COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000845877 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date: | --12-31 | |
Class A voting common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A voting common stock | |
Trading Symbol | AGM.A | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 1,030,780 | |
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 | 9,349,760 | |
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 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and cash equivalents | $ 745,105 | $ 888,707 |
Loans: | ||
Loans held for investment, at amortized cost | 9,837,962 | 9,623,119 |
Loans held for investment in consolidated trusts, at amortized cost | 1,409,397 | 1,432,261 |
Allowance for losses | (14,288) | (16,031) |
Total loans, net of allowance | 11,233,071 | 11,039,349 |
Financial derivatives, at fair value | 31,433 | 37,478 |
Accrued interest receivable (includes $9,963 and $16,764, respectively, related to consolidated trusts) | 245,202 | 287,128 |
Guarantee and commitment fees receivable | 48,130 | 49,832 |
Deferred tax asset, net | 0 | 8,470 |
Prepaid expenses and other assets | 145,094 | 132,954 |
Total Assets | 29,772,191 | 29,524,382 |
Liabilities: | ||
Notes payable | 26,509,011 | 26,336,542 |
Debt securities of consolidated trusts held by third parties | 1,325,289 | 1,351,069 |
Financial derivatives, at fair value | 128,530 | 117,131 |
Accrued interest payable (includes $6,338 and $9,407, respectively, related to consolidated trusts) | 202,894 | 181,841 |
Guarantee and commitment obligation | 45,866 | 47,563 |
Accounts payable and accrued expenses | 74,821 | 76,662 |
Deferred tax liability, net | 3,795 | 0 |
Reserve for losses | 1,642 | 1,711 |
Total Liabilities | 28,291,848 | 28,112,519 |
Commitments and Contingencies (Note 6) | ||
Common stock: | ||
Additional paid-in capital | 133,576 | 132,919 |
Accumulated other comprehensive loss, net of tax | (4,118) | (40,145) |
Retained earnings | 855,485 | 823,716 |
Total Equity | 1,480,343 | 1,411,863 |
Total Liabilities and Equity | 29,772,191 | 29,524,382 |
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 | 121,327 |
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 | 9,338 | 9,311 |
Investment Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,007,787 | 4,918,931 |
Held-to-maturity, at amortized cost | 53,756 | 53,756 |
Other investments | 6,900 | 6,817 |
Total Securities | 5,068,443 | 4,979,504 |
Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,466,688 | 5,532,479 |
Held-to-maturity, at amortized cost | 4,454,932 | 4,213,069 |
Total Securities | 9,921,620 | 9,745,548 |
USDA Securities: | ||
Assets: | ||
Trading, at fair value | 1,066 | 1,241 |
Held-to-maturity, at amortized cost | 2,333,027 | 2,354,171 |
Total Securities | $ 2,334,093 | $ 2,355,412 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Interest receivable | $ 245,202 | $ 287,128 |
Accrued interest payable - consolidated trusts amount | $ 202,894 | $ 181,841 |
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) | 9,337,894 | 9,310,872 |
Consolidated VIE | ||
Interest receivable | $ 9,963 | $ 16,764 |
Accrued interest payable - consolidated trusts amount | 6,338 | 9,407 |
Available-for-Sale Securities | ||
Amortized cost of available-for-sale investment securities | 5,165,562 | 5,060,135 |
Farmer Mac Guaranteed Securities | ||
Amortized cost of available-for-sale investment securities | $ 5,811,302 | $ 5,825,433 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Investments and cash equivalents | $ 84,924 | $ 59,703 |
Farmer Mac Guaranteed Securities and USDA Securities | 166,813 | 136,537 |
Loans | 144,580 | 119,032 |
Total interest income | 396,317 | 315,272 |
Total interest expense | 309,949 | 236,214 |
Net interest income | 86,368 | 79,058 |
Release of/(provision for) losses | 1,801 | (547) |
Net interest income after release of/(provision for) losses | 88,169 | 78,511 |
Non-interest income/(expense): | ||
Guarantee and commitment fees | 3,917 | 3,933 |
Gains on financial derivatives | 2,079 | 399 |
Release of/(provision for) reserve for losses | 69 | (203) |
Other income | 1,249 | 1,226 |
Non-interest income | 7,314 | 5,355 |
Operating expenses: | ||
Compensation and employee benefits | 18,257 | 15,351 |
General and administrative | 8,255 | 7,527 |
Regulatory fees | 725 | 835 |
Operating expenses | 27,237 | 23,713 |
Income before income taxes | 68,246 | 60,153 |
Income tax expense | 14,500 | 13,118 |
Net income | 53,746 | 47,035 |
Preferred stock dividends | (6,791) | (6,791) |
Net income attributable to common stockholders | $ 46,955 | $ 40,244 |
Earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 4.33 | $ 3.73 |
Diluted earnings per common share (in dollars per share) | $ 4.28 | $ 3.69 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 53,746 | $ 47,035 |
Other comprehensive income/(loss): | ||
Net unrealized gains on available-for-sale securities | 39,952 | 658 |
Net changes in held-to-maturity securities | (634) | (782) |
Net unrealized gains/(losses) on cash flow hedges | 6,286 | (11,292) |
Other comprehensive income/(loss) before tax | 45,604 | (11,416) |
Income tax (expense)/benefit related to other comprehensive income/(loss) | (9,577) | 2,397 |
Other comprehensive income/(loss) net of tax | 36,027 | (9,019) |
Comprehensive income | $ 89,773 | $ 38,016 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance ( in shares) at Dec. 31, 2022 | 19,980 | 10,801 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,271,958 | $ 484,531 | $ 10,801 | $ 128,939 | $ (50,843) | $ 698,530 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 47,035 | 47,035 | ||||
Other comprehensive income (loss) net of tax | (9,019) | (9,019) | ||||
Cash dividends, preferred stock | (6,791) | (6,791) | ||||
Cash dividends, common stock | (11,882) | (11,882) | ||||
Issuance of Class C Common Stock (in shares) | 19 | |||||
Issuance of Class C Common Stock | 70 | $ 19 | 51 | |||
Stock-based compensation cost | 2,254 | 2,254 | ||||
Other stock-based award activity | (1,240) | (1,240) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 19,980 | 10,820 | ||||
Ending balance at Mar. 31, 2023 | 1,292,385 | $ 484,531 | $ 10,820 | 130,004 | (59,862) | 726,892 |
Beginning balance ( in shares) at Dec. 31, 2023 | 19,980 | 10,842 | ||||
Beginning balance at Dec. 31, 2023 | 1,411,863 | $ 484,531 | $ 10,842 | 132,919 | (40,145) | 823,716 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 53,746 | 53,746 | ||||
Other comprehensive income (loss) net of tax | 36,027 | 36,027 | ||||
Cash dividends, preferred stock | (6,791) | (6,791) | ||||
Cash dividends, common stock | (15,186) | (15,186) | ||||
Issuance of Class C Common Stock (in shares) | 27 | |||||
Issuance of Class C Common Stock | 91 | $ 27 | 64 | |||
Stock-based compensation cost | 3,483 | 3,483 | ||||
Other stock-based award activity | (2,890) | (2,890) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 19,980 | 10,869 | ||||
Ending balance at Mar. 31, 2024 | $ 1,480,343 | $ 484,531 | $ 10,869 | $ 133,576 | $ (4,118) | $ 855,485 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends per common share (in dollars per share) | $ 1.40 | $ 1.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 53,746 | $ 47,035 |
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 | (7,295) | (2,337) |
Amortization of debt premiums, discounts, and issuance costs | 11,586 | 10,217 |
Net change in fair value of trading securities, hedged items, and financial derivatives | 123,519 | (62,398) |
Total provision for/(release of) allowance for losses | (1,870) | 750 |
Excess tax benefits related to stock-based awards | (120) | (201) |
Deferred income taxes | 2,688 | 12,440 |
Stock-based compensation expense | 3,483 | 2,255 |
Proceeds from repayment of loans purchased as held for sale | 12,769 | 17,360 |
Net change in: | ||
Interest receivable | 40,273 | 29,510 |
Guarantee and commitment fees receivable | 5 | 13 |
Other assets | (12,471) | 22,195 |
Accrued interest payable | 21,053 | 24,051 |
Custodial deposit liability | (18,632) | (32,102) |
Other liabilities | 4,601 | (8,227) |
Net cash provided by operating activities | 233,335 | 60,561 |
Cash flows from investing activities: | ||
Purchases of equipment and leasehold improvements | (1,638) | 0 |
Purchases of other investment securities | (83) | 0 |
Purchases of loans held for investment | (690,986) | (554,787) |
Proceeds from repayment of loans purchased as held for investment | 461,071 | 431,483 |
Net cash used in investing activities | (525,473) | (461,315) |
Cash flows from financing activities: | ||
Proceeds from issuance of discount notes | 12,851,600 | 11,196,195 |
Proceeds from issuance of medium-term notes | 1,774,926 | 1,383,319 |
Proceeds from issuance of debt securities of consolidated trusts | 0 | 222,188 |
Payments to redeem discount notes | (12,695,146) | (10,913,679) |
Payments to redeem medium-term notes | (1,713,000) | (1,428,500) |
Payments to third parties on debt securities of consolidated trusts | (45,068) | (36,573) |
Proceeds from common stock issuance | 64 | 51 |
Tax payments related to share-based awards | (2,863) | |
Tax payments related to share-based awards | 18 | |
Dividends paid on common and preferred stock | (21,977) | (18,673) |
Net cash provided by financing activities | 148,536 | 404,346 |
Net change in cash and cash equivalents | (143,602) | 3,592 |
Cash and cash equivalents at beginning of period | 888,707 | 861,002 |
Cash and cash equivalents at end of period | 745,105 | 864,594 |
Non-cash activity: | ||
Loans securitized as Farmer Mac Guaranteed Securities | 15,936 | 4,174 |
Loans held for investment transferred to consolidated trusts | 0 | 281,027 |
Available-for-sale securities | ||
Cash flows from investing activities: | ||
Purchases of available-for-sale and held-to-maturity investment securities | (606,698) | (375,153) |
Proceeds from repayment of available-for-sale and held-to-maturity investment securities | 520,194 | 505,848 |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Cash flows from investing activities: | ||
Purchases of Farmer Mac Guaranteed Securities and USDA Securities | (462,055) | (716,412) |
Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities | $ 254,722 | $ 247,706 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2023 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2023 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2023 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 23, 2024. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended March 31, 2024. Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries: (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 Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary. Table 1.1 Consolidation of Variable Interest Entities As of March 31, 2024 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,409,397 $ — $ 1,409,397 Debt securities of consolidated trusts held by third parties (1)(2) 1,325,289 — 1,325,289 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 51,906 — 51,906 Maximum exposure to loss (3) 51,616 — 51,616 Investment securities: Carrying value (4) — 3,735,413 3,735,413 Maximum exposure to loss (3)(4) — 3,936,368 3,936,368 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3)(5) 443,843 — 443,843 (1) Includes borrower remittances of $1.1 million. The borrower remittances had not been passed through to third-party investors as of March 31, 2024. (2) Includes $85.1 million in unamortized discount related to structured securitization transactions. (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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (5) 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, 2023 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,432,261 $ — $ 1,432,261 Debt securities of consolidated trusts held by third parties (1)(2) 1,351,069 — 1,351,069 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 46,343 — 46,343 Maximum exposure to loss (3) 45,952 — 45,952 Investment securities: Carrying value (4) — 3,676,555 3,676,555 Maximum exposure to loss (3)(4) — 3,862,006 3,862,006 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3)(5) 452,602 — 452,602 (1) Includes borrower remittances of $6.0 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2023. (2) Includes $87.1 million in unamortized discount related to a structured securitization transaction. (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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (5) 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. Earnings Per Common Share 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 unit awards. The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2024 and 2023: Table 1.2 For the Three Months Ended March 31, 2024 March 31, 2023 Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 46,955 10,847 $ 4.33 $ 40,244 10,802 $ 3.73 Effect of dilutive securities (1) SARs and restricted stock units — 122 (0.05) — 116 (0.04) Diluted EPS $ 46,955 10,969 $ 4.28 $ 40,244 10,918 $ 3.69 (1) For the three months ended March 31, 2024 and 2023, SARs and restricted stock units of 49,371 and 62,709 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended March 31, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,282 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met. Comprehensive Income Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes. The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2024 and 2023. Table 1.3 As of March 31, 2024 As of March 31, 2023 Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total (in thousands) For the Three Months Ended: Beginning Balance $ (68,447) $ (8,724) $ 37,026 $ (40,145) $ (115,561) $ 16,357 $ 48,361 $ (50,843) Other comprehensive income/(loss) before reclassifications 31,565 — 9,256 40,821 525 — (5,452) (4,927) Amounts reclassified from AOCI (4) (500) (4,290) (4,794) (5) (618) (3,469) (4,092) Net comprehensive income/(loss) 31,561 (500) 4,966 36,027 520 (618) (8,921) (9,019) Ending Balance $ (36,886) $ (9,224) $ 41,992 $ (4,118) $ (115,041) $ 15,739 $ 39,440 $ (59,862) The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2024 and 2023: Table 1.4 For the Three Months Ended March 31, 2024 March 31, 2023 Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax (in thousands) Other comprehensive income: Available-for-sale-securities: Unrealized holding gains on available-for-sale securities $ 39,957 $ 8,392 $ 31,565 $ 664 $ 139 $ 525 Less reclassification adjustments included in: Other income (1) (5) (1) (4) (6) (1) (5) Total $ 39,952 $ 8,391 $ 31,561 $ 658 $ 138 $ 520 Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (2) $ (634) $ (134) $ (500) $ (782) $ (164) $ (618) Total $ (634) $ (134) $ (500) $ (782) $ (164) $ (618) Cash flow hedges Unrealized gains/(losses) on cash flow hedges $ 11,717 $ 2,461 $ 9,256 $ (6,901) $ (1,449) $ (5,452) Less reclassification adjustments included in: Net interest income (3) (5,431) (1,141) (4,290) (4,391) (922) (3,469) Total $ 6,286 $ 1,320 $ 4,966 $ (11,292) $ (2,371) $ (8,921) Other comprehensive income/(loss) $ 45,604 $ 9,577 $ 36,027 $ (11,416) $ (2,397) $ (9,019) (1) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (2) 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. (3) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. New Accounting Standards Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this Update permit an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received. January 1, 2024 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Effect on Consolidated Financial Statements ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this Update require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This Update also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively. Early adoption is permitted. Farmer Mac is still assessing the effect on our annual consolidated financial statement disclosures, however, adoption will not have a material impact on Farmer Mac's financial position, results of operations, or cash flows. ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures The Update provides guidance on improvements to annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additionally, public entities must provide a separate disclosure for any reconciling item that meets a quantitative threshold. