) (3,834) (805) (3,029) (Gains)/losses on sale of available-for-sale investment securities (2) (253) (53) (200) ā ā ā 236 50 186 Other income (3) (84) (18) (66) (256) (54) (202) (275) (57) (218) Total $ 8,867 $ 1,862 $ 7,005 $ 37,291 $ 7,831 $ 29,460 $ (22,831) $ (4,794) $ (18,037) Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (4) (8,451) (1,775) (6,676) (12,677) (2,661) (10,016) (13,415) (2,817) (10,598) Total $ (8,451) $ (1,775) $ (6,676) $ (12,677) $ (2,661) $ (10,016) $ (13,415) $ (2,817) $ (10,598) Cash flow hedges Unrealized gains/(losses) on cash flow hedges $ 14,685 $ 3,083 $ 11,602 $ (27,350) $ (5,744) $ (21,606) $ (14,635) $ (3,074) $ (11,561) Less reclassification adjustments included in: Net interest income (5) 7,399 1,554 5,845 5,570 1,170 4,400 (1,166) (245) (921) Total $ 22,084 $ 4,637 $ 17,447 $ (21,780) $ (4,574) $ (17,206) $ (15,801) $ (3,319) $ (12,482) Other comprehensive income/(loss) $ 22,500 $ 4,724 $ 17,776 $ 2,834 $ 596 $ 2,238 $ (52,047) $ (10,930) $ (41,117) (1) Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. (2) Represents unrealized gains and losses on sales of available-for-sale securities. (3) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (4) 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. (5) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. |
Schedule of Consolidation of Variable Interest Entities | The following tables present, by segment, details about the consolidation of VIEs: Table 2.4 Consolidation of Variable Interest Entities As of December 31, 2021 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 948,623 $ ā $ 948,623 Debt securities of consolidated trusts held by third parties (1) 981,379 ā 981,379 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 42,298 ā 42,298 Maximum exposure to loss (2) 42,155 ā 42,155 Investment securities: Carrying value (3) ā 2,258,219 2,258,219 Maximum exposure to loss (2) (3) ā 2,246,272 2,246,272 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (2) (4) 578,358 ā 578,358 (1) Includes borrower remittances of $32.8 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2021. (2) Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (3) Includes auction-rate certificates, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (4) The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause. Consolidation of Variable Interest Entities As of December 31, 2020 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,287,045 $ ā $ 1,287,045 Debt securities of consolidated trusts held by third parties (1) 1,323,786 ā 1,323,786 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value (2) 34,537 ā 34,537 Maximum exposure to loss (3) 34,456 ā 34,456 Investment securities: Carrying value (4) ā 1,918,672 1,918,672 Maximum exposure to loss (3) (4) ā 1,909,535 1,909,535 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3) (5) 378,610 ā 378,610 (1) Includes borrower remittances of $36.7 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2020. (2) Includes $0.1 million of unamortized premiums and discounts and fair value adjustments related to USDA Securities. (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 Agricultural Finance 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. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2020-04 and 2021-01 , 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. January 1, 2020 Farmer Mac adopted optional expedients specific to discounting transition on a retrospective basis, and as a result of this election, the discounting transition did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following transactions occurred between Farmer Mac and Zions during 2021, 2020, and 2019: Table 3.1 For the Years Ended December 31, 2021 2020 2019 (in thousands) Unpaid Principal Balance: Purchases: Loans $ 214,319 $ 177,143 $ 129,040 USDA Securities 9,565 10,764 8,875 Sales of Farmer Mac Guaranteed Securities ā 41,247 163,134 Table 3.2 Farmer Mac Loan Purchases and Guarantees For the Years Ended December 31, 2021 2020 2019 (in thousands) Unpaid Principal Balance: Loans $ 127,117 $ 272,943 $ 85,000 Unfunded Commitments 321 19,500 ā On-balance sheet AgVantage Securities 1,450,000 250,000 575,000 Total purchases and guarantees $ 1,577,438 $ 542,443 $ 660,000 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Farmer Mac Investment Securities | The following tables set forth information about Farmer Mac's available-for-sale and held-to-maturity investment securities as of December 31, 2021 and December 31, 2020: Table 4.1 As of December 31, 2021 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 $ ā $ 19,700 $ (52) $ ā $ (394) $ 19,254 Floating rate Government/GSE guaranteed mortgage-backed securities 2,168,016 90 2,168,106 ā 11,821 (1,096) 2,178,831 Fixed rate GSE guaranteed mortgage-backed securities 451,660 12,525 464,185 ā 382 (5,730) 458,837 Fixed rate U.S. Treasuries 1,180,000 2,723 1,182,723 ā ā (3,254) 1,179,469 Total available-for-sale 3,819,376 15,338 3,834,714 (52) 12,203 (10,474) 3,836,391 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 44,970 ā 44,970 ā 1,612 ā 46,582 Total held-to-maturity $ 44,970 $ ā $ 44,970 $ ā $ 1,612 $ ā $ 46,582 (1) Amounts presented exclude $4.3 million of accrued interest receivable on investment securities as of December 31, 2021. (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 1.5% as of December 31, 2021. As of December 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 $ ā $ 19,700 $ (36) $ ā $ (493) $ 19,171 Floating rate asset-backed securities 6,232 ā 6,232 ā ā (1) 6,231 Floating rate Government/GSE guaranteed mortgage-backed securities 2,350,963 (44) 2,350,919 ā 12,150 (3,043) 2,360,026 Fixed rate GSE guaranteed mortgage-backed securities 279 ā 279 ā 34 ā 313 Fixed rate U.S. Treasuries 1,449,408 17,128 1,466,536 ā 1,458 (43) 1,467,951 Total available-for-sale 3,826,582 17,084 3,843,666 (36) 13,642 (3,580) 3,853,692 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 ā 45,032 ā 1,201 ā 46,233 Total held-to-maturity $ 45,032 $ ā $ 45,032 $ ā $ 1,201 $ ā $ 46,233 (1) Amounts presented exclude $9.0 million of accrued interest receivable on investment securities as of December 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 1.5% as of December 31, 2020. The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of December 31, 2021 and December 31, 2020: Table 5.1 As of December 31, 2021 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 2,003,486 $ ā $ 2,003,486 $ (132) $ 10,097 $ (12,764) $ 2,000,687 Farmer Mac Guaranteed USDA Securities 29,859 26 29,885 ā 1,162 ā 31,047 Total Farmer Mac Guaranteed Securities 2,033,345 26 2,033,371 (132) 11,259 (12,764) 2,031,734 USDA Securities 2,411,649 24,682 2,436,331 ā 95,741 ā 2,532,072 Total held-to-maturity $ 4,444,994 $ 24,708 $ 4,469,702 $ (132) $ 107,000 $ (12,764) $ 4,563,806 Available-for-sale: AgVantage $ 6,122,240 $ 1,270 $ 6,123,510 $ (263) $ 212,908 $ (20,010) $ 6,316,145 Farmer Mac Guaranteed Securities (3) ā 12,297 12,297 ā 117 ā 12,414 Total available-for-sale $ 6,122,240 $ 13,567 $ 6,135,807 $ (263) $ 213,025 $ (20,010) $ 6,328,559 Trading: USDA Securities (4) $ 4,299 $ 134 $ 4,433 $ ā $ 1 $ (33) $ 4,401 (1) Amounts presented exclude $29.8 million, $42.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2021. (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) Fair value includes $12.4 million of an interest-only security with a notional amount of $275.4 million. (4) The trading USDA securities had a weighted average yield of 5.05% as of December 31, 2021. As of December 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 $ 1,141,430 $ (55) $ 1,141,375 $ (120) $ 23,986 $ (61) $ 1,165,180 Farmer Mac Guaranteed USDA Securities 34,456 81 34,537 ā 1,273 ā 35,810 Total Farmer Mac Guaranteed Securities 1,175,886 26 1,175,912 (120) 25,259 (61) 1,200,990 USDA Securities 2,446,550 27,076 2,473,626 ā 157,748 (560) 2,630,814 Total held-to-maturity $ 3,622,436 $ 27,102 $ 3,649,538 $ (120) $ 183,007 $ (621) $ 3,831,804 Available-for-sale: AgVantage $ 6,593,518 $ 1,474 $ 6,594,992 $ (310) $ 368,257 $ (15,238) $ 6,947,701 Trading: USDA Securities (3) $ 6,413 $ 198 $ 6,611 $ ā $ 84 $ ā $ 6,695 (1) Amounts presented exclude $32.3 million, $44.7 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 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 5.05% as of December 31, 2020. |
Schedule of Unrealized Losses on Available-for-Sale Investment Securities | As of December 31, 2021 and December 31, 2020, unrealized losses on available-for-sale investment securities were as follows: Table 4.2 As of December 31, 2021 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 $ ā $ ā $ 19,254 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 459,195 (619) 37,307 (477) Fixed rate Government/GSE guaranteed mortgage-backed securities 406,805 (5,730) ā ā Fixed rate U.S. Treasuries 1,123,439 (3,070) 51,031 (184) Total $ 1,989,439 $ (9,419) $ 107,592 $ (1,055) Number of securities in loss position 69 24 As of December 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 $ ā $ ā $ 19,171 $ (493) Floating rate asset-backed securities ā ā 6,231 (1) Floating rate Government/GSE guaranteed mortgage-backed securities 172,842 (593) 324,423 (2,450) Fixed rate U.S. Treasuries 364,320 (43) ā ā Total $ 537,162 $ (636) $ 349,825 $ (2,944) Number of securities in loss position 27 62 As of December 31, 2021 and December 31, 2020, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 5.2 As of December 31, 2021 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 $ 1,387,236 $ (12,764) $ ā $ ā USDA Securities ā ā ā ā Total held-to-maturity $ 1,387,236 $ (12,764) $ ā $ ā Available-for-sale: AgVantage $ 1,867,364 $ (17,263) $ 90,971 $ (2,747) As of December 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: AgVantage $ 49,939 $ (61) $ ā $ ā USDA Securities ā ā 21,061 (560) Total held-to-maturity $ 49,939 $ (61) $ 21,061 $ (560) Available-for-sale: AgVantage $ 133,703 $ (231) $ 981,757 $ (15,007) |
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 December 31, 2021 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 4.3 As of December 31, 2021 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 646,946 $ 646,518 1.23% Due after one year through five years 812,878 810,767 0.42% Due after five years through ten years 1,712,906 1,710,515 0.88% Due after ten years 661,984 668,591 0.64% Total $ 3,834,714 $ 3,836,391 0.80% 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 December 31, 2021 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 5.3 As of December 31, 2021 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,401,396 $ 1,408,170 1.80 % Due after one year through five years 2,142,369 2,194,055 2.52 % Due after five years through ten years 1,008,986 1,034,586 2.21 % Due after ten years 1,583,056 1,691,748 2.46 % Total $ 6,135,807 $ 6,328,559 2.28 % (1) Amounts presented exclude $29.8 million of accrued interest receivable. As of December 31, 2021 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,146,637 $ 1,146,747 0.65 % Due after one year through five years 904,570 902,695 2.09 % Due after five years through ten years 253,388 262,906 2.76 % Due after ten years 2,165,107 2,251,458 3.15 % Total $ 4,469,702 $ 4,563,806 2.26 % (1) Amounts presented exclude $42.1 million of accrued interest receivable. |
Farmer Mac Guaranteed Securit_2
Farmer Mac Guaranteed Securities and USDA Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 available-for-sale and held-to-maturity investment securities as of December 31, 2021 and December 31, 2020: Table 4.1 As of December 31, 2021 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 $ ā $ 19,700 $ (52) $ ā $ (394) $ 19,254 Floating rate Government/GSE guaranteed mortgage-backed securities 2,168,016 90 2,168,106 ā 11,821 (1,096) 2,178,831 Fixed rate GSE guaranteed mortgage-backed securities 451,660 12,525 464,185 ā 382 (5,730) 458,837 Fixed rate U.S. Treasuries 1,180,000 2,723 1,182,723 ā ā (3,254) 1,179,469 Total available-for-sale 3,819,376 15,338 3,834,714 (52) 12,203 (10,474) 3,836,391 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 44,970 ā 44,970 ā 1,612 ā 46,582 Total held-to-maturity $ 44,970 $ ā $ 44,970 $ ā $ 1,612 $ ā $ 46,582 (1) Amounts presented exclude $4.3 million of accrued interest receivable on investment securities as of December 31, 2021. (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 1.5% as of December 31, 2021. As of December 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 $ ā $ 19,700 $ (36) $ ā $ (493) $ 19,171 Floating rate asset-backed securities 6,232 ā 6,232 ā ā (1) 6,231 Floating rate Government/GSE guaranteed mortgage-backed securities 2,350,963 (44) 2,350,919 ā 12,150 (3,043) 2,360,026 Fixed rate GSE guaranteed mortgage-backed securities 279 ā 279 ā 34 ā 313 Fixed rate U.S. Treasuries 1,449,408 17,128 1,466,536 ā 1,458 (43) 1,467,951 Total available-for-sale 3,826,582 17,084 3,843,666 (36) 13,642 (3,580) 3,853,692 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 45,032 ā 45,032 ā 1,201 ā 46,233 Total held-to-maturity $ 45,032 $ ā $ 45,032 $ ā $ 1,201 $ ā $ 46,233 (1) Amounts presented exclude $9.0 million of accrued interest receivable on investment securities as of December 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 1.5% as of December 31, 2020. The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of December 31, 2021 and December 31, 2020: Table 5.1 As of December 31, 2021 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 2,003,486 $ ā $ 2,003,486 $ (132) $ 10,097 $ (12,764) $ 2,000,687 Farmer Mac Guaranteed USDA Securities 29,859 26 29,885 ā 1,162 ā 31,047 Total Farmer Mac Guaranteed Securities 2,033,345 26 2,033,371 (132) 11,259 (12,764) 2,031,734 USDA Securities 2,411,649 24,682 2,436,331 ā 95,741 ā 2,532,072 Total held-to-maturity $ 4,444,994 $ 24,708 $ 4,469,702 $ (132) $ 107,000 $ (12,764) $ 4,563,806 Available-for-sale: AgVantage $ 6,122,240 $ 1,270 $ 6,123,510 $ (263) $ 212,908 $ (20,010) $ 6,316,145 Farmer Mac Guaranteed Securities (3) ā 12,297 12,297 ā 117 ā 12,414 Total available-for-sale $ 6,122,240 $ 13,567 $ 6,135,807 $ (263) $ 213,025 $ (20,010) $ 6,328,559 Trading: USDA Securities (4) $ 4,299 $ 134 $ 4,433 $ ā $ 1 $ (33) $ 4,401 (1) Amounts presented exclude $29.8 million, $42.1 million, and $0.1 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 31, 2021. (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) Fair value includes $12.4 million of an interest-only security with a notional amount of $275.4 million. (4) The trading USDA securities had a weighted average yield of 5.05% as of December 31, 2021. As of December 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 $ 1,141,430 $ (55) $ 1,141,375 $ (120) $ 23,986 $ (61) $ 1,165,180 Farmer Mac Guaranteed USDA Securities 34,456 81 34,537 ā 1,273 ā 35,810 Total Farmer Mac Guaranteed Securities 1,175,886 26 1,175,912 (120) 25,259 (61) 1,200,990 USDA Securities 2,446,550 27,076 2,473,626 ā 157,748 (560) 2,630,814 Total held-to-maturity $ 3,622,436 $ 27,102 $ 3,649,538 $ (120) $ 183,007 $ (621) $ 3,831,804 Available-for-sale: AgVantage $ 6,593,518 $ 1,474 $ 6,594,992 $ (310) $ 368,257 $ (15,238) $ 6,947,701 Trading: USDA Securities (3) $ 6,413 $ 198 $ 6,611 $ ā $ 84 $ ā $ 6,695 (1) Amounts presented exclude $32.3 million, $44.7 million, and $0.2 million of accrued interest receivable on available-for-sale, held-to-maturity, and trading securities, respectively, as of December 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 5.05% as of December 31, 2020. |
Schedule of Unrealized Losses on Available-for-Sale Investment Securities | As of December 31, 2021 and December 31, 2020, unrealized losses on available-for-sale investment securities were as follows: Table 4.2 As of December 31, 2021 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 $ ā $ ā $ 19,254 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 459,195 (619) 37,307 (477) Fixed rate Government/GSE guaranteed mortgage-backed securities 406,805 (5,730) ā ā Fixed rate U.S. Treasuries 1,123,439 (3,070) 51,031 (184) Total $ 1,989,439 $ (9,419) $ 107,592 $ (1,055) Number of securities in loss position 69 24 As of December 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 $ ā $ ā $ 19,171 $ (493) Floating rate asset-backed securities ā ā 6,231 (1) Floating rate Government/GSE guaranteed mortgage-backed securities 172,842 (593) 324,423 (2,450) Fixed rate U.S. Treasuries 364,320 (43) ā ā Total $ 537,162 $ (636) $ 349,825 $ (2,944) Number of securities in loss position 27 62 As of December 31, 2021 and December 31, 2020, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 5.2 As of December 31, 2021 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 $ 1,387,236 $ (12,764) $ ā $ ā USDA Securities ā ā ā ā Total held-to-maturity $ 1,387,236 $ (12,764) $ ā $ ā Available-for-sale: AgVantage $ 1,867,364 $ (17,263) $ 90,971 $ (2,747) As of December 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: AgVantage $ 49,939 $ (61) $ ā $ ā USDA Securities ā ā 21,061 (560) Total held-to-maturity $ 49,939 $ (61) $ 21,061 $ (560) Available-for-sale: AgVantage $ 133,703 $ (231) $ 981,757 $ (15,007) |
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 December 31, 2021 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 4.3 As of December 31, 2021 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 646,946 $ 646,518 1.23% Due after one year through five years 812,878 810,767 0.42% Due after five years through ten years 1,712,906 1,710,515 0.88% Due after ten years 661,984 668,591 0.64% Total $ 3,834,714 $ 3,836,391 0.80% 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 December 31, 2021 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 5.3 As of December 31, 2021 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,401,396 $ 1,408,170 1.80 % Due after one year through five years 2,142,369 2,194,055 2.52 % Due after five years through ten years 1,008,986 1,034,586 2.21 % Due after ten years 1,583,056 1,691,748 2.46 % Total $ 6,135,807 $ 6,328,559 2.28 % (1) Amounts presented exclude $29.8 million of accrued interest receivable. As of December 31, 2021 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 1,146,637 $ 1,146,747 0.65 % Due after one year through five years 904,570 902,695 2.09 % Due after five years through ten years 253,388 262,906 2.76 % Due after ten years 2,165,107 2,251,458 3.15 % Total $ 4,469,702 $ 4,563,806 2.26 % (1) Amounts presented exclude $42.1 million of accrued interest receivable. |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 and December 31, 2020: Table 6.1 As of December 31, 2021 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Pay fixed non-callable $ 6,238,438 $ 11,554 $ (583) 2.06% 0.13% 11.64 Receive fixed non-callable 5,884,529 15 (8,383) 0.17% 0.88% 2.27 Receive fixed callable 1,571,577 103 (17,612) 0.01% 0.80% 4.17 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 570,000 6,905 (2,763) 1.93% 0.49% 5.72 No hedge designation: Interest rate swaps: Pay fixed non-callable 229,062 ā (4,641) 3.22% 0.16% 4.95 Receive fixed non-callable 1,377,250 ā ā 0.13% 0.43% 0.97 Basis swaps 1,608,911 489 (280) 0.17% 0.20% 3.31 Treasury futures 67,600 73 ā 130.58 Credit valuation adjustment ā 14 Total financial derivatives $ 17,547,367 $ 19,139 $ (34,248) Collateral (held)/pledged ā 194,519 Net amount $ 19,139 $ 160,271 As of December 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 $ 5,463,303 $ 10,157 $ (2,585) 2.26% 0.21% 11.95 Receive fixed non-callable 2,611,029 2 (8,755) 0.32% 1.61% 2.10 Receive fixed callable 343,500 3,108 (4) 0.16% 1.78% 3.16 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 472,000 2,584 (8,771) 2.04% 0.57% 6.04 No hedge designation: Interest rate swaps: Pay fixed non-callable 339,090 ā (9,675) 2.38% 0.19% 4.23 Receive fixed non-callable 2,359,220 ā ā 0.16% 0.87% 1.07 Receive fixed callable 200,000 1 (12) 0.13% 0.15% 0.72 Basis swaps 3,628,911 1,617 (43) 0.18% 0.23% 2.03 Treasury futures 30,500 ā (82) 137.81 Credit valuation adjustment (1) 35 Total financial derivatives $ 15,447,553 $ 17,468 $ (29,892) Collateral (held)/pledged (1,345) 212,263 Net amount $ 16,123 $ 182,371 |
Schedule of Net Income/(Expense) Recognized | The following tables summarize the net income/(expense) recognized in the consolidated statements of operations related to derivatives for the years ended December 31, 2021, 2020, and 2019: Table 6.2 For the Year Ended December 31, 2021 Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives Net Interest Income Non-Interest Income Total Interest Income Investments and Cash Equivalents 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 $ 18,660 $ 163,547 $ 242,582 $ (204,014) $ (3,348) $ 217,427 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (1,002) (85,302) (27,167) 42,591 ā (70,880) Recognized on hedged items 1,792 119,896 46,842 (51,484) ā 117,046 Discount amortization recognized on hedged items ā ā ā (1,118) ā (1,118) Income/(expense) related to interest settlements on fair value hedging relationships $ 790 $ 34,594 $ 19,675 $ (10,011) $ ā $ 45,048 Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ 1,688 $ 177,077 $ 97,459 $ (98,332) $ ā $ 177,892 Recognized on hedged items (1,218) (176,304) (97,502) 95,617 ā (179,407) Gains/(losses) on fair value hedging relationships $ 470 $ 773 $ (43) $ (2,715) $ ā $ (1,515) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ ā $ ā $ ā $ (7,399) $ ā $ (7,399) Recognized on hedged items ā ā ā (2,657) ā (2,657) Discount amortization recognized on hedged items ā ā ā (37) ā (37) Expense recognized on cash flow hedges $ ā $ ā $ ā $ (10,093) $ ā $ (10,093) Losses on financial derivatives not designated in hedging relationships: Losses on interest rate swaps $ ā $ ā $ ā $ ā $ (5,816) $ (5,816) Interest expense on interest rate swaps ā ā ā ā 3,259 3,259 Treasury futures ā ā ā ā (791) (791) Losses on financial derivatives not designated in hedge relationships $ ā $ ā $ ā $ ā $ (3,348) $ (3,348) For The Year Ended December 31, 2020 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: $ 227,691 $ 233,699 $ (312,946) $ (246) $ 148,198 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (60,056) (19,135) 26,386 ā (52,805) Recognized on hedged items 126,170 40,793 (51,230) ā 115,733 Discount amortization recognized on hedged items ā ā (745) ā (745) Income/(expense) related to interest settlements on fair value hedging relationships $ 66,114 $ 21,658 $ (25,589) $ ā $ 62,183 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ (206,281) $ (76,565) $ 43,332 $ ā $ (239,514) Recognized on hedged items 202,624 73,426 (45,720) ā 230,330 (Losses)/gains on fair value hedging relationships $ (3,657) $ (3,139) $ (2,388) $ ā $ (9,184) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ ā $ ā $ (5,570) $ ā $ (5,570) Recognized on hedged items ā ā (4,553) ā (4,553) Discount amortization recognized on hedged items ā ā (13) ā (13) Expense recognized on cash flow hedges $ ā $ ā $ (10,136) $ ā $ (10,136) (Losses)/gains on financial derivatives not designated in hedge relationships: Losses on interest rate swaps $ ā $ ā $ ā $ (4,204) $ (4,204) Interest expense on interest rate swaps ā ā ā 5,808 5,808 Treasury futures ā ā ā (1,850) (1,850) (Losses)/gains on financial derivatives not designated in hedge relationships $ ā $ ā $ ā $ (246) $ (246) For The Year Ended December 31, 2019 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 Gains/(losses) on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations $ 333,896 $ 229,675 $ (471,958) $ 5,282 $ 96,895 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives (2,177) (2,053) (6,227) ā (10,457) Recognized on hedged items 118,609 26,352 (45,309) ā 99,652 Discount amortization recognized on hedged items ā ā (631) ā (631) Income/(expense) related to interest settlements on fair value hedging relationships $ 116,432 $ 24,299 $ (52,167) $ ā $ 88,564 (Losses)/gains on fair value hedging relationships: Recognized on derivatives $ (184,478) $ (50,141) $ 18,401 $ ā $ (216,218) Recognized on hedged items 181,144 43,194 (16,027) ā 208,311 (Losses)/gains on fair value hedging relationships $ (3,334) $ (6,947) $ 2,374 $ ā $ (7,907) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ ā $ ā $ 1,166 $ ā $ 1,166 Recognized on hedged items ā ā (10,569) ā (10,569) Discount amortization recognized on hedged items ā ā (4) ā (4) Expense recognized on cash flow hedges $ ā $ ā $ (9,407) $ ā $ (9,407) Gains on financial derivatives not designated in hedging relationships: Gains on interest rate swaps $ ā $ ā $ ā $ 10,321 $ 10,321 Interest expense on interest rate swaps ā ā ā (4,213) (4,213) Treasury futures ā ā ā (826) (826) Gains on financial derivatives not designated in hedge relationships $ ā $ ā $ ā $ 5,282 $ 5,282 |