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The amendments should be applied on a prospective basis. Early adoption is permitted. Farmer Mac is still assessing the impact of the new accounting standard but does not expect that adoption of the new guidance will have a material impact on Farmer Mac's financial position, results of operations, or cash flows. Reclassifications Certain reclassifications of prior period information were made to conform to the current period presentation. The reclassifications of prior period information were not material to the consolidated financial statements. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023: Table 2.1 As of March 31, 2024 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (25) $ — $ (394) $ 19,281 Floating rate Government/GSE guaranteed mortgage-backed securities 2,402,850 (1,306) 2,401,544 — 2,608 (24,086) 2,380,066 Fixed rate GSE guaranteed mortgage-backed securities 1,851,641 (47,448) 1,804,193 — 2,746 (134,551) 1,672,388 Floating rate U.S. Treasuries 50,000 (10) 49,990 — 6 — 49,996 Fixed rate U.S. Treasuries 905,255 (15,120) 890,135 — 81 (4,160) 886,056 Total available-for-sale 5,229,446 (63,884) 5,165,562 (25) 5,441 (163,191) 5,007,787 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,104 — 54,860 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,104 $ — $ 54,860 (1) Amounts presented exclude $22.2 million of accrued interest receivable on investment securities as of March 31, 2024. (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 6.7% as of March 31, 2024. As of December 31, 2023 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (27) $ — $ (591) $ 19,082 Floating rate Government/GSE guaranteed mortgage-backed securities 2,454,009 (1,138) 2,452,871 — 1,212 (29,649) 2,424,434 Fixed rate GSE guaranteed mortgage-backed securities 1,727,669 (46,788) 1,680,881 — 6,558 (117,824) 1,569,615 Floating rate U.S. Treasuries 50,000 (17) 49,983 — — (15) 49,968 Fixed rate U.S. Treasuries 869,585 (12,885) 856,700 — 2,074 (2,942) 855,832 Total available-for-sale 5,120,963 (60,828) 5,060,135 (27) 9,844 (151,021) 4,918,931 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,745 — 55,501 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,745 $ — $ 55,501 (1) Amounts presented exclude $15.9 million of accrued interest receivable on investment securities as of December 31, 2023. (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 6.7% as of December 31, 2023. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2024 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 $ — $ — $ 19,281 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 414,299 (2,066) 1,293,103 (22,020) Fixed rate Government/GSE guaranteed mortgage-backed securities 458,047 (7,183) 991,514 (127,368) Fixed rate U.S. Treasuries 557,405 (3,093) 101,646 (1,067) Total $ 1,429,751 $ (12,342) $ 2,405,544 $ (150,849) Number of securities in loss position 107 158 As of December 31, 2023 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 $ — $ — $ 19,082 $ (591) Floating rate Government/GSE guaranteed mortgage-backed securities 568,759 (4,395) 1,449,122 (25,254) Fixed rate Government/GSE guaranteed mortgage-backed securities 384,305 (4,262) 905,759 (113,562) Floating rate U.S. Treasuries 49,969 (15) — — Fixed rate U.S. Treasuries 140,435 (606) 237,192 (2,336) Total $ 1,143,468 $ (9,278) $ 2,611,155 $ (141,743) Number of securities in loss position 91 162 The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to March 31, 2024 and December 31, 2023, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both March 31, 2024 and December 31, 2023, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government, a U.S. government sponsored enterprise, or had credit ratings of at least "AA+." Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2024 that is, on average, approximately 94.1% 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, changes in credit spread, or changes in levels of interest rates. The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2024 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2024 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 431,353 $ 430,225 2.32% Due after one year through five years 1,578,453 1,552,380 4.19% Due after five years through ten years 2,375,052 2,260,716 4.35% Due after ten years 780,704 764,466 5.70% Total $ 5,165,562 $ 5,007,787 4.33% FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2024 and December 31, 2023: Table 3.1 As of March 31, 2024 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,441,588 $ (28,891) $ 4,412,697 $ (179) $ 3,829 $ (35,130) $ 4,381,217 Farmer Mac Guaranteed USDA Securities 42,383 31 42,414 — 59 (883) 41,590 Total Farmer Mac Guaranteed Securities 4,483,971 (28,860) 4,455,111 (179) 3,888 (36,013) 4,422,807 USDA Securities 2,311,442 21,585 2,333,027 — 303 (318,319) 2,015,011 Total held-to-maturity $ 6,795,413 $ (7,275) $ 6,788,138 $ (179) $ 4,191 $ (354,332) $ 6,437,818 Available-for-sale: AgVantage $ 5,802,070 $ — $ 5,802,070 $ (291) $ 8,364 $ (352,946) $ 5,457,197 Farmer Mac Guaranteed Securities (3) — 9,232 9,232 — 259 — 9,491 Total available-for-sale $ 5,802,070 $ 9,232 $ 5,811,302 $ (291) $ 8,623 $ (352,946) $ 5,466,688 Trading: USDA Securities (4) $ 1,069 $ 57 $ 1,126 $ — $ — $ (60) $ 1,066 (1) Amounts presented exclude $57.9 million, $59.4 million, and $27,610 of accrued interest receivable (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 $9.5 million of an interest-only security with a notional amount of $233.5 million. (4) The trading USDA securities had a weighted average yield of 5.58% as of March 31, 2024. As of December 31, 2023 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,206,324 $ (29,622) $ 4,176,702 $ (209) $ 4,676 $ (39,451) $ 4,141,718 Farmer Mac Guaranteed USDA Securities 36,543 33 36,576 — 107 (806) 35,877 Total Farmer Mac Guaranteed Securities 4,242,867 (29,589) 4,213,278 (209) 4,783 (40,257) 4,177,595 USDA Securities 2,331,093 23,078 2,354,171 — 417 (319,783) 2,034,805 Total held-to-maturity $ 6,573,960 $ (6,511) $ 6,567,449 $ (209) $ 5,200 $ (360,040) $ 6,212,400 Available-for-sale: AgVantage $ 5,816,024 $ — $ 5,816,024 $ (317) $ 16,416 $ (309,411) $ 5,522,712 Farmer Mac Guaranteed Securities (3) — 9,409 9,409 — 358 — 9,767 Total available-for-sale $ 5,816,024 $ 9,409 $ 5,825,433 $ (317) $ 16,774 $ (309,411) $ 5,532,479 Trading: USDA Securities (4) $ 1,236 $ 64 $ 1,300 $ — $ — $ (59) $ 1,241 (1) Amounts presented exclude $47.2 million, $67.4 million, and $42,000 of accrued interest receivable (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 $9.8 million of an interest-only security with a notional amount of $238.4 million. (4) The trading USDA securities had a weighted average yield of 5.46% as of December 31, 2023. On July 1, 2023, Farmer Mac transferred $2.7 billion of AgVantage Securities from available-for-sale to held-to-maturity to reflect Farmer Mac's positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment due to unrealized losses of $31.9 million. The accumulated unrealized losses were recorded in accumulated other comprehensive income in the amount of $31.9 million. Both the cost basis adjustment and accumulated unrealized depreciation will be amortized as an adjustment to the yield on the held-to-maturity AgVantage Securities over the remaining term of the transferred securities. As of March 31, 2024 and December 31, 2023, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2024 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 $ 2,757,735 $ (3,858) $ 699,786 $ (31,272) Farmer Mac Guaranteed USDA Securities 27,029 (55) 8,258 (828) USDA Securities 3,025 (9) 2,004,512 (318,310) Total held-to-maturity $ 2,787,789 $ (3,922) $ 2,712,556 $ (350,410) Available-for-sale: AgVantage $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) Total available-for-sale $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) As of December 31, 2023 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 $ 2,070,770 $ (6,705) $ 725,347 $ (32,746) Farmer Mac Guaranteed USDA Securities — — 8,393 (806) USDA Securities — — 2,023,801 (319,783) Total held-to-maturity $ 2,070,770 $ (6,705) $ 2,757,541 $ (353,335) Available-for-sale: AgVantage $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) Total available-for-sale $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to March 31, 2024 and December 31, 2023, as applicable. 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 73 and 68 available-for-sale securities as of March 31, 2024 and December 31, 2023, respectively. There were 63 and 53 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, 60 and 62 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. As of March 31, 2024 and December 31, 2023, there were 19 and 22 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months. During the three three months ended March 31, 2024 and 2023 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading Securities and, therefore, Farmer Mac realized no gains or losses. The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2024 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2024 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 850,000 $ 838,515 3.05 % Due after one year through five years 2,811,653 2,701,597 3.74 % Due after five years through ten years 1,200,000 1,105,537 3.61 % Due after ten years 949,649 821,039 3.55 % Total $ 5,811,302 $ 5,466,688 3.58 % (1) Amounts presented exclude $57.9 million of accrued interest receivable. As of March 31, 2024 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 2,141,438 $ 2,139,182 5.72 % Due after one year through five years 1,692,904 1,657,244 4.63 % Due after five years through ten years 249,080 217,955 3.58 % Due after ten years 2,704,716 2,423,437 4.32 % Total $ 6,788,138 $ 6,437,818 4.85 % (1) Amounts presented exclude $59.4 million of accrued interest receivable. |
FARMER MAC GUARANTEED SECURITIE
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
FARMER MAC GUARANTEED SECURITIES 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 March 31, 2024 and December 31, 2023: Table 2.1 As of March 31, 2024 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (25) $ — $ (394) $ 19,281 Floating rate Government/GSE guaranteed mortgage-backed securities 2,402,850 (1,306) 2,401,544 — 2,608 (24,086) 2,380,066 Fixed rate GSE guaranteed mortgage-backed securities 1,851,641 (47,448) 1,804,193 — 2,746 (134,551) 1,672,388 Floating rate U.S. Treasuries 50,000 (10) 49,990 — 6 — 49,996 Fixed rate U.S. Treasuries 905,255 (15,120) 890,135 — 81 (4,160) 886,056 Total available-for-sale 5,229,446 (63,884) 5,165,562 (25) 5,441 (163,191) 5,007,787 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,104 — 54,860 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,104 $ — $ 54,860 (1) Amounts presented exclude $22.2 million of accrued interest receivable on investment securities as of March 31, 2024. (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 6.7% as of March 31, 2024. As of December 31, 2023 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (27) $ — $ (591) $ 19,082 Floating rate Government/GSE guaranteed mortgage-backed securities 2,454,009 (1,138) 2,452,871 — 1,212 (29,649) 2,424,434 Fixed rate GSE guaranteed mortgage-backed securities 1,727,669 (46,788) 1,680,881 — 6,558 (117,824) 1,569,615 Floating rate U.S. Treasuries 50,000 (17) 49,983 — — (15) 49,968 Fixed rate U.S. Treasuries 869,585 (12,885) 856,700 — 2,074 (2,942) 855,832 Total available-for-sale 5,120,963 (60,828) 5,060,135 (27) 9,844 (151,021) 4,918,931 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,745 — 55,501 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,745 $ — $ 55,501 (1) Amounts presented exclude $15.9 million of accrued interest receivable on investment securities as of December 31, 2023. (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 6.7% as of December 31, 2023. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2024 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 $ — $ — $ 19,281 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 414,299 (2,066) 1,293,103 (22,020) Fixed rate Government/GSE guaranteed mortgage-backed securities 458,047 (7,183) 991,514 (127,368) Fixed rate U.S. Treasuries 557,405 (3,093) 101,646 (1,067) Total $ 1,429,751 $ (12,342) $ 2,405,544 $ (150,849) Number of securities in loss position 107 158 As of December 31, 2023 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 $ — $ — $ 19,082 $ (591) Floating rate Government/GSE guaranteed mortgage-backed securities 568,759 (4,395) 1,449,122 (25,254) Fixed rate Government/GSE guaranteed mortgage-backed securities 384,305 (4,262) 905,759 (113,562) Floating rate U.S. Treasuries 49,969 (15) — — Fixed rate U.S. Treasuries 140,435 (606) 237,192 (2,336) Total $ 1,143,468 $ (9,278) $ 2,611,155 $ (141,743) Number of securities in loss position 91 162 The unrealized losses presented above are principally due to a general widening of market spreads and changes in the levels of interest rates from the dates of acquisition to March 31, 2024 and December 31, 2023, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of both March 31, 2024 and December 31, 2023, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government, a U.S. government sponsored enterprise, or had credit ratings of at least "AA+." Securities in unrealized loss positions for 12 months or longer have a fair value as of March 31, 2024 that is, on average, approximately 94.1% 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, changes in credit spread, or changes in levels of interest rates. The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2024 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2024 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 431,353 $ 430,225 2.32% Due after one year through five years 1,578,453 1,552,380 4.19% Due after five years through ten years 2,375,052 2,260,716 4.35% Due after ten years 780,704 764,466 5.70% Total $ 5,165,562 $ 5,007,787 4.33% FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2024 and December 31, 2023: Table 3.1 As of March 31, 2024 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,441,588 $ (28,891) $ 4,412,697 $ (179) $ 3,829 $ (35,130) $ 4,381,217 Farmer Mac Guaranteed USDA Securities 42,383 31 42,414 — 59 (883) 41,590 Total Farmer Mac Guaranteed Securities 4,483,971 (28,860) 4,455,111 (179) 3,888 (36,013) 4,422,807 USDA Securities 2,311,442 21,585 2,333,027 — 303 (318,319) 2,015,011 Total held-to-maturity $ 6,795,413 $ (7,275) $ 6,788,138 $ (179) $ 4,191 $ (354,332) $ 6,437,818 Available-for-sale: AgVantage $ 5,802,070 $ — $ 5,802,070 $ (291) $ 8,364 $ (352,946) $ 5,457,197 Farmer Mac Guaranteed Securities (3) — 9,232 9,232 — 259 — 9,491 Total available-for-sale $ 5,802,070 $ 9,232 $ 5,811,302 $ (291) $ 8,623 $ (352,946) $ 5,466,688 Trading: USDA Securities (4) $ 1,069 $ 57 $ 1,126 $ — $ — $ (60) $ 1,066 (1) Amounts presented exclude $57.9 million, $59.4 million, and $27,610 of accrued interest receivable (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 $9.5 million of an interest-only security with a notional amount of $233.5 million. (4) The trading USDA securities had a weighted average yield of 5.58% as of March 31, 2024. As of December 31, 2023 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,206,324 $ (29,622) $ 4,176,702 $ (209) $ 4,676 $ (39,451) $ 4,141,718 Farmer Mac Guaranteed USDA Securities 36,543 33 36,576 — 107 (806) 35,877 Total Farmer Mac Guaranteed Securities 4,242,867 (29,589) 4,213,278 (209) 4,783 (40,257) 4,177,595 USDA Securities 2,331,093 23,078 2,354,171 — 417 (319,783) 2,034,805 Total held-to-maturity $ 6,573,960 $ (6,511) $ 6,567,449 $ (209) $ 5,200 $ (360,040) $ 6,212,400 Available-for-sale: AgVantage $ 5,816,024 $ — $ 5,816,024 $ (317) $ 16,416 $ (309,411) $ 5,522,712 Farmer Mac Guaranteed Securities (3) — 9,409 9,409 — 358 — 9,767 Total available-for-sale $ 5,816,024 $ 9,409 $ 5,825,433 $ (317) $ 16,774 $ (309,411) $ 5,532,479 Trading: USDA Securities (4) $ 1,236 $ 64 $ 1,300 $ — $ — $ (59) $ 1,241 (1) Amounts presented exclude $47.2 million, $67.4 million, and $42,000 of accrued interest receivable (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 $9.8 million of an interest-only security with a notional amount of $238.4 million. (4) The trading USDA securities had a weighted average yield of 5.46% as of December 31, 2023. On July 1, 2023, Farmer Mac transferred $2.7 billion of AgVantage Securities from available-for-sale to held-to-maturity to reflect Farmer Mac's positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment due to unrealized losses of $31.9 million. The accumulated unrealized losses were recorded in accumulated other comprehensive income in the amount of $31.9 million. Both the cost basis adjustment and accumulated unrealized depreciation will be amortized as an adjustment to the yield on the held-to-maturity AgVantage Securities over the remaining term of the transferred securities. As of March 31, 2024 and December 31, 2023, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2024 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 $ 2,757,735 $ (3,858) $ 699,786 $ (31,272) Farmer Mac Guaranteed USDA Securities 27,029 (55) 8,258 (828) USDA Securities 3,025 (9) 2,004,512 (318,310) Total held-to-maturity $ 2,787,789 $ (3,922) $ 2,712,556 $ (350,410) Available-for-sale: AgVantage $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) Total available-for-sale $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) As of December 31, 2023 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 $ 2,070,770 $ (6,705) $ 725,347 $ (32,746) Farmer Mac Guaranteed USDA Securities — — 8,393 (806) USDA Securities — — 2,023,801 (319,783) Total held-to-maturity $ 2,070,770 $ (6,705) $ 2,757,541 $ (353,335) Available-for-sale: AgVantage $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) Total available-for-sale $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) The unrealized losses presented above are principally due to changes in interest rates from the date of acquisition to March 31, 2024 and December 31, 2023, as applicable. 