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 December 31, 2021 and December 31, 2020: Table 6.3 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) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 (in thousands) Investment securities, Available-for-Sale, at fair value $ 458,653 $ ā $ (1,218) $ ā Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value (1) 4,276,002 4,244,027 206,520 382,825 Loans held for investment, at amortized cost (2) 1,668,142 1,692,609 13,832 111,333 Notes Payable (3) (7,083,535) (3,006,140) 42,377 (53,240) (1) Includes $1.3 million and $1.6 million of hedging adjustments on discontinued hedging relationships as of December 31, 2021 and December 31, 2020, respectively. (2) Includes $1.2 million and $1.4 million of hedging adjustments on a discontinued hedging relationship as of December 31, 2021 and December 31, 2020, respectively. (3) 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 December 31, 2021 and December 31, 2020: Table 6.4 December 31, 2021 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swap $ 91,130 $ 91,130 $ ā Liabilities: Derivatives Interest rate swap $ 404,063 $ 386,249 $ 17,814 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. December 31, 2020 Gross Amount Recognized (1) Counterparty Netting Net Amount Presented in the Consolidated Balance Sheet (in thousands) Assets: Derivatives Interest rate swaps $ 112,287 $ 111,761 $ 526 Liabilities: Derivatives Interest rate swaps $ 620,236 $ 595,867 $ 24,369 (1) Gross amount excludes netting arrangements and any adjustment for nonperformance risk, but includes accrued interest. |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables set forth information related to Farmer Mac's borrowings as of December 31, 2021 and December 31, 2020: Table 7.1 December 31, 2021 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 $ 2,167,979 0.05 % $ 1,822,714 0.08 % Medium-term notes 837,580 0.09 % 1,956,870 0.12 % Current portion of medium-term notes 3,981,240 0.75 % Total due within one year $ 6,986,799 0.45 % Due after one year: Medium-term notes due in: Two years $ 4,179,985 0.81 % Three years 2,554,906 0.87 % Four years 2,119,805 0.85 % Five years 2,810,894 1.07 % Thereafter 4,106,144 1.69 % Total due after one year $ 15,771,734 1.10 % Total principal net of discounts $ 22,758,533 0.90 % Hedging adjustments (42,377) Total $ 22,716,156 December 31, 2020 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 $ 1,797,175 0.11 % $ 2,343,702 0.63 % Medium-term notes 2,645,146 0.19 % 1,593,253 0.60 % Current portion of medium-term notes 6,304,061 0.90 % Total due within one year $ 10,746,382 0.59 % Due after one year: Medium-term notes due in: Two years $ 3,004,203 1.00 % Three years 2,809,551 1.24 % Four years 927,119 1.67 % Five years 1,342,250 1.03 % Thereafter 2,966,172 1.92 % Total due after one year $ 11,049,295 1.37 % Total principal net of discounts $ 21,795,677 0.98 % Hedging adjustments 53,240 Total $ 21,848,917 Table 7.2 Debt Callable in 2022 as of December 31, 2021, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2023 $ 243,795 0.42 % 2024 318,346 0.40 % 2025 372,048 0.92 % 2026 1,060,594 1.08 % Thereafter 1,368,758 1.67 % Total $ 3,363,541 1.19 % |
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 December 31, 2021, 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: 2022 $ 8,795,560 0.43 % 2023 3,588,630 0.91 % 2024 2,489,936 0.89 % 2025 1,859,428 0.92 % 2026 2,632,015 1.10 % Thereafter 3,392,964 1.96 % Total principal net of discounts $ 22,758,533 0.90 % |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Composition of Loan Balances | The following table includes loans held for investment and displays the composition of the loan balances as of December 31, 2021 and December 31, 2020: Table 8.1 As of December 31, 2021 As of December 31, 2020 Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Agricultural Finance mortgage loans $ 5,898,370 $ 948,623 $ 6,846,993 $ 4,889,393 $ 1,287,045 $ 6,176,438 Rural Infrastructure Finance loans 2,389,136 ā 2,389,136 2,260,412 ā 2,260,412 Total unpaid principal balance (1) 8,287,506 948,623 9,236,129 7,149,805 1,287,045 8,436,850 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments 26,590 ā 26,590 112,128 ā 112,128 Total loans 8,314,096 948,623 9,262,719 7,261,933 1,287,045 8,548,978 Allowance for losses (13,477) (564) (14,041) (12,943) (889) (13,832) Total loans, net of allowance $ 8,300,619 $ 948,059 $ 9,248,678 $ 7,248,990 $ 1,286,156 $ 8,535,146 |
Schedule Allowance for Losses | The following table is a summary, by asset type, of the allowance for losses as of December 31, 2021 and December 31, 2020: Table 8.2 December 31, 2021 December 31, 2020 Allowance for Losses Allowance for Losses (in thousands) Loans: Agricultural Finance mortgage loans $ 3,442 $ 3,745 Rural Infrastructure Finance loans 10,599 10,087 Total $ 14,041 $ 13,832 The following is a summary of the changes in the allowance for losses for each year in the three-year period ended December 31, 2021: Table 8.3 Agricultural Finance mortgage loans Rural Infrastructure Finance loans Allowance for Losses Allowance for Losses (in thousands) Balance as of December 31, 2018 (1) $ 7,017 $ ā Provision for losses 3,504 ā Charge-offs (67) ā Balance as of December 31, 2019 (1) $ 10,454 $ ā Cumulative effect adjustment from adoption of current expected credit loss standard (3,909) 5,378 Adjusted Beginning Balance $ 6,545 $ 5,378 Provision for losses 2,959 4,709 Charge-offs (5,759) ā Balance as of December 31, 2020 (2)(3)(4) $ 3,745 $ 10,087 (Release of)/provision for losses (1,357) 512 Recovery 1,054 ā Charge-offs ā ā Balance as of December 31, 2021 (3)(4) $ 3,442 $ 10,599 (1) Prior to the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020, Farmer Mac maintained an allowance for loan losses to cover estimated probable incurred losses on loans held. (2) Allowance for losses reflects the adoption of ASU 2016-13, "Financial Instruments - Credit Losses," effective January 1, 2020. (3) As of both December 31, 2021 and 2020, allowance for losses for Agricultural Finance mortgage loans includes no allowance, for collateral dependent assets secured by agricultural 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 December 31, 2021 and December 31, 2020: Table 8.4 As of December 31, 2021 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance mortgage loans $ 6,715,070 $ 4,548 $ 568 $ ā $ 5,116 $ 126,807 $ 6,846,993 Rural Infrastructure Finance loans 2,389,136 ā ā ā ā ā 2,389,136 Total $ 9,104,206 $ 4,548 $ 568 $ ā $ 5,116 $ 126,807 $ 9,236,129 (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) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3) 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. (4) Includes $31.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2021, Farmer Mac received $5.0 million, in interest on nonaccrual loans. As of December 31, 2020 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance mortgage loans $ 6,055,154 $ 4,582 $ 632 $ 1,072 $ 6,286 $ 114,998 $ 6,176,438 Rural Infrastructure Finance loans 2,260,412 ā ā ā ā ā 2,260,412 Total $ 8,315,566 $ 4,582 $ 632 $ 1,072 $ 6,286 $ 114,998 $ 8,436,850 (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) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3) 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. (4) Includes $44.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2020, Farmer Mac received $4.4 million in interest on nonaccrual loans. The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Utilities loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of December 31, 2021 and December 31, 2020: Table 12.8 As of December 31, 2021 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 2,953,091 $ 8,068 $ ā $ 3,597 $ 11,665 $ 2,964,756 Rural Infrastructure: LTSPCs $ 556,837 $ ā $ ā $ ā $ ā $ 556,837 (1) Includes loans underlying off-balance sheet Agricultural Finance 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. As of December 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 2,389,777 $ 2,189 $ 1,344 $ 11,433 $ 14,966 $ 2,404,743 Rural Infrastructure: LTSPCs $ 556,425 $ ā $ ā $ ā $ ā $ 556,425 (1) Includes loans underlying off-balance sheet Agricultural Finance 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. |
Schedule of Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators related to Farm & Ranch loans and Rural Infrastructure loans held as of December 31, 2021 and December 31, 2020, by year of origination: Table 8.5 As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance mortgage loans (1) : Internally Assigned Risk Rating: Acceptable $ 2,138,060 $ 1,541,509 $ 540,139 $ 324,917 $ 303,852 $ 1,004,709 $ 545,370 $ 6,398,556 Special mention (2) 84,795 50,057 51,200 48,078 9,132 14,646 4,771 262,679 Substandard (3) 1,654 4,997 26,237 27,109 38,703 75,780 11,278 185,758 Total $ 2,224,509 $ 1,596,563 $ 617,576 $ 400,104 $ 351,687 $ 1,095,135 $ 561,419 $ 6,846,993 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā (1,054) ā ā (1,054) Current period Agricultural Finance recoveries $ ā $ ā $ ā $ ā $ (1,054) $ ā $ ā $ (1,054) (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. As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 242,570 $ 612,366 $ 774,941 $ 8,100 $ 86,878 $ 628,903 $ 12,578 $ 2,366,336 Special mention (2) ā ā ā ā ā ā ā ā Substandard (3) ā 22,800 ā ā ā ā ā 22,800 Total $ 242,570 $ 635,166 $ 774,941 $ 8,100 $ 86,878 $ 628,903 $ 12,578 $ 2,389,136 For the Year Ended Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. As of December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance mortgage loans (1) : Internally Assigned Risk Rating: Acceptable $ 1,947,618 $ 774,315 $ 484,345 $ 500,768 $ 465,277 $ 1,068,693 $ 535,742 $ 5,776,758 Special mention (2) 70,171 79,744 18,317 8,530 13,111 21,328 7,656 218,857 Substandard (3) 3,400 5,821 21,879 52,709 37,173 50,582 9,259 180,823 Total $ 2,021,189 $ 859,880 $ 524,541 $ 562,007 $ 515,561 $ 1,140,603 $ 552,657 $ 6,176,438 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ 5,365 $ ā $ 394 $ ā $ 5,759 Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ 5,365 $ ā $ 394 $ ā $ 5,759 (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. As of December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 667,489 $ 809,921 $ 8,260 $ 89,842 $ 31,275 $ 641,145 $ 12,480 $ 2,260,412 Special mention (2) ā ā ā ā ā ā ā ā Substandard (3) ā ā ā ā ā ā ā ā Total $ 667,489 $ 809,921 $ 8,260 $ 89,842 $ 31,275 $ 641,145 $ 12,480 $ 2,260,412 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. Table 12.9 As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 376,027 $ 537,521 $ 244,365 $ 188,452 $ 235,865 $ 1,013,937 $ 252,039 $ 2,848,206 Special mention (1) ā 5,270 ā 6,808 3,154 38,042 2,354 55,628 Substandard (2) ā 1,307 724 5,038 12,793 37,326 3,734 60,922 Total $ 376,027 $ 544,098 $ 245,089 $ 200,298 $ 251,812 $ 1,089,305 $ 258,127 $ 2,964,756 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2021 Year of Origination: 2021 2020 20 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance LTSPCs: Internally Assigned Risk Rating: Acceptable $ ā $ ā $ ā $ ā $ ā $ 499,594 $ 57,243 $ 556,837 Special mention (1) ā ā ā ā ā ā ā ā Substandard (2) ā ā ā ā ā ā ā ā Total $ ā $ ā $ ā $ ā $ ā $ 499,594 $ 57,243 $ 556,837 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 178,213 $ 213,620 $ 183,948 $ 237,042 $ 207,296 $ 969,860 $ 211,620 $ 2,201,599 Special mention (1) 3,920 1,742 1,502 5,603 19,644 50,004 10,058 92,473 Substandard (2) 264 10,250 12,611 14,578 7,841 60,602 4,525 110,671 Total $ 182,397 $ 225,612 $ 198,061 $ 257,223 $ 234,781 $ 1,080,466 $ 226,203 $ 2,404,743 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance LTSPCs: Internally Assigned Risk Rating: Acceptable $ ā $ ā $ ā $ ā $ ā $ 549,405 $ 7,020 $ 556,425 Special mention (1) ā ā ā ā ā ā ā ā Substandard (2) ā ā ā ā ā ā ā ā Total $ ā $ ā $ ā $ ā $ ā $ 549,405 $ 7,020 $ 556,425 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table presents the Series C Preferred Stock, the Series D Preferred Stock, the Series E Preferred Stock, the Series F Preferred Stock, and the Series G Preferred Stock (collectively referred to as the "Outstanding Preferred Stock") as of December 31, 2021: Table 9.1 Name Issuance Date Issuance Cost Shares Issued Annual Dividend Rate (3) Liquidation Value Redemption Date (4) Series C (1) June 20, 2014 $ 1,618,583 3,000,000 6.000 % $ 25.00 July 18, 2024 Series D (2) May 13, 2019 $ 3,340,456 4,000,000 5.700 % $ 25.00 July 17, 2024 Series E May 20, 2020 $ 2,496,750 3,180,000 5.750 % $ 25.00 July 17, 2025 Series F August 20, 2020 $ 3,839,902 4,800,000 5.250 % $ 25.00 October 17, 2025 Series G May 27, 2021 $ 3,661,677 5,000,000 4.875 % $ 25.00 July 17, 2026 (1) The Series C Preferred Stock pays an annual dividend rate of 6.00% from the date of issuance to and including the quarterly payment date occurring on July 17, 2024, and thereafter, at a floating rate equal to three-month LIBOR plus 3.26%. (2) Farmer Mac has the option to redeem the preferred stock on any quarterly dividend payment date on and after July 17, 2024. (3) Dividends on all series of Outstanding Preferred Stock are non-cumulative, which means that if Farmer Mac's board of directors has not declared a dividend before the applicable dividend payment date for any dividend period, such dividend will not be paid or cumulate, and Farmer Mac will have no obligation to pay dividends for such dividend period, whether or not dividends on any series of Outstanding Preferred Stock are declared for any future dividend period. |
Quarterly Dividends Paid by Farmers MAC | The following tables present the quarterly dividends paid by Farmer Mac on its outstanding preferred during 2021, 2020, and 2019: Table 9.2 2021 1st Quarter 2nd Quarter (1) 3rd Quarter 4th Quarter 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C $ 0.3750 $ 0.3750 $ 0.3750 $ 0.3750 5.700% Non-Cumulative Preferred Stock, Series D 0.3563 0.3563 0.3563 0.3563 5.750% Non-Cumulative Preferred Stock, Series E 0.3594 0.3594 0.3594 0.3594 5.250% Non-Cumulative Preferred Stock, Series F 0.3281 0.3281 0.3281 0.3281 4.875% Non-Cumulative Preferred Stock, Series G ā 0.1693 0.3047 0.3047 (1) For second quarter 2021, dividend payment includes $0.1693 per share on the Series G Preferred Stock for the period from but not including May 27, 2021 (issuance date) to and including July 17, 2021. 2020 1st Quarter 2nd Quarter (1) 3rd Quarter (2)(3) 4th Quarter 5.875% Non-Cumulative Preferred Stock, Series A $ 0.3672 $ 0.3672 $ 0.2530 $ ā 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 0.3750 0.3750 0.3750 0.3750 5.700% Non-Cumulative Preferred Stock, Series D 0.3563 0.3563 0.3563 0.3563 5.750% Non-Cumulative Preferred Stock, Series E ā 0.2276 0.3594 0.3594 5.250% Non-Cumulative Preferred Stock, Series F ā ā 0.2078 0.3281 (1) For second quarter 2020, dividend payment includes $0.2276 per share on the Series E Preferred Stock for the period from but not including May 20, 2020 (issuance date) to and including July 17, 2020. (2) For third quarter 2020 dividend payment includes $0.2530 per share on the Series A Preferred Stock for the period from but not including July 17, 2020 to and including the September 19, 2020 redemption date. (3) For third quarter 2020, dividend payment includes $0.2078 per share on the Series F Preferred Stock for the period from but not including August 20, 2020 (issuance date) to and including October 17, 2020. 2019 1st Quarter 2nd Quarter (1)(2) 3rd Quarter 4th Quarter 5.875% Non-Cumulative Preferred Stock, Series A $ 0.3672 $ 0.3672 $ 0.3672 $ 0.3672 6.875% Non-Cumulative Preferred Stock, Series B 0.4297 0.2626 ā ā 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C 0.3750 0.3750 0.3750 0.3750 5.700% Non-Cumulative Preferred Stock, Series D ā 0.2533 0.3563 0.3563 (1) For second quarter 2019, dividend payment includes $0.2626 per share on the Series B Preferred Stock for the period from but not including April 17, 2019 to and including the June 12, 2019 redemption date. (2) For second quarter 2019, dividend payment includes $0.2533 per share on the Series D Preferred Stock for the period from but not including May 13, 2019 (issuance date) to and including July 17, 2019. |
Share-based Payment Arrangement, Option, Activity | The following tables summarize SARs and non-vested restricted stock activity for the years ended December 31, 2021, 2020, and 2019: Table 9.3 For the Years Ended December 31, 2021 2020 2019 SARs Weighted- SARs Weighted- SARs Weighted- Outstanding, beginning of year 116,417 $ 57.16 98,836 $ 46.47 124,960 $ 38.38 Granted 28,575 88.68 34,881 74.80 24,582 82.76 Exercised (14,583) 38.99 (15,912) 26.93 (40,851) 35.61 Canceled ā ā (1,388) 86.15 (9,855) 79.45 Outstanding, end of year 130,409 66.10 116,417 57.16 98,836 46.47 Exercisable at end of year 72,106 52.85 66,602 42.08 72,696 34.07 For the Years Ended December 31, 2021 2020 2019 Non-vested Weighted- Non-vested Weighted- Non-vested Weighted- Outstanding, beginning of year 83,956 $ 71.76 62,597 $ 75.81 80,153 $ 60.98 Granted 53,358 88.92 53,471 66.02 41,735 80.51 Canceled (1,184) 79.82 (4,042) 69.66 (17,054) 74.97 Vested and issued (32,239) 77.98 (28,070) 70.13 (42,237) 52.65 Outstanding, end of year 103,891 78.55 83,956 71.76 62,597 75.81 |
Share-based Payment Arrangement, Option, Exercise Price Range | The following tables summarize information regarding SARs and non-vested restricted stock outstanding as of December 31, 2021: Table 9.4 SARs: Outstanding Exercisable Vested or Expected to Vest Range of SARs Weighted- SARs Weighted- SARs Weighted- $10.00 - $24.99 3,000 0.2 years 3,000 0.2 years 3,000 0.2 years 25.00 - 39.99 37,037 2.7 years 37,037 2.7 years 37,037 2.7 years 40.00 - 54.99 ā 0.0 years ā 0.0 years ā 0.0 years 55.00 - 69.99 3,381 5.3 years 3,381 5.3 years 3,381 5.3 years 70.00 - 84.99 52,458 7.9 years 22,730 7.7 years 52,458 7.9 years 85.00 - 99.99 34,533 8.7 years 5,958 6.3 years 34,533 8.7 years 130,409 72,106 130,409 Non-vested Restricted Stock: Outstanding Expected to Vest Weighted- Non-vested Restricted Stock Weighted-Average Remaining Contractual Non-vested Restricted Stock Weighted-Average Remaining Contractual $50.00 - $64.99 18,580 1.3 years 18,580 1.3 years 65.00 - 79.99 25,314 0.9 years 25,314 0.9 years 80.00 - 94.99 58,872 1.7 years 58,872 1.7 years 95.00-109.99 1,125 1.5 years 1,125 1.5 years 103,891 103,891 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of SARs was estimated using the Black-Scholes option pricing model based on the following assumptions: Table 9.5 For the Year Ended December 31, 2021 2020 2019 Risk-free interest rate 0.9% 0.9% 2.5% Expected years until exercise 6 years 6 years 6 years Expected stock volatility 39.1% 34.3% 33.8% Dividend yield 4.0% 4.2% 3.4% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Federal Corporate Income Tax Expense | The components of the federal corporate income tax expense for the years ended December 31, 2021, 2020, and 2019 were as follows: Table 10.1 For the Year Ended December 31, 2021 2020 2019 (in thousands) Current income tax expense $ 37,314 $ 30,634 $ 28,316 Deferred income tax expense (1,961) (1,849) 789 Income tax expense $ 35,353 $ 28,785 $ 29,105 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax at the statutory federal corporate income tax rate to the income tax expense for the years ended December 31, 2021, 2020, and 2019 is as follows: Table 10.2 For the Year Ended December 31, 2021 2020 2019 (dollars in thousands) Tax expense at statutory rate $ 35,198 $ 28,861 $ 29,117 Excess tax benefits related to stock-based awards (300) (9) (449) Valuation allowance ā ā 49 Other 455 (67) 388 Income tax expense $ 35,353 $ 28,785 $ 29,105 Statutory tax rate 21.0 % 21.0 % 21.0 % |
Components of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows: Table 10.3 As of December 31, 2021 2020 (in thousands) Deferred tax assets: Basis differences related to financial derivatives $ 63,982 $ 100,099 Allowance for losses 3,452 3,690 Unrealized losses on cash flow hedges 1,427 6,065 Compensation and Benefits 1,281 1,020 Stock-based compensation 1,462 1,027 Capital loss carryforwards 32 86 Valuation allowance (32) (86) Other 394 341 Total deferred tax assets 71,998 112,242 Deferred tax liability: Basis differences related to hedged items 53,945 91,460 Unrealized gains on available-for-sale securities 2,451 2,364 Other 44 97 Total deferred tax liability 56,440 93,921 Net deferred tax asset $ 15,558 $ 18,321 |
Guarantees and Commitments (Tab
Guarantees and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents changes in Farmer Mac's guarantee and commitment obligations in the consolidated balance sheets for the years ended December 31, 2021, 2020, and 2019: Table 12.1 For the Years Ended December 31, 2021 2020 2019 (in thousands) Beginning balance, January 1 $ 35,535 $ 36,700 $ 38,683 Additions to the guarantee and commitment obligation (1) 15,648 5,210 4,398 Amortization of the guarantee and commitment obligation (7,257) (6,375) (6,381) Ending balance, December 31 $ 43,926 $ 35,535 $ 36,700 (1) Represents the fair value of the guarantee and commitment obligation at inception. 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 December 31, 2021 and December 31, 2020, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 12.2 Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities As of December 31, 2021 As of December 31, 2020 (in thousands) Agricultural Finance Farmer Mac Guaranteed Securities $ 578,358 $ 378,610 Rural Infrastructure Finance Farmer Mac Guaranteed Securities 2,755 4,412 Total off-balance sheet Farmer Mac Guaranteed Securities $ 581,113 $ 383,022 Table 12.4 As of December 31, 2021 As of December 31, 2020 (dollars in thousands) Guarantee and commitment obligation $ 7,355 $ 1,625 Weighted average remaining maturity: Farmer Mac Guaranteed Securities 21.7 years 9.5 years AgVantage Securities 3.0 years 4.0 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 12.3 For the Years Ended December 31, 2021 2020 2019 (in thousands) Proceeds from new securitizations $ 404,568 $ 165,054 $ 321,414 Guarantee fees received 1,029 1,365 1,413 Servicing fees received 199 ā ā Interest-only Farmer Mac Guaranteed Securities income 47 ā ā |