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 73 and 68 available-for-sale securities as of March 31, 2024 and December 31, 2023, respectively. There were 63 and 53 held-to-maturity AgVantage securities with an unrealized loss as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, 60 and 62 available-for-sale AgVantage securities, respectively, had been in a loss position for more than 12 months. As of March 31, 2024 and December 31, 2023, there were 19 and 22 held-to-maturity AgVantage securities, respectively, in a loss position for more than 12 months. During the three three months ended March 31, 2024 and 2023 Farmer Mac had no sales of AgVantage Farmer Mac Guaranteed Securities, USDA Farmer Mac Guaranteed Securities or USDA Trading Securities and, therefore, Farmer Mac realized no gains or losses. The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2024 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2024 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 850,000 $ 838,515 3.05 % Due after one year through five years 2,811,653 2,701,597 3.74 % Due after five years through ten years 1,200,000 1,105,537 3.61 % Due after ten years 949,649 821,039 3.55 % Total $ 5,811,302 $ 5,466,688 3.58 % (1) Amounts presented exclude $57.9 million of accrued interest receivable. As of March 31, 2024 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 2,141,438 $ 2,139,182 5.72 % Due after one year through five years 1,692,904 1,657,244 4.63 % Due after five years through ten years 249,080 217,955 3.58 % Due after ten years 2,704,716 2,423,437 4.32 % Total $ 6,788,138 $ 6,437,818 4.85 % (1) Amounts presented exclude $59.4 million of accrued interest receivable. |
FINANCIAL DERIVATIVES
FINANCIAL DERIVATIVES | 3 Months Ended |
Mar. 31, 2024 | |
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., 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 futures contracts involving U.S. Treasury securities. 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. The table below includes accrued interest on cleared swaps, but excludes $17.6 million and $16.4 million of accrued interest receivable and $6.2 million and $6.5 million of accrued interest payable on uncleared swaps as of March 31, 2024 and December 31, 2023, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable Table 4.1 As of March 31, 2024 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Receive fixed non-callable $ 9,705,185 $ 230 $ (25,315) 5.54% 3.03% 1.70 Pay fixed non-callable 9,226,082 7,675 (68) 2.52% 5.43% 9.37 Receive fixed callable 3,963,827 2,892 (105,971) 5.36% 3.46% 2.56 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 552,000 22,270 — 1.93% 5.80% 4.09 No hedge designation: Interest rate swaps: Pay fixed non-callable 157,933 992 — 2.92% 5.60% 4.15 Receive fixed non-callable 1,638,958 34 (9) 5.38% 5.11% 0.47 Basis swaps 850,384 15 (522) 5.49% 5.47% 3.58 Treasury futures 125 680 — 110.25 Netting adjustments (1) (3,355) 3,355 Total financial derivatives $ 26,094,494 $ 31,433 $ (128,530) (1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent. As of December 31, 2023 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Receive fixed non-callable $ 9,776,685 $ 2,350 $ (20,390) 5.57% 2.94% 1.78 Pay fixed non-callable 9,174,253 7,767 (1,081) 2.50% 5.47% 9.57 Receive fixed callable 3,879,827 7,374 (95,984) 5.40% 3.40% 2.48 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 558,000 20,234 (43) 1.94% 5.82% 4.30 No hedge designation: Interest rate swaps: Pay fixed non-callable 160,623 676 (29) 2.92% 5.64% 4.34 Receive fixed non-callable 1,358,396 263 (3) 5.44% 4.87% 0.64 Basis swaps 850,384 39 (746) 5.52% 5.48% 3.83 Treasury futures 21,300 11 (91) 112.51 Netting adjustments (1) (1,236) 1,236 Total financial derivatives $ 25,779,468 $ 37,478 $ (117,131) (1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent. As of March 31, 2024, Farmer Mac expects to reclassify $14.5 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 March 31, 2024. During the three months ended March 31, 2024 and 2023, 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 three months ended March 31, 2024 and 2023: Table 4.2 For the Three Months Ended March 31, 2024 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 Gains on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations $ 84,924 $ 166,813 $ 144,580 $ (309,949) $ 2,079 $ 88,447 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 10,297 40,332 17,849 (83,551) — (15,073) Recognized on hedged items 9,948 51,705 16,598 (106,433) — (28,182) Premium/discount amortization recognized on hedged items 445 — — (747) — (302) Income/(expense) related to interest settlements on fair value hedging relationships $ 20,690 $ 92,037 $ 34,447 $ (190,731) $ — $ (43,557) Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ 27,789 $ 81,586 $ 48,180 $ (54,717) $ — $ 102,838 Recognized on hedged items (27,521) (80,743) (47,061) 55,489 — (99,836) Gains/(losses) on fair value hedging relationships $ 268 $ 843 $ 1,119 $ 772 $ — $ 3,002 Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 5,431 $ — $ 5,431 Recognized on hedged items — — — (8,091) — (8,091) Discount amortization recognized on hedged items — — — (14) — (14) Expense recognized on cash flow hedges $ — $ — $ — $ (2,674) $ — $ (2,674) Gains on financial derivatives not designated in hedging relationships: Gains on interest rate swaps $ — $ — $ — $ — $ 754 $ 754 Interest expense on interest rate swaps — — — — (34) (34) Treasury futures — — — — 1,359 1,359 Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 2,079 $ 2,079 For the Three Months Ended March 31, 2023 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 Gains on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations: $ 59,703 $ 136,537 $ 119,032 $ (236,214) $ 399 $ 79,457 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 6,549 28,909 13,180 (77,467) — (28,829) Recognized on hedged items 6,961 41,971 15,208 (70,975) — (6,835) Premium/discount amortization recognized on hedged items 268 — — (691) — (423) Income/(expense) related to interest settlements on fair value hedging relationships $ 13,778 $ 70,880 $ 28,388 $ (149,133) $ — $ (36,087) Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ (27,153) $ (93,792) $ (56,681) $ 122,540 $ — $ (55,086) Recognized on hedged items 27,428 93,295 56,957 (122,699) — 54,981 Gains/(losses) on fair value hedging relationships $ 275 $ (497) $ 276 $ (159) $ — $ (105) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 4,391 $ — $ 4,391 Recognized on hedged items — — — (7,190) — (7,190) Discount amortization recognized on hedged items — — — (14) — (14) Expense recognized on cash flow hedges $ — $ — $ — $ (2,813) $ — $ (2,813) Gains on financial derivatives not designated in hedge relationships: Gains on interest rate swaps $ — $ — $ — $ — $ 33 $ 33 Interest expense on interest rate swaps — — — — (1,625) (1,625) Treasury futures — — — — 1,991 1,991 Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 399 $ 399 The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2024 and December 31, 2023: Table 4.3 Hedged Items in Fair Value Relationship Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 (in thousands) Investment securities, Available-for-Sale, at fair value $ 1,261,144 $ 1,251,386 $ (116,156) $ (88,635) Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value 5,432,676 5,497,948 (338,180) (257,436) Loans held for investment, at amortized cost 1,692,131 1,699,361 (352,653) (305,592) Notes Payable (1) (13,327,828) (13,350,111) 305,907 250,418 (1) Carrying amount represents amortized cost. The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of March 31, 2024 and December 31, 2023: Table 4.4 March 31, 2024 Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1) Gross Amounts Not Offset in the Consolidated Balance Sheet Netting Adjustments Financial instruments pledged Cash Collateral (2) Net Amount (3) (in thousands) Assets: Uncleared derivatives $ 25,354 $ — $ 25,354 $ (24,674) $ — $ — $ 680 Cleared derivatives 8,240 (3,355) 4,885 — — — 4,885 Total $ 33,594 $ (3,355) $ 30,239 $ (24,674) $ — $ — $ 5,565 Liabilities: Uncleared derivatives $ (106,733) $ — $ (106,733) $ 24,674 $ — $ 76,472 $ (5,587) Cleared derivatives (3,355) 3,355 — — — — — Total $ (110,088) $ 3,355 $ (106,733) $ 24,674 $ — $ 76,472 $ (5,587) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) Cash collateral excludes $15.6 million of collateral posted and $0.0 million of collateral received related to counterparties not subject to master netting agreements. (3) Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of March 31, 2024, Farmer Mac had additional net exposure of $197.9 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position. December 31, 2023 Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1) Gross Amounts Not Offset in the Consolidated Balance Sheet Netting Adjustments Financial instruments pledged Cash Collateral (2) Net Amount (3) (in thousands) Assets: Uncleared derivatives $ 25,751 $ — $ 25,751 $ (25,727) $ — $ — $ 24 Cleared derivatives 10,388 (1,236) 9,152 — — — 9,152 Total $ 36,139 $ (1,236) $ 34,903 $ (25,727) $ — $ — $ 9,176 Liabilities: Uncleared derivatives $ (100,114) $ — $ (100,114) $ 25,727 $ — $ 69,360 $ (5,027) Cleared derivatives (1,236) 1,236 — — — — — Total $ (101,350) $ 1,236 $ (100,114) $ 25,727 $ — $ 69,360 $ (5,027) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) Cash collateral excludes $15.2 million of collateral posted and $2.0 million of collateral received related to counterparties not subject to master netting agreements. (3) Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of December 31, 2023, Farmer Mac had additional net exposure of $207.2 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position. Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets. If Farmer Mac had breached certain provisions of the derivative contracts as of March 31, 2024 or December 31, 2023, it could have been required to settle its obligations under the agreements, but would not have been required to post additional collateral. As of March 31, 2024 and December 31, 2023, 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. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, Farmer Mac had no loans held for sale. Under the Agricultural Finance line of business, Farmer Mac has two segments – Farm & Ranch and Corporate AgFinance. The segments are characterized by similarities in risk attributes and the manner in which Farmer Mac monitors and assesses credit risk. The following table includes loans held for investment and displays the composition of the loan balances as of March 31, 2024 and December 31, 2023: Table 5.1 As of March 31, 2024 As of December 31, 2023 Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Agricultural Finance loans Farm & Ranch $ 5,247,543 $ 1,409,397 $ 6,656,940 $ 5,133,450 $ 1,432,261 $ 6,565,711 Corporate AgFinance 1,258,506 — 1,258,506 1,259,723 — 1,259,723 Total Agricultural Finance loans 6,506,049 1,409,397 7,915,446 6,393,173 1,432,261 7,825,434 Rural Infrastructure Finance loans 3,686,753 — 3,686,753 3,534,763 — 3,534,763 Total unpaid principal balance (1) 10,192,802 1,409,397 11,602,199 9,927,936 1,432,261 11,360,197 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments (354,840) — (354,840) (304,817) — (304,817) Total loans 9,837,962 1,409,397 11,247,359 9,623,119 1,432,261 11,055,380 Allowance for losses (13,836) (452) (14,288) (15,588) (443) (16,031) Total loans, net of allowance $ 9,824,126 $ 1,408,945 $ 11,233,071 $ 9,607,531 $ 1,431,818 $ 11,039,349 (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 March 31, 2024 and December 31, 2023: Table 5.2 March 31, 2024 December 31, 2023 Allowance for Losses Allowance for Losses (in thousands) Loans: Agricultural Finance loans Farm & Ranch $ 4,535 $ 3,936 Corporate AgFinance 2,569 2,948 Total Agricultural Finance Loans 7,104 6,884 Rural Infrastructure Finance loans 7,184 9,147 Total $ 14,288 $ 16,031 The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2024 and 2023: Table 5.3 For the Three Months Ended March 31, 2024 March 31, 2023 Agricultural Finance loans Rural Infrastructure Finance loans (3) Agricultural Finance loans Rural Infrastructure Finance loans (3) Farm & Ranch (1) Corporate AgFinance (2) Total Farm & Ranch (1) Corporate AgFinance (2) Total (in thousands) Beginning Balance $ 3,936 $ 2,948 $ 6,884 $ 9,147 $ 4,044 $ 2,731 $ 6,775 $ 8,314 Provision for/(release of) losses 599 (379) 220 (1,963) (111) 4,308 4,197 (3,613) Charge-offs — — — — — — — — Ending Balance $ 4,535 $ 2,569 $ 7,104 $ 7,184 $ 3,933 $ 7,039 $ 10,972 $ 4,701 (1) As of March 31, 2024 and 2023, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.4 million and $1.1 million allowance for collateral dependent assets secured by agricultural real estate, respectively. (2) As of March 31, 2024 and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $0.0 million and $4.6 million allowance for collateral dependent assets secured by agricultural real estate, respectively. (3) As of both March 31, 2024 and 2023, the allowance for losses for Rural Infrastructure Finance loans includes no allowance for collateral dependent assets. The $2.0 million net release from the allowance for the Rural Infrastructure Finance portfolio during the quarter ended March 31, 2024 was primarily attributable to a single telecommunications loan that completed a restructuring, which resulted in an improved collateral position and a paydown of approximately 15% of its previously unpaid principal balance. The $0.2 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended March 31, 2024 was primarily attributable to increased loan volume. Although substandard Agricultural Finance loans increased $73.0 million from December 31, 2023, there was not a significant provision for loss associated with that increase because of the net realizable value of those loans. The $3.6 million net release from the allowance for the Rural Infrastructure Finance portfolio during the quarter ended March 31, 2023 was primarily attributable to an updated estimate of expected losses based on newly available industry data. The $4.2 million net provision to the allowance for the Agricultural Finance mortgage loan portfolio during the quarter ended March 31, 2023 was primarily attributable to declining valuation of a single agricultural storage and processing loan, due to its ongoing bankruptcy proceedings and an updated estimate of expected losses based on additional availability of industry data. The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2024 and December 31, 2023: Table 5.4 As of March 31, 2024 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 loans Farm & Ranch $ 6,538,806 $ 13,764 $ 3,954 $ 15,623 $ 33,341 $ 84,793 $ 6,656,940 Corporate AgFinance 1,247,059 — — — — 11,447 1,258,506 Total Agricultural Finance loans 7,785,865 13,764 3,954 15,623 33,341 96,240 7,915,446 Rural Infrastructure Finance loans 3,686,753 — — — — — 3,686,753 Total $ 11,472,618 $ 13,764 $ 3,954 $ 15,623 $ 33,341 $ 96,240 $ 11,602,199 (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 (single-class) 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 $45.9 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2024, Farmer Mac received $0.6 million in interest on nonaccrual loans. As of December 31, 2023 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 loans Farm & Ranch $ 6,470,205 $ 15,326 $ 3,953 $ 10,991 $ 30,270 $ 65,236 $ 6,565,711 Corporate AgFinance 1,259,723 — — — — — 1,259,723 Total Agricultural Finance loans 7,729,928 15,326 3,953 10,991 30,270 65,236 7,825,434 Rural Infrastructure Finance loans 3,534,763 — — — — — 3,534,763 Total $ 11,264,691 $ 15,326 $ 3,953 $ 10,991 $ 30,270 $ 65,236 $ 11,360,197 (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 (single-class) 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 $25.7 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2023, Farmer Mac received $2.6 million in interest on nonaccrual loans. Credit Quality Indicators The following tables present credit quality indicators related to Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of March 31, 2024 and December 31, 2023, by year of origination: Table 5.5 As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 190,820 $ 509,485 $ 1,135,915 $ 1,601,660 $ 1,082,703 $ 1,349,086 $ 354,735 $ 6,224,404 Special mention (2) 16,452 90,681 29,227 36,893 4,387 31,355 9,093 218,088 Substandard (3) — 11,266 27,515 28,603 34,970 94,835 17,259 214,448 Total $ 207,272 $ 611,432 $ 1,192,657 $ 1,667,156 $ 1,122,060 $ 1,475,276 $ 381,087 $ 6,656,940 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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 March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance (1) : Internally Assigned Risk Rating: Acceptable $ 34,521 $ 204,717 $ 77,402 $ 257,391 $ 122,517 $ 209,987 $ 242,494 $ 1,149,029 Special mention (2) — — 14,437 15,204 49,967 16,350 2,072 98,030 Substandard (3) — — — — — — 11,447 11,447 Total $ 34,521 $ 204,717 $ 91,839 $ 272,595 $ 172,484 $ 226,337 $ 256,013 $ 1,258,506 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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 March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 192,160 $ 572,095 $ 665,560 $ 189,652 $ 585,661 $ 1,283,649 $ 163,162 $ 3,651,939 Special mention (2) — — 34,814 — — — — 34,814 Substandard (3) — — — — — — — — Total $ 192,160 $ 572,095 $ 700,374 $ 189,652 $ 585,661 $ 1,283,649 $ 163,162 $ 3,686,753 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 530,956 $ 1,137,226 $ 1,653,780 $ 1,120,917 $ 323,922 $ 1,068,862 $ 385,766 $ 6,221,429 Special mention (2) 70,524 46,529 27,957 11,591 4,782 21,257 8,777 191,417 Substandard (3) 3,357 23,987 10,164 17,395 28,942 58,606 10,414 152,865 Total $ 604,837 $ 1,207,742 $ 1,691,901 $ 1,149,903 $ 357,646 $ 1,148,725 $ 404,957 $ 6,565,711 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance loans (1) : Internally Assigned Risk Rating: Acceptable $ 207,279 $ 97,922 $ 261,992 $ 123,158 $ 99,352 $ 112,947 $ 254,325 $ 1,156,975 Special mention (2) — 14,522 15,408 50,822 20,333 — 1,663 102,748 Substandard (3) — — — — — — — — Total $ 207,279 $ 112,444 $ 277,400 $ 173,980 $ 119,685 $ 112,947 $ 255,988 $ 1,259,723 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 618,946 $ 681,272 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,495,513 Special mention (2) — 9,850 — — — — — 9,850 Substandard (3) — 29,400 — — — — — 29,400 Total $ 618,946 $ 720,522 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,534,763 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. |
GUARANTEES AND COMMITMENTS
GUARANTEES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
GUARANTEES AND COMMITMENTS | GUARANTEES AND COMMITMENTS The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1 Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities As of March 31, 2024 As of December 31, 2023 (in thousands) Agricultural Finance Farmer Mac Guaranteed Securities $ 443,843 $ 452,602 Total off-balance sheet Farmer Mac Guaranteed Securities $ 443,843 $ 452,602 Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors. The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2 For the Three Months Ended March 31, 2024 March 31, 2023 (in thousands) Proceeds from new securitizations $ — $ 222,188 Guarantee fees received 449 487 Farmer Mac presents a liability for its obligation to stand ready under its guarantee in "Guarantee and commitment obligation" on the consolidated balance sheets. The following table presents the liability and the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities: Table 6.3 As of March 31, 2024 As of December 31, 2023 (dollars in thousands) Guarantee and commitment obligation $ 5,808 $ 5,969 Weighted average remaining maturity: Farmer Mac Guaranteed Securities 21.6 years 21.9 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: Table 6.4 As of March 31, 2024 As of December 31, 2023 (dollars in thousands) Guarantee and commitment obligation (1) $ 40,057 $ 41,594 Maximum principal amount 3,636,782 3,680,333 Weighted-average remaining maturity 14.3 years 14.5 years (1) Relates to LTSPCs issued or modified on or after January 1, 2003. Reserve for Losses - LTSPCs and Farmer Mac Guaranteed Securities The following table is a summary, by asset type, of the reserve for losses as of March 31, 2024 and December 31, 2023: Table 6.5 March 31, 2024 December 31, 2023 Reserve for Losses Reserve for Losses (in thousands) Agricultural Finance $ 1,407 $ 1,471 Rural Infrastructure Finance 235 240 Total $ 1,642 $ 1,711 The following is a summary of the changes in the reserve for losses for the three month period ended March 31, 2024 and 2023: Table 6.6 For the Three Months Ended March 31, 2024 March 31, 2023 Reserve for Losses Reserve for Losses (in thousands) Agricultural Finance Beginning Balance $ 1,471 $ 819 (Release of)/provision for losses (64) 577 Ending Balance $ 1,407 $ 1,396 Rural Infrastructure Finance Beginning Balance $ 240 $ 614 Release of losses (5) (374) Ending Balance $ 235 $ 240 The release from the reserve for losses in the Rural Infrastructure Finance LTSPC portfolio recorded during first quarter 2023 was primarily due to an updated estimate of expected losses based on additional available industry data. The provision to the reserve for losses in the Agricultural Finance LTSPC portfolio recorded during first quarter 2023 was primarily due to an updated estimate of expected losses based on additional available industry data. The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023: Table 6.7 As of March 31, 2024 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: $ 3,254,483 $ 4,791 $ 528 $ 9,569 $ 14,888 $ 3,269,371 Rural Infrastructure Finance: 613,984 — — — — 613,984 Total $ 3,868,467 $ 4,791 $ 528 $ 9,569 $ 14,888 $ 3,883,355 (1) Includes loans underlying off-balance sheet Farmer Mac 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, 2023 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: $ 3,390,918 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,397,844 Rural Infrastructure Finance: 535,013 — — — — 535,013 Total $ 3,925,931 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,932,857 (1) Includes loans underlying off-balance sheet Farmer Mac 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 Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and 2023, by year of origination: Table 6.8 As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance: Internally Assigned Risk Rating: Acceptable $ 686 $ 167,655 $ 236,692 $ 503,681 $ 520,556 $ 1,380,938 $ 362,500 $ 3,172,708 Special mention (1) — — 71 2,456 4,817 51,388 8,612 67,344 Substandard (2) — — 1,202 — 109 26,754 1,254 29,319 Total $ 686 $ 167,655 $ 237,965 $ 506,137 $ 525,482 $ 1,459,080 $ 372,366 $ 3,269,371 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 391,099 $ 222,885 $ 613,984 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 391,099 $ 222,885 $ 613,984 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of December 31, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance: Internally Assigned Risk Rating: Acceptable $ 169,429 $ 246,441 $ 515,396 $ 534,395 $ 264,815 $ 1,185,811 $ 391,335 $ 3,307,622 Special mention (1) — 71 2,466 872 531 44,631 8,565 57,136 Substandard (2) — — — 131 1,536 26,328 5,091 33,086 Total $ 169,429 $ 246,512 $ 517,862 $ 535,398 $ 266,882 $ 1,256,770 $ 404,991 $ 3,397,844 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of December 31, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE Farmer 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 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 March 31, 2024 and December 31, 2023: Table 7.1 March 31, 2024 Outstanding as of March 31 Average Outstanding During the Quarter Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 1,898,810 5.23 % $ 1,662,014 5.25 % Medium-term notes 366,953 5.28 % 272,528 5.23 % Current portion of medium-term notes 6,604,250 3.08 % Total due within one year $ 8,870,013 3.63 % Due after one year: Medium-term notes due in: Two years $ 4,972,023 2.95 % Three years 4,064,733 2.60 % Four years 2,568,251 3.84 % Five years 2,941,652 4.45 % Thereafter 3,398,246 2.76 % Total due after one year $ 17,944,905 3.21 % Total principal net of discounts $ 26,814,918 3.35 % Hedging adjustments (305,907) Total $ 26,509,011 December 31, 2023 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 $ 1,734,387 5.32 % $ 1,097,300 5.08 % Medium-term notes 384,970 5.07 % 1,731,308 4.09 % Current portion of medium-term notes 5,967,811 2.90 % Total due within one year $ 8,087,168 3.52 % Due after one year: Medium-term notes due in: Two years $ 5,523,671 3.27 % Three years 3,825,702 2.27 % Four years 3,038,229 3.44 % Five years 2,623,202 4.37 % Thereafter 3,488,987 2.80 % Total due after one year $ 18,499,791 3.16 % Total principal net of discounts $ 26,586,959 3.27 % Hedging adjustments (250,417) Total $ 26,336,542 The maximum amount of Farmer Mac's discount notes outstanding at any month end during each of the three months ended March 31, 2024 and 2023 was $1.9 billion and $0.9 billion, respectively. Callable medium-term notes give Farmer Mac the option to redeem the debt at par value on a specified call date or at any time on or after a specified call date. The following table summarizes by maturity date the amounts and costs for Farmer Mac debt callable in 2024 as of March 31, 2024: Table 7.2 Debt Callable in 2024 as of March 31, 2024, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2025 $ 1,090,521 3.12 % 2026 1,378,822 2.00 % 2027 884,005 2.80 % 2028 567,953 4.22 % Thereafter 1,775,587 2.48 % Total $ 5,696,888 2.71 % The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2024, 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: 2024 $ 8,789,318 4.06 % 2025 5,180,648 3.03 % 2026 3,750,964 2.15 % 2027 2,972,357 3.29 % 2028 2,584,403 4.24 % Thereafter 3,537,228 2.71 % Total principal net of discounts $ 26,814,918 3.35 % During the the three months ended March 31, 2024 and 2023, Farmer Mac called $354.5 million and $0.0 million 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 March 31, 2024, Farmer Mac had not used this borrowing authority. Gains on Repurchases of Outstanding Debt |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | EQUITY Common Stock During first quarter 2024, Farmer Mac paid a quarterly dividend of $1.40 per share on all classes of its common stock. For each quarter in 2023, Farmer Mac paid a quarterly dividend of $1.10 per share on all classes of its common stock. Except for the period from March 16, 2020 to March 10, 2021, Farmer Mac has had a common stock repurchase program in place since third quarter 2015. On March 10, 2021, Farmer Mac's board of directors reinstated the share repurchase program on its previous terms and extended the expiration date of the program to March 2023. In February 2023, Farmer Mac's board of directors renewed 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 February 2025. Farmer Mac has not repurchased any shares of its Class C non-voting common stock since the repurchase program was reinstated in March 2021. As of March 31, 2024, 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. Capital Requirements Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both March 31, 2024 and December 31, 2023, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements. As of March 31, 2024, Farmer Mac's minimum capital requirement was $872.3 million and its core capital level was $1.5 billion, which was $612.1 million above the minimum capital requirement as of that date. As of December 31, 2023, Farmer Mac's minimum capital requirement was $862.6 million and its core capital level was $1.5 billion, which was $589.4 million above the minimum capital requirement as of that date. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Fair Value Classification and Transfers The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 9.1 Assets and Liabilities Measured at Fair Value as of March 31, 2024 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 $ — $ — $ 19,281 $ 19,281 Floating rate Government/GSE guaranteed mortgage-backed securities — 2,380,066 — 2,380,066 Fixed rate GSE guaranteed mortgage-backed securities — 1,672,388 — 1,672,388 Floating rate U.S. Treasuries 49,996 — — 49,996 Fixed rate U.S. Treasuries 886,056 — — 886,056 Total Available-for-sale Investment Securities 936,052 4,052,454 19,281 5,007,787 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 5,457,197 5,457,197 Farmer Mac Guaranteed Securities — — 9,491 9,491 Total Farmer Mac Guaranteed Securities — — 5,466,688 5,466,688 USDA Securities: Trading — — 1,066 1,066 Total USDA Securities — — 1,066 1,066 Financial derivatives 680 30,753 — 31,433 Guarantee Asset — — 5,733 5,733 Total Assets at fair value $ 936,732 $ 4,083,207 $ 5,492,768 $ 10,512,707 Liabilities: Financial derivatives $ — $ 128,530 $ — $ 128,530 Total Liabilities at fair value $ — $ 128,530 $ — $ 128,530 (1) Level 3 assets represent 18% of total assets and 52% of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value as of December 31, 2023 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 $ — $ — $ 19,082 $ 19,082 Floating rate Government/GSE guaranteed mortgage-backed securities — 2,424,434 — 2,424,434 Fixed rate GSE guaranteed mortgage-backed securities — 1,569,615 — 1,569,615 Floating rate U.S. Treasuries 49,968 — — 49,968 Fixed rate U.S. Treasuries 855,832 — — 855,832 Total Available-for-sale Investment Securities 905,800 3,994,049 19,082 4,918,931 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 5,522,712 5,522,712 Farmer Mac Guaranteed Securities — — 9,767 9,767 Total Farmer Mac Guaranteed Securities — — 5,532,479 5,532,479 USDA Securities: Trading — — 1,241 1,241 Total USDA Securities — — 1,241 1,241 Financial derivatives 11 37,467 — 37,478 Guarantee Asset — — 5,831 5,831 Total Assets at fair value $ 905,811 $ 4,031,516 $ 5,558,633 $ 10,495,960 Liabilities: Financial derivatives $ 91 $ 117,040 $ — $ 117,131 Total Liabilities at fair value $ 91 $ 117,040 $ — $ 117,131 (1) Level 3 assets represent 19% of total assets and 52% 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 March 31, 2024 or December 31, 2023. Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the three months ended March 31, 2024 and 2023, 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 three months ended March 31, 2024 and 2023. Table 9.2 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2024 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized losses included in Income Unrealized gains/(losses) included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,082 $ — $ — $ 1 $ — $ 198 $ 19,281 Total available-for-sale 19,082 — — 1 — 198 19,281 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,522,712 50,000 (63,955) 27 (80,694) 29,107 5,457,197 Farmer Mac Guaranteed Securities 9,767 — (177) — — (99) 9,491 Total available-for-sale 5,532,479 50,000 (64,132) 27 (80,694) 29,008 5,466,688 USDA Securities: Trading 1,241 — (174) — (1) — 1,066 Total USDA Securities 1,241 — (174) — (1) — 1,066 Guarantee and commitment obligations: Guarantee Asset 5,831 — (85) — (13) — 5,733 Total Guarantee and commitment obligations 5,831 — (85) — (13) — 5,733 Total Assets at fair value $ 5,558,633 $ 50,000 $ (64,391) $ 28 $ (80,708) $ 29,206 $ 5,492,768 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2023 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized gains included in Income Unrealized (losses)/gains included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,027 $ — $ — $ 4 $ — $ — $ 19,031 Total available-for-sale 19,027 — — 4 — — 19,031 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 7,599,379 687,650 (141,386) 32 93,342 (21,597) 8,217,420 Farmer Mac Guaranteed 7,847 — (433) — — 620 8,034 Total available-for-sale 7,607,226 687,650 (141,819) 32 93,342 (20,977) 8,225,454 USDA Securities: Trading 1,767 — (387) — 25 — 1,405 Total USDA Securities 1,767 — (387) — 25 — 1,405 Guarantee and commitment obligations: Guarantee Asset 4,467 — (231) — 334 — 4,570 Total Guarantee and commitment obligations 4,467 — (231) — 334 — 4,570 Total Assets at fair value $ 7,632,487 $ 687,650 $ (142,437) $ 36 $ 93,701 $ (20,977) $ 8,250,460 The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2024 and December 31, 2023: Table 9.3 As of March 31, 2024 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 $ 19,281 Indicative bids Range of broker quotes 98.0% - 98.0% (98.0%) Farmer Mac Guaranteed Securities: AgVantage $ 5,457,197 Discounted cash flow Discount rate 5.0% - 5.8% (5.3%) Farmer Mac Guaranteed Securities $ 9,491 Discounted cash flow Discount rate 8.0% CPR 3% USDA Securities $ 1,066 Discounted cash flow Discount rate 5.7% - 5.8% (5.7%) CPR 12% - 12% (12%) Guarantee Asset $ 5,733 Discounted cash flow Discount rate 8.0% CPR 3% As of December 31, 2023 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 $ 19,082 Indicative bids Range of broker quotes 97.0% - 97.0% (97.0%) Farmer Mac Guaranteed Securities: AgVantage $ 5,522,712 Discounted cash flow Discount rate 4.7% - 5.4% (5.0%) Farmer Mac Guaranteed Securities $ 9,767 Discounted cash flow Discount rate 8.3% CPR 3% USDA Securities $ 1,241 Discounted cash flow Discount rate 5.4% - 5.4% (5.4%) CPR 12% - 12% (12%) Guarantee Asset $ 5,831 Discounted cash flow Discount rate 8.3% CPR 3% 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. CPR 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. Disclosures on Fair Value of Financial Instruments The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2024 and December 31, 2023: Table 9.4 As of March 31, 2024 As of December 31, 2023 Fair Value Carrying Fair Value Carrying (in thousands) Financial assets: Cash and cash equivalents $ 745,105 $ 745,105 $ 888,707 $ 888,707 Investment securities 5,069,547 5,068,443 4,981,249 4,979,504 Farmer Mac Guaranteed Securities 9,889,495 9,921,620 9,710,074 9,745,548 USDA Securities 2,016,076 2,334,093 2,036,046 2,355,412 Loans 10,632,530 11,233,071 10,426,021 11,039,349 Financial derivatives 31,433 31,433 37,478 37,478 Guarantee and commitment fees receivable 55,856 48,130 58,465 49,832 Financial liabilities: Notes payable 25,825,161 26,509,011 25,670,971 26,336,542 Debt securities of consolidated trusts held by third parties 1,244,879 1,325,289 1,268,563 1,351,069 Financial derivatives 128,530 128,530 117,131 117,131 Guarantee and commitment obligations 53,591 45,866 56,195 47,563 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 the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) and are classified as Level 2. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as Level 3. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as Level 3. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for Level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts. |
BUSINESS SEGMENT REPORTING
BUSINESS SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
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 three months ended March 31, 2024 and 2023. Table 10.1 Core Earnings by Business Segment For the Three Months Ended March 31, 2024 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 $ 33,889 $ 7,971 $ 7,265 $ 2,049 $ 34,719 $ 475 $ — $ — $ 86,368 Less: reconciling adjustments (1)(2)(3) (1,046) — (33) — (2,245) — — 3,324 — Net effective spread 32,843 7,971 7,232 2,049 32,474 475 — 3,324 — Guarantee and commitment fees 4,484 87 349 62 — — — (1,065) 3,917 Other income (3) 995 12 — — — 4 66 2,251 3,328 Total revenues 38,322 8,070 7,581 2,111 32,474 479 66 4,510 93,613 (Provision for)/release of losses (561) 378 3,017 (1,034) — 1 — — 1,801 Release of reserve for losses 64 — 5 — — — — — 69 Operating expenses — — — — — — (27,237) — (27,237) Total non-interest expense 64 — 5 — — — (27,237) — (27,168) Core earnings before income taxes 37,825 8,448 10,603 1,077 32,474 480 (27,171) 4,510 (4) 68,246 Income tax (expense)/benefit (7,943) (1,774) (2,227) (226) (6,819) (101) 5,537 (947) (14,500) Core earnings before preferred stock dividends 29,882 6,674 8,376 851 25,655 379 (21,634) 3,563 (4) 53,746 Preferred stock dividends — — — — — — (6,791) — (6,791) Segment core earnings/(losses) $ 29,882 $ 6,674 $ 8,376 $ 851 $ 25,655 $ 379 $ (28,425) $ 3,563 (4) $ 46,955 Total Assets $ 15,240,436 $ 1,637,460 $ 7,003,165 $ 578,709 $ — $ 5,190,082 $ 122,339 $ — $ 29,772,191 Total on- and off-balance sheet program assets at principal balance $ 18,900,906 $ 1,766,294 $ 7,437,723 $ 742,307 $ — $ — $ — $ — $ 28,847,230 (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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. Core Earnings by Business Segment For the Three Months Ended March 31, 2023 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 $ 33,511 $ 7,148 $ 5,540 $ 858 $ 32,544 $ (543) $ — $ — $ 79,058 Less: reconciling adjustments (1)(2)(3) (1,046) — (33) — (806) — — 1,885 — Net effective spread 32,465 7,148 5,507 858 31,738 (543) — 1,885 — Guarantee and commitment fees 4,292 53 281 28 — — — (721) 3,933 Other income/(expense) (3) 1,067 — — — — — — 558 1,625 Total revenues 37,824 7,201 5,788 886 31,738 (543) — 1,722 84,616 Release of/(provision for) losses 128 (4,301) 3,484 138 — 4 — — (547) (Provision for)/release of reserve for losses (577) — 374 — — — — — (203) Operating expenses — — — — — — (23,713) — (23,713) Total non-interest expense (577) — 374 — — — (23,713) — (23,916) Core earnings before income taxes 37,375 2,900 9,646 1,024 31,738 (539) (23,713) 1,722 (4) 60,153 Income tax (expense)/benefit (7,849) (609) (2,026) (215) (6,665) 113 4,495 (362) (13,118) Core earnings before preferred stock dividends 29,526 2,291 7,620 809 25,073 (426) (19,218) 1,360 (4) 47,035 Preferred stock dividends — — — — — — (6,791) — (6,791) Segment core earnings/(losses) $ 29,526 $ 2,291 $ 7,620 $ 809 $ 25,073 $ (426) $ (26,009) $ 1,360 (4) $ 40,244 Total Assets $ 14,549,275 $ 1,515,976 $ 6,444,264 $ 286,824 $ — $ 4,998,854 $ 144,754 $ — $ 27,939,947 Total on- and off-balance sheet program assets at principal balance $ 17,685,961 $ 1,599,982 $ 6,889,682 $ 308,493 $ — $ — $ — $ — $ 26,484,118 (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 "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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income | $ 53,746 | $ 47,035 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Farmer Mac and its two subsidiaries: (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 Variable Interest Entities ("VIEs") in which Farmer Mac determined itself to be the primary beneficiary. |
Earnings Per Common Share | Earnings Per Common Share |
Comprehensive Income | Comprehensive Income |
New Accounting Standards | New Accounting Standards Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this Update permit an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received. January 1, 2024 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Effect on Consolidated Financial Statements ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this Update require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This Update also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively. Early adoption is permitted. Farmer Mac is still assessing the effect on our annual consolidated financial statement disclosures, however, adoption will not have a material impact on Farmer Mac's financial position, results of operations, or cash flows. ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures The Update provides guidance on improvements to annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additionally, public entities must provide a separate disclosure for any reconciling item that meets a quantitative threshold. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The amendments should be applied on a prospective basis. Early adoption is permitted. Farmer Mac is still assessing the impact of the new accounting standard but does not expect that adoption of the new guidance will have a material impact on Farmer Mac's financial position, results of operations, or cash flows. |
Reclassifications | Reclassifications Certain reclassifications of prior period information were made to conform to the current period presentation. The reclassifications of prior period information were not material to the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Consolidation of Variable Interest Entities | Table 1.1 Consolidation of Variable Interest Entities As of March 31, 2024 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,409,397 $ — $ 1,409,397 Debt securities of consolidated trusts held by third parties (1)(2) 1,325,289 — 1,325,289 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 51,906 — 51,906 Maximum exposure to loss (3) 51,616 — 51,616 Investment securities: Carrying value (4) — 3,735,413 3,735,413 Maximum exposure to loss (3)(4) — 3,936,368 3,936,368 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3)(5) 443,843 — 443,843 (1) Includes borrower remittances of $1.1 million. The borrower remittances had not been passed through to third-party investors as of March 31, 2024. (2) Includes $85.1 million in unamortized discount related to structured securitization transactions. (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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (5) 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, 2023 Agricultural Finance Treasury Total (in thousands) On-Balance Sheet: Consolidated VIEs: Loans held for investment in consolidated trusts, at amortized cost $ 1,432,261 $ — $ 1,432,261 Debt securities of consolidated trusts held by third parties (1)(2) 1,351,069 — 1,351,069 Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Carrying value 46,343 — 46,343 Maximum exposure to loss (3) 45,952 — 45,952 Investment securities: Carrying value (4) — 3,676,555 3,676,555 Maximum exposure to loss (3)(4) — 3,862,006 3,862,006 Off-Balance Sheet: Unconsolidated VIEs: Farmer Mac Guaranteed Securities: Maximum exposure to loss (3)(5) 452,602 — 452,602 (1) Includes borrower remittances of $6.0 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2023. (2) Includes $87.1 million in unamortized discount related to a structured securitization transaction. (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, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (5) 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. |
Schedule of Basic and Diluted EPS | The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2024 and 2023: Table 1.2 For the Three Months Ended March 31, 2024 March 31, 2023 Net Weighted-Average Shares $ per Net Weighted-Average Shares $ per (in thousands, except per share amounts) Basic EPS Net income attributable to common stockholders $ 46,955 10,847 $ 4.33 $ 40,244 10,802 $ 3.73 Effect of dilutive securities (1) SARs and restricted stock units — 122 (0.05) — 116 (0.04) Diluted EPS $ 46,955 10,969 $ 4.28 $ 40,244 10,918 $ 3.69 (1) For the three months ended March 31, 2024 and 2023, SARs and restricted stock units of 49,371 and 62,709 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended March 31, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,282 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met. |
Schedule of Accumulated Other Comprehensive Income, Net of Tax | The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2024 and 2023. Table 1.3 As of March 31, 2024 As of March 31, 2023 Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total Available-for-Sale Securities Held-to-Maturity Securities Cash Flow Hedges Total (in thousands) For the Three Months Ended: Beginning Balance $ (68,447) $ (8,724) $ 37,026 $ (40,145) $ (115,561) $ 16,357 $ 48,361 $ (50,843) Other comprehensive income/(loss) before reclassifications 31,565 — 9,256 40,821 525 — (5,452) (4,927) Amounts reclassified from AOCI (4) (500) (4,290) (4,794) (5) (618) (3,469) (4,092) Net comprehensive income/(loss) 31,561 (500) 4,966 36,027 520 (618) (8,921) (9,019) Ending Balance $ (36,886) $ (9,224) $ 41,992 $ (4,118) $ (115,041) $ 15,739 $ 39,440 $ (59,862) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2024 and 2023: Table 1.4 For the Three Months Ended March 31, 2024 March 31, 2023 Before Tax Provision (Benefit) After Tax Before Tax Provision (Benefit) After Tax (in thousands) Other comprehensive income: Available-for-sale-securities: Unrealized holding gains on available-for-sale securities $ 39,957 $ 8,392 $ 31,565 $ 664 $ 139 $ 525 Less reclassification adjustments included in: Other income (1) (5) (1) (4) (6) (1) (5) Total $ 39,952 $ 8,391 $ 31,561 $ 658 $ 138 $ 520 Held-to-maturity securities: Less reclassification adjustments included in: Net interest income (2) $ (634) $ (134) $ (500) $ (782) $ (164) $ (618) Total $ (634) $ (134) $ (500) $ (782) $ (164) $ (618) Cash flow hedges Unrealized gains/(losses) on cash flow hedges $ 11,717 $ 2,461 $ 9,256 $ (6,901) $ (1,449) $ (5,452) Less reclassification adjustments included in: Net interest income (3) (5,431) (1,141) (4,290) (4,391) (922) (3,469) Total $ 6,286 $ 1,320 $ 4,966 $ (11,292) $ (2,371) $ (8,921) Other comprehensive income/(loss) $ 45,604 $ 9,577 $ 36,027 $ (11,416) $ (2,397) $ (9,019) (1) Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (2) 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. (3) Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI. |