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 as of December 31, 2021 and 2020: Table 12.5 As of December 31, 2021 As of December 31, 2020 (dollars in thousands) Guarantee and commitment obligation (1) $ 36,571 $ 33,909 Maximum principal amount 3,191,061 2,881,856 Weighted-average remaining maturity 15.5 years 15.3 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 December 31, 2021 and December 31, 2020: Table 12.6 December 31, 2021 December 31, 2020 Reserve for Losses Reserve for Losses (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 1,068 $ 2,097 Rural Infrastructure Finance LTSPCs 882 1,180 Total $ 1,950 $ 3,277 The following is a summary of the changes in the reserve for losses for each year in the three-year period ended December 31, 2021: Table 12.7 Agricultural Finance Rural Infrastructure Finance Reserve for Losses Reserve for Losses (in thousands) Balance as of December 31, 2018 (1) $ 2,167 $ ā Release of losses (3) ā Balance as of December 31, 2019 (1) $ 2,164 $ ā Cumulative effect adjustment from adoption of current expected credit loss standard (148) 1,011 Adjusted Beginning Balance $ 2,016 $ 1,011 Provision for losses 81 169 Balance as of December 31, 2020 (2) $ 2,097 $ 1,180 Release of losses (1,029) (298) Balance as of December 31, 2021 (2) $ 1,068 $ 882 (1) 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 Agricultural Finance 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 December 31, 2021 and December 31, 2020: Table 8.4 As of December 31, 2021 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance mortgage loans $ 6,715,070 $ 4,548 $ 568 $ ā $ 5,116 $ 126,807 $ 6,846,993 Rural Infrastructure Finance loans 2,389,136 ā ā ā ā ā 2,389,136 Total $ 9,104,206 $ 4,548 $ 568 $ ā $ 5,116 $ 126,807 $ 9,236,129 (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) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3) 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. (4) Includes $31.0 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2021, Farmer Mac received $5.0 million, in interest on nonaccrual loans. As of December 31, 2020 Accruing Current 30-59 Days 60-89 Days 90 Days and Greater (2) Total Past Due Nonaccrual loans (3)(4) Total Loans (in thousands) Loans (1) : Agricultural Finance mortgage loans $ 6,055,154 $ 4,582 $ 632 $ 1,072 $ 6,286 $ 114,998 $ 6,176,438 Rural Infrastructure Finance loans 2,260,412 ā ā ā ā ā 2,260,412 Total $ 8,315,566 $ 4,582 $ 632 $ 1,072 $ 6,286 $ 114,998 $ 8,436,850 (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) Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3) 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. (4) Includes $44.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2020, Farmer Mac received $4.4 million in interest on nonaccrual loans. The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Utilities loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of December 31, 2021 and December 31, 2020: Table 12.8 As of December 31, 2021 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 2,953,091 $ 8,068 $ ā $ 3,597 $ 11,665 $ 2,964,756 Rural Infrastructure: LTSPCs $ 556,837 $ ā $ ā $ ā $ ā $ 556,837 (1) Includes loans underlying off-balance sheet Agricultural Finance 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. As of December 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: LTSPCs and Farmer Mac Guaranteed Securities $ 2,389,777 $ 2,189 $ 1,344 $ 11,433 $ 14,966 $ 2,404,743 Rural Infrastructure: LTSPCs $ 556,425 $ ā $ ā $ ā $ ā $ 556,425 (1) Includes loans underlying off-balance sheet Agricultural Finance 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. |
Schedule of Financing Receivable Credit Quality Indicators | The following tables present credit quality indicators related to Farm & Ranch loans and Rural Infrastructure loans held as of December 31, 2021 and December 31, 2020, by year of origination: Table 8.5 As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance mortgage loans (1) : Internally Assigned Risk Rating: Acceptable $ 2,138,060 $ 1,541,509 $ 540,139 $ 324,917 $ 303,852 $ 1,004,709 $ 545,370 $ 6,398,556 Special mention (2) 84,795 50,057 51,200 48,078 9,132 14,646 4,771 262,679 Substandard (3) 1,654 4,997 26,237 27,109 38,703 75,780 11,278 185,758 Total $ 2,224,509 $ 1,596,563 $ 617,576 $ 400,104 $ 351,687 $ 1,095,135 $ 561,419 $ 6,846,993 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā (1,054) ā ā (1,054) Current period Agricultural Finance recoveries $ ā $ ā $ ā $ ā $ (1,054) $ ā $ ā $ (1,054) (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. As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 242,570 $ 612,366 $ 774,941 $ 8,100 $ 86,878 $ 628,903 $ 12,578 $ 2,366,336 Special mention (2) ā ā ā ā ā ā ā ā Substandard (3) ā 22,800 ā ā ā ā ā 22,800 Total $ 242,570 $ 635,166 $ 774,941 $ 8,100 $ 86,878 $ 628,903 $ 12,578 $ 2,389,136 For the Year Ended Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. As of December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance mortgage loans (1) : Internally Assigned Risk Rating: Acceptable $ 1,947,618 $ 774,315 $ 484,345 $ 500,768 $ 465,277 $ 1,068,693 $ 535,742 $ 5,776,758 Special mention (2) 70,171 79,744 18,317 8,530 13,111 21,328 7,656 218,857 Substandard (3) 3,400 5,821 21,879 52,709 37,173 50,582 9,259 180,823 Total $ 2,021,189 $ 859,880 $ 524,541 $ 562,007 $ 515,561 $ 1,140,603 $ 552,657 $ 6,176,438 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ 5,365 $ ā $ 394 $ ā $ 5,759 Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ 5,365 $ ā $ 394 $ ā $ 5,759 (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. As of December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 667,489 $ 809,921 $ 8,260 $ 89,842 $ 31,275 $ 641,145 $ 12,480 $ 2,260,412 Special mention (2) ā ā ā ā ā ā ā ā Substandard (3) ā ā ā ā ā ā ā ā Total $ 667,489 $ 809,921 $ 8,260 $ 89,842 $ 31,275 $ 641,145 $ 12,480 $ 2,260,412 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. Table 12.9 As of December 31, 2021 Year of Origination: 2021 2020 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 376,027 $ 537,521 $ 244,365 $ 188,452 $ 235,865 $ 1,013,937 $ 252,039 $ 2,848,206 Special mention (1) ā 5,270 ā 6,808 3,154 38,042 2,354 55,628 Substandard (2) ā 1,307 724 5,038 12,793 37,326 3,734 60,922 Total $ 376,027 $ 544,098 $ 245,089 $ 200,298 $ 251,812 $ 1,089,305 $ 258,127 $ 2,964,756 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2021 Year of Origination: 2021 2020 20 2019 2018 2017 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance LTSPCs: Internally Assigned Risk Rating: Acceptable $ ā $ ā $ ā $ ā $ ā $ 499,594 $ 57,243 $ 556,837 Special mention (1) ā ā ā ā ā ā ā ā Substandard (2) ā ā ā ā ā ā ā ā Total $ ā $ ā $ ā $ ā $ ā $ 499,594 $ 57,243 $ 556,837 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance LTSPCs and Farmer Mac Guaranteed Securities: Internally Assigned Risk Rating: Acceptable $ 178,213 $ 213,620 $ 183,948 $ 237,042 $ 207,296 $ 969,860 $ 211,620 $ 2,201,599 Special mention (1) 3,920 1,742 1,502 5,603 19,644 50,004 10,058 92,473 Substandard (2) 264 10,250 12,611 14,578 7,841 60,602 4,525 110,671 Total $ 182,397 $ 225,612 $ 198,061 $ 257,223 $ 234,781 $ 1,080,466 $ 226,203 $ 2,404,743 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Agricultural Finance net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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 December 31, 2020 Year of Origination: 2020 2019 2018 2017 2016 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance LTSPCs: Internally Assigned Risk Rating: Acceptable $ ā $ ā $ ā $ ā $ ā $ 549,405 $ 7,020 $ 556,425 Special mention (1) ā ā ā ā ā ā ā ā Substandard (2) ā ā ā ā ā ā ā ā Total $ ā $ ā $ ā $ ā $ ā $ 549,405 $ 7,020 $ 556,425 For the Year Ended: Current period charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā Current period recoveries ā ā ā ā ā ā ā ā Current period Rural Infrastructure net charge-offs $ ā $ ā $ ā $ ā $ ā $ ā $ ā $ ā (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. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 and December 31, 2020, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 13.1 Assets and Liabilities Measured at Fair Value as of December 31, 2021 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 $ ā $ ā $ 19,254 $ 19,254 Floating rate Government/GSE guaranteed mortgage-backed securities ā 2,178,831 ā 2,178,831 Fixed rate GSE guaranteed mortgage-backed securities ā 458,837 ā 458,837 Fixed rate U.S. Treasuries 1,179,469 ā ā 1,179,469 Total Available-for-sale Investment Securities 1,179,469 2,637,668 19,254 3,836,391 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage ā ā 6,316,145 6,316,145 Farmer Mac Guaranteed Securities ā ā 12,414 12,414 Total Farmer Mac Guaranteed Securities ā ā 6,328,559 6,328,559 USDA Securities: Trading ā ā 4,401 4,401 Total USDA Securities ā ā 4,401 4,401 Financial derivatives 73 19,066 ā 19,139 Guarantee Asset ā ā 6,237 6,237 Total Assets at fair value $ 1,179,542 $ 2,656,734 $ 6,358,451 $ 10,194,727 Liabilities: Financial derivatives $ ā $ 34,248 $ ā $ 34,248 Total Liabilities at fair value $ ā $ 34,248 $ ā $ 34,248 Non-recurring: Assets Mortgage Servicing Rights $ ā $ ā $ 2,681 $ 2,681 Total non-recurring assets at fair value $ ā $ ā $ 2,681 $ 2,681 (1) Level 3 assets represent 25% of total assets and 62% of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value as of December 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 $ ā $ ā $ 19,171 $ 19,171 Floating rate asset-backed securities ā 6,231 ā 6,231 Floating rate Government/GSE guaranteed mortgage-backed securities ā 2,360,026 ā 2,360,026 Fixed rate GSE guaranteed mortgage-backed securities ā 313 ā 313 Fixed rate U.S. Treasuries 1,467,951 ā ā 1,467,951 Total Available-for-sale Investment Securities 1,467,951 2,366,570 19,171 3,853,692 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage ā ā 6,947,701 6,947,701 Total Farmer Mac Guaranteed Securities ā ā 6,947,701 6,947,701 USDA Securities: Trading ā ā 6,695 6,695 Total USDA Securities ā ā 6,695 6,695 Financial derivatives ā 17,468 ā 17,468 Total Assets at fair value $ 1,467,951 $ 2,384,038 $ 6,973,567 $ 10,825,556 Liabilities: Financial derivatives $ 82 $ 29,810 $ ā $ 29,892 Total Liabilities at fair value $ 82 $ 29,810 $ ā $ 29,892 (1) Level 3 assets represent 29% of total assets and 65% 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 years ended December 31, 2021 and 2020. Table 13.2 Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2021 Beginning Balance Purchases Sales Settlements Allowance for Losses Realized and Unrealized gains Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,171 $ ā $ ā $ ā $ (16) $ ā $ 99 $ 19,254 Total available-for-sale 19,171 ā ā ā (16) ā 99 19,254 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 6,947,701 1,143,115 ā (1,614,598) 47 (176,064) 15,944 6,316,145 Farmer Mac Guaranteed Securities ā 12,560 ā (263) ā ā 117 12,414 Total available-for-sale 6,947,701 1,155,675 ā (1,614,861) 47 (176,064) 16,061 6,328,559 USDA Securities: Trading 6,695 ā ā (2,178) ā (116) ā 4,401 Total USDA Securities 6,695 ā ā (2,178) (116) ā 4,401 Guarantee and commitment obligations: Guarantee Asset ā 6,237 ā ā ā ā ā 6,237 Total Guarantee and commitment obligations ā 6,237 ā ā ā ā ā 6,237 Total Assets at fair value $ 6,973,567 $ 1,161,912 $ ā $ (1,617,039) $ 31 $ (176,180) $ 16,160 $ 6,358,451 Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2020 Beginning Balance Purchases Sales Settlements Allowance for Losses Realized and Unrealized gains Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,912 $ ā $ ā $ ā $ (36) $ ā $ 295 $ 19,171 Total available-for-sale 18,912 ā ā ā (36) ā 295 19,171 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 7,143,025 974,237 ā (1,397,861) (309) 202,706 25,903 6,947,701 Total available-for-sale 7,143,025 974,237 ā (1,397,861) (309) 202,706 25,903 6,947,701 USDA Securities: Trading 8,913 ā ā (2,269) ā 51 ā 6,695 Total USDA Securities 8,913 ā ā (2,269) 51 ā 6,695 Total Assets at fair value $ 7,170,850 $ 974,237 $ ā $ (1,400,130) $ (345) $ 202,757 $ 26,198 $ 6,973,567 Level 3 Assets and Liabilities Measured at Fair Value for the Year Ended December 31, 2019 Beginning Balance Purchases Sales Settlements Realized and Unrealized gains/(losses) Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 18,715 $ ā $ ā $ ā $ ā $ 197 $ 18,912 Total available-for-sale 18,715 ā ā ā ā 197 18,912 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,974,497 2,033,713 ā (1,020,294) 181,144 (26,035) 7,143,025 Total available-for-sale 5,974,497 2,033,713 ā (1,020,294) 181,144 (26,035) 7,143,025 USDA Securities: Available-for-sale ā 57,853 (57,853) ā ā ā ā Trading 9,999 ā ā (1,412) 326 ā 8,913 Total USDA Securities 9,999 57,853 (57,853) (1,412) 326 ā 8,913 Total Assets at fair value $ 6,003,211 $ 2,091,566 $ (57,853) $ (1,021,706) $ 181,470 $ (25,838) $ 7,170,850 |
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 December 31, 2021 and December 31, 2020: Table 13.3 As of December 31, 2021 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 $ 19,254 Indicative bids Range of broker quotes 98.0% - 98.0% (98.0%) Farmer Mac Guaranteed Securities: AgVantage $ 6,316,145 Discounted cash flow Discount rate 0.9% - 2.1% (1.7%) Farmer Mac Guaranteed Securities $ 12,414 Discounted cash flow Discount rate 2.3% - 2.8% (2.6%) CPR 8% USDA Securities $ 4,401 Discounted cash flow Discount rate 1.4% - 3.1% (2.8%) CPR 25% - 42% (39%) Guarantee Asset $ 6,237 Discounted cash flow Discount rate 5.4% - 5.8% (5.6%) CPR 7% - 12% (8%) As of December 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 $ 19,171 Indicative bids Range of broker quotes 97.5% - 97.5% (97.5%) Farmer Mac Guaranteed Securities: AgVantage $ 6,947,701 Discounted cash flow Discount rate 0.8% - 2.3% (1.3%) USDA Securities $ 6,695 Discounted cash flow Discount rate 0.9% - 1.9% (1.4%) CPR 25% - 49% (44%) |
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 December 31, 2021 and December 31, 2020: Table 13.4 As of December 31, 2021 As of December 31, 2020 Fair Value Carrying Fair Value Carrying (in thousands) Financial assets: Cash and cash equivalents $ 908,785 $ 908,785 $ 1,033,941 $ 1,033,941 Investment securities 3,884,202 3,882,590 3,899,925 3,898,724 Farmer Mac Guaranteed Securities 8,360,293 8,361,798 8,148,691 8,123,493 USDA Securities 2,536,473 2,440,732 2,637,509 2,480,321 Loans 9,814,642 9,248,678 9,167,525 8,535,146 Financial derivatives 19,139 19,139 17,468 17,468 Guarantee and commitment fees receivable 42,533 45,538 34,115 37,113 Financial liabilities: Notes payable 22,716,791 22,716,156 22,130,263 21,848,917 Debt securities of consolidated trusts held by third parties 1,005,306 981,379 1,390,330 1,323,786 Financial derivatives 34,248 34,248 29,892 29,892 Guarantee and commitment obligations 40,920 43,926 32,537 35,535 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the years ended December 31, 2021, 2020 and 2019. The amounts for the years ended December 31, 2020 and 2019 have been revised to conform to the current year's segment alignment. Table 14.1 Core Earnings by Business Segment For the Year Ended December 31, 2021 Agricultural Finance Rural Infrastructure Treasury Corporate Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Reconciling Consolidated Net Income (in thousands) Net interest income $ 118,289 $ 27,081 $ 8,224 $ 1,219 $ 65,405 $ 557 $ ā $ ā $ 220,775 Less: reconciling adjustments (1)(2)(3) (4,753) ā (157) ā 4,803 ā ā 107 ā Net effective spread 113,536 27,081 8,067 1,219 70,208 557 ā 107 ā Guarantee and commitment fees 16,178 48 1,287 20 ā ā ā (4,864) 12,669 Gain on sale of mortgage loans 6,539 ā ā ā ā ā ā ā 6,539 Other income/(expense) (3) 1,966 ā 5 ā ā ā (291) (2,821) (1,141) Total revenues 138,219 27,129 9,359 1,239 70,208 557 (291) (7,578) 238,842 Release of/(provision for) losses 1,574 (210) (291) (198) ā (15) ā ā 860 Release of reserve for losses 1,034 ā 293 ā ā ā ā ā 1,327 Operating expenses ā ā ā ā ā ā (73,416) ā (73,416) Total non-interest expense 1,034 ā 293 ā ā ā (73,416) ā (72,089) Core earnings before income taxes 140,827 26,919 9,361 1,041 70,208 542 (73,707) (7,578) (4) 167,613 Income tax (expense)/benefit (29,574) (5,653) (1,965) (219) (14,744) (114) 15,325 1,591 (35,353) Core earnings before preferred stock dividends 111,253 21,266 7,396 822 55,464 428 (58,382) (5,987) (4) 132,260 Preferred stock dividends ā ā ā ā ā ā (24,677) ā (24,677) Segment core earnings/(losses) $ 111,253 $ 21,266 $ 7,396 $ 822 $ 55,464 $ 428 $ (83,059) $ (5,987) (4) $ 107,583 Total Assets $ 13,112,193 $ 1,507,848 $ 5,344,707 $ 87,553 $ ā $ 5,037,636 $ 55,554 $ ā 25,145,491 Total on- and off-balance sheet program assets at principal balance $ 16,094,640 $ 1,537,834 $ 5,895,226 $ 86,763 $ ā $ ā $ ā $ ā 23,614,463 (1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. Core Earnings by Business Segment For the Year Ended December 31, 2020 Agricultural Finance Rural Infrastructure Treasury Corporate Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Reconciling Consolidated Net Income (in thousands) Net interest income $ 96,355 $ 21,441 $ 7,083 $ 303 $ 66,446 $ (1,040) $ ā $ ā $ 190,588 Less: reconciling adjustments (1)(2)(3) (6,197) ā (207) ā 12,772 ā ā (6,368) ā Net effective spread 90,158 21,441 6,876 303 79,218 (1,040) ā (6,368) ā Guarantee and commitment fees 17,800 5 1,345 ā ā ā ā (6,601) 12,549 Other income/(expense) (3) 3,652 ā 32 ā ā ā (534) 604 3,754 Total revenues 111,610 21,446 8,253 303 79,218 (1,040) (534) (12,365) 206,891 (Provision for)/release of losses (2,941) 36 (4,763) (110) ā (27) ā ā (7,805) Provision for reserve for losses (80) ā (170) ā ā ā ā ā (250) Operating expenses ā ā ā ā ā ā (61,403) ā (61,403) Total non-interest expense (80) ā (170) ā ā ā (61,403) ā (61,653) Core earnings before income taxes 108,589 21,482 3,320 193 79,218 (1,067) (61,937) (12,365) (4) 137,433 Income tax (expense)/benefit (22,802) (4,511) (697) (41) (16,636) 224 13,082 2,596 (28,785) Core earnings before preferred stock dividends 85,787 16,971 2,623 152 62,582 (843) (48,855) (9,769) (4) 108,648 Preferred stock dividends ā ā ā ā ā ā (17,805) ā (17,805) Loss on retirement of preferred stock ā ā ā ā ā ā ā (1,667) (1,667) Segment core earnings/(losses) $ 85,787 $ 16,971 $ 2,623 $ 152 $ 62,582 $ (843) $ (66,660) $ (11,436) (4) $ 89,176 Total Assets $ 12,373,781 $ 1,663,581 $ 4,760,585 $ 73,493 $ ā $ 5,441,426 $ 42,635 $ ā $ 24,355,501 Total on- and off-balance sheet program assets at principal balance $ 14,872,894 $ 1,664,115 $ 5,314,051 $ 73,035 $ ā $ ā $ ā $ ā $ 21,924,095 (1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. Core Earnings by Business Segment For the Year Ended December 31, 2019 Agricultural Finance Rural Infrastructure Treasury Corporate Farm & Ranch Corporate AgFinance Rural Utilities Renewable Energy Funding Investments Reconciling Consolidated Net Income (in thousands) Net interest income $ 83,226 $ 13,757 $ 5,242 $ 22 70,500 $ 388 $ ā $ ā $ 173,135 Less: reconciling adjustments (1)(2)(3) (7,095) ā (176) ā 2,744 ā ā 4,527 ā Net effective spread 76,131 13,757 5,066 22 73,244 388 ā 4,527 ā Guarantee and commitment fees 19,551 ā 1,784 ā ā ā ā (7,669) 13,666 Other income/(expense) (3) 1,571 ā 37 ā ā ā 167 5,501 7,276 Total revenues 97,253 13,757 6,887 22 73,244 388 167 2,359 194,077 Provision for losses (3,165) (339) ā ā ā ā ā ā (3,504) Release of reserve for losses 3 ā ā ā ā ā ā ā 3 Operating expenses ā ā ā ā ā ā (51,925) ā (51,925) Total non-interest expense 3 ā ā ā ā ā (51,925) ā (51,922) Core earnings before income taxes 94,091 13,418 6,887 22 73,244 388 (51,758) 2,359 (4) 138,651 Income tax (expense)/benefit (19,759) (2,818) (1,446) (5) (15,381) (82) 10,881 (495) (29,105) Core earnings before preferred stock dividends 74,332 10,600 5,441 17 57,863 306 (40,877) 1,864 (4) 109,546 Preferred stock dividends ā ā ā ā ā ā (13,940) ā (13,940) Loss on retirement of preferred stock ā ā ā ā $ ā ā ā (1,956) (1,956) Segment core earnings/(losses) $ 74,332 $ 10,600 $ 5,441 $ 17 $ 57,863 $ 306 $ (54,817) $ (92) (4) $ 93,650 Total Assets $ 11,889,538 $ 1,338,114 $ 4,625,125 $ 9,802 $ ā $ 3,809,891 $ 36,904 $ ā $ 21,709,374 Total on- and off-balance sheet program assets at principal balance $ 14,559,268 $ 1,328,602 $ 5,220,270 $ 9,802 $ ā $ ā $ ā $ ā $ 21,117,942 (1) Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts. (2) Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee. (3) Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "(Losses)/gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2021USD ($)subsidiarysegment | Sep. 30, 2021segment | Dec. 31, 2021USD ($)subsidiary | |
Accounting Policies [Abstract] | |||
Number of subsidiaries | subsidiary | 2 | 2 | |
Mortgage loans with an aggregate outstanding principal balance | $ 299.4 | $ 299.4 | |
Number of operating segments | segment | 7 | 5 | |
Percentage of class A securities back by pool in structured securitization | 92.50% | 92.50% | |
Percentage of class B securities back by pool in structured securitization | 7.50% | 7.50% | |
Gain on securitization of financial assets | $ 6.5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Consolidation of Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | $ 8,314,096 | $ 7,261,933 |
Debt securities of consolidated trusts held by third parties | 22,758,533 | 21,795,677 |
Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 6,328,559 | 6,947,701 |
Investment securities: | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 3,836,391 | 3,853,692 |
Unamortized Premium/(Discount) | 0 | 0 |
On-Balance Sheet: | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 948,623 | 1,287,045 |
Debt securities of consolidated trusts held by third parties | 981,379 | 1,323,786 |
On-Balance Sheet: | Farmer Mac Guaranteed Securities | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 42,298 | 34,537 |
Maximum exposure to loss | 42,155 | 34,456 |
On-Balance Sheet: | Investment securities: | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 2,258,219 | 1,918,672 |
Maximum exposure to loss | 2,246,272 | 1,909,535 |
Off-balance sheet | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 578,358 | 378,610 |
Agricultural Finance | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 6,846,993 | 6,176,438 |
Borrower remittances | 32,800 | 36,700 |
USDA Securities | ||
Variable Interest Entity [Line Items] | ||
Unamortized Premium/(Discount) | 100 | |
Operating Segments | Agricultural Finance | On-Balance Sheet: | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 948,623 | 1,287,045 |
Debt securities of consolidated trusts held by third parties | 981,379 | 1,323,786 |
Operating Segments | Agricultural Finance | On-Balance Sheet: | Farmer Mac Guaranteed Securities | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 42,298 | 34,537 |
Maximum exposure to loss | 42,155 | 34,456 |
Operating Segments | Agricultural Finance | On-Balance Sheet: | Investment securities: | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Operating Segments | Agricultural Finance | Off-balance sheet | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 578,358 | 378,610 |
Corporate | On-Balance Sheet: | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
Debt securities of consolidated trusts held by third parties | 0 | 0 |
Corporate | On-Balance Sheet: | Farmer Mac Guaranteed Securities | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Corporate | On-Balance Sheet: | Investment securities: | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
FairĀ Value | 2,258,219 | 1,918,672 |
Maximum exposure to loss | 2,246,272 | 1,909,535 |
Corporate | Off-balance sheet | Unconsolidated VIE | ||
Variable Interest Entity [Line Items] | ||
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic [Abstract] | |||
Net income attributable to common stockholders | $ 107,583 | $ 89,176 | $ 93,650 |
Weighted-Average Shares (in shares) | 10,758,000 | 10,728,000 | 10,696,000 |
Dollars per share (in dollars per share) | $ 10 | $ 8.31 | $ 8.76 |
Effect of dilutive securities | |||
SARs and restricted stock (in shares) | 88,000 | 58,000 | 82,000 |
SARs and restricted stock (in dollars per share) | $ (0.08) | $ (0.04) | $ (0.07) |
Net income, Diluted EPS | $ 107,583 | $ 89,176 | $ 93,650 |
Weighted-Average Shares, Diluted EPS (in shares) | 10,846,000 | 10,786,000 | 10,778,000 |
Diluted EPS (in dollars per share) | $ 9.92 | $ 8.27 | $ 8.69 |
Stock Appreciation Rights and Restricted Stock | |||
Effect of dilutive securities | |||
Antidilutive securities excluded from earnings per share (in shares) | 39,326 | 74,336 | 43,374 |
Performance Shares | |||
Effect of dilutive securities | |||
Antidilutive securities excluded from earnings per share (in shares) | 18,183 | 12,680 | 10,349 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 992,477 | $ 799,276 | $ 752,557 |
Other comprehensive income (loss) before reclassifications | 20,716 | 11,133 | (26,537) |
Amounts reclassified from AOCI | (2,940) | (8,895) | (14,580) |
Other comprehensive income/(loss) net of tax | 17,776 | 2,238 | (41,117) |
Ending balance | 1,204,413 | 992,477 | 799,276 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Available-for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (13,937) | (43,397) | (25,360) |
Other comprehensive income (loss) before reclassifications | 9,114 | 32,739 | (14,976) |
Amounts reclassified from AOCI | (2,109) | (3,279) | (3,061) |
Other comprehensive income/(loss) net of tax | 7,005 | 29,460 | (18,037) |
Ending balance | (6,932) | (13,937) | (43,397) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Held-to-Maturity Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 22,829 | 32,845 | 43,443 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | (6,676) | (10,016) | (10,598) |