Schedule of Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method The amendments in this Update permit an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received. January 1, 2024 The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Effect on Consolidated Financial Statements ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this Update require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This Update also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively. Early adoption is permitted. Farmer Mac is still assessing the effect on our annual consolidated financial statement disclosures, however, adoption will not have a material impact on Farmer Mac's financial position, results of operations, or cash flows. ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures The Update provides guidance on improvements to annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additionally, public entities must provide a separate disclosure for any reconciling item that meets a quantitative threshold. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The amendments should be applied on a prospective basis. Early adoption is permitted. Farmer Mac is still assessing the impact of the new accounting standard but does not expect that adoption of the new guidance will have a material impact on Farmer Mac's financial position, results of operations, or cash flows. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023: Table 2.1 As of March 31, 2024 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (25) $ — $ (394) $ 19,281 Floating rate Government/GSE guaranteed mortgage-backed securities 2,402,850 (1,306) 2,401,544 — 2,608 (24,086) 2,380,066 Fixed rate GSE guaranteed mortgage-backed securities 1,851,641 (47,448) 1,804,193 — 2,746 (134,551) 1,672,388 Floating rate U.S. Treasuries 50,000 (10) 49,990 — 6 — 49,996 Fixed rate U.S. Treasuries 905,255 (15,120) 890,135 — 81 (4,160) 886,056 Total available-for-sale 5,229,446 (63,884) 5,165,562 (25) 5,441 (163,191) 5,007,787 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,104 — 54,860 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,104 $ — $ 54,860 (1) Amounts presented exclude $22.2 million of accrued interest receivable on investment securities as of March 31, 2024. (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 6.7% as of March 31, 2024. As of December 31, 2023 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (27) $ — $ (591) $ 19,082 Floating rate Government/GSE guaranteed mortgage-backed securities 2,454,009 (1,138) 2,452,871 — 1,212 (29,649) 2,424,434 Fixed rate GSE guaranteed mortgage-backed securities 1,727,669 (46,788) 1,680,881 — 6,558 (117,824) 1,569,615 Floating rate U.S. Treasuries 50,000 (17) 49,983 — — (15) 49,968 Fixed rate U.S. Treasuries 869,585 (12,885) 856,700 — 2,074 (2,942) 855,832 Total available-for-sale 5,120,963 (60,828) 5,060,135 (27) 9,844 (151,021) 4,918,931 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,745 — 55,501 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,745 $ — $ 55,501 (1) Amounts presented exclude $15.9 million of accrued interest receivable on investment securities as of December 31, 2023. (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 6.7% as of December 31, 2023. The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2024 and December 31, 2023: Table 3.1 As of March 31, 2024 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,441,588 $ (28,891) $ 4,412,697 $ (179) $ 3,829 $ (35,130) $ 4,381,217 Farmer Mac Guaranteed USDA Securities 42,383 31 42,414 — 59 (883) 41,590 Total Farmer Mac Guaranteed Securities 4,483,971 (28,860) 4,455,111 (179) 3,888 (36,013) 4,422,807 USDA Securities 2,311,442 21,585 2,333,027 — 303 (318,319) 2,015,011 Total held-to-maturity $ 6,795,413 $ (7,275) $ 6,788,138 $ (179) $ 4,191 $ (354,332) $ 6,437,818 Available-for-sale: AgVantage $ 5,802,070 $ — $ 5,802,070 $ (291) $ 8,364 $ (352,946) $ 5,457,197 Farmer Mac Guaranteed Securities (3) — 9,232 9,232 — 259 — 9,491 Total available-for-sale $ 5,802,070 $ 9,232 $ 5,811,302 $ (291) $ 8,623 $ (352,946) $ 5,466,688 Trading: USDA Securities (4) $ 1,069 $ 57 $ 1,126 $ — $ — $ (60) $ 1,066 (1) Amounts presented exclude $57.9 million, $59.4 million, and $27,610 of accrued interest receivable (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 $9.5 million of an interest-only security with a notional amount of $233.5 million. (4) The trading USDA securities had a weighted average yield of 5.58% as of March 31, 2024. As of December 31, 2023 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,206,324 $ (29,622) $ 4,176,702 $ (209) $ 4,676 $ (39,451) $ 4,141,718 Farmer Mac Guaranteed USDA Securities 36,543 33 36,576 — 107 (806) 35,877 Total Farmer Mac Guaranteed Securities 4,242,867 (29,589) 4,213,278 (209) 4,783 (40,257) 4,177,595 USDA Securities 2,331,093 23,078 2,354,171 — 417 (319,783) 2,034,805 Total held-to-maturity $ 6,573,960 $ (6,511) $ 6,567,449 $ (209) $ 5,200 $ (360,040) $ 6,212,400 Available-for-sale: AgVantage $ 5,816,024 $ — $ 5,816,024 $ (317) $ 16,416 $ (309,411) $ 5,522,712 Farmer Mac Guaranteed Securities (3) — 9,409 9,409 — 358 — 9,767 Total available-for-sale $ 5,816,024 $ 9,409 $ 5,825,433 $ (317) $ 16,774 $ (309,411) $ 5,532,479 Trading: USDA Securities (4) $ 1,236 $ 64 $ 1,300 $ — $ — $ (59) $ 1,241 (1) Amounts presented exclude $47.2 million, $67.4 million, and $42,000 of accrued interest receivable (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 $9.8 million of an interest-only security with a notional amount of $238.4 million. (4) The trading USDA securities had a weighted average yield of 5.46% as of December 31, 2023. |
Schedule of Unrealized Losses on Available-for-Sale Investment Securities | As of March 31, 2024 and December 31, 2023, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2024 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 $ — $ — $ 19,281 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 414,299 (2,066) 1,293,103 (22,020) Fixed rate Government/GSE guaranteed mortgage-backed securities 458,047 (7,183) 991,514 (127,368) Fixed rate U.S. Treasuries 557,405 (3,093) 101,646 (1,067) Total $ 1,429,751 $ (12,342) $ 2,405,544 $ (150,849) Number of securities in loss position 107 158 As of December 31, 2023 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 $ — $ — $ 19,082 $ (591) Floating rate Government/GSE guaranteed mortgage-backed securities 568,759 (4,395) 1,449,122 (25,254) Fixed rate Government/GSE guaranteed mortgage-backed securities 384,305 (4,262) 905,759 (113,562) Floating rate U.S. Treasuries 49,969 (15) — — Fixed rate U.S. Treasuries 140,435 (606) 237,192 (2,336) Total $ 1,143,468 $ (9,278) $ 2,611,155 $ (141,743) Number of securities in loss position 91 162 As of March 31, 2024 and December 31, 2023, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2024 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 $ 2,757,735 $ (3,858) $ 699,786 $ (31,272) Farmer Mac Guaranteed USDA Securities 27,029 (55) 8,258 (828) USDA Securities 3,025 (9) 2,004,512 (318,310) Total held-to-maturity $ 2,787,789 $ (3,922) $ 2,712,556 $ (350,410) Available-for-sale: AgVantage $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) Total available-for-sale $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) As of December 31, 2023 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 $ 2,070,770 $ (6,705) $ 725,347 $ (32,746) Farmer Mac Guaranteed USDA Securities — — 8,393 (806) USDA Securities — — 2,023,801 (319,783) Total held-to-maturity $ 2,070,770 $ (6,705) $ 2,757,541 $ (353,335) Available-for-sale: AgVantage $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) Total available-for-sale $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) |
Schedule of Available-for-Sale Securities Maturities | The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2024 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2024 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 431,353 $ 430,225 2.32% Due after one year through five years 1,578,453 1,552,380 4.19% Due after five years through ten years 2,375,052 2,260,716 4.35% Due after ten years 780,704 764,466 5.70% Total $ 5,165,562 $ 5,007,787 4.33% The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2024 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2024 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 850,000 $ 838,515 3.05 % Due after one year through five years 2,811,653 2,701,597 3.74 % Due after five years through ten years 1,200,000 1,105,537 3.61 % Due after ten years 949,649 821,039 3.55 % Total $ 5,811,302 $ 5,466,688 3.58 % (1) Amounts presented exclude $57.9 million of accrued interest receivable. As of March 31, 2024 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 2,141,438 $ 2,139,182 5.72 % Due after one year through five years 1,692,904 1,657,244 4.63 % Due after five years through ten years 249,080 217,955 3.58 % Due after ten years 2,704,716 2,423,437 4.32 % Total $ 6,788,138 $ 6,437,818 4.85 % (1) Amounts presented exclude $59.4 million of accrued interest receivable. |
FARMER MAC GUARANTEED SECURIT_2
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023: Table 2.1 As of March 31, 2024 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (25) $ — $ (394) $ 19,281 Floating rate Government/GSE guaranteed mortgage-backed securities 2,402,850 (1,306) 2,401,544 — 2,608 (24,086) 2,380,066 Fixed rate GSE guaranteed mortgage-backed securities 1,851,641 (47,448) 1,804,193 — 2,746 (134,551) 1,672,388 Floating rate U.S. Treasuries 50,000 (10) 49,990 — 6 — 49,996 Fixed rate U.S. Treasuries 905,255 (15,120) 890,135 — 81 (4,160) 886,056 Total available-for-sale 5,229,446 (63,884) 5,165,562 (25) 5,441 (163,191) 5,007,787 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,104 — 54,860 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,104 $ — $ 54,860 (1) Amounts presented exclude $22.2 million of accrued interest receivable on investment securities as of March 31, 2024. (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 6.7% as of March 31, 2024. As of December 31, 2023 Amount Outstanding Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,700 $ — $ 19,700 $ (27) $ — $ (591) $ 19,082 Floating rate Government/GSE guaranteed mortgage-backed securities 2,454,009 (1,138) 2,452,871 — 1,212 (29,649) 2,424,434 Fixed rate GSE guaranteed mortgage-backed securities 1,727,669 (46,788) 1,680,881 — 6,558 (117,824) 1,569,615 Floating rate U.S. Treasuries 50,000 (17) 49,983 — — (15) 49,968 Fixed rate U.S. Treasuries 869,585 (12,885) 856,700 — 2,074 (2,942) 855,832 Total available-for-sale 5,120,963 (60,828) 5,060,135 (27) 9,844 (151,021) 4,918,931 Held-to-maturity: Floating rate Government/GSE guaranteed mortgage-backed securities (3) 53,756 — 53,756 — 1,745 — 55,501 Total held-to-maturity $ 53,756 $ — $ 53,756 $ — $ 1,745 $ — $ 55,501 (1) Amounts presented exclude $15.9 million of accrued interest receivable on investment securities as of December 31, 2023. (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 6.7% as of December 31, 2023. The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of March 31, 2024 and December 31, 2023: Table 3.1 As of March 31, 2024 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,441,588 $ (28,891) $ 4,412,697 $ (179) $ 3,829 $ (35,130) $ 4,381,217 Farmer Mac Guaranteed USDA Securities 42,383 31 42,414 — 59 (883) 41,590 Total Farmer Mac Guaranteed Securities 4,483,971 (28,860) 4,455,111 (179) 3,888 (36,013) 4,422,807 USDA Securities 2,311,442 21,585 2,333,027 — 303 (318,319) 2,015,011 Total held-to-maturity $ 6,795,413 $ (7,275) $ 6,788,138 $ (179) $ 4,191 $ (354,332) $ 6,437,818 Available-for-sale: AgVantage $ 5,802,070 $ — $ 5,802,070 $ (291) $ 8,364 $ (352,946) $ 5,457,197 Farmer Mac Guaranteed Securities (3) — 9,232 9,232 — 259 — 9,491 Total available-for-sale $ 5,802,070 $ 9,232 $ 5,811,302 $ (291) $ 8,623 $ (352,946) $ 5,466,688 Trading: USDA Securities (4) $ 1,069 $ 57 $ 1,126 $ — $ — $ (60) $ 1,066 (1) Amounts presented exclude $57.9 million, $59.4 million, and $27,610 of accrued interest receivable (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 $9.5 million of an interest-only security with a notional amount of $233.5 million. (4) The trading USDA securities had a weighted average yield of 5.58% as of March 31, 2024. As of December 31, 2023 Unpaid Principal Balance Unamortized Premium/(Discount) Amortized Cost (1) Allowance for losses (2) Unrealized Unrealized Fair Value (in thousands) Held-to-maturity: AgVantage $ 4,206,324 $ (29,622) $ 4,176,702 $ (209) $ 4,676 $ (39,451) $ 4,141,718 Farmer Mac Guaranteed USDA Securities 36,543 33 36,576 — 107 (806) 35,877 Total Farmer Mac Guaranteed Securities 4,242,867 (29,589) 4,213,278 (209) 4,783 (40,257) 4,177,595 USDA Securities 2,331,093 23,078 2,354,171 — 417 (319,783) 2,034,805 Total held-to-maturity $ 6,573,960 $ (6,511) $ 6,567,449 $ (209) $ 5,200 $ (360,040) $ 6,212,400 Available-for-sale: AgVantage $ 5,816,024 $ — $ 5,816,024 $ (317) $ 16,416 $ (309,411) $ 5,522,712 Farmer Mac Guaranteed Securities (3) — 9,409 9,409 — 358 — 9,767 Total available-for-sale $ 5,816,024 $ 9,409 $ 5,825,433 $ (317) $ 16,774 $ (309,411) $ 5,532,479 Trading: USDA Securities (4) $ 1,236 $ 64 $ 1,300 $ — $ — $ (59) $ 1,241 (1) Amounts presented exclude $47.2 million, $67.4 million, and $42,000 of accrued interest receivable (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 $9.8 million of an interest-only security with a notional amount of $238.4 million. (4) The trading USDA securities had a weighted average yield of 5.46% as of December 31, 2023. |
Schedule of Unrealized Losses on Available-for-Sale Investment Securities | As of March 31, 2024 and December 31, 2023, unrealized losses on available-for-sale investment securities were as follows: Table 2.2 As of March 31, 2024 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 $ — $ — $ 19,281 $ (394) Floating rate Government/GSE guaranteed mortgage-backed securities 414,299 (2,066) 1,293,103 (22,020) Fixed rate Government/GSE guaranteed mortgage-backed securities 458,047 (7,183) 991,514 (127,368) Fixed rate U.S. Treasuries 557,405 (3,093) 101,646 (1,067) Total $ 1,429,751 $ (12,342) $ 2,405,544 $ (150,849) Number of securities in loss position 107 158 As of December 31, 2023 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 $ — $ — $ 19,082 $ (591) Floating rate Government/GSE guaranteed mortgage-backed securities 568,759 (4,395) 1,449,122 (25,254) Fixed rate Government/GSE guaranteed mortgage-backed securities 384,305 (4,262) 905,759 (113,562) Floating rate U.S. Treasuries 49,969 (15) — — Fixed rate U.S. Treasuries 140,435 (606) 237,192 (2,336) Total $ 1,143,468 $ (9,278) $ 2,611,155 $ (141,743) Number of securities in loss position 91 162 As of March 31, 2024 and December 31, 2023, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows: Table 3.2 As of March 31, 2024 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 $ 2,757,735 $ (3,858) $ 699,786 $ (31,272) Farmer Mac Guaranteed USDA Securities 27,029 (55) 8,258 (828) USDA Securities 3,025 (9) 2,004,512 (318,310) Total held-to-maturity $ 2,787,789 $ (3,922) $ 2,712,556 $ (350,410) Available-for-sale: AgVantage $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) Total available-for-sale $ 1,133,776 $ (15,100) $ 3,945,347 $ (337,846) As of December 31, 2023 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 $ 2,070,770 $ (6,705) $ 725,347 $ (32,746) Farmer Mac Guaranteed USDA Securities — — 8,393 (806) USDA Securities — — 2,023,801 (319,783) Total held-to-maturity $ 2,070,770 $ (6,705) $ 2,757,541 $ (353,335) Available-for-sale: AgVantage $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) Total available-for-sale $ 508,182 $ (5,716) $ 4,043,431 $ (303,695) |
Schedule of Available-for-Sale and Held-to-Maturity Securities Maturities | The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of March 31, 2024 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 2.3 As of March 31, 2024 Available-for-Sale Securities Amortized Fair Value Weighted- (dollars in thousands) Due within one year $ 431,353 $ 430,225 2.32% Due after one year through five years 1,578,453 1,552,380 4.19% Due after five years through ten years 2,375,052 2,260,716 4.35% Due after ten years 780,704 764,466 5.70% Total $ 5,165,562 $ 5,007,787 4.33% The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of March 31, 2024 are set forth below. The balances presented are based on their contractual maturities, although the actual maturities may differ due to prepayments of the underlying assets. Table 3.3 As of March 31, 2024 Available-for-Sale Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 850,000 $ 838,515 3.05 % Due after one year through five years 2,811,653 2,701,597 3.74 % Due after five years through ten years 1,200,000 1,105,537 3.61 % Due after ten years 949,649 821,039 3.55 % Total $ 5,811,302 $ 5,466,688 3.58 % (1) Amounts presented exclude $57.9 million of accrued interest receivable. As of March 31, 2024 Held-to-Maturity Securities Amortized Cost (1) Fair Value Weighted- (dollars in thousands) Due within one year $ 2,141,438 $ 2,139,182 5.72 % Due after one year through five years 1,692,904 1,657,244 4.63 % Due after five years through ten years 249,080 217,955 3.58 % Due after ten years 2,704,716 2,423,437 4.32 % Total $ 6,788,138 $ 6,437,818 4.85 % (1) Amounts presented exclude $59.4 million of accrued interest receivable. |
FINANCIAL DERIVATIVES (Tables)
FINANCIAL DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. The table below includes accrued interest on cleared swaps, but excludes $17.6 million and $16.4 million of accrued interest receivable and $6.2 million and $6.5 million of accrued interest payable on uncleared swaps as of March 31, 2024 and December 31, 2023, respectively. The aforementioned accrued interest on uncleared swaps is included within Accrued Interest Receivable Table 4.1 As of March 31, 2024 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Receive fixed non-callable $ 9,705,185 $ 230 $ (25,315) 5.54% 3.03% 1.70 Pay fixed non-callable 9,226,082 7,675 (68) 2.52% 5.43% 9.37 Receive fixed callable 3,963,827 2,892 (105,971) 5.36% 3.46% 2.56 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 552,000 22,270 — 1.93% 5.80% 4.09 No hedge designation: Interest rate swaps: Pay fixed non-callable 157,933 992 — 2.92% 5.60% 4.15 Receive fixed non-callable 1,638,958 34 (9) 5.38% 5.11% 0.47 Basis swaps 850,384 15 (522) 5.49% 5.47% 3.58 Treasury futures 125 680 — 110.25 Netting adjustments (1) (3,355) 3,355 Total financial derivatives $ 26,094,494 $ 31,433 $ (128,530) (1) Amounts represent the application of the netting requirements that allow Farmer Mac to settle positive and negative positions, including accrued interest, held or placed with the same clearing agent. As of December 31, 2023 Fair Value Weighted- Weighted- Weighted- Weighted- Notional Amount Asset (Liability) (dollars in thousands) Fair value hedges: Interest rate swaps: Receive fixed non-callable $ 9,776,685 $ 2,350 $ (20,390) 5.57% 2.94% 1.78 Pay fixed non-callable 9,174,253 7,767 (1,081) 2.50% 5.47% 9.57 Receive fixed callable 3,879,827 7,374 (95,984) 5.40% 3.40% 2.48 Cash flow hedges: Interest rate swaps: Pay fixed non-callable 558,000 20,234 (43) 1.94% 5.82% 4.30 No hedge designation: Interest rate swaps: Pay fixed non-callable 160,623 676 (29) 2.92% 5.64% 4.34 Receive fixed non-callable 1,358,396 263 (3) 5.44% 4.87% 0.64 Basis swaps 850,384 39 (746) 5.52% 5.48% 3.83 Treasury futures 21,300 11 (91) 112.51 Netting adjustments (1) (1,236) 1,236 Total financial derivatives $ 25,779,468 $ 37,478 $ (117,131) (1) |