Other comprehensive income/(loss) net of tax | (6,676) | (10,016) | (10,598) |
Ending balance | 16,153 | 22,829 | 32,845 |
Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (22,815) | (5,609) | 6,873 |
Other comprehensive income (loss) before reclassifications | 11,602 | (21,606) | (11,561) |
Amounts reclassified from AOCI | 5,845 | 4,400 | (921) |
Other comprehensive income/(loss) net of tax | 17,447 | (17,206) | (12,482) |
Ending balance | (5,368) | (22,815) | (5,609) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (13,923) | (16,161) | 24,956 |
Other comprehensive income/(loss) net of tax | 17,776 | 2,238 | (41,117) |
Ending balance | $ 3,853 | $ (13,923) | $ (16,161) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other comprehensive income/(loss) before taxes: | |||
Other comprehensive income/(loss), Before Tax | $ 22,500 | $ 2,834 | $ (52,047) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other comprehensive income/(loss), Provision (Benefit) | 4,724 | 596 | (10,930) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gains/(losses), After Tax | 20,716 | 11,133 | (26,537) |
Less reclassification adjustments, Provision (Benefit) | (2,940) | (8,895) | (14,580) |
Other comprehensive income/(loss) net of tax | 17,776 | 2,238 | (41,117) |
Securities | Available-for-Sale Securities | |||
Other comprehensive income/(loss) before taxes: | |||
Unrealized gain/(losses), Before Tax | 11,537 | 41,442 | (18,958) |
Other comprehensive income/(loss), Before Tax | 8,867 | 37,291 | (22,831) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Unrealized gains/(losses), Provision (Benefit) | 2,423 | 8,703 | (3,982) |
Other comprehensive income/(loss), Provision (Benefit) | 1,862 | 7,831 | (4,794) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gains/(losses), After Tax | 9,114 | 32,739 | (14,976) |
Other comprehensive income/(loss) net of tax | 7,005 | 29,460 | (18,037) |
Securities | Held-to-Maturity Securities | |||
Other comprehensive income/(loss) before taxes: | |||
Less reclassification adjustments, Before Tax | (8,451) | (12,677) | (13,415) |
Other comprehensive income/(loss), Before Tax | (8,451) | (12,677) | (13,415) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (1,775) | (2,661) | (2,817) |
Other comprehensive income/(loss), Provision (Benefit) | (1,775) | (2,661) | (2,817) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (6,676) | (10,016) | (10,598) |
Other comprehensive income/(loss) net of tax | (6,676) | (10,016) | (10,598) |
Securities | Net interest income | Available-for-Sale Securities | |||
Other comprehensive income/(loss) before taxes: | |||
Less reclassification adjustments, Before Tax | (2,333) | (3,895) | (3,834) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (490) | (818) | (805) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (1,843) | (3,077) | (3,029) |
Securities | Other income | Available-for-Sale Securities | |||
Other comprehensive income/(loss) before taxes: | |||
Less reclassification adjustments, Before Tax | (84) | (256) | (275) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (18) | (54) | (57) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (66) | (202) | (218) |
Cash flow hedges | |||
Other comprehensive income/(loss) before taxes: | |||
Unrealized gain/(losses), Before Tax | 14,685 | (27,350) | (14,635) |
Less reclassification adjustments, Before Tax | 7,399 | 5,570 | (1,166) |
Other comprehensive income/(loss), Before Tax | 22,084 | (21,780) | (15,801) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Unrealized gains/(losses), Provision (Benefit) | 3,083 | (5,744) | (3,074) |
Less reclassification adjustments, Provision (Benefit) | 1,554 | 1,170 | (245) |
Other comprehensive income/(loss), Provision (Benefit) | 4,637 | (4,574) | (3,319) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gains/(losses), After Tax | 11,602 | (21,606) | (11,561) |
Less reclassification adjustments, Provision (Benefit) | 5,845 | 4,400 | (921) |
Other comprehensive income/(loss) net of tax | 17,447 | (17,206) | (12,482) |
AOCI Attributable to Parent | |||
Other comprehensive income/(loss) before taxes: | |||
Other comprehensive income/(loss), Before Tax | 22,500 | 2,834 | (52,047) |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other comprehensive income/(loss), Provision (Benefit) | 4,724 | 596 | (10,930) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Other comprehensive income/(loss) net of tax | 17,776 | 2,238 | (41,117) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Available-for-Sale Securities | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gains/(losses), After Tax | 9,114 | 32,739 | (14,976) |
Less reclassification adjustments, Provision (Benefit) | (2,109) | (3,279) | (3,061) |
Other comprehensive income/(loss) net of tax | 7,005 | 29,460 | (18,037) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Held-to-Maturity Securities | |||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrealized gains/(losses), After Tax | 0 | 0 | 0 |
Less reclassification adjustments, Provision (Benefit) | (6,676) | (10,016) | (10,598) |
Other comprehensive income/(loss) net of tax | (6,676) | (10,016) | (10,598) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | Gain on sale of available-for sale investment securities | Available-for-Sale Securities | Reclassification adjustments | |||
Other comprehensive income/(loss) before taxes: | |||
Less reclassification adjustments, Before Tax | (253) | 0 | 236 |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | (53) | 0 | 50 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Less reclassification adjustments, Provision (Benefit) | $ (200) | $ 0 | $ 186 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Commitment fees receivable | $ 100,000 | $ 100,000 | |
Zions Bancorporation, National Association | |||
Related Party Transaction [Line Items] | |||
Related party percent of Farmer Mac's outstanding business volume | 3.40% | 4.10% | |
Servicing fees | $ 11,000,000 | $ 11,800,000 | $ 12,200,000 |
CFC | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume | 18.40% | 9.50% | 12.50% |
Related party percent of Farmer Mac's outstanding business volume | 19.50% | 19.20% | |
Servicing fees | $ 3,300,000 | $ 3,300,000 | $ 3,200,000 |
Interest receivables | 7,800,000 | 5,300,000 | |
Interest income | 50,000,000 | 63,100,000 | 97,300,000 |
Commitment fees earned | 1,200,000 | 1,300,000 | 1,700,000 |
CoBank | |||
Related Party Transaction [Line Items] | |||
Servicing fees | 3,200,000 | 2,300,000 | 1,200,000 |
AgFirst Farm Credit Bank | |||
Related Party Transaction [Line Items] | |||
Commitment fees receivable | 100,000 | 100,000 | |
Commitment fees earned | 1,200,000 | 1,200,000 | 1,200,000 |
Guarantee fees | 19,000 | 25,000 | 29,000 |
AgFirst Farm Credit Bank | Guarantee Obligations | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 11,000,000 | 32,500,000 | 26,700,000 |
Outstanding balance | 363,900,000 | 331,200,000 | |
AgFirst Farm Credit Bank | Performance Guarantee | |||
Related Party Transaction [Line Items] | |||
Outstanding balance | 4,000,000 | 5,500,000 | |
Farm Credit Bank of Texas | |||
Related Party Transaction [Line Items] | |||
Servicing fees | 100,000 | 100,000 | 100,000 |
Commitment fees earned | 1,900,000 | 1,200,000 | $ 1,100,000 |
Farm Credit Bank of Texas | Guarantee Obligations | |||
Related Party Transaction [Line Items] | |||
Outstanding balance | $ 625,600,000 | $ 304,900,000 | |
Class A voting common stock | Zions Bancorporation, National Association | |||
Related Party Transaction [Line Items] | |||
Ownership by a related party | 31.20% | ||
Class A voting common stock | CFC | |||
Related Party Transaction [Line Items] | |||
Ownership by a related party | 7.90% | ||
Common Class B | CoBank | |||
Related Party Transaction [Line Items] | |||
Ownership by a related party | 32.60% | ||
Common Class B | AgFirst Farm Credit Bank | |||
Related Party Transaction [Line Items] | |||
Ownership by a related party | 16.80% | ||
Common Class B | Farm Credit Bank of Texas | |||
Related Party Transaction [Line Items] | |||
Ownership by a related party | 7.70% | ||
Agricultural Finance | Zions Bancorporation, National Association | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume of loan purchases | 8.00% | 7.10% | 9.50% |
Transaction with related party, percent of volume | 5.60% | 6.20% | 7.60% |
USDA Guarantee | Zions Bancorporation, National Association | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume | 2.10% | 1.40% | 2.10% |
RuralĀ Utilities | CFC | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume of loan purchases | 36.90% | 36.70% | 9.80% |
RuralĀ Utilities | CoBank | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume of loan purchases | 60.20% | 56.00% | 89.10% |
AgVantage Securities | CFC | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume | 37.00% | 19.20% | 25.50% |
AgVantage Securities | CFC | Guarantee Obligations | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | $ 1,450,000,000 | $ 250,000,000 | $ 575,000,000 |
Mortgages | Agricultural Finance | Bath State Bank | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 5,000,000 | ||
Mortgages | Agricultural Finance | Farm Credit of Florida [Member] | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 1,100,000 | 200,000 | 0 |
Mortgages | RuralĀ Utilities | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | $ 207,500,000 | $ 416,800,000 | 776,400,000 |
Unfunded Loan Commitment | CoBank | |||
Related Party Transaction [Line Items] | |||
Transaction with related party, percent of volume of loan purchases | 5.60% | 5.10% | |
Unfunded commitments | $ 72,000,000 | ||
USDA Securities: | USDA Guarantee | Zions Bancorporation, National Association | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 9,565,000 | $ 10,764,000 | 8,875,000 |
USDA Securities: | USDA Guarantee | Bath State Bank | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | $ 2,300,000 | $ 9,200,000 | $ 4,000,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Zions Bancorporation, National Association | Sales of Farmer Mac Guaranteed Securities | |||
Related Party Transaction [Line Items] | |||
Sales of Farmer Mac Guaranteed Securities | $ 0 | $ 41,247 | $ 163,134 |
Zions Bancorporation, National Association | USDA Guarantee | USDA Securities: | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 9,565 | 10,764 | 8,875 |
Zions Bancorporation, National Association | Mortgages | Farm & Ranch | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 214,319 | 177,143 | 129,040 |
CFC | AgVantage Securities | Guarantee Obligations | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 1,450,000 | 250,000 | 575,000 |
CFC | AgVantage Securities | Revolving Credit Facility | Off-balance sheet | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 321 | 19,500 | 0 |
CFC | AgVantage Securities | US Government-sponsored Enterprises Debt Securities | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | 1,577,438 | 542,443 | 660,000 |
CFC | Real Estate Loan | |||
Related Party Transaction [Line Items] | |||
Unpaid principal balance | $ 127,117 | $ 272,943 | $ 85,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment securities: | ||
Available-for-sale: | ||
Amount Outstanding | $ 3,819,376 | $ 3,826,582 |
Unamortized Premium/(Discount) | 0 | 0 |
Amortized cost | 3,834,714 | 3,843,666 |
Allowance for losses | (52) | (36) |
Unrealized Gains | 12,203 | 13,642 |
Unrealized Losses | (10,474) | (3,580) |
FairĀ Value | 3,836,391 | 3,853,692 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Total held-to-maturity | ||
Amount Outstanding | 44,970 | 45,032 |
Unamortized Premium/(Discount) | 0 | 0 |
Amortized Cost | 44,970 | 45,032 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 1,612 | 1,201 |
Unrealized Losses | 0 | 0 |
FairĀ Value | 46,582 | 46,233 |
Available-for-sale, accrued interest excluded | 4,300 | 9,000 |
Available-for-Sale Securities | Investment securities: | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 15,338 | 17,084 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 15,338 | 17,084 |
Total held-to-maturity | ||
Unamortized Premium/(Discount) | 15,338 | 17,084 |
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 | (52) | (36) |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (394) | (493) |
FairĀ Value | 19,254 | 19,171 |
Floating Interest Rate | Floating rate asset-backed securities | ||
Available-for-sale: | ||
Amount Outstanding | 6,232 | |
Amortized cost | 6,232 | |
Allowance for losses | 0 | |
Unrealized Gains | 0 | |
Unrealized Losses | (1) | |
FairĀ Value | 6,231 | |
Floating Interest Rate | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Amount Outstanding | 2,168,016 | 2,350,963 |
Amortized cost | 2,168,106 | 2,350,919 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 11,821 | 12,150 |
Unrealized Losses | (1,096) | (3,043) |
FairĀ Value | 2,178,831 | 2,360,026 |
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 held-to-maturity | ||
Unamortized Premium/(Discount) | 0 | 0 |
Floating Interest Rate | Available-for-Sale Securities | Floating rate asset-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | |
Total held-to-maturity | ||
Unamortized Premium/(Discount) | 0 | |
Floating Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 90 | (44) |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 90 | (44) |
Total held-to-maturity | ||
Unamortized Premium/(Discount) | 90 | (44) |
Fixed Interest Rate | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Amount Outstanding | 451,660 | 279 |
Amortized cost | 464,185 | 279 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 382 | 34 |
Unrealized Losses | (5,730) | 0 |
FairĀ Value | 458,837 | 313 |
Held-to-maturity: | ||
Amount Outstanding | 44,970 | 45,032 |
Amortized Cost | 44,970 | 45,032 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 1,612 | 1,201 |
Unrealized Losses | 0 | 0 |
FairĀ Value | $ 46,582 | $ 46,233 |
Total held-to-maturity | ||
Held-to-maturity investment securities weighted average yield | 1.50% | 1.50% |
Fixed Interest Rate | Fixed rate U.S. Treasuries | ||
Available-for-sale: | ||
Amount Outstanding | $ 1,180,000 | $ 1,449,408 |
Amortized cost | 1,182,723 | 1,466,536 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 0 | 1,458 |
Unrealized Losses | (3,254) | (43) |
FairĀ Value | 1,179,469 | 1,467,951 |
Fixed Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 12,525 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 12,525 | 0 |
Total held-to-maturity | ||
Unamortized Premium/(Discount) | 12,525 | 0 |
Fixed Interest Rate | Available-for-Sale Securities | Fixed rate U.S. Treasuries | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 2,723 | 17,128 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 2,723 | 17,128 |
Total held-to-maturity | ||
Unamortized Premium/(Discount) | 2,723 | 17,128 |
Fixed Interest Rate | Held-to-Maturity Securities | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Total held-to-maturity | ||
Unamortized Premium/(Discount) | $ 0 | $ 0 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | $ 1,989,439 | $ 537,162 |
Unrealized loss position for less than 12 months, Unrealized Loss | (9,419) | (636) |
Unrealized loss position for more than 12 months, Fair Value | 107,592 | 349,825 |
Unrealized loss position for more than 12 months, Unrealized Loss | $ (1,055) | $ (2,944) |
Investment securities: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Number of securities in loss position | security | 69 | 27 |
Unrealized loss position for more than 12 months, Number of securities in loss position | security | 24 | 62 |
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | $ 0 | $ 0 |
Unrealized loss position for less than 12 months, Unrealized Loss | 0 | 0 |
Unrealized loss position for more than 12 months, Fair Value | 19,254 | 19,171 |
Unrealized loss position for more than 12 months, Unrealized Loss | (394) | (493) |
Floating Interest Rate | Floating rate asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 0 | |
Unrealized loss position for less than 12 months, Unrealized Loss | 0 | |
Unrealized loss position for more than 12 months, Fair Value | 6,231 | |
Unrealized loss position for more than 12 months, Unrealized Loss | (1) | |
Floating Interest Rate | Guaranteed mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 459,195 | 172,842 |
Unrealized loss position for less than 12 months, Unrealized Loss | (619) | (593) |
Unrealized loss position for more than 12 months, Fair Value | 37,307 | 324,423 |
Unrealized loss position for more than 12 months, Unrealized Loss | (477) | (2,450) |
Fixed Interest Rate | Guaranteed mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 406,805 | |
Unrealized loss position for less than 12 months, Unrealized Loss | (5,730) | |
Unrealized loss position for more than 12 months, Fair Value | 0 | |
Unrealized loss position for more than 12 months, Unrealized Loss | 0 | |
Fixed Interest Rate | Fixed rate U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 1,123,439 | 364,320 |
Unrealized loss position for less than 12 months, Unrealized Loss | (3,070) | (43) |
Unrealized loss position for more than 12 months, Fair Value | 51,031 | 0 |
Unrealized loss position for more than 12 months, Unrealized Loss | $ (184) | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sale of available-for-sale investment securities | $ 257,524 | $ 0 | $ 12,367 |
Gain (loss) on the sale of available-for-sale investment securities | $ 253 | $ 0 | 0 |
Gross realized losses | $ 200 | ||
Investment securities: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Average percent of amortized cost for securities in unrealized loss positions for more than 12 months | 99.00% |
Investment Securities - Debt Ma
Investment Securities - Debt Maturities (Details) - Investment securities: $ in Thousands | Dec. 31, 2021USD ($) |
Amortized Cost | |
Due within one year | $ 646,946 |
Due after one year through five years | 812,878 |
Due after five years through ten years | 1,712,906 |
Due after ten years | 661,984 |
Debt securities, available-for-sale, amortized cost | 3,834,714 |
FairĀ Value | |
Due within one year | 646,518 |
Due after one year through five years | 810,767 |
Due after five years through ten years | 1,710,515 |
Due after ten years | 668,591 |
Total, Fair Value | $ 3,836,391 |
Weighted- Average Yield | |
Due within one year | 1.23% |
Due after one year through five years | 0.42% |
Due after five years through ten years | 0.88% |
Due after ten years | 0.64% |
Total, Weighted-Average Yield | 0.80% |
Farmer Mac Guaranteed Securit_3
Farmer Mac Guaranteed Securities and USDA Securities - Schedule of On-Balance Sheet Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | $ 2,033,345 | $ 1,175,886 |
Amortized Cost | 2,033,371 | 1,175,912 |
Allowance for losses | (132) | (120) |
Unrealized Gains | 11,259 | 25,259 |
Unrealized Losses | (12,764) | (61) |
FairĀ Value | 2,031,734 | 1,200,990 |
Available-for-sale: | ||
Amortized cost | 6,135,807 | |
FairĀ Value | 6,328,559 | |
USDA Securities: | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 2,411,649 | 2,446,550 |
Amortized Cost | 2,436,331 | 2,473,626 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 95,741 | 157,748 |
Unrealized Losses | 0 | (560) |
FairĀ Value | 2,532,072 | 2,630,814 |
Trading: | ||
Unpaid Principal Balance | 4,299 | 6,413 |
Amortized Cost | 4,433 | 6,611 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 1 | 84 |
Unrealized Losses | (33) | 0 |
FairĀ Value | 4,401 | $ 6,695 |
Trading securities, weighted-average yield | 5.05% | |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 4,444,994 | $ 3,622,436 |
Amortized Cost | 4,469,702 | 3,649,538 |
Allowance for losses | (132) | (120) |
Unrealized Gains | 107,000 | 183,007 |
Unrealized Losses | (12,764) | (621) |
FairĀ Value | 4,563,806 | 3,831,804 |
Farmer Mac Guaranteed Securities: | ||
Available-for-sale: | ||
Unpaid Principal Balance | 6,122,240 | |
Amortized cost | 6,135,807 | 6,594,992 |
Allowance for losses | (263) | |
Unrealized Gains | 213,025 | |
Unrealized Losses | (20,010) | |
FairĀ Value | 6,328,559 | 6,947,701 |
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 26 | 26 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 26 | 26 |
Trading: | ||
Unamortized Premium/(Discount) | 26 | 26 |
Held-to-Maturity Securities | USDA Securities: | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 24,682 | 27,076 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 24,682 | 27,076 |
Trading: | ||
Unamortized Premium/(Discount) | 24,682 | 27,076 |
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities and USDA Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 24,708 | 27,102 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 24,708 | 27,102 |
Trading: | ||
Unamortized Premium/(Discount) | 24,708 | 27,102 |
Available-for-Sale Securities | Farmer Mac Guaranteed Securities: | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 13,567 | |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 13,567 | |
Trading: | ||
Unamortized Premium/(Discount) | 13,567 | |
Debt Securities, Trading | USDA Securities: | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 134 | 198 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 134 | 198 |
Trading: | ||
Unamortized Premium/(Discount) | 134 | 198 |
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities | ||
Available-for-sale: | ||
FairĀ Value | 12,400 | |
Trading: | ||
Derivative, notional amount | 275,400 | |
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities: | ||
Available-for-sale: | ||
Unpaid Principal Balance | 0 | |
Amortized cost | 12,297 | |
Allowance for losses | 0 | |
Unrealized Gains | 117 | |
Unrealized Losses | 0 | |
FairĀ Value | 12,414 | |
Farmer Mac Guaranteed Securities | Available-for-Sale Securities | Farmer Mac Guaranteed Securities: | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 12,297 | |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 12,297 | |
Trading: | ||
Unamortized Premium/(Discount) | 12,297 | |
AgVantage | ||
Trading: | ||
Available-for-sale, accrued interest excluded | 29,800 | 32,300 |
Held-to-maturity, accrued interest excluded | 42,100 | 44,700 |
Trading securities, accrued interest excluded | 100 | 200 |
AgVantage | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 2,003,486 | 1,141,430 |
Amortized Cost | 2,003,486 | 1,141,375 |
Allowance for losses | (132) | (120) |
Unrealized Gains | 10,097 | 23,986 |
Unrealized Losses | (12,764) | (61) |
FairĀ Value | 2,000,687 | 1,165,180 |
Available-for-sale: | ||
Unpaid Principal Balance | 6,593,518 | |
Amortized cost | 6,594,992 | |
Allowance for losses | (310) | |
Unrealized Gains | 368,257 | |
Unrealized Losses | (15,238) | |
FairĀ Value | 6,947,701 | |
AgVantage | Farmer Mac Guaranteed Securities: | ||
Available-for-sale: | ||
Unpaid Principal Balance | 6,122,240 | |
Amortized cost | 6,123,510 | |
Allowance for losses | (263) | |
Unrealized Gains | 212,908 | |
Unrealized Losses | (20,010) | |
FairĀ Value | 6,316,145 | |
AgVantage | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | (55) |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | (55) |
Trading: | ||
Unamortized Premium/(Discount) | 0 | (55) |
AgVantage | Available-for-Sale Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 1,474 | |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 1,474 | |
Trading: | ||
Unamortized Premium/(Discount) | 1,474 | |
AgVantage | Available-for-Sale Securities | Farmer Mac Guaranteed Securities: | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 1,270 | |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 1,270 | |
Trading: | ||
Unamortized Premium/(Discount) | 1,270 | |
Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 29,859 | 34,456 |
Amortized Cost | 29,885 | 34,537 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 1,162 | 1,273 |
Unrealized Losses | 0 | 0 |
FairĀ Value | $ 31,047 | 35,810 |
Farmer Mac Guaranteed USDA Securities | USDA Securities: | ||
Trading: | ||
Trading securities, weighted-average yield | 5.05% | |
Farmer Mac Guaranteed USDA Securities | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | $ 26 | 81 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 26 | 81 |
Trading: | ||
Unamortized Premium/(Discount) | $ 26 | $ 81 |
Farmer Mac Guaranteed Securit_4
Farmer Mac Guaranteed Securities and USDA Securities - Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
UnrealizedĀ lossĀ position for lessĀ thanĀ 12Ā months | ||
Unrealized loss position for less than 12 months, Fair Value | $ 1,989,439 | $ 537,162 |
Unrealized loss position for less than 12 months, Unrealized Loss | (9,419) | (636) |
UnrealizedĀ lossĀ position for moreĀ thanĀ 12Ā months | ||
Unrealized loss position for more than 12 months, Fair Value | 107,592 | 349,825 |
Unrealized loss position for more than 12 months, Unrealized Loss | (1,055) | (2,944) |
USDA Securities: | ||
UnrealizedĀ lossĀ position for lessĀ thanĀ 12Ā months | ||
FairĀ Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
UnrealizedĀ lossĀ position for moreĀ thanĀ 12Ā months | ||
FairĀ Value | 0 | 21,061 |
Unrealized Loss | 0 | (560) |
Farmer Mac Guaranteed Securities and USDA Securities | ||
UnrealizedĀ lossĀ position for lessĀ thanĀ 12Ā months | ||
FairĀ Value | 1,387,236 | 49,939 |
Unrealized Loss | (12,764) | (61) |
UnrealizedĀ lossĀ position for moreĀ thanĀ 12Ā months | ||
FairĀ Value | 0 | 21,061 |
Unrealized Loss | 0 | (560) |
AgVantage | Farmer Mac Guaranteed Securities | ||
UnrealizedĀ lossĀ position for lessĀ thanĀ 12Ā months | ||
FairĀ Value | 1,387,236 | 49,939 |
Unrealized Loss | (12,764) | (61) |
UnrealizedĀ lossĀ position for moreĀ thanĀ 12Ā months | ||
FairĀ Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
UnrealizedĀ lossĀ position for lessĀ thanĀ 12Ā months | ||
Unrealized loss position for less than 12 months, Fair Value | 1,867,364 | 133,703 |
Unrealized loss position for less than 12 months, Unrealized Loss | (17,263) | (231) |
UnrealizedĀ lossĀ position for moreĀ thanĀ 12Ā months | ||
Unrealized loss position for more than 12 months, Fair Value | 90,971 | 981,757 |
Unrealized loss position for more than 12 months, Unrealized Loss | $ (2,747) | $ (15,007) |
Farmer Mac Guaranteed Securit_5
Farmer Mac Guaranteed Securities and USDA Securities - Narrative (Details) - AgVantage - Farmer Mac Guaranteed Securities - security | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 13 | 11 |
Held-to-maturity, securities in unrealized loss positions | 10 | 2 |
Unrealized loss position for more than 12 months, Number of securities in loss position | 2 | 7 |
Farmer Mac Guaranteed Securit_6
Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
AgVantage | ||
Weighted- Average Yield | ||
Available-for-sale, accrued interest excluded | $ 29,800 | $ 32,300 |
Farmer Mac Guaranteed Securities | ||
Amortized Cost | ||
Due within one year | 1,401,396 | |
Due after one year through five years | 2,142,369 | |
Due after five years through ten years | 1,008,986 | |
Due after ten years | 1,583,056 | |
Debt securities, available-for-sale, amortized cost | 6,135,807 | |
FairĀ Value | ||
Due within one year | 1,408,170 | |
Due after one year through five years | 2,194,055 | |
Due after five years through ten years | 1,034,586 | |
Due after ten years | 1,691,748 | |
Total, Fair Value | $ 6,328,559 | |
Weighted- Average Yield | ||
Due within one year | 1.80% | |
Due after one year through five years | 2.52% | |
Due after five years through ten years | 2.21% | |
Due after ten years | 2.46% | |
Total, Weighted-Average Yield | 2.28% | |
Farmer Mac Guaranteed Securities | AgVantage | ||
Amortized Cost | ||
Debt securities, available-for-sale, amortized cost | 6,594,992 | |
FairĀ Value | ||
Total, Fair Value | $ 6,947,701 |
Farmer Mac Guaranteed Securit_7
Farmer Mac Guaranteed Securities and USDA Securities - Schedule of Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
AgVantage | ||
Weighted- Average Yield | ||
Held-to-maturity, accrued interest excluded | $ 42,100 | $ 44,700 |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Amortized Cost | ||
Due within one year | 1,146,637 | |
Due after one year through five years | 904,570 | |
Due after five years through ten years | 253,388 | |
Due after ten years | 2,165,107 | |
Amortized Cost | 4,469,702 | $ 3,649,538 |
Fair Value | ||
Due within one year | 1,146,747 | |
Due after one year through five years | 902,695 | |
Due after five years through ten years | 262,906 | |
Due after ten years | 2,251,458 | |
Total | $ 4,563,806 | |
Weighted- Average Yield | ||
Due within one year | 0.65% | |
Due after one year through five years | 2.09% | |
Due after five years through ten years | 2.76% | |
Due after ten years | 3.15% | |
Total | 2.26% |
Financial Derivatives - Schedul
Financial Derivatives - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Notional Disclosures [Abstract] | ||
Notional Amount | $ 17,547,367 | $ 15,447,553 |
Asset | ||
Asset | 19,139 | 17,468 |
Collateral (held)/pledged | 0 | (1,345) |
Net amount | 19,139 | 16,123 |
(Liability) | ||
(Liability) | (34,248) | (29,892) |
Collateral (held)/pledged | 194,519 | 212,263 |
Financial derivatives | 160,271 | 182,371 |
Designated as hedge | Fair value hedges: | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | 6,238,438 | 5,463,303 |
Asset | ||
Asset | 11,554 | 10,157 |
(Liability) | ||
(Liability) | $ (583) | $ (2,585) |
Weighted- Average Pay Rate | 2.06% | 2.26% |
Weighted- Average Receive Rate | 0.13% | 0.21% |
Weighted- Average Remaining Term (inĀ years) | 11 years 7 months 20 days | 11 years 11 months 12 days |
Designated as hedge | Fair value hedges: | Receive fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 5,884,529 | $ 2,611,029 |
Asset | ||
Asset | 15 | 2 |
(Liability) | ||
(Liability) | $ (8,383) | $ (8,755) |
Weighted- Average Pay Rate | 0.17% | 0.32% |
Weighted- Average Receive Rate | 0.88% | 1.61% |
Weighted- Average Remaining Term (inĀ years) | 2 years 3 months 7 days | 2 years 1 month 6 days |
Designated as hedge | Fair value hedges: | Receive fixed callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 1,571,577 | $ 343,500 |
Asset | ||
Asset | 103 | 3,108 |
(Liability) | ||
(Liability) | $ (17,612) | $ (4) |
Weighted- Average Pay Rate | 0.01% | 0.16% |
Weighted- Average Receive Rate | 0.80% | 1.78% |
Weighted- Average Remaining Term (inĀ years) | 4 years 2 months 1 day | 3 years 1 month 28 days |
Designated as hedge | Cash flow hedges: | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 570,000 | $ 472,000 |
Asset | ||
Asset | 6,905 | 2,584 |
(Liability) | ||
(Liability) | $ (2,763) | $ (8,771) |
Weighted- Average Pay Rate | 1.93% | 2.04% |
Weighted- Average Receive Rate | 0.49% | 0.57% |
Weighted- Average Remaining Term (inĀ years) | 5 years 8 months 19 days | 6 years 14 days |
No hedge designation | ||
Asset | ||
Credit valuation adjustment | $ 0 | $ (1) |
(Liability) | ||
Credit valuation adjustment | 14 | 35 |
No hedge designation | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | 229,062 | 339,090 |
Asset | ||
Asset | 0 | 0 |
(Liability) | ||
(Liability) | $ (4,641) | $ (9,675) |
Weighted- Average Pay Rate | 3.22% | 2.38% |
Weighted- Average Receive Rate | 0.16% | 0.19% |
Weighted- Average Remaining Term (inĀ years) | 4 years 11 months 12 days | 4 years 2 months 23 days |
No hedge designation | Receive fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 1,377,250 | $ 2,359,220 |
Asset | ||
Asset | 0 | 0 |
(Liability) | ||
(Liability) | $ 0 | $ 0 |
Weighted- Average Pay Rate | 0.13% | 0.16% |
Weighted- Average Receive Rate | 0.43% | 0.87% |
Weighted- Average Remaining Term (inĀ years) | 11 months 19 days | 1 year 25 days |
No hedge designation | Receive fixed callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 200,000 | |
Asset | ||
Asset | 1 | |
(Liability) | ||
(Liability) | $ (12) | |
Weighted- Average Pay Rate | 0.13% | |
Weighted- Average Receive Rate | 0.15% | |
Weighted- Average Remaining Term (inĀ years) | 8 months 19 days | |
No hedge designation | Basis swaps | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 1,608,911 | $ 3,628,911 |
Asset | ||
Asset | 489 | 1,617 |
(Liability) | ||
(Liability) | $ (280) | $ (43) |
Weighted- Average Pay Rate | 0.17% | 0.18% |
Weighted- Average Receive Rate | 0.20% | 0.23% |
Weighted- Average Remaining Term (inĀ years) | 3 years 3 months 21 days | 2 years 10 days |
No hedge designation | Treasury futures | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 67,600 | $ 30,500 |
Asset | ||
Asset | 73 | 0 |
(Liability) | ||
(Liability) | $ 0 | $ (82) |
Weighted- Average Forward Price (in dollars per share) | $ 130.58 | $ 137.81 |
Financial Derivatives - Narrati
Financial Derivatives - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Gain expected to be reclassified from AOCI to earnings over next 12 months | $ 4,600,000 | |
Gain (loss) from interest rate swaps designated as cash flow hedges reclassified to earnings | 0 | $ 0 |
Investments held as collateral | 0 | 0 |
Financial derivatives in net payable position | 0 | 0 |
Notional amount | 17,547,367,000 | 15,447,553,000 |
Exchange Cleared | ||
Derivative [Line Items] | ||
Notional amount | 14,900,000,000 | 12,800,000,000 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount | 17,500,000,000 | 15,400,000,000 |
Cash | ||
Derivative [Line Items] | ||
Cash held as collateral | 1,300,000 | |
Cash posted as collateral | 16,600,000 | 11,200,000 |
Available-for-Sale Securities | ||
Derivative [Line Items] | ||
Cash posted as collateral | $ 177,900,000 | $ 201,100,000 |
Financial Derivatives - Sched_2
Financial Derivatives - Schedule of Net Income/(Expense) Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Investments and cash equivalents | $ 18,660 | $ 42,144 | $ 81,522 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | 163,547 | 227,691 | 333,896 |
Interest Income Loans | 242,582 | 233,699 | 229,675 |
Total interest expense | (204,014) | (312,946) | (471,958) |
(Losses)/gains on financial derivatives | (3,348) | (246) | 5,282 |
Total | 217,427 | 148,198 | 96,895 |
Expense recognized on cash flow hedges | 19,394 | 16,053 | 20,945 |
Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | (179,407) | 230,330 | 208,311 |
Gains/(losses) on fair value hedging relationships | (1,515) | (9,184) | (7,907) |
Cash flow hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Discount amortization recognized on hedged items | (37) | (13) | (4) |
Interest settlements reclassified from AOCI into net income on derivatives | (7,399) | (5,570) | 1,166 |
Recognized on hedged items | (2,657) | (4,553) | (10,569) |
Expense recognized on cash flow hedges | (10,093) | (10,136) | (9,407) |
Designated as hedge | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 117,046 | 115,733 | 99,652 |
Discount amortization recognized on hedged items | (1,118) | (745) | (631) |
No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | (3,348) | (246) | 5,282 |
Interest Income Investments and Cash Equivalents | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | (1,218) | ||
Gains/(losses) on fair value hedging relationships | 470 | ||
Interest Income Investments and Cash Equivalents | Cash flow hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Discount amortization recognized on hedged items | 0 | ||
Interest settlements reclassified from AOCI into net income on derivatives | 0 | ||
Recognized on hedged items | 0 | ||
Expense recognized on cash flow hedges | 0 | ||
Interest Income Investments and Cash Equivalents | Designated as hedge | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 1,792 | ||
Discount amortization recognized on hedged items | 0 | ||
Interest Income Investments and Cash Equivalents | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | ||
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | (176,304) | 202,624 | 181,144 |
Gains/(losses) on fair value hedging relationships | 773 | (3,657) | (3,334) |
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 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 | 0 |
Recognized on hedged items | 0 | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 | 0 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Designated as hedge | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 119,896 | 126,170 | 118,609 |
Discount amortization recognized on hedged items | 0 | 0 | 0 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Interest Income Loans | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | (97,502) | 73,426 | 43,194 |
Gains/(losses) on fair value hedging relationships | (43) | (3,139) | (6,947) |
Interest Income Loans | Cash flow hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Discount amortization recognized on hedged items | 0 | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 | 0 |
Recognized on hedged items | 0 | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 | 0 |
Interest Income Loans | Designated as hedge | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 46,842 | 40,793 | 26,352 |
Discount amortization recognized on hedged items | 0 | 0 | 0 |
Interest Income Loans | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Total Interest Expense | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 95,617 | (45,720) | (16,027) |
Gains/(losses) on fair value hedging relationships | (2,715) | (2,388) | 2,374 |
Total Interest Expense | Cash flow hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Discount amortization recognized on hedged items | (37) | (13) | (4) |
Interest settlements reclassified from AOCI into net income on derivatives | (7,399) | (5,570) | 1,166 |
Recognized on hedged items | (2,657) | (4,553) | (10,569) |
Expense recognized on cash flow hedges | (10,093) | (10,136) | (9,407) |
Total Interest Expense | Designated as hedge | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | (51,484) | (51,230) | (45,309) |
Discount amortization recognized on hedged items | (1,118) | (745) | (631) |
Total Interest Expense | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Losses on financial derivatives | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 0 | 0 | 0 |
Gains/(losses) on fair value hedging relationships | 0 | 0 | 0 |
Losses on financial derivatives | Cash flow hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Discount amortization recognized on hedged items | 0 | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 | 0 |
Recognized on hedged items | 0 | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 | 0 |
Losses on financial derivatives | Designated as hedge | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on hedged items | 0 | 0 | 0 |
Discount amortization recognized on hedged items | 0 | 0 | 0 |
Losses on financial derivatives | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | (3,348) | (246) | 5,282 |
Interest Rate Swap | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on derivatives | (70,880) | (52,805) | (10,457) |
Income/(expense) related to interest settlements on fair value hedging relationships | 45,048 | 62,183 | 88,564 |
Recognized on derivatives | 177,892 | (239,514) | (216,218) |
Interest Rate Swap | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | (5,816) | (4,204) | 10,321 |
Expense recognized on cash flow hedges | 3,259 | 5,808 | (4,213) |
Interest Rate Swap | Interest Income Investments and Cash Equivalents | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on derivatives | (1,002) | ||
Income/(expense) related to interest settlements on fair value hedging relationships | 790 | ||
Recognized on derivatives | 1,688 | ||
Interest Rate Swap | Interest Income Investments and Cash Equivalents | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | ||
Expense recognized on cash flow hedges | 0 | ||
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on derivatives | (85,302) | (60,056) | (2,177) |
Income/(expense) related to interest settlements on fair value hedging relationships | 34,594 | 66,114 | 116,432 |
Recognized on derivatives | 177,077 | (206,281) | (184,478) |
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 | 0 |
Interest Rate Swap | Interest Income Loans | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on derivatives | (27,167) | (19,135) | (2,053) |
Income/(expense) related to interest settlements on fair value hedging relationships | 19,675 | 21,658 | 24,299 |
Recognized on derivatives | 97,459 | (76,565) | (50,141) |
Interest Rate Swap | Interest Income Loans | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 | 0 |
Interest Rate Swap | Total Interest Expense | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on derivatives | 42,591 | 26,386 | (6,227) |
Income/(expense) related to interest settlements on fair value hedging relationships | (10,011) | (25,589) | (52,167) |
Recognized on derivatives | (98,332) | 43,332 | 18,401 |
Interest Rate Swap | Total Interest Expense | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 | 0 |
Interest Rate Swap | Losses on financial derivatives | Fair value hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Recognized on derivatives | 0 | 0 | 0 |
Income/(expense) related to interest settlements on fair value hedging relationships | 0 | 0 | 0 |
Recognized on derivatives | 0 | 0 | 0 |
Interest Rate Swap | Losses on financial derivatives | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | (5,816) | (4,204) | 10,321 |
Expense recognized on cash flow hedges | 3,259 | 5,808 | (4,213) |
Treasury futures | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | (791) | (1,850) | (826) |
Treasury futures | Interest Income Investments and Cash Equivalents | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | ||
Treasury futures | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Treasury futures | Interest Income Loans | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Treasury futures | Total Interest Expense | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | 0 | 0 | 0 |
Treasury futures | Losses on financial derivatives | No hedge designation | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses)/gains on financial derivatives | $ (791) | $ (1,850) | $ (826) |
Financial Derivatives - Hedged
Financial Derivatives - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-Sale Securities | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | $ 458,653 | $ 0 |
Hedged Asset | (1,218) | 0 |
Loans | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | 1,668,142 | 1,692,609 |
Hedged Asset | 13,832 | 111,333 |
Loans | No hedge designation | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Hedged Asset | 1,200 | 1,400 |
Long-term Debt | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | (7,083,535) | (3,006,140) |
Hedged Liability | 42,377 | (53,240) |
Farmer Mac Guaranteed Securities | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | 4,276,002 | 4,244,027 |
Hedged Asset | 206,520 | 382,825 |
Farmer Mac Guaranteed Securities | No hedge designation | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Hedged Asset | $ 1,300 | $ 1,600 |
Financial Derivatives - Sched_3
Financial Derivatives - Schedule of Credit Exposure to Interest Rate Swap Counterparties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Liabilities derivatives interest rate swaps | $ 34,248 | $ 29,892 |
Gross Amount Recognized | Interest Rate Swap | ||
Derivative [Line Items] | ||
Assets derivatives interest rate swaps | 91,130 | 112,287 |
Liabilities derivatives interest rate swaps | 404,063 | 620,236 |
Counterparty Netting | Interest Rate Swap | ||
Derivative [Line Items] | ||
Assets derivatives interest rate swaps | 91,130 | 111,761 |
Liabilities derivatives interest rate swaps | 386,249 | 595,867 |
Net Amount Presented in the Consolidated Balance Sheet | Interest Rate Swap | ||
Derivative [Line Items] | ||
Assets derivatives interest rate swaps | 0 | 526 |
Liabilities derivatives interest rate swaps | $ 17,814 | $ 24,369 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Medium term notes called during the period | $ 2,000,000,000 | $ 3,100,000,000 | |
Maximum borrowing capacity from U.S. Treasury | 1,500,000,000 | ||
Outstanding debt repurchases | 23,000,000 | 0 | $ 0 |
Gain on extinguishment of debt | $ 14,000 | ||
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 | 25 years | ||
Discount notes | |||
Debt Instrument [Line Items] | |||
Maximum amount of discount notes outstanding at any month end | $ 2,400,000,000 | $ 2,600,000,000 |
Notes Payable - Borrowings (Det
Notes Payable - Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
DueĀ withinĀ oneĀ year: | ||
Current portion of medium-term notes | $ 6,986,799 | $ 10,746,382 |
Weighted - average rate (as a percent) | 0.45% | 0.59% |
Medium-term notes due in: | ||
Two years | $ 4,179,985 | $ 3,004,203 |
Three years | 2,554,906 | 2,809,551 |
Four years | 2,119,805 | 927,119 |
Five years | 2,810,894 | 1,342,250 |
Thereafter | 4,106,144 | 2,966,172 |
Total due after one year | 15,771,734 | 11,049,295 |
Total principal net of discounts | 22,758,533 | 21,795,677 |
Hedging adjustments | (42,377) | 53,240 |
Total | $ 22,716,156 | $ 21,848,917 |
Weighted - average rate (as a percent) | 1.10% | 1.37% |
Total weighted - average rate (as a percent) | 0.90% | 0.98% |
Year one | ||
Medium-term notes due in: | ||
Weighted - average rate (as a percent) | 0.91% | |
Two years | ||
Medium-term notes due in: | ||
Weighted - average rate (as a percent) | 0.81% | 1.00% |
Three years | ||
Medium-term notes due in: | ||
Weighted - average rate (as a percent) | 0.87% | 1.24% |
Four years | ||
Medium-term notes due in: | ||
Weighted - average rate (as a percent) | 0.85% | 1.67% |
Five years | ||
Medium-term notes due in: | ||
Weighted - average rate (as a percent) | 1.07% | 1.03% |
Thereafter | ||
Medium-term notes due in: | ||
Weighted - average rate (as a percent) | 1.69% | 1.92% |
Discount notes | ||
DueĀ withinĀ oneĀ year: | ||
Current portion of medium-term notes | $ 2,167,979 | $ 1,797,175 |
Weighted - average rate (as a percent) | 0.05% | 0.11% |
Short-term debt, average outstanding during the quarter | $ 1,822,714 | $ 2,343,702 |
Weighted - average rate, average outstanding during the quarter (as a percent) | 0.08% | 0.63% |
Medium-term notes | ||
DueĀ withinĀ oneĀ year: | ||
Current portion of medium-term notes | $ 837,580 | $ 2,645,146 |
Weighted - average rate (as a percent) | 0.09% | 0.19% |
Short-term debt, average outstanding during the quarter | $ 1,956,870 | $ 1,593,253 |
Weighted - average rate, average outstanding during the quarter (as a percent) | 0.12% | 0.60% |
Current portion of medium-term notes | ||
DueĀ withinĀ oneĀ year: | ||
Current portion of medium-term notes | $ 3,981,240 | $ 6,304,061 |
Weighted - average rate (as a percent) | 0.75% | 0.90% |
Call Option | ||
Medium-term notes due in: | ||
Two years | $ 243,795 | |
Three years | 318,346 | |
Four years | 372,048 | |
Five years | 1,060,594 | |
Thereafter | 1,368,758 | |
Total principal net of discounts | $ 3,363,541 | |
Weighted - average rate (as a percent) | 1.19% |
Notes Payable - Callable Medium
Notes Payable - Callable Medium-Term Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Year two | $ 4,179,985 | $ 3,004,203 |
Year three | 2,554,906 | 2,809,551 |
Year four | 2,119,805 | 927,119 |
Year five | 2,810,894 | 1,342,250 |
Thereafter | 4,106,144 | 2,966,172 |
Total principal net of discounts | $ 22,758,533 | $ 21,795,677 |
Weighted - average rate (as a percent) | 1.10% | 1.37% |
Year two | ||
Debt Instrument [Line Items] | ||
Year two | $ 2,489,936 | |
Weighted - average rate (as a percent) | 0.89% | |
Year three | ||
Debt Instrument [Line Items] | ||
Year three | $ 1,859,428 | |
Weighted - average rate (as a percent) | 0.92% | |
Year four | ||
Debt Instrument [Line Items] | ||
Year four | $ 2,632,015 | |
Weighted - average rate (as a percent) | 1.10% | |
Call Option | ||
Debt Instrument [Line Items] | ||
Year two | $ 243,795 | |
Year three | 318,346 | |
Year four | 372,048 | |
Year five | 1,060,594 | |
Thereafter | 1,368,758 | |
Total principal net of discounts | $ 3,363,541 | |
Weighted - average rate (as a percent) | 1.19% | |
Call Option | Year two | ||
Debt Instrument [Line Items] | ||
Weighted - average rate (as a percent) | 0.42% | |
Call Option | Year three | ||
Debt Instrument [Line Items] | ||
Weighted - average rate (as a percent) | 0.40% | |
Call Option | Year four | ||
Debt Instrument [Line Items] | ||
Weighted - average rate (as a percent) | 0.92% | |
Call Option | Year five | ||
Debt Instrument [Line Items] | ||