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 three months ended March 31, 2024 and 2023: Table 4.2 For the Three Months Ended March 31, 2024 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 Gains on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations $ 84,924 $ 166,813 $ 144,580 $ (309,949) $ 2,079 $ 88,447 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 10,297 40,332 17,849 (83,551) — (15,073) Recognized on hedged items 9,948 51,705 16,598 (106,433) — (28,182) Premium/discount amortization recognized on hedged items 445 — — (747) — (302) Income/(expense) related to interest settlements on fair value hedging relationships $ 20,690 $ 92,037 $ 34,447 $ (190,731) $ — $ (43,557) Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ 27,789 $ 81,586 $ 48,180 $ (54,717) $ — $ 102,838 Recognized on hedged items (27,521) (80,743) (47,061) 55,489 — (99,836) Gains/(losses) on fair value hedging relationships $ 268 $ 843 $ 1,119 $ 772 $ — $ 3,002 Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 5,431 $ — $ 5,431 Recognized on hedged items — — — (8,091) — (8,091) Discount amortization recognized on hedged items — — — (14) — (14) Expense recognized on cash flow hedges $ — $ — $ — $ (2,674) $ — $ (2,674) Gains on financial derivatives not designated in hedging relationships: Gains on interest rate swaps $ — $ — $ — $ — $ 754 $ 754 Interest expense on interest rate swaps — — — — (34) (34) Treasury futures — — — — 1,359 1,359 Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 2,079 $ 2,079 For the Three Months Ended March 31, 2023 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 Gains on financial derivatives (in thousands) Total amounts presented in the consolidated statement of operations: $ 59,703 $ 136,537 $ 119,032 $ (236,214) $ 399 $ 79,457 Income/(expense) related to interest settlements on fair value hedging relationships: Recognized on derivatives 6,549 28,909 13,180 (77,467) — (28,829) Recognized on hedged items 6,961 41,971 15,208 (70,975) — (6,835) Premium/discount amortization recognized on hedged items 268 — — (691) — (423) Income/(expense) related to interest settlements on fair value hedging relationships $ 13,778 $ 70,880 $ 28,388 $ (149,133) $ — $ (36,087) Gains/(losses) on fair value hedging relationships: Recognized on derivatives $ (27,153) $ (93,792) $ (56,681) $ 122,540 $ — $ (55,086) Recognized on hedged items 27,428 93,295 56,957 (122,699) — 54,981 Gains/(losses) on fair value hedging relationships $ 275 $ (497) $ 276 $ (159) $ — $ (105) Expense related to interest settlements on cash flow hedging relationships: Interest settlements reclassified from AOCI into net income on derivatives $ — $ — $ — $ 4,391 $ — $ 4,391 Recognized on hedged items — — — (7,190) — (7,190) Discount amortization recognized on hedged items — — — (14) — (14) Expense recognized on cash flow hedges $ — $ — $ — $ (2,813) $ — $ (2,813) Gains on financial derivatives not designated in hedge relationships: Gains on interest rate swaps $ — $ — $ — $ — $ 33 $ 33 Interest expense on interest rate swaps — — — — (1,625) (1,625) Treasury futures — — — — 1,991 1,991 Gains on financial derivatives not designated in hedge relationships $ — $ — $ — $ — $ 399 $ 399 |
Schedule of Hedged Items in Fair Value Hedging Relationships | The following table shows the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships as of March 31, 2024 and December 31, 2023: Table 4.3 Hedged Items in Fair Value Relationship Carrying Amount of Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 (in thousands) Investment securities, Available-for-Sale, at fair value $ 1,261,144 $ 1,251,386 $ (116,156) $ (88,635) Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value 5,432,676 5,497,948 (338,180) (257,436) Loans held for investment, at amortized cost 1,692,131 1,699,361 (352,653) (305,592) Notes Payable (1) (13,327,828) (13,350,111) 305,907 250,418 (1) Carrying amount represents amortized cost. |
Offsetting Assets | The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of March 31, 2024 and December 31, 2023: Table 4.4 March 31, 2024 Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1) Gross Amounts Not Offset in the Consolidated Balance Sheet Netting Adjustments Financial instruments pledged Cash Collateral (2) Net Amount (3) (in thousands) Assets: Uncleared derivatives $ 25,354 $ — $ 25,354 $ (24,674) $ — $ — $ 680 Cleared derivatives 8,240 (3,355) 4,885 — — — 4,885 Total $ 33,594 $ (3,355) $ 30,239 $ (24,674) $ — $ — $ 5,565 Liabilities: Uncleared derivatives $ (106,733) $ — $ (106,733) $ 24,674 $ — $ 76,472 $ (5,587) Cleared derivatives (3,355) 3,355 — — — — — Total $ (110,088) $ 3,355 $ (106,733) $ 24,674 $ — $ 76,472 $ (5,587) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) Cash collateral excludes $15.6 million of collateral posted and $0.0 million of collateral received related to counterparties not subject to master netting agreements. (3) Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of March 31, 2024, Farmer Mac had additional net exposure of $197.9 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position. December 31, 2023 Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1) Gross Amounts Not Offset in the Consolidated Balance Sheet Netting Adjustments Financial instruments pledged Cash Collateral (2) Net Amount (3) (in thousands) Assets: Uncleared derivatives $ 25,751 $ — $ 25,751 $ (25,727) $ — $ — $ 24 Cleared derivatives 10,388 (1,236) 9,152 — — — 9,152 Total $ 36,139 $ (1,236) $ 34,903 $ (25,727) $ — $ — $ 9,176 Liabilities: Uncleared derivatives $ (100,114) $ — $ (100,114) $ 25,727 $ — $ 69,360 $ (5,027) Cleared derivatives (1,236) 1,236 — — — — — Total $ (101,350) $ 1,236 $ (100,114) $ 25,727 $ — $ 69,360 $ (5,027) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) Cash collateral excludes $15.2 million of collateral posted and $2.0 million of collateral received related to counterparties not subject to master netting agreements. (3) |
Offsetting Liabilities | The following tables present the fair value of financial assets and liabilities, based on the terms of Farmer Mac's master netting arrangements as of March 31, 2024 and December 31, 2023: Table 4.4 March 31, 2024 Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1) Gross Amounts Not Offset in the Consolidated Balance Sheet Netting Adjustments Financial instruments pledged Cash Collateral (2) Net Amount (3) (in thousands) Assets: Uncleared derivatives $ 25,354 $ — $ 25,354 $ (24,674) $ — $ — $ 680 Cleared derivatives 8,240 (3,355) 4,885 — — — 4,885 Total $ 33,594 $ (3,355) $ 30,239 $ (24,674) $ — $ — $ 5,565 Liabilities: Uncleared derivatives $ (106,733) $ — $ (106,733) $ 24,674 $ — $ 76,472 $ (5,587) Cleared derivatives (3,355) 3,355 — — — — — Total $ (110,088) $ 3,355 $ (106,733) $ 24,674 $ — $ 76,472 $ (5,587) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) Cash collateral excludes $15.6 million of collateral posted and $0.0 million of collateral received related to counterparties not subject to master netting agreements. (3) Any over-collateralization at an individual clearing agent and/or counterparty level is not included in the determination of the net amount. As of March 31, 2024, Farmer Mac had additional net exposure of $197.9 million due to instances where Farmer Mac's collateral to a counterparty exceeded the net derivative position. December 31, 2023 Gross Amount Recognized Gross Amounts offset in the Consolidated Balance Sheet Net Amount Presented in the Consolidated Balance Sheet (1) Gross Amounts Not Offset in the Consolidated Balance Sheet Netting Adjustments Financial instruments pledged Cash Collateral (2) Net Amount (3) (in thousands) Assets: Uncleared derivatives $ 25,751 $ — $ 25,751 $ (25,727) $ — $ — $ 24 Cleared derivatives 10,388 (1,236) 9,152 — — — 9,152 Total $ 36,139 $ (1,236) $ 34,903 $ (25,727) $ — $ — $ 9,176 Liabilities: Uncleared derivatives $ (100,114) $ — $ (100,114) $ 25,727 $ — $ 69,360 $ (5,027) Cleared derivatives (1,236) 1,236 — — — — — Total $ (101,350) $ 1,236 $ (100,114) $ 25,727 $ — $ 69,360 $ (5,027) (1) Amounts presented may not agree to the consolidated balance sheet related to counterparties not subject to master netting agreements. (2) Cash collateral excludes $15.2 million of collateral posted and $2.0 million of collateral received related to counterparties not subject to master netting agreements. (3) |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023: Table 5.1 As of March 31, 2024 As of December 31, 2023 Unsecuritized In Consolidated Trusts Total Unsecuritized In Consolidated Trusts Total (in thousands) Agricultural Finance loans Farm & Ranch $ 5,247,543 $ 1,409,397 $ 6,656,940 $ 5,133,450 $ 1,432,261 $ 6,565,711 Corporate AgFinance 1,258,506 — 1,258,506 1,259,723 — 1,259,723 Total Agricultural Finance loans 6,506,049 1,409,397 7,915,446 6,393,173 1,432,261 7,825,434 Rural Infrastructure Finance loans 3,686,753 — 3,686,753 3,534,763 — 3,534,763 Total unpaid principal balance (1) 10,192,802 1,409,397 11,602,199 9,927,936 1,432,261 11,360,197 Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments (354,840) — (354,840) (304,817) — (304,817) Total loans 9,837,962 1,409,397 11,247,359 9,623,119 1,432,261 11,055,380 Allowance for losses (13,836) (452) (14,288) (15,588) (443) (16,031) Total loans, net of allowance $ 9,824,126 $ 1,408,945 $ 11,233,071 $ 9,607,531 $ 1,431,818 $ 11,039,349 (1) |
Schedule Allowance for Losses | The following table is a summary, by asset type, of the allowance for losses as of March 31, 2024 and December 31, 2023: Table 5.2 March 31, 2024 December 31, 2023 Allowance for Losses Allowance for Losses (in thousands) Loans: Agricultural Finance loans Farm & Ranch $ 4,535 $ 3,936 Corporate AgFinance 2,569 2,948 Total Agricultural Finance Loans 7,104 6,884 Rural Infrastructure Finance loans 7,184 9,147 Total $ 14,288 $ 16,031 The following is a summary of the changes in the allowance for losses for the three months ended March 31, 2024 and 2023: Table 5.3 For the Three Months Ended March 31, 2024 March 31, 2023 Agricultural Finance loans Rural Infrastructure Finance loans (3) Agricultural Finance loans Rural Infrastructure Finance loans (3) Farm & Ranch (1) Corporate AgFinance (2) Total Farm & Ranch (1) Corporate AgFinance (2) Total (in thousands) Beginning Balance $ 3,936 $ 2,948 $ 6,884 $ 9,147 $ 4,044 $ 2,731 $ 6,775 $ 8,314 Provision for/(release of) losses 599 (379) 220 (1,963) (111) 4,308 4,197 (3,613) Charge-offs — — — — — — — — Ending Balance $ 4,535 $ 2,569 $ 7,104 $ 7,184 $ 3,933 $ 7,039 $ 10,972 $ 4,701 (1) As of March 31, 2024 and 2023, the allowance for losses for Agricultural Finance Farm & Ranch loans includes $1.4 million and $1.1 million allowance for collateral dependent assets secured by agricultural real estate, respectively. (2) As of March 31, 2024 and 2023, the allowance for losses for Agricultural Finance Corporate AgFinance loans includes $0.0 million and $4.6 million allowance for collateral dependent assets secured by agricultural real estate, respectively. (3) |
Schedule of Past Due Financing Receivables | The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2024 and December 31, 2023: Table 5.4 As of March 31, 2024 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 loans Farm & Ranch $ 6,538,806 $ 13,764 $ 3,954 $ 15,623 $ 33,341 $ 84,793 $ 6,656,940 Corporate AgFinance 1,247,059 — — — — 11,447 1,258,506 Total Agricultural Finance loans 7,785,865 13,764 3,954 15,623 33,341 96,240 7,915,446 Rural Infrastructure Finance loans 3,686,753 — — — — — 3,686,753 Total $ 11,472,618 $ 13,764 $ 3,954 $ 15,623 $ 33,341 $ 96,240 $ 11,602,199 (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 (single-class) 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 $45.9 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2024, Farmer Mac received $0.6 million in interest on nonaccrual loans. As of December 31, 2023 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 loans Farm & Ranch $ 6,470,205 $ 15,326 $ 3,953 $ 10,991 $ 30,270 $ 65,236 $ 6,565,711 Corporate AgFinance 1,259,723 — — — — — 1,259,723 Total Agricultural Finance loans 7,729,928 15,326 3,953 10,991 30,270 65,236 7,825,434 Rural Infrastructure Finance loans 3,534,763 — — — — — 3,534,763 Total $ 11,264,691 $ 15,326 $ 3,953 $ 10,991 $ 30,270 $ 65,236 $ 11,360,197 (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 (single-class) 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 $25.7 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2023, Farmer Mac received $2.6 million in interest on nonaccrual loans. The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023: Table 6.7 As of March 31, 2024 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: $ 3,254,483 $ 4,791 $ 528 $ 9,569 $ 14,888 $ 3,269,371 Rural Infrastructure Finance: 613,984 — — — — 613,984 Total $ 3,868,467 $ 4,791 $ 528 $ 9,569 $ 14,888 $ 3,883,355 (1) Includes loans underlying off-balance sheet Farmer Mac 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, 2023 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: $ 3,390,918 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,397,844 Rural Infrastructure Finance: 535,013 — — — — 535,013 Total $ 3,925,931 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,932,857 (1) Includes loans underlying off-balance sheet Farmer Mac 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 Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of March 31, 2024 and December 31, 2023, by year of origination: Table 5.5 As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 190,820 $ 509,485 $ 1,135,915 $ 1,601,660 $ 1,082,703 $ 1,349,086 $ 354,735 $ 6,224,404 Special mention (2) 16,452 90,681 29,227 36,893 4,387 31,355 9,093 218,088 Substandard (3) — 11,266 27,515 28,603 34,970 94,835 17,259 214,448 Total $ 207,272 $ 611,432 $ 1,192,657 $ 1,667,156 $ 1,122,060 $ 1,475,276 $ 381,087 $ 6,656,940 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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 March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance (1) : Internally Assigned Risk Rating: Acceptable $ 34,521 $ 204,717 $ 77,402 $ 257,391 $ 122,517 $ 209,987 $ 242,494 $ 1,149,029 Special mention (2) — — 14,437 15,204 49,967 16,350 2,072 98,030 Substandard (3) — — — — — — 11,447 11,447 Total $ 34,521 $ 204,717 $ 91,839 $ 272,595 $ 172,484 $ 226,337 $ 256,013 $ 1,258,506 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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 March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 192,160 $ 572,095 $ 665,560 $ 189,652 $ 585,661 $ 1,283,649 $ 163,162 $ 3,651,939 Special mention (2) — — 34,814 — — — — 34,814 Substandard (3) — — — — — — — — Total $ 192,160 $ 572,095 $ 700,374 $ 189,652 $ 585,661 $ 1,283,649 $ 163,162 $ 3,686,753 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 530,956 $ 1,137,226 $ 1,653,780 $ 1,120,917 $ 323,922 $ 1,068,862 $ 385,766 $ 6,221,429 Special mention (2) 70,524 46,529 27,957 11,591 4,782 21,257 8,777 191,417 Substandard (3) 3,357 23,987 10,164 17,395 28,942 58,606 10,414 152,865 Total $ 604,837 $ 1,207,742 $ 1,691,901 $ 1,149,903 $ 357,646 $ 1,148,725 $ 404,957 $ 6,565,711 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance loans (1) : Internally Assigned Risk Rating: Acceptable $ 207,279 $ 97,922 $ 261,992 $ 123,158 $ 99,352 $ 112,947 $ 254,325 $ 1,156,975 Special mention (2) — 14,522 15,408 50,822 20,333 — 1,663 102,748 Substandard (3) — — — — — — — — Total $ 207,279 $ 112,444 $ 277,400 $ 173,980 $ 119,685 $ 112,947 $ 255,988 $ 1,259,723 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 618,946 $ 681,272 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,495,513 Special mention (2) — 9,850 — — — — — 9,850 Substandard (3) — 29,400 — — — — — 29,400 Total $ 618,946 $ 720,522 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,534,763 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. The following tables present credit quality indicators related to Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and 2023, by year of origination: Table 6.8 As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance: Internally Assigned Risk Rating: Acceptable $ 686 $ 167,655 $ 236,692 $ 503,681 $ 520,556 $ 1,380,938 $ 362,500 $ 3,172,708 Special mention (1) — — 71 2,456 4,817 51,388 8,612 67,344 Substandard (2) — — 1,202 — 109 26,754 1,254 29,319 Total $ 686 $ 167,655 $ 237,965 $ 506,137 $ 525,482 $ 1,459,080 $ 372,366 $ 3,269,371 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 391,099 $ 222,885 $ 613,984 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 391,099 $ 222,885 $ 613,984 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of December 31, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance: Internally Assigned Risk Rating: Acceptable $ 169,429 $ 246,441 $ 515,396 $ 534,395 $ 264,815 $ 1,185,811 $ 391,335 $ 3,307,622 Special mention (1) — 71 2,466 872 531 44,631 8,565 57,136 Substandard (2) — — — 131 1,536 26,328 5,091 33,086 Total $ 169,429 $ 246,512 $ 517,862 $ 535,398 $ 266,882 $ 1,256,770 $ 404,991 $ 3,397,844 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of December 31, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. |