Weighted - average rate (as a percent) | 1.08% | |
Call Option | Thereafter | ||
Debt Instrument [Line Items] | ||
Weighted - average rate (as a percent) | 1.67% |
Notes Payable - Earliest Intere
Notes Payable - Earliest Interest Reset Date of Borrowing Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Year two | $ 4,179,985 | $ 3,004,203 |
Year three | 2,554,906 | 2,809,551 |
Year four | 2,119,805 | 927,119 |
Total principal net of discounts | $ 22,758,533 | $ 21,795,677 |
Short-term debt, weighted average rate (as a percent) | 0.45% | 0.59% |
Weighted - average rate (as a percent) | 1.10% | 1.37% |
Total weighted - average rate (as a percent) | 0.90% | 0.98% |
Due within one year | ||
Debt Instrument [Line Items] | ||
Due within one year | $ 8,795,560 | |
Short-term debt, weighted average rate (as a percent) | 0.43% | |
Year one | ||
Debt Instrument [Line Items] | ||
Year one | $ 3,588,630 | |
Weighted - average rate (as a percent) | 0.91% | |
Year two | ||
Debt Instrument [Line Items] | ||
Year two | $ 2,489,936 | |
Weighted - average rate (as a percent) | 0.89% | |
Year three | ||
Debt Instrument [Line Items] | ||
Year three | $ 1,859,428 | |
Weighted - average rate (as a percent) | 0.92% | |
Year four | ||
Debt Instrument [Line Items] | ||
Year four | $ 2,632,015 | |
Weighted - average rate (as a percent) | 1.10% | |
Thereafter | ||
Debt Instrument [Line Items] | ||
Thereafter | $ 3,392,964 | |
Weighted - average rate (as a percent) | 1.96% |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at lower of cost or fair value | $ 0 | ||
(Release of)/provision for losses | $ (860) | 7,805 | $ 3,504 |
(Recovery)/charge-off from the allowance for losses | 5,800 | ||
Agricultural Finance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
(Release of)/provision for losses | (1,357) | 2,959 | 3,504 |
(Recovery)/charge-off from the allowance for losses | 0 | 5,759 | 67 |
Increase in total provision for losses | 3,200 | ||
Rural Infrastructure Finance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
(Release of)/provision for losses | 512 | 4,709 | 0 |
(Recovery)/charge-off from the allowance for losses | $ 0 | $ 0 | $ 0 |
Loans - Schedule of Composition
Loans - Schedule of Composition of Loan Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 9,236,129 | $ 8,436,850 |
Total | 8,314,096 | 7,261,933 |
Allowance for losses | (14,041) | (13,832) |
Total loans, net of allowance | 9,248,678 | 8,535,146 |
Real Estate Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 9,236,129 | 8,436,850 |
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 26,590 | 112,128 |
Total | 9,262,719 | 8,548,978 |
Allowance for losses | (14,041) | (13,832) |
Total loans, net of allowance | 9,248,678 | 8,535,146 |
Agricultural Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 6,846,993 | 6,176,438 |
Total | 6,846,993 | 6,176,438 |
Allowance for losses | (3,442) | (3,745) |
Agricultural Finance | Real Estate Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 6,846,993 | 6,176,438 |
Rural Infrastructure Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 2,389,136 | 2,260,412 |
Total | 2,389,136 | 2,260,412 |
Allowance for losses | (10,599) | (10,087) |
Rural Infrastructure Finance | Real Estate Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 2,389,136 | 2,260,412 |
Unsecuritized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 8,287,506 | 7,149,805 |
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 26,590 | 112,128 |
Total | 8,314,096 | 7,261,933 |
Allowance for losses | (13,477) | (12,943) |
Total loans, net of allowance | 8,300,619 | 7,248,990 |
Unsecuritized | Agricultural Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 5,898,370 | 4,889,393 |
Unsecuritized | Rural Infrastructure Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 2,389,136 | 2,260,412 |
In Consolidated Trusts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 948,623 | 1,287,045 |
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 0 | 0 |
Total | 948,623 | 1,287,045 |
Allowance for losses | (564) | (889) |
Total loans, net of allowance | 948,059 | 1,286,156 |
In Consolidated Trusts | Agricultural Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | 948,623 | 1,287,045 |
In Consolidated Trusts | Rural Infrastructure Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 0 | $ 0 |
Loans - Changes in the Allowanc
Loans - Changes in the Allowance for Losses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
(Release of)/provision for losses | $ (860,000) | $ 7,805,000 | $ 3,504,000 |
Charge-offs | (5,800,000) | ||
Agricultural Finance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 3,745,000 | 10,454,000 | 7,017,000 |
(Release of)/provision for losses | (1,357,000) | 2,959,000 | 3,504,000 |
Recovery | 1,054,000 | 0 | |
Charge-offs | 0 | (5,759,000) | (67,000) |
Ending balance | 3,442,000 | 3,745,000 | 10,454,000 |
Agricultural Finance | Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
(Release of)/provision for losses | 0 | 0 | |
Agricultural Finance | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | (3,909,000) | ||
Ending balance | (3,909,000) | ||
Agricultural Finance | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 6,545,000 | ||
Ending balance | 6,545,000 | ||
Rural Infrastructure Finance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 10,087,000 | 0 | 0 |
(Release of)/provision for losses | 512,000 | 4,709,000 | 0 |
Recovery | 0 | 0 | |
Charge-offs | 0 | 0 | 0 |
Ending balance | 10,599,000 | 10,087,000 | 0 |
Rural Infrastructure Finance | Collateral Pledged | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
(Release of)/provision for losses | $ 0 | 0 | |
Rural Infrastructure Finance | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 5,378,000 | ||
Ending balance | 5,378,000 | ||
Rural Infrastructure Finance | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 5,378,000 | ||
Ending balance | $ 5,378,000 |
Loans - Allowance for Losses Na
Loans - Allowance for Losses Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
(Release of)/provision for losses | $ (860) | $ 7,805 | $ 3,504 |
(Recovery)/charge-off from the allowance for losses | 5,800 | ||
Agricultural Finance | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
(Release of)/provision for losses | (1,357) | 2,959 | 3,504 |
(Recovery)/charge-off from the allowance for losses | 0 | 5,759 | 67 |
Rural Infrastructure Finance | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
(Release of)/provision for losses | 512 | 4,709 | 0 |
(Recovery)/charge-off from the allowance for losses | $ 0 | $ 0 | $ 0 |
Loans - Unpaid Principal Balanc
Loans - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 8,314,096 | $ 7,261,933 | |
Nonaccrual loans | 126,807 | 114,998 | |
Total Loans | 9,236,129 | 8,436,850 | |
Nonaccrual loans with no associated allowance | 31,000 | 44,200 | |
Interest received on nonaccrual loans | $ 4,400 | 5,000 | |
Agricultural Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 6,846,993 | 6,176,438 | |
Nonaccrual loans | 126,807 | 114,998 | |
Total Loans | 6,846,993 | 6,176,438 | |
Rural Infrastructure Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 2,389,136 | 2,260,412 | |
Nonaccrual loans | 0 | 0 | |
Total Loans | 2,389,136 | 2,260,412 | |
Current | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 9,104,206 | 8,315,566 | |
Current | Agricultural Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 6,715,070 | 6,055,154 | |
Current | Rural Infrastructure Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 2,389,136 | 2,260,412 | |
Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 5,116 | 6,286 | |
Total Past Due | Agricultural Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 5,116 | 6,286 | |
Total Past Due | Rural Infrastructure Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 4,548 | 4,582 | |
30-59 Days | Agricultural Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 4,548 | 4,582 | |
30-59 Days | Rural Infrastructure Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 568 | 632 | |
60-89 Days | Agricultural Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 568 | 632 | |
60-89 Days | Rural Infrastructure Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 0 | |
90 Days and Greater | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 1,072 | |
90 Days and Greater | Agricultural Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | 0 | 1,072 | |
90 Days and Greater | Rural Infrastructure Finance | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 0 | $ 0 |
Loans - Schedule of Financing R
Loans - Schedule of Financing Receivables Credit Quality Indicators (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total | |||
Total | $ 8,314,096 | $ 7,261,933 | |
Current period charge-offs | 5,800 | ||
Agricultural Finance | |||
Year One | |||
Total | 2,224,509 | 2,021,189 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Two | |||
Total | 1,596,563 | 859,880 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Three | |||
Total | 617,576 | 524,541 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Four | |||
Total | 400,104 | 562,007 | |
Current period charge-offs | 0 | 5,365 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 5,365 | |
Year Five | |||
Total | 351,687 | 515,561 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | (1,054) | 0 | |
Current period Agricultural Finance recoveries | (1,054) | 0 | |
Prior | |||
Total | 1,095,135 | 1,140,603 | |
Current period charge-offs | 0 | 394 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 394 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 561,419 | 552,657 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Total | |||
Total | 6,846,993 | 6,176,438 | |
Current period charge-offs | 0 | 5,759 | $ 67 |
Current period recoveries | (1,054) | 0 | |
Current period Agricultural Finance recoveries | (1,054) | 5,759 | |
Rural Infrastructure Finance | |||
Year One | |||
Total | 242,570 | 667,489 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Two | |||
Total | 635,166 | 809,921 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Three | |||
Total | 774,941 | 8,260 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Four | |||
Total | 8,100 | 89,842 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Year Five | |||
Total | 86,878 | 31,275 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Prior | |||
Total | 628,903 | 641,145 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 12,578 | 12,480 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Total | |||
Total | 2,389,136 | 2,260,412 | |
Current period charge-offs | 0 | 0 | $ 0 |
Current period recoveries | 0 | 0 | |
Current period Agricultural Finance recoveries | 0 | 0 | |
Acceptable | Agricultural Finance | |||
Year One | |||
Total | 2,138,060 | 1,947,618 | |
Year Two | |||
Total | 1,541,509 | 774,315 | |
Year Three | |||
Total | 540,139 | 484,345 | |
Year Four | |||
Total | 324,917 | 500,768 | |
Year Five | |||
Total | 303,852 | 465,277 | |
Prior | |||
Total | 1,004,709 | 1,068,693 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 545,370 | 535,742 | |
Total | |||
Total | 6,398,556 | 5,776,758 | |
Acceptable | Rural Infrastructure Finance | |||
Year One | |||
Total | 242,570 | 667,489 | |
Year Two | |||
Total | 612,366 | 809,921 | |
Year Three | |||
Total | 774,941 | 8,260 | |
Year Four | |||
Total | 8,100 | 89,842 | |
Year Five | |||
Total | 86,878 | 31,275 | |
Prior | |||
Total | 628,903 | 641,145 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 12,578 | 12,480 | |
Total | |||
Total | 2,366,336 | 2,260,412 | |
Special mention | Agricultural Finance | |||
Year One | |||
Total | 84,795 | 70,171 | |
Year Two | |||
Total | 50,057 | 79,744 | |
Year Three | |||
Total | 51,200 | 18,317 | |
Year Four | |||
Total | 48,078 | 8,530 | |
Year Five | |||
Total | 9,132 | 13,111 | |
Prior | |||
Total | 14,646 | 21,328 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 4,771 | 7,656 | |
Total | |||
Total | 262,679 | 218,857 | |
Special mention | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | 0 | |
Total | |||
Total | 0 | 0 | |
Substandard | Agricultural Finance | |||
Year One | |||
Total | 1,654 | 3,400 | |
Year Two | |||
Total | 4,997 | 5,821 | |
Year Three | |||
Total | 26,237 | 21,879 | |
Year Four | |||
Total | 27,109 | 52,709 | |
Year Five | |||
Total | 38,703 | 37,173 | |
Prior | |||
Total | 75,780 | 50,582 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 11,278 | 9,259 | |
Total | |||
Total | 185,758 | 180,823 | |
Substandard | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 22,800 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | 0 | |
Total | |||
Total | $ 22,800 | $ 0 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Dec. 31, 2021 | May 27, 2021 | May 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Mar. 14, 2019 | Dec. 31, 2018 | Sep. 30, 2015 |
Class of Stock [Line Items] | |||||||||||
Quarterly dividend on all classes of common stock (in dollars per share) | $ 0.88 | $ 0.80 | $ 0.70 | ||||||||
Share expiration period | 10 years | ||||||||||
SARs exercise price (in dollars per share) | $ 88.68 | $ 82.76 | |||||||||
Excess tax benefits related to stock-based awards | $ 292,000 | $ (440,000) | $ 449,000 | ||||||||
Decrease in additional paid-in capital | (1,300,000) | (600,000) | (1,800,000) | ||||||||
Intrinsic value of outstanding, exercisable and vested or excepted to vest restricted stock | $ 20,400,000 | 20,400,000 | 8,500,000 | ||||||||
Intrinsic value of shares exercised | 900,000 | $ 700,000 | $ 1,900,000 | ||||||||
Unrecognized compensation cost | 3,300,000 | $ 3,300,000 | |||||||||
Weighted-average period of recognition | 1 year 9 months 18 days | ||||||||||
Weighted-average grant date fair value (in dollars per share) | $ 65.48 | $ 45.91 | $ 58.27 | ||||||||
Compensation expense | $ 4,300,000 | $ 4,100,000 | $ 2,300,000 | ||||||||
Granted (in dollars per share) | $ 88.92 | $ 66.02 | $ 80.51 | ||||||||
Capital required for capital adequacy | 713,800,000 | $ 713,800,000 | $ 680,900,000 | ||||||||
Capital | 1,200,000,000 | 1,200,000,000 | 1,000,000,000 | ||||||||
Excess capital | $ 486,800,000 | $ 486,800,000 | 325,500,000 | ||||||||
Outstanding, SARs (in shares) | 130,409 | 130,409 | |||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Tax benefit from exercise of SARs | $ 900,000 | $ 500,000 | $ 1,000,000 | ||||||||
Outstanding, SARs (in shares) | 130,409 | 130,409 | 116,417 | 98,836 | 124,960 | ||||||
Stock option | |||||||||||
Class of Stock [Line Items] | |||||||||||
Outstanding, SARs (in shares) | 0 | 0 | |||||||||
Minimum | |||||||||||
Class of Stock [Line Items] | |||||||||||
SARs exercise price (in dollars per share) | $ 72.26 | ||||||||||
Minimum | Restricted Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Maximum | |||||||||||
Class of Stock [Line Items] | |||||||||||
SARs exercise price (in dollars per share) | $ 75.16 | ||||||||||
Maximum | Restricted Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Vesting period | 3 years | 3 years | 3 years | ||||||||
Series G | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares issued (in shares) | 5,000,000 | ||||||||||
Preferred stock, dividend rate | 4.875% | 4.875% | |||||||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||||||
Payments of stock issuance costs | $ 3,661,677 | $ 3,700,000 | |||||||||
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) | 673,000 | 4,000 | 0 | ||||||||
Shares repurchased | $ 19,800,000 | $ 200,000 | |||||||||
Remaining authorized amount for repurchase | $ 9,800,000 |
Equity - Schedule of Stock by C
Equity - Schedule of Stock by Class (Details) - USD ($) | May 27, 2021 | Aug. 20, 2020 | May 20, 2020 | May 13, 2019 | Jun. 20, 2014 | May 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Series C | ||||||||
Class of Stock [Line Items] | ||||||||
Payments of Stock Issuance Costs | $ 1,618,583 | |||||||
Shares Issued (in shares) | 3,000,000 | 3,000,000 | 3,000,000 | |||||
Annual Dividend Rate | 6.00% | |||||||
Liquidation Value (in dollars per share) | $ 25 | |||||||
Series C | July 17, 2024, thereafter | ||||||||
Class of Stock [Line Items] | ||||||||
Dividend variable rate | 3.26% | |||||||
Series D | ||||||||
Class of Stock [Line Items] | ||||||||
Payments of Stock Issuance Costs | $ 3,340,456 | |||||||
Shares Issued (in shares) | 4,000,000 | 4,000,000 | 4,000,000 | |||||
Annual Dividend Rate | 5.70% | |||||||
Liquidation Value (in dollars per share) | $ 25 | |||||||
Series E | ||||||||
Class of Stock [Line Items] | ||||||||
Payments of Stock Issuance Costs | $ 2,496,750 | |||||||
Shares Issued (in shares) | 3,180,000 | 3,180,000 | 3,180,000 | |||||
Annual Dividend Rate | 5.75% | |||||||
Liquidation Value (in dollars per share) | $ 25 | |||||||
Series F | ||||||||
Class of Stock [Line Items] | ||||||||
Payments of Stock Issuance Costs | $ 3,839,902 | |||||||
Shares Issued (in shares) | 4,800,000 | 4,800,000 | 4,800,000 | |||||
Annual Dividend Rate | 5.25% | |||||||
Liquidation Value (in dollars per share) | $ 25 | |||||||
Series G | ||||||||
Class of Stock [Line Items] | ||||||||
Payments of Stock Issuance Costs | $ 3,661,677 | $ 3,700,000 | ||||||
Shares Issued (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Annual Dividend Rate | 4.875% | 4.875% | ||||||
Liquidation Value (in dollars per share) | $ 25 |
Equity - Quarterly Dividends Pa
Equity - Quarterly Dividends Paid by Farmer Mac (Details) - $ / shares | 3 Months Ended | |||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Series A | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 0 | $ 0.2530 | $ 0.3672 | $ 0.3672 | $ 0.3672 | $ 0.3672 | $ 0.3672 | $ 0.3672 | ||||
Series C | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 0.3750 | $ 0.3750 | $ 0.3750 | $ 0.3750 | 0.3750 | 0.3750 | 0.3750 | 0.3750 | 0.3750 | 0.3750 | 0.3750 | 0.3750 |
Series D | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.3563 | 0.2533 | 0 |
Series D | May 13, 2019 to July 17, 2019 | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | 0.2533 | |||||||||||
Series E | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | 0.3594 | 0.3594 | 0.3594 | 0.3594 | 0.3594 | 0.3594 | 0.2276 | 0 | ||||
Series E | May 20, 2020 to July 17, 2020 | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | 0.2276 | |||||||||||
Series E | July 17, 2020 to September 19, 2020 | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | 0.2530 | |||||||||||
Series F | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | 0.3281 | 0.3281 | 0.3281 | 0.3281 | $ 0.3281 | 0.2078 | $ 0 | $ 0 | ||||
Series F | August 20, 2020 to October 17, 2020 | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 0.2078 | |||||||||||
Series B | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 0 | $ 0 | 0.2626 | $ 0.4297 | ||||||||
Series B | April 17, 2019 to June 12, 2019 | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 0.2626 | |||||||||||
Series G | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends (in dollars per share) | $ 0.3047 | $ 0.3047 | $ 0.1693 | $ 0 |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options, SARS, and Non-vested Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options and SARs | |||
Outstanding, end of year (in shares) | 130,409 | ||
Exercisable at end of year (in shares) | 72,106 | ||
Non-vested Restricted Stock | |||
Outstanding, beginning of year (in shares) | 83,956 | 62,597 | 80,153 |
Granted (in shares) | 53,358 | 53,471 | 41,735 |
Canceled (in shares) | (1,184) | (4,042) | (17,054) |
Vested and issued (in shares) | (32,239) | (28,070) | (42,237) |
Outstanding, end of year (in shares) | 103,891 | 83,956 | 62,597 |
Weighted- Average Grant Date Fair Value | |||
Outstanding, beginning of year (in dollars per share) | $ 71.76 | $ 75.81 | $ 60.98 |
Granted (in dollars per share) | 88.92 | 66.02 | 80.51 |
Canceled (in dollars per share) | 79.82 | 69.66 | 74.97 |
Vested and issued (in dollars per share) | 77.98 | 70.13 | 52.65 |
Outstanding, end of year (in dollars per share) | $ 78.55 | $ 71.76 | $ 75.81 |
Stock Appreciation Rights (SARs) [Member] | |||
Stock Options and SARs | |||
Outstanding, beginning of year (in shares) | 116,417 | 98,836 | 124,960 |
Granted (in shares) | 28,575 | 34,881 | 24,582 |
Exercised (in shares) | (14,583) | (15,912) | (40,851) |
Canceled (in shares) | 0 | (1,388) | (9,855) |
Outstanding, end of year (in shares) | 130,409 | 116,417 | 98,836 |
Exercisable at end of year (in shares) | 72,106 | 66,602 | 72,696 |
Weighted- Average Exercise Price | |||
Outstanding, beginning of year (in dollars per share) | $ 57.16 | $ 46.47 | $ 38.38 |
Granted (in dollars per share) | 88.68 | 74.80 | 82.76 |
Exercised (in dollars per share) | 38.99 | 26.93 | 35.61 |
Canceled (in dollars per share) | 0 | 86.15 | 79.45 |
Outstanding, end of year (in dollars per share) | 66.10 | 57.16 | 46.47 |
Exercisable at end of year (in dollars per share) | $ 52.85 | $ 42.08 | $ 34.07 |
Equity - Schedule of SARs and N
Equity - Schedule of SARs and Non-Vested Restricted Stock Outstanding (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 88.68 | $ 82.76 | ||
Outstanding, SARs (in shares) | 130,409 | |||
Exercisable, SARs (in shares) | 72,106 | |||
Vested or Expected to Vest, SARs (in shares) | 130,409 | |||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 78.55 | $ 71.76 | $ 75.81 | $ 60.98 |
Outstanding, Non-vested Restricted Stock (in shares) | 103,891 | 83,956 | 62,597 | 80,153 |
Expected to Vest, Non-vested Restricted Stock (in shares) | 103,891 | |||
Minimum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 72.26 | |||
Maximum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 75.16 | |||
$10.00 - $24.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 10 | |||
SARs exercise price, upper range limit (in dollars per share) | $ 24.99 | |||
Outstanding, SARs (in shares) | 3,000 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 2 months 12 days | |||
Exercisable, SARs (in shares) | 3,000 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 2 months 12 days | |||
Vested or Expected to Vest, SARs (in shares) | 3,000 | |||
Vested or Expected to Vest, Weighted-Average Remaining Contractual Life | 2 months 12 days | |||
25.00 - 39.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 25 | |||
SARs exercise price, upper range limit (in dollars per share) | $ 39.99 | |||
Outstanding, SARs (in shares) | 37,037 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 2 years 8 months 12 days | |||
Exercisable, SARs (in shares) | 37,037 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 2 years 8 months 12 days | |||
Vested or Expected to Vest, SARs (in shares) | 37,037 | |||
Vested or Expected to Vest, Weighted-Average Remaining Contractual Life | 2 years 8 months 12 days | |||
40.00 - 54.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 40 | |||
SARs exercise price, upper range limit (in dollars per share) | $ 54.99 | |||
Outstanding, SARs (in shares) | 0 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 0 years | |||
Exercisable, SARs (in shares) | 0 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 0 years | |||
Vested or Expected to Vest, SARs (in shares) | 0 | |||
Vested or Expected to Vest, Weighted-Average Remaining Contractual Life | 0 years | |||
55.00 - 69.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 55 | |||
SARs exercise price, upper range limit (in dollars per share) | $ 69.99 | |||
Outstanding, SARs (in shares) | 3,381 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 5 years 3 months 18 days | |||
Exercisable, SARs (in shares) | 3,381 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 5 years 3 months 18 days | |||
Vested or Expected to Vest, SARs (in shares) | 3,381 | |||
Vested or Expected to Vest, Weighted-Average Remaining Contractual Life | 5 years 3 months 18 days | |||
70.00 - 84.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 70 | |||
SARs exercise price, upper range limit (in dollars per share) | $ 84.99 | |||
Outstanding, SARs (in shares) | 52,458 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 7 years 10 months 24 days | |||
Exercisable, SARs (in shares) | 22,730 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 7 years 8 months 12 days | |||
Vested or Expected to Vest, SARs (in shares) | 52,458 | |||