GUARANTEES AND COMMITMENTS (Tab
GUARANTEES AND COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1 Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities As of March 31, 2024 As of December 31, 2023 (in thousands) Agricultural Finance Farmer Mac Guaranteed Securities $ 443,843 $ 452,602 Total off-balance sheet Farmer Mac Guaranteed Securities $ 443,843 $ 452,602 Table 6.3 As of March 31, 2024 As of December 31, 2023 (dollars in thousands) Guarantee and commitment obligation $ 5,808 $ 5,969 Weighted average remaining maturity: Farmer Mac Guaranteed Securities 21.6 years 21.9 years |
Schedule of Cash Flows Related To Transfer of Securitizations | The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2 For the Three Months Ended March 31, 2024 March 31, 2023 (in thousands) Proceeds from new securitizations $ — $ 222,188 Guarantee fees received 449 487 |
Schedule of Long-Term Standby Purchase Commitments | The following table presents the liability, the maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, as well as the weighted-average remaining maturity of all loans underlying LTSPCs: Table 6.4 As of March 31, 2024 As of December 31, 2023 (dollars in thousands) Guarantee and commitment obligation (1) $ 40,057 $ 41,594 Maximum principal amount 3,636,782 3,680,333 Weighted-average remaining maturity 14.3 years 14.5 years (1) Relates to LTSPCs issued or modified on or after January 1, 2003. |
Schedule of Reserve for Losses | The following table is a summary, by asset type, of the reserve for losses as of March 31, 2024 and December 31, 2023: Table 6.5 March 31, 2024 December 31, 2023 Reserve for Losses Reserve for Losses (in thousands) Agricultural Finance $ 1,407 $ 1,471 Rural Infrastructure Finance 235 240 Total $ 1,642 $ 1,711 The following is a summary of the changes in the reserve for losses for the three month period ended March 31, 2024 and 2023: Table 6.6 For the Three Months Ended March 31, 2024 March 31, 2023 Reserve for Losses Reserve for Losses (in thousands) Agricultural Finance Beginning Balance $ 1,471 $ 819 (Release of)/provision for losses (64) 577 Ending Balance $ 1,407 $ 1,396 Rural Infrastructure Finance Beginning Balance $ 240 $ 614 Release of losses (5) (374) Ending Balance $ 235 $ 240 |
Schedule of Past Due Financing Receivables | The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2024 and December 31, 2023: Table 5.4 As of March 31, 2024 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 loans Farm & Ranch $ 6,538,806 $ 13,764 $ 3,954 $ 15,623 $ 33,341 $ 84,793 $ 6,656,940 Corporate AgFinance 1,247,059 — — — — 11,447 1,258,506 Total Agricultural Finance loans 7,785,865 13,764 3,954 15,623 33,341 96,240 7,915,446 Rural Infrastructure Finance loans 3,686,753 — — — — — 3,686,753 Total $ 11,472,618 $ 13,764 $ 3,954 $ 15,623 $ 33,341 $ 96,240 $ 11,602,199 (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 (single-class) 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 $45.9 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2024, Farmer Mac received $0.6 million in interest on nonaccrual loans. As of December 31, 2023 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 loans Farm & Ranch $ 6,470,205 $ 15,326 $ 3,953 $ 10,991 $ 30,270 $ 65,236 $ 6,565,711 Corporate AgFinance 1,259,723 — — — — — 1,259,723 Total Agricultural Finance loans 7,729,928 15,326 3,953 10,991 30,270 65,236 7,825,434 Rural Infrastructure Finance loans 3,534,763 — — — — — 3,534,763 Total $ 11,264,691 $ 15,326 $ 3,953 $ 10,991 $ 30,270 $ 65,236 $ 11,360,197 (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 (single-class) 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 $25.7 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2023, Farmer Mac received $2.6 million in interest on nonaccrual loans. The following table presents the unpaid principal balances by delinquency status of Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and December 31, 2023: Table 6.7 As of March 31, 2024 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: $ 3,254,483 $ 4,791 $ 528 $ 9,569 $ 14,888 $ 3,269,371 Rural Infrastructure Finance: 613,984 — — — — 613,984 Total $ 3,868,467 $ 4,791 $ 528 $ 9,569 $ 14,888 $ 3,883,355 (1) Includes loans underlying off-balance sheet Farmer Mac 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, 2023 Current 30-59 Days 60-89 Days 90 Days and Greater (1) Total Past Due Total Loans (in thousands) Agricultural Finance: $ 3,390,918 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,397,844 Rural Infrastructure Finance: 535,013 — — — — 535,013 Total $ 3,925,931 $ 2,776 $ 2,366 $ 1,784 $ 6,926 $ 3,932,857 (1) Includes loans underlying off-balance sheet Farmer Mac 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 Agricultural Finance mortgage loans and Rural Infrastructure Finance loans held as of March 31, 2024 and December 31, 2023, by year of origination: Table 5.5 As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 190,820 $ 509,485 $ 1,135,915 $ 1,601,660 $ 1,082,703 $ 1,349,086 $ 354,735 $ 6,224,404 Special mention (2) 16,452 90,681 29,227 36,893 4,387 31,355 9,093 218,088 Substandard (3) — 11,266 27,515 28,603 34,970 94,835 17,259 214,448 Total $ 207,272 $ 611,432 $ 1,192,657 $ 1,667,156 $ 1,122,060 $ 1,475,276 $ 381,087 $ 6,656,940 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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 March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance (1) : Internally Assigned Risk Rating: Acceptable $ 34,521 $ 204,717 $ 77,402 $ 257,391 $ 122,517 $ 209,987 $ 242,494 $ 1,149,029 Special mention (2) — — 14,437 15,204 49,967 16,350 2,072 98,030 Substandard (3) — — — — — — 11,447 11,447 Total $ 34,521 $ 204,717 $ 91,839 $ 272,595 $ 172,484 $ 226,337 $ 256,013 $ 1,258,506 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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 March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 192,160 $ 572,095 $ 665,560 $ 189,652 $ 585,661 $ 1,283,649 $ 163,162 $ 3,651,939 Special mention (2) — — 34,814 — — — — 34,814 Substandard (3) — — — — — — — — Total $ 192,160 $ 572,095 $ 700,374 $ 189,652 $ 585,661 $ 1,283,649 $ 163,162 $ 3,686,753 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Farm & Ranch loans (1) : Internally Assigned Risk Rating: Acceptable $ 530,956 $ 1,137,226 $ 1,653,780 $ 1,120,917 $ 323,922 $ 1,068,862 $ 385,766 $ 6,221,429 Special mention (2) 70,524 46,529 27,957 11,591 4,782 21,257 8,777 191,417 Substandard (3) 3,357 23,987 10,164 17,395 28,942 58,606 10,414 152,865 Total $ 604,837 $ 1,207,742 $ 1,691,901 $ 1,149,903 $ 357,646 $ 1,148,725 $ 404,957 $ 6,565,711 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance - Corporate AgFinance loans (1) : Internally Assigned Risk Rating: Acceptable $ 207,279 $ 97,922 $ 261,992 $ 123,158 $ 99,352 $ 112,947 $ 254,325 $ 1,156,975 Special mention (2) — 14,522 15,408 50,822 20,333 — 1,663 102,748 Substandard (3) — — — — — — — — Total $ 207,279 $ 112,444 $ 277,400 $ 173,980 $ 119,685 $ 112,947 $ 255,988 $ 1,259,723 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (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, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance loans (1) : Internally Assigned Risk Rating: Acceptable $ 618,946 $ 681,272 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,495,513 Special mention (2) — 9,850 — — — — — 9,850 Substandard (3) — 29,400 — — — — — 29,400 Total $ 618,946 $ 720,522 $ 187,746 $ 593,841 $ 701,937 $ 611,548 $ 100,223 $ 3,534,763 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. The following tables present credit quality indicators related to Agricultural Finance and Rural Infrastructure loans underlying LTSPCs and Farmer Mac Guaranteed Securities as of March 31, 2024 and 2023, by year of origination: Table 6.8 As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance: Internally Assigned Risk Rating: Acceptable $ 686 $ 167,655 $ 236,692 $ 503,681 $ 520,556 $ 1,380,938 $ 362,500 $ 3,172,708 Special mention (1) — — 71 2,456 4,817 51,388 8,612 67,344 Substandard (2) — — 1,202 — 109 26,754 1,254 29,319 Total $ 686 $ 167,655 $ 237,965 $ 506,137 $ 525,482 $ 1,459,080 $ 372,366 $ 3,269,371 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of March 31, 2024 Year of Origination: 2024 2023 2022 2021 2020 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 391,099 $ 222,885 $ 613,984 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 391,099 $ 222,885 $ 613,984 For the Three Months Ended March 31, 2024: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of December 31, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Agricultural Finance: Internally Assigned Risk Rating: Acceptable $ 169,429 $ 246,441 $ 515,396 $ 534,395 $ 264,815 $ 1,185,811 $ 391,335 $ 3,307,622 Special mention (1) — 71 2,466 872 531 44,631 8,565 57,136 Substandard (2) — — — 131 1,536 26,328 5,091 33,086 Total $ 169,429 $ 246,512 $ 517,862 $ 535,398 $ 266,882 $ 1,256,770 $ 404,991 $ 3,397,844 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of December 31, 2023 Year of Origination: 2023 2022 2021 2020 2019 Prior Revolving Loans - Amortized Cost Basis Total (in thousands) Rural Infrastructure Finance: Internally Assigned Risk Rating: Acceptable $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013 Special mention (1) — — — — — — — — Substandard (2) — — — — — — — — Total $ — $ — $ — $ — $ — $ 419,190 $ 115,823 $ 535,013 For the Three Months Ended March 31, 2023: Current period charge-offs $ — $ — $ — $ — $ — $ — $ — $ — (1) Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (2) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables set forth information related to Farmer Mac's borrowings as of March 31, 2024 and December 31, 2023: Table 7.1 March 31, 2024 Outstanding as of March 31 Average Outstanding During the Quarter Amount Weighted- Average Rate Amount Weighted- Average Rate (dollars in thousands) Due within one year: Discount notes $ 1,898,810 5.23 % $ 1,662,014 5.25 % Medium-term notes 366,953 5.28 % 272,528 5.23 % Current portion of medium-term notes 6,604,250 3.08 % Total due within one year $ 8,870,013 3.63 % Due after one year: Medium-term notes due in: Two years $ 4,972,023 2.95 % Three years 4,064,733 2.60 % Four years 2,568,251 3.84 % Five years 2,941,652 4.45 % Thereafter 3,398,246 2.76 % Total due after one year $ 17,944,905 3.21 % Total principal net of discounts $ 26,814,918 3.35 % Hedging adjustments (305,907) Total $ 26,509,011 December 31, 2023 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 $ 1,734,387 5.32 % $ 1,097,300 5.08 % Medium-term notes 384,970 5.07 % 1,731,308 4.09 % Current portion of medium-term notes 5,967,811 2.90 % Total due within one year $ 8,087,168 3.52 % Due after one year: Medium-term notes due in: Two years $ 5,523,671 3.27 % Three years 3,825,702 2.27 % Four years 3,038,229 3.44 % Five years 2,623,202 4.37 % Thereafter 3,488,987 2.80 % Total due after one year $ 18,499,791 3.16 % Total principal net of discounts $ 26,586,959 3.27 % Hedging adjustments (250,417) Total $ 26,336,542 Table 7.2 Debt Callable in 2024 as of March 31, 2024, by Maturity Amount Weighted-Average Rate (dollars in thousands) Maturity: 2025 $ 1,090,521 3.12 % 2026 1,378,822 2.00 % 2027 884,005 2.80 % 2028 567,953 4.22 % Thereafter 1,775,587 2.48 % Total $ 5,696,888 2.71 % |
Schedule of Long-Term Debt Instruments | The following schedule summarizes the earliest interest rate reset date, or debt maturities, of total borrowings outstanding as of March 31, 2024, 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: 2024 $ 8,789,318 4.06 % 2025 5,180,648 3.03 % 2026 3,750,964 2.15 % 2027 2,972,357 3.29 % 2028 2,584,403 4.24 % Thereafter 3,537,228 2.71 % Total principal net of discounts $ 26,814,918 3.35 % |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value: Table 9.1 Assets and Liabilities Measured at Fair Value as of March 31, 2024 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 $ — $ — $ 19,281 $ 19,281 Floating rate Government/GSE guaranteed mortgage-backed securities — 2,380,066 — 2,380,066 Fixed rate GSE guaranteed mortgage-backed securities — 1,672,388 — 1,672,388 Floating rate U.S. Treasuries 49,996 — — 49,996 Fixed rate U.S. Treasuries 886,056 — — 886,056 Total Available-for-sale Investment Securities 936,052 4,052,454 19,281 5,007,787 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 5,457,197 5,457,197 Farmer Mac Guaranteed Securities — — 9,491 9,491 Total Farmer Mac Guaranteed Securities — — 5,466,688 5,466,688 USDA Securities: Trading — — 1,066 1,066 Total USDA Securities — — 1,066 1,066 Financial derivatives 680 30,753 — 31,433 Guarantee Asset — — 5,733 5,733 Total Assets at fair value $ 936,732 $ 4,083,207 $ 5,492,768 $ 10,512,707 Liabilities: Financial derivatives $ — $ 128,530 $ — $ 128,530 Total Liabilities at fair value $ — $ 128,530 $ — $ 128,530 (1) Level 3 assets represent 18% of total assets and 52% of financial instruments measured at fair value. Assets and Liabilities Measured at Fair Value as of December 31, 2023 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 $ — $ — $ 19,082 $ 19,082 Floating rate Government/GSE guaranteed mortgage-backed securities — 2,424,434 — 2,424,434 Fixed rate GSE guaranteed mortgage-backed securities — 1,569,615 — 1,569,615 Floating rate U.S. Treasuries 49,968 — — 49,968 Fixed rate U.S. Treasuries 855,832 — — 855,832 Total Available-for-sale Investment Securities 905,800 3,994,049 19,082 4,918,931 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage — — 5,522,712 5,522,712 Farmer Mac Guaranteed Securities — — 9,767 9,767 Total Farmer Mac Guaranteed Securities — — 5,532,479 5,532,479 USDA Securities: Trading — — 1,241 1,241 Total USDA Securities — — 1,241 1,241 Financial derivatives 11 37,467 — 37,478 Guarantee Asset — — 5,831 5,831 Total Assets at fair value $ 905,811 $ 4,031,516 $ 5,558,633 $ 10,495,960 Liabilities: Financial derivatives $ 91 $ 117,040 $ — $ 117,131 Total Liabilities at fair value $ 91 $ 117,040 $ — $ 117,131 (1) Level 3 assets represent 19% of total assets and 52% of financial instruments measured at fair value. |
Schedule of Unobservable Input Reconciliation | The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of Level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three months ended March 31, 2024 and 2023. Table 9.2 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2024 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized losses included in Income Unrealized gains/(losses) included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,082 $ — $ — $ 1 $ — $ 198 $ 19,281 Total available-for-sale 19,082 — — 1