Vested or Expected to Vest, Weighted-Average Remaining Contractual Life | 7 years 10 months 24 days | |||
85.00 - 99.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
SARs exercise price, lower range limit (in dollars per share) | $ 85 | |||
SARs exercise price, upper range limit (in dollars per share) | $ 99.99 | |||
Outstanding, SARs (in shares) | 34,533 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 8 years 8 months 12 days | |||
Exercisable, SARs (in shares) | 5,958 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 6 years 3 months 18 days | |||
Vested or Expected to Vest, SARs (in shares) | 34,533 | |||
Vested or Expected to Vest, Weighted-Average Remaining Contractual Life | 8 years 8 months 12 days | |||
$50.00 - $64.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding, Non-vested Restricted Stock (in shares) | 18,580 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 1 year 3 months 18 days | |||
Expected to Vest, Non-vested Restricted Stock (in shares) | 18,580 | |||
Expected to Vest, Weighted-Average Remaining Contractual Life | 1 year 3 months 18 days | |||
$50.00 - $64.99 | Minimum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 50 | |||
$50.00 - $64.99 | Maximum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 64.99 | |||
65.00 - 79.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding, Non-vested Restricted Stock (in shares) | 25,314 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 10 months 24 days | |||
Expected to Vest, Non-vested Restricted Stock (in shares) | 25,314 | |||
Expected to Vest, Weighted-Average Remaining Contractual Life | 10 months 24 days | |||
65.00 - 79.99 | Minimum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 65 | |||
65.00 - 79.99 | Maximum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 79.99 | |||
80.00 - 94.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding, Non-vested Restricted Stock (in shares) | 58,872 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 1 year 8 months 12 days | |||
Expected to Vest, Non-vested Restricted Stock (in shares) | 58,872 | |||
Expected to Vest, Weighted-Average Remaining Contractual Life | 1 year 8 months 12 days | |||
80.00 - 94.99 | Minimum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 80 | |||
80.00 - 94.99 | Maximum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 94.99 | |||
95.00-109.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding, Non-vested Restricted Stock (in shares) | 1,125 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 1 year 6 months | |||
Expected to Vest, Non-vested Restricted Stock (in shares) | 1,125 | |||
Expected to Vest, Weighted-Average Remaining Contractual Life | 1 year 6 months | |||
95.00-109.99 | Minimum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 95 | |||
95.00-109.99 | Maximum | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Weighted-average grant-date fairĀ value (in dollars per share) | $ 109.99 |
Equity - Assumptions for Estima
Equity - Assumptions for Estimating Fair Value of Stock Options and SARs (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Risk-free interest rate | 0.90% | 0.90% | 2.50% |
Expected years until exercise | 6 years | 6 years | 6 years |
Expected stock volatility | 39.10% | 34.30% | 33.80% |
Dividend yield | 4.00% | 4.20% | 3.40% |
Income Taxes - Components of Fe
Income Taxes - Components of Federal Corporate Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ 37,314 | $ 30,634 | $ 28,316 |
Deferred income tax expense | (1,961) | (1,849) | 789 |
Income tax expense | $ 35,353 | $ 28,785 | $ 29,105 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at statutory rate | $ 35,198 | $ 28,861 | $ 29,117 |
Excess tax benefits related to stock-based awards | (300) | (9) | (449) |
Valuation allowance | 0 | 0 | 49 |
Other | 455 | (67) | 388 |
Income tax expense | $ 35,353 | $ 28,785 | $ 29,105 |
Statutory tax rate | 21.00% | 21.00% | 21.00% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Basis differences related to financial derivatives | $ 63,982 | $ 100,099 |
Allowance for losses | 3,452 | 3,690 |
Unrealized losses on cash flow hedges | 1,427 | 6,065 |
Stock-based compensation | 1,462 | 1,027 |
Capital loss carryforwards | 32 | 86 |
Valuation allowance | (32) | (86) |
Other | 394 | 341 |
Total deferred tax assets | 71,998 | 112,242 |
Deferred tax liability: | ||
Basis differences related to hedged items | 53,945 | 91,460 |
Unrealized gains on available-for-sale securities | 2,451 | 2,364 |
Other | 44 | 97 |
Total deferred tax liability | 56,440 | 93,921 |
Net deferred tax asset | 15,558 | 18,321 |
Capital Loss Carryforward | ||
Deferred tax assets: | ||
Compensation and Benefits | $ 1,281 | $ 1,020 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 32,000 | $ 86,000 | |
Expirations of capital loss carryforwards | 200,000 | ||
Unrecognized tax benefits | 0 | $ 0 | $ 0 |
Expired Capital Loss Carryforward | |||
Valuation Allowance [Line Items] | |||
Expirations of capital loss carryforwards | $ 0 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan wage base | $ 290,000 | $ 285,000 | $ 280,000 |
Requisite service period (in years) | 3 years | ||
Expenses under defined contribution plan | $ 2,700,000 | 2,200,000 | 1,900,000 |
Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution percentage to retirement plan | 18.90% | ||
Maximum gross annual base salary under plan | $ 500,000 | ||
Expenses for NQDC plan | 200,000 | $ 200,000 | $ 100,000 |
Nonqualified Plan | Chief Executive Officer | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum gross annual base salary under plan | $ 700,000 | ||
Base Percentage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution percentage to retirement plan | 13.20% | ||
Excess Percentage for amounts above Social Security taxable wage base | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution percentage to retirement plan | 5.70% |
Guarantees and Commitments - Na
Guarantees and Commitments - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantor Obligations [Line Items] | ||
Minimum term of guarantees | 1 year | |
Maximum term of gurantees | 30 years | |
Farm & Ranch Loans and USDA Guarantees | ||
Guarantor Obligations [Line Items] | ||
Commitments to purchase | $ 78,400,000 | $ 125,800,000 |
Rural Utilities Loans | ||
Guarantor Obligations [Line Items] | ||
Commitments to purchase | 0 | |
Guarantee and commitment obligation | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | 3,800,000,000 | 3,300,000,000 |
Guarantee obligations issued prior to January 1, 2003 | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | 7,800,000 | 10,800,000 |
LTSPCs | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 3,191,061,000 | $ 2,881,856,000 |
Guarantees and Commitments - Gu
Guarantees and Commitments - Guarantee and Commitment Obligations in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 35,535 | $ 36,700 | $ 38,683 |
Additions to the guarantee and commitment obligation | 15,648 | 5,210 | 4,398 |
Amortization of the guarantee and commitment obligation | (7,257) | (6,375) | (6,381) |
Ending balance | $ 43,926 | $ 35,535 | $ 36,700 |
Guarantees and Commitments - Of
Guarantees and Commitments - Off-Balance Sheet Guaranteed Securities (Details) - Unconsolidated VIE - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 581,113 | $ 383,022 |
Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | 578,358 | 378,610 |
Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 2,755 | $ 4,412 |
Guarantees and Commitments - Si
Guarantees and Commitments - Significant Cash Flows Received From and Paid to Trusts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Proceeds from sale of Farmer Mac Guaranteed Securities | $ 404,568 | $ 165,054 | $ 321,414 |
Guarantee fees received | 1,029 | 1,365 | 1,413 |
Servicing fees received | 199 | 0 | 0 |
Interest-only Farmer Mac Guaranteed Securities income | $ 47 | $ 0 | $ 0 |
Guarantees and Commitments - Sc
Guarantees and Commitments - Schedule of Underlying Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed USDA Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Guarantor Obligations [Line Items] | ||
Guarantee and commitment obligation | $ 7,355 | $ 1,625 |
Weighted-average remaining maturity | 21 years 8 months 12 days | 9 years 6 months |
AgVantage Securities | ||
Guarantor Obligations [Line Items] | ||
Weighted-average remaining maturity | 3 years | 4 years |
Guarantees and Commitments - _2
Guarantees and Commitments - Schedule of Long-Term Standby Purchase Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LTSPCs | ||
Guarantor Obligations [Line Items] | ||
Maximum principal amount | $ 3,191,061 | $ 2,881,856 |
Weighted-average remaining maturity | 15 years 6 months | 15 years 3 months 18 days |
Guarantee and commitment obligation | ||
Guarantor Obligations [Line Items] | ||
Maximum principal amount | $ 3,800,000 | $ 3,300,000 |
Guarantee and commitment obligation | LTSPCs | ||
Guarantor Obligations [Line Items] | ||
Guarantee and commitment obligation | $ 36,571 | $ 33,909 |
Guarantees and Commitments - Re
Guarantees and Commitments - Reserve For Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Guarantor Obligations [Line Items] | ||||
Reserve for losses | $ 1,950 | $ 3,277 | ||
Agricultural Finance | ||||
Guarantor Obligations [Line Items] | ||||
Reserve for losses | 1,068 | 2,097 | $ 2,164 | $ 2,167 |
Rural Infrastructure Finance | ||||
Guarantor Obligations [Line Items] | ||||
Reserve for losses | 882 | 1,180 | $ 0 | $ 0 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | ||||
Guarantor Obligations [Line Items] | ||||
Reserve for losses | 1,068 | 2,097 | ||
LTSPCs | Rural Infrastructure Finance | ||||
Guarantor Obligations [Line Items] | ||||
Reserve for losses | $ 882 | $ 1,180 |
Guarantees and Commitments - Ch
Guarantees and Commitments - Changes in Reserve for Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 3,277 | ||
Provision for losses | (1,327) | $ 250 | $ (3) |
Ending balance | 1,950 | 3,277 | |
Agricultural Finance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,097 | 2,164 | 2,167 |
Provision for losses | (1,029) | 81 | (3) |
Ending balance | 1,068 | 2,097 | 2,164 |
Agricultural Finance | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | (148) | ||
Ending balance | (148) | ||
Agricultural Finance | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,016 | ||
Ending balance | 2,016 | ||
Rural Infrastructure Finance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,180 | 0 | 0 |
Provision for losses | (298) | 169 | 0 |
Ending balance | $ 882 | 1,180 | 0 |
Rural Infrastructure Finance | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,011 | ||
Ending balance | 1,011 | ||
Rural Infrastructure Finance | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 1,011 | ||
Ending balance | $ 1,011 |
Guarantees and Commitments - Un
Guarantees and Commitments - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Guarantor Obligations [Line Items] | ||
Total | $ 8,314,096 | $ 7,261,933 |
Current | ||
Guarantor Obligations [Line Items] | ||
Total | 9,104,206 | 8,315,566 |
Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total | 5,116 | 6,286 |
30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 4,548 | 4,582 |
60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 568 | 632 |
90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 1,072 |
Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total | 6,846,993 | 6,176,438 |
Agricultural Finance | Current | ||
Guarantor Obligations [Line Items] | ||
Total | 6,715,070 | 6,055,154 |
Agricultural Finance | Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total | 5,116 | 6,286 |
Agricultural Finance | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 4,548 | 4,582 |
Agricultural Finance | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 568 | 632 |
Agricultural Finance | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 1,072 |
Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total | 2,389,136 | 2,260,412 |
Rural Infrastructure Finance | Current | ||
Guarantor Obligations [Line Items] | ||
Total | 2,389,136 | 2,260,412 |
Rural Infrastructure Finance | Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
Rural Infrastructure Finance | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
Rural Infrastructure Finance | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
Rural Infrastructure Finance | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total | 2,964,756 | 2,404,743 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | Current | ||
Guarantor Obligations [Line Items] | ||
Total | 2,953,091 | 2,389,777 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total | 11,665 | 14,966 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 8,068 | 2,189 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 1,344 |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total | 3,597 | 11,433 |
LTSPCs | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total | 556,837 | 556,425 |
LTSPCs | Rural Infrastructure Finance | Current | ||
Guarantor Obligations [Line Items] | ||
Total | 556,837 | 556,425 |
LTSPCs | Rural Infrastructure Finance | Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
LTSPCs | Rural Infrastructure Finance | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
LTSPCs | Rural Infrastructure Finance | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total | 0 | 0 |
LTSPCs | Rural Infrastructure Finance | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total | $ 0 | $ 0 |
Guarantees and Commitments - Cr
Guarantees and Commitments - Credit Quality Indicators (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total | |||
(Recovery)/charge-off from the allowance for losses | $ 5,800 | ||
Total | $ 8,314,096 | 7,261,933 | |
Agricultural Finance | |||
Year One | |||
Total | 2,224,509 | 2,021,189 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Two | |||
Total | 1,596,563 | 859,880 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Three | |||
Total | 617,576 | 524,541 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Four | |||
Total | 400,104 | 562,007 | |
Current period charge-offs | 0 | 5,365 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 5,365 | |
Year Five | |||
Total | 351,687 | 515,561 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | (1,054) | 0 | |
Current period, net charge offs | (1,054) | 0 | |
Prior | |||
Total | 1,095,135 | 1,140,603 | |
Current period charge-offs | 0 | 394 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 394 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 561,419 | 552,657 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | |||
(Recovery)/charge-off from the allowance for losses | 0 | 5,759 | $ 67 |
Current period recoveries | (1,054) | 0 | |
Current period, net charge offs | (1,054) | 5,759 | |
Total | 6,846,993 | 6,176,438 | |
Rural Infrastructure Finance | |||
Year One | |||
Total | 242,570 | 667,489 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Two | |||
Total | 635,166 | 809,921 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Three | |||
Total | 774,941 | 8,260 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Four | |||
Total | 8,100 | 89,842 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Five | |||
Total | 86,878 | 31,275 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Prior | |||
Total | 628,903 | 641,145 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 12,578 | 12,480 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | |||
(Recovery)/charge-off from the allowance for losses | 0 | 0 | $ 0 |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | 2,389,136 | 2,260,412 | |
Acceptable | Agricultural Finance | |||
Year One | |||
Total | 2,138,060 | 1,947,618 | |
Year Two | |||
Total | 1,541,509 | 774,315 | |
Year Three | |||
Total | 540,139 | 484,345 | |
Year Four | |||
Total | 324,917 | 500,768 | |
Year Five | |||
Total | 303,852 | 465,277 | |
Prior | |||
Total | 1,004,709 | 1,068,693 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 545,370 | 535,742 | |
Total | |||
Total | 6,398,556 | 5,776,758 | |
Acceptable | Rural Infrastructure Finance | |||
Year One | |||
Total | 242,570 | 667,489 | |
Year Two | |||
Total | 612,366 | 809,921 | |
Year Three | |||
Total | 774,941 | 8,260 | |
Year Four | |||
Total | 8,100 | 89,842 | |
Year Five | |||
Total | 86,878 | 31,275 | |
Prior | |||
Total | 628,903 | 641,145 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 12,578 | 12,480 | |
Total | |||
Total | 2,366,336 | 2,260,412 | |
Special mention | Agricultural Finance | |||
Year One | |||
Total | 84,795 | 70,171 | |
Year Two | |||
Total | 50,057 | 79,744 | |
Year Three | |||
Total | 51,200 | 18,317 | |
Year Four | |||
Total | 48,078 | 8,530 | |
Year Five | |||
Total | 9,132 | 13,111 | |
Prior | |||
Total | 14,646 | 21,328 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 4,771 | 7,656 | |
Total | |||
Total | 262,679 | 218,857 | |
Special mention | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | 0 | |
Total | |||
Total | 0 | 0 | |
Substandard | Agricultural Finance | |||
Year One | |||
Total | 1,654 | 3,400 | |
Year Two | |||
Total | 4,997 | 5,821 | |
Year Three | |||
Total | 26,237 | 21,879 | |
Year Four | |||
Total | 27,109 | 52,709 | |
Year Five | |||
Total | 38,703 | 37,173 | |
Prior | |||
Total | 75,780 | 50,582 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 11,278 | 9,259 | |
Total | |||
Total | 185,758 | 180,823 | |
Substandard | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 22,800 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | 0 | |
Total | |||
Total | 22,800 | 0 | |
LTSPCs and Farmer Mac Guaranteed Securities | Agricultural Finance | |||
Year One | |||
Total | 376,027 | 182,397 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Two | |||
Total | 544,098 | 225,612 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Three | |||
Total | 245,089 | 198,061 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Four | |||
Total | 200,298 | 257,223 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Five | |||
Total | 251,812 | 234,781 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Prior | |||
Total | 1,089,305 | 1,080,466 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 258,127 | 226,203 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | |||
(Recovery)/charge-off from the allowance for losses | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | 2,964,756 | 2,404,743 | |
LTSPCs and Farmer Mac Guaranteed Securities | Acceptable | Agricultural Finance | |||
Year One | |||
Total | 376,027 | 178,213 | |
Year Two | |||
Total | 537,521 | 213,620 | |
Year Three | |||
Total | 244,365 | 183,948 | |
Year Four | |||
Total | 188,452 | 237,042 | |
Year Five | |||
Total | 235,865 | 207,296 | |
Prior | |||
Total | 1,013,937 | 969,860 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 252,039 | 211,620 | |
Total | |||
Total | 2,848,206 | 2,201,599 | |
LTSPCs and Farmer Mac Guaranteed Securities | Special mention | Agricultural Finance | |||
Year One | |||
Total | 0 | 3,920 | |
Year Two | |||
Total | 5,270 | 1,742 | |
Year Three | |||
Total | 0 | 1,502 | |
Year Four | |||
Total | 6,808 | 5,603 | |
Year Five | |||
Total | 3,154 | 19,644 | |
Prior | |||
Total | 38,042 | 50,004 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 2,354 | 10,058 | |
Total | |||
Total | 55,628 | 92,473 | |
LTSPCs and Farmer Mac Guaranteed Securities | Substandard | Agricultural Finance | |||
Year One | |||
Total | 0 | 264 | |
Year Two | |||
Total | 1,307 | 10,250 | |
Year Three | |||
Total | 724 | 12,611 | |
Year Four | |||
Total | 5,038 | 14,578 | |
Year Five | |||
Total | 12,793 | 7,841 | |
Prior | |||
Total | 37,326 | 60,602 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 3,734 | 4,525 | |
Total | |||
Total | 60,922 | 110,671 | |
LTSPCs | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Prior | |||
Total | 499,594 | 549,405 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 57,243 | 7,020 | |
Current period charge-offs | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | |||
(Recovery)/charge-off from the allowance for losses | 0 | 0 | |
Current period recoveries | 0 | 0 | |
Current period, net charge offs | 0 | 0 | |
Total | 556,837 | 556,425 | |
LTSPCs | Acceptable | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 499,594 | 549,405 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 57,243 | 7,020 | |
Total | |||
Total | 556,837 | 556,425 | |
LTSPCs | Special mention | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | 0 | |
Total | |||
Total | 0 | 0 | |
LTSPCs | Substandard | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Prior | |||
Total | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 0 | 0 | |
Total | |||
Total | $ 0 | $ 0 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Financial derivatives | $ 19,139 | $ 16,123 |
Liabilities: | ||
Financial derivatives | 160,271 | 182,371 |
Investment securities: | ||
Assets: | ||
FairĀ Value | 3,836,391 | $ 3,853,692 |
Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | $ 6,328,559 | |
Level 3 | ||
Liabilities: | ||
Percent of level three fair value assets and liabilities | 25.00% | 29.00% |
Financial instruments level three percent | 62.00% | 65.00% |
Recurring | ||
Assets: | ||
Financial derivatives | $ 19,139 | $ 17,468 |
Guarantee Asset | 6,237 | |
Total Assets at fair value | 10,194,727 | 10,825,556 |
Liabilities: | ||
Financial derivatives | 34,248 | 29,892 |
Total Liabilities at fair value | 34,248 | 29,892 |
Recurring | USDA Securities: | ||
Assets: | ||
Trading | 4,401 | 6,695 |
Recurring | Investment securities: | ||
Assets: | ||
FairĀ Value | 3,836,391 | 3,853,692 |
Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 6,328,559 | 6,947,701 |
Recurring | Level 1 | ||
Assets: | ||
Financial derivatives | 73 | 0 |
Guarantee Asset | 0 | |
Total Assets at fair value | 1,179,542 | 1,467,951 |
Liabilities: | ||
Financial derivatives | 0 | 82 |
Total Liabilities at fair value | 0 | 82 |
Recurring | Level 1 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
Recurring | Level 1 | Investment securities: | ||
Assets: | ||
FairĀ Value | 1,179,469 | 1,467,951 |
Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Financial derivatives | 19,066 | 17,468 |
Guarantee Asset | 0 | |
Total Assets at fair value | 2,656,734 | 2,384,038 |
Liabilities: | ||
Financial derivatives | 34,248 | 29,810 |
Total Liabilities at fair value | 34,248 | 29,810 |
Recurring | Level 2 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
Recurring | Level 2 | Investment securities: | ||
Assets: | ||
FairĀ Value | 2,637,668 | 2,366,570 |
Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Recurring | Level 3 | ||
Assets: | ||
Financial derivatives | 0 | 0 |
Guarantee Asset | 6,237 | |
Total Assets at fair value | 6,358,451 | 6,973,567 |
Liabilities: | ||
Financial derivatives | 0 | 0 |
Total Liabilities at fair value | 0 | 0 |
Recurring | Level 3 | USDA Securities: | ||
Assets: | ||
Trading | 4,401 | 6,695 |
Recurring | Level 3 | Investment securities: | ||
Assets: | ||
FairĀ Value | 19,254 | 19,171 |
Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 6,328,559 | 6,947,701 |
Fair Value, Nonrecurring | ||
Assets: | ||
Mortgage Servicing Rights | 2,681 | |
Total Assets at fair value | 2,681 | |
Fair Value, Nonrecurring | Level 1 | ||
Assets: | ||
Mortgage Servicing Rights | 0 | |
Total Assets at fair value | 0 | |
Fair Value, Nonrecurring | Level 2 | ||
Assets: | ||
Mortgage Servicing Rights | 0 | |
Total Assets at fair value | 0 | |
Fair Value, Nonrecurring | Level 3 | ||
Assets: | ||
Mortgage Servicing Rights | 2,681 | |
Total Assets at fair value | 2,681 | |
AgVantage Securities | Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 6,316,145 | 6,947,701 |
AgVantage Securities | Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
AgVantage Securities | Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
AgVantage Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 6,316,145 | 6,947,701 |
Farmer Mac Guaranteed USDA Securities | Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 12,414 | |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 0 | |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 0 | |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
FairĀ Value | 12,414 | |
USDA Securities | Recurring | USDA Securities: | ||
Assets: | ||
Trading | 4,401 | 6,695 |
USDA Securities | Recurring | Level 1 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
USDA Securities | Recurring | Level 2 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
USDA Securities | Recurring | Level 3 | USDA Securities: | ||
Assets: | ||
Trading | 4,401 | 6,695 |
Floating Interest Rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
FairĀ Value | 19,254 | 19,171 |
Floating Interest Rate | Floating rate asset-backed securities | ||
Assets: | ||
FairĀ Value | 6,231 | |
Floating Interest Rate | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 2,178,831 | 2,360,026 |
Floating Interest Rate | Recurring | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
FairĀ Value | 19,254 | 19,171 |
Floating Interest Rate | Recurring | Floating rate asset-backed securities | ||
Assets: | ||
FairĀ Value | 6,231 | |
Floating Interest Rate | Recurring | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 2,178,831 | 2,360,026 |
Floating Interest Rate | Recurring | Level 1 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Floating Interest Rate | Recurring | Level 1 | Floating rate asset-backed securities | ||
Assets: | ||
FairĀ Value | 0 | |
Floating Interest Rate | Recurring | Level 1 | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Floating Interest Rate | Recurring | Level 2 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Floating Interest Rate | Recurring | Level 2 | Floating rate asset-backed securities | ||
Assets: | ||
FairĀ Value | 6,231 | |
Floating Interest Rate | Recurring | Level 2 | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 2,178,831 | 2,360,026 |
Floating Interest Rate | Recurring | Level 3 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
FairĀ Value | 19,254 | 19,171 |
Floating Interest Rate | Recurring | Level 3 | Floating rate asset-backed securities | ||
Assets: | ||
FairĀ Value | 0 | |
Floating Interest Rate | Recurring | Level 3 | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Fixed Interest Rate | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 458,837 | 313 |
Fixed Interest Rate | Fixed rate U.S. Treasuries | ||
Assets: | ||
FairĀ Value | 1,179,469 | 1,467,951 |
Fixed Interest Rate | Recurring | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 458,837 | 313 |
Fixed Interest Rate | Recurring | Fixed rate U.S. Treasuries | ||
Assets: | ||
FairĀ Value | 1,179,469 | 1,467,951 |
Fixed Interest Rate | Recurring | Level 1 | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Fixed Interest Rate | Recurring | Level 1 | Fixed rate U.S. Treasuries | ||
Assets: | ||
FairĀ Value | 1,179,469 | 1,467,951 |
Fixed Interest Rate | Recurring | Level 2 | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 458,837 | 313 |
Fixed Interest Rate | Recurring | Level 2 | Fixed rate U.S. Treasuries | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Fixed Interest Rate | Recurring | Level 3 | Guaranteed mortgage-backed securities | ||
Assets: | ||
FairĀ Value | 0 | 0 |
Fixed Interest Rate | Recurring | Level 3 | Fixed rate U.S. Treasuries | ||
Assets: | ||
FairĀ Value | $ 0 | $ 0 |
Fair Value Disclosures - Unobse
Fair Value Disclosures - Unobservable Input Reconciliation (Details) - Level 3 - Recurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | $ 6,973,567 | $ 7,170,850 | $ 6,003,211 |
Purchases | 1,161,912 | 974,237 | 2,091,566 |
Sales | 0 | 0 | (57,853) |
Settlements | (1,617,039) | (1,400,130) | (1,021,706) |
Allowance for Losses | 31 | (345) | |
Realized and unrealized losses included in Income | (176,180) | 202,757 | 181,470 |
Unrealized gains includedĀ in Other Comprehensive Income | 16,160 | 26,198 | (25,838) |
Ending Balance | 6,358,451 | 6,973,567 | 7,170,850 |
Floating rate auction-rate certificates backed by Government guaranteed student loans | Floating Interest Rate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 19,171 | ||
Ending Balance | 19,254 | 19,171 | |
Floating rate auction-rate certificates backed by Government guaranteed student loans | Floating Interest Rate | Available-for-Sale Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 19,171 | 18,912 | 18,715 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Allowance for Losses | (16) | (36) | |
Realized and unrealized losses included in Income | 0 | 0 | 0 |
Unrealized gains includedĀ in Other Comprehensive Income | 99 | 295 | 197 |
Ending Balance | 19,254 | 19,171 | 18,912 |
Available-for-sale securities | Available-for-Sale Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 19,171 | 18,912 | 18,715 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Allowance for Losses | (16) | (36) | |
Realized and unrealized losses included in Income | 0 | 0 | 0 |
Unrealized gains includedĀ in Other Comprehensive Income | 99 | 295 | 197 |
Ending Balance | 19,254 | 19,171 | 18,912 |
Farmer Mac Guaranteed Securities | AgVantage Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 6,947,701 | ||
Ending Balance | 6,316,145 | 6,947,701 | |
Farmer Mac Guaranteed Securities | Available-for-Sale Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 6,947,701 | 7,143,025 | 5,974,497 |
Purchases | 1,155,675 | 974,237 | 2,033,713 |
Sales | 0 | 0 | 0 |
Settlements | (1,614,861) | (1,397,861) | (1,020,294) |
Allowance for Losses | 47 | (309) | |
Realized and unrealized losses included in Income | (176,064) | 202,706 | 181,144 |
Unrealized gains includedĀ in Other Comprehensive Income | 16,061 | 25,903 | (26,035) |
Ending Balance | 6,328,559 | 6,947,701 | 7,143,025 |
Farmer Mac Guaranteed Securities | Available-for-Sale Securities | AgVantage Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 6,947,701 | 7,143,025 | 5,974,497 |
Purchases | 1,143,115 | 974,237 | 2,033,713 |
Sales | 0 | 0 | 0 |
Settlements | (1,614,598) | (1,397,861) | (1,020,294) |
Allowance for Losses | 47 | (309) | |
Realized and unrealized losses included in Income | (176,064) | 202,706 | 181,144 |
Unrealized gains includedĀ in Other Comprehensive Income | 15,944 | 25,903 | (26,035) |
Ending Balance | 6,316,145 | 6,947,701 | 7,143,025 |
Farmer Mac Guaranteed Securities | Available-for-Sale Securities | Farmer Mac Guaranteed USDA Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | ||
Purchases | 12,560 | ||
Sales | 0 | ||
Settlements | (263) | ||
Allowance for Losses | 0 | ||
Realized and unrealized losses included in Income | 0 | ||
Unrealized gains includedĀ in Other Comprehensive Income | 117 | ||
Ending Balance | 12,414 | 0 | |
USDA Securities: | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 6,695 | 8,913 | 9,999 |
Purchases | 0 | 0 | 57,853 |
Sales | 0 | 0 | (57,853) |
Settlements | (2,178) | (2,269) | (1,412) |
Allowance for Losses | |||
Realized and unrealized losses included in Income | (116) | 51 | 326 |
Unrealized gains includedĀ in Other Comprehensive Income | 0 | 0 | 0 |
Ending Balance | 4,401 | 6,695 | 8,913 |
USDA Securities: | Available-for-Sale Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Purchases | 57,853 | ||
Sales | (57,853) | ||
Settlements | 0 | ||
Realized and unrealized losses included in Income | 0 | ||
Unrealized gains includedĀ in Other Comprehensive Income | 0 | ||
Ending Balance | 0 | ||
USDA Securities: | Debt Securities, Trading | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 6,695 | 8,913 | 9,999 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (2,178) | (2,269) | (1,412) |
Allowance for Losses | 0 | 0 | |
Realized and unrealized losses included in Income | (116) | 51 | 326 |
Unrealized gains includedĀ in Other Comprehensive Income | 0 | 0 | 0 |
Ending Balance | 4,401 | 6,695 | $ 8,913 |
Guarantee and commitment obligations: | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | ||
Purchases | 6,237 | ||
Sales | 0 | ||
Settlements | 0 | ||
Allowance for Losses | 0 | ||
Realized and unrealized losses included in Income | 0 | ||
Unrealized gains includedĀ in Other Comprehensive Income | 0 | ||
Ending Balance | 6,237 | 0 | |
Guarantee and commitment obligations: | Guarantee Asset | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | 0 | ||
Purchases | 6,237 | ||
Sales | 0 | ||
Settlements | 0 | ||
Allowance for Losses | 0 | ||
Realized and unrealized losses included in Income | 0 | ||
Unrealized gains includedĀ in Other Comprehensive Income | 0 | ||
Ending Balance | $ 6,237 | $ 0 |
Fair Value Disclosures - Quanti
Fair Value Disclosures - Quantitative Information (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | $ 6,328,559 | |||
Recurring | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee Asset | 6,237 | |||
Recurring | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | 6,328,559 | $ 6,947,701 | ||
Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 6,358,451 | 6,973,567 | $ 7,170,850 | $ 6,003,211 |
Guarantee Asset | 6,237 | |||
Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | 6,328,559 | 6,947,701 | ||
Floating rate auction-rate certificates backed by Government guaranteed student loans | Recurring | Level 3 | Floating Interest Rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 19,254 | 19,171 | ||
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | 12,400 | |||
USDA Securities: | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 4,401 | 6,695 | $ 8,913 | $ 9,999 |
AgVantage Securities | Recurring | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | 6,316,145 | 6,947,701 | ||
AgVantage Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | 6,316,145 | 6,947,701 | ||
AgVantage Securities | Farmer Mac Guaranteed Securities | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair Value | 6,316,145 | $ 6,947,701 | ||
Farmer Mac Guaranteed USDA Securities | Recurring | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | 12,414 | |||
Farmer Mac Guaranteed USDA Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
FairĀ Value | $ 12,414 | |||
Range of broker quotes | Minimum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Indicative bids | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.980 | 0.975 | ||
Range of broker quotes | Maximum | Floating rate auction-rate certificates backed by Government guaranteed student loans | Indicative bids | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.980 | 0.975 | ||
Range of broker quotes | Weighted Average | Floating rate auction-rate certificates backed by Government guaranteed student loans | Indicative bids | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.980 | 0.975 | ||
Discount rate | Minimum | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee asset, measurement input | 0.054 | |||
Discount rate | Minimum | AgVantage Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.009 | 0.008 | ||
Discount rate | Minimum | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.023 | |||
Discount rate | Minimum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.014 | 0.009 | ||
Discount rate | Maximum | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee asset, measurement input | 0.058 | |||
Discount rate | Maximum | AgVantage Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.021 | 0.023 | ||
Discount rate | Maximum | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.028 | |||
Discount rate | Maximum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.031 | 0.019 | ||
Discount rate | Weighted Average | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee asset, measurement input | 0.056 | |||
Discount rate | Weighted Average | AgVantage Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.017 | 0.013 | ||
Discount rate | Weighted Average | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.026 | |||
Discount rate | Weighted Average | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.028 | 0.014 | ||
CPR | Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investment securities, measurement input | 0.08 | |||
CPR | Minimum | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee asset, measurement input | 0.07 | |||
CPR | Minimum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.25 | 0.25 | ||
CPR | Maximum | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee asset, measurement input | 0.12 | |||
CPR | Maximum | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.42 | 0.49 | ||
CPR | Weighted Average | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Guarantee asset, measurement input | 0.08 | |||
CPR | Weighted Average | USDA Securities | USDA Securities: | Discounted cash flow | Recurring | Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
USDA securities, measurement input | 0.39 | 0.44 |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of Carrying Value and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||||
Financial derivatives | $ 19,139 | $ 16,123 | ||
Guarantee and commitment fees receivable | 45,538 | 37,113 | ||
Financial liabilities: | ||||
Financial derivatives | 160,271 | 182,371 | ||
Guarantee and commitment obligation | 43,926 | 35,535 | $ 36,700 | $ 38,683 |
FairĀ Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 908,785 | 1,033,941 | ||
Loans | 9,814,642 | 9,167,525 | ||
Financial derivatives | 19,139 | 17,468 | ||
Guarantee and commitment fees receivable | 42,533 | 34,115 | ||
Financial liabilities: | ||||
Notes payable | 22,716,791 | 22,130,263 | ||
Debt securities of consolidated trusts held by third parties | 1,005,306 | 1,390,330 | ||
Financial derivatives | 34,248 | 29,892 | ||
Guarantee and commitment obligation | 40,920 | 32,537 | ||
FairĀ Value | Investment securities: | ||||
Financial assets: | ||||
Marketable securities | 3,884,202 | 3,899,925 | ||
FairĀ Value | Farmer Mac Guaranteed Securities | ||||
Financial assets: | ||||
Marketable securities | 8,360,293 | 8,148,691 | ||
FairĀ Value | USDA Securities: | ||||
Financial assets: | ||||
Marketable securities | 2,536,473 | 2,637,509 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 908,785 | 1,033,941 | ||
Loans | 9,248,678 | 8,535,146 | ||
Financial derivatives | 19,139 | 17,468 | ||
Guarantee and commitment fees receivable | 45,538 | 37,113 | ||
Financial liabilities: | ||||
Notes payable | 22,716,156 | 21,848,917 | ||
Debt securities of consolidated trusts held by third parties | 981,379 | 1,323,786 | ||
Financial derivatives | 34,248 | 29,892 | ||
Guarantee and commitment obligation | 43,926 | 35,535 | ||
Carrying Amount | Investment securities: | ||||
Financial assets: | ||||
Marketable securities | 3,882,590 | 3,898,724 | ||
Carrying Amount | Farmer Mac Guaranteed Securities | ||||
Financial assets: | ||||
Marketable securities | 8,361,798 | 8,123,493 | ||
Carrying Amount | USDA Securities: | ||||
Financial assets: | ||||
Marketable securities | $ 2,440,732 | $ 2,480,321 |
Business Segment Reporting - Co
Business Segment Reporting - Core Earnings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Sep. 30, 2021segment | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 7 | 5 | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | $ 220,775 | $ 190,588 | $ 173,135 | ||
Less: reconciling adjustments | 0 | 0 | 0 | ||
Net effective spread | 0 | 0 | 0 | ||
Guarantee and commitment fees | 12,669 | 12,549 | 13,666 | ||
Gain on sale of mortgage loans | 6,539 | 0 | 0 | ||
Other income/(expense) | (1,141) | 3,754 | 7,276 | ||
Total revenues | 238,842 | 206,891 | 194,077 | ||
Release of/(provision for) losses | 860 | (7,805) | (3,504) | ||
Release of/(provision for) reserve for losses | 1,327 | (250) | 3 | ||
Operating expenses | (73,416) | (61,403) | (51,925) | ||
Total non-interest expense | (72,089) | (61,653) | (51,922) | ||
Core earnings before income taxes | 167,613 | 137,433 | 138,651 | ||
Income tax (expense)/benefit | (35,353) | (28,785) | (29,105) | ||
Core earnings before preferred stock dividends | 132,260 | 108,648 | 109,546 | ||
Preferred stock dividends | (24,677) | (17,805) | (13,940) | ||
Loss on retirement of preferred stock | (1,667) | (1,956) | |||
Segment core earnings | 107,583 | 89,176 | 93,650 | ||
Total Assets | $ 25,145,491 | 25,145,491 | 24,355,501 | 21,709,374 | |
Total on- and off-balance sheet program assets at principal balance | 23,614,463 | 23,614,463 | 21,924,095 | 21,117,942 | |
Reconciling Adjustments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 0 | 0 | 0 | ||
Less: reconciling adjustments | 107 | (6,368) | 4,527 | ||
Net effective spread | 107 | (6,368) | 4,527 | ||
Guarantee and commitment fees | (4,864) | (6,601) | (7,669) | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | (2,821) | 604 | 5,501 | ||
Total revenues | (7,578) | (12,365) | 2,359 | ||
Release of/(provision for) losses | 0 | 0 | 0 | ||
Release of/(provision for) reserve for losses | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 0 | 0 | 0 | ||
Core earnings before income taxes | (7,578) | (12,365) | 2,359 | ||
Income tax (expense)/benefit | 1,591 | 2,596 | (495) | ||
Core earnings before preferred stock dividends | (5,987) | (9,769) | 1,864 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | (1,667) | (1,956) | |||
Segment core earnings | (5,987) | (11,436) | (92) | ||
Total Assets | 0 | 0 | 0 | 0 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | 0 | 0 | |
Farm & Ranch | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 118,289 | 96,355 | 83,226 | ||
Less: reconciling adjustments | (4,753) | (6,197) | (7,095) | ||
Net effective spread | 113,536 | 90,158 | 76,131 | ||
Guarantee and commitment fees | 16,178 | 17,800 | 19,551 | ||
Gain on sale of mortgage loans | 6,539 | ||||
Other income/(expense) | 1,966 | 3,652 | 1,571 | ||
Total revenues | 138,219 | 111,610 | 97,253 | ||
Release of/(provision for) losses | 1,574 | (2,941) | (3,165) | ||
Release of/(provision for) reserve for losses | 1,034 | (80) | 3 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 1,034 | (80) | 3 | ||
Core earnings before income taxes | 140,827 | 108,589 | 94,091 | ||
Income tax (expense)/benefit | (29,574) | (22,802) | (19,759) | ||
Core earnings before preferred stock dividends | 111,253 | 85,787 | 74,332 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | 111,253 | 85,787 | 74,332 | ||
Total Assets | 13,112,193 | 13,112,193 | 12,373,781 | 11,889,538 | |
Total on- and off-balance sheet program assets at principal balance | 16,094,640 | 16,094,640 | 14,872,894 | 14,559,268 | |
Corporate AgFinance | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 27,081 | 21,441 | 13,757 | ||
Less: reconciling adjustments | 0 | 0 | 0 | ||
Net effective spread | 27,081 | 21,441 | 13,757 | ||
Guarantee and commitment fees | 48 | 5 | 0 | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | 0 | 0 | 0 | ||
Total revenues | 27,129 | 21,446 | 13,757 | ||
Release of/(provision for) losses | (210) | 36 | (339) | ||
Release of/(provision for) reserve for losses | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 0 | 0 | 0 | ||
Core earnings before income taxes | 26,919 | 21,482 | 13,418 | ||
Income tax (expense)/benefit | (5,653) | (4,511) | (2,818) | ||
Core earnings before preferred stock dividends | 21,266 | 16,971 | 10,600 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | 21,266 | 16,971 | 10,600 | ||
Total Assets | 1,507,848 | 1,507,848 | 1,663,581 | 1,338,114 | |
Total on- and off-balance sheet program assets at principal balance | 1,537,834 | 1,537,834 | 1,664,115 | 1,328,602 | |
RuralĀ Utilities | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 8,224 | 7,083 | 5,242 | ||
Less: reconciling adjustments | (157) | (207) | (176) | ||
Net effective spread | 8,067 | 6,876 | 5,066 | ||
Guarantee and commitment fees | 1,287 | 1,345 | 1,784 | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | 5 | 32 | 37 | ||
Total revenues | 9,359 | 8,253 | 6,887 | ||
Release of/(provision for) losses | (291) | (4,763) | 0 | ||
Release of/(provision for) reserve for losses | 293 | (170) | 0 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 293 | (170) | 0 | ||
Core earnings before income taxes | 9,361 | 3,320 | 6,887 | ||
Income tax (expense)/benefit | (1,965) | (697) | (1,446) | ||
Core earnings before preferred stock dividends | 7,396 | 2,623 | 5,441 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | 7,396 | 2,623 | 5,441 | ||
Total Assets | 5,344,707 | 5,344,707 | 4,760,585 | 4,625,125 | |
Total on- and off-balance sheet program assets at principal balance | 5,895,226 | 5,895,226 | 5,314,051 | 5,220,270 | |
Renewable Energy | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 1,219 | 303 | 22 | ||
Less: reconciling adjustments | 0 | 0 | 0 | ||
Net effective spread | 1,219 | 303 | 22 | ||
Guarantee and commitment fees | 20 | 0 | 0 | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | 0 | 0 | 0 | ||
Total revenues | 1,239 | 303 | 22 | ||
Release of/(provision for) losses | (198) | (110) | 0 | ||
Release of/(provision for) reserve for losses | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 0 | 0 | 0 | ||
Core earnings before income taxes | 1,041 | 193 | 22 | ||
Income tax (expense)/benefit | (219) | (41) | (5) | ||
Core earnings before preferred stock dividends | 822 | 152 | 17 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | 822 | 152 | 17 | ||
Total Assets | 87,553 | 87,553 | 73,493 | 9,802 | |
Total on- and off-balance sheet program assets at principal balance | 86,763 | 86,763 | 73,035 | 9,802 | |
Funding | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 65,405 | 66,446 | 70,500 | ||
Less: reconciling adjustments | 4,803 | 12,772 | 2,744 | ||
Net effective spread | 70,208 | 79,218 | 73,244 | ||
Guarantee and commitment fees | 0 | 0 | 0 | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | 0 | 0 | 0 | ||
Total revenues | 70,208 | 79,218 | 73,244 | ||
Release of/(provision for) losses | 0 | 0 | 0 | ||
Release of/(provision for) reserve for losses | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 0 | 0 | 0 | ||
Core earnings before income taxes | 70,208 | 79,218 | 73,244 | ||
Income tax (expense)/benefit | (14,744) | (16,636) | (15,381) | ||
Core earnings before preferred stock dividends | 55,464 | 62,582 | 57,863 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | 55,464 | 62,582 | 57,863 | ||
Total Assets | 0 | 0 | 0 | 0 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | 0 | 0 | |
Investments | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 557 | (1,040) | 388 | ||
Less: reconciling adjustments | 0 | 0 | 0 | ||
Net effective spread | 557 | (1,040) | 388 | ||
Guarantee and commitment fees | 0 | 0 | 0 | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | 0 | 0 | 0 | ||
Total revenues | 557 | (1,040) | 388 | ||
Release of/(provision for) losses | (15) | (27) | 0 | ||
Release of/(provision for) reserve for losses | 0 | 0 | 0 | ||
Operating expenses | 0 | 0 | 0 | ||
Total non-interest expense | 0 | 0 | 0 | ||
Core earnings before income taxes | 542 | (1,067) | 388 | ||
Income tax (expense)/benefit | (114) | 224 | (82) | ||
Core earnings before preferred stock dividends | 428 | (843) | 306 | ||
Preferred stock dividends | 0 | 0 | 0 | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | 428 | (843) | 306 | ||
Total Assets | 5,037,636 | 5,037,636 | 5,441,426 | 3,809,891 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | 0 | 0 | |
Corporate | Operating Segments | |||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||
Net interest income | 0 | 0 | 0 | ||
Less: reconciling adjustments | 0 | 0 | 0 | ||
Net effective spread | 0 | 0 | 0 | ||
Guarantee and commitment fees | 0 | 0 | 0 | ||
Gain on sale of mortgage loans | 0 | ||||
Other income/(expense) | (291) | (534) | 167 | ||
Total revenues | (291) | (534) | 167 | ||
Release of/(provision for) losses | 0 | 0 | 0 | ||
Release of/(provision for) reserve for losses | 0 | 0 | 0 | ||
Operating expenses | (73,416) | (61,403) | (51,925) | ||
Total non-interest expense | (73,416) | (61,403) | (51,925) | ||
Core earnings before income taxes | (73,707) | (61,937) | (51,758) | ||
Income tax (expense)/benefit | 15,325 | 13,082 | 10,881 | ||
Core earnings before preferred stock dividends | (58,382) | (48,855) | (40,877) | ||
Preferred stock dividends | (24,677) | (17,805) | (13,940) | ||
Loss on retirement of preferred stock | 0 | 0 | |||
Segment core earnings | (83,059) | (66,660) | (54,817) | ||
Total Assets | 55,554 | 55,554 | 42,635 | 36,904 | |
Total on- and off-balance sheet program assets at principal balance | $ 0 | $ 0 | $ 0 | $ 0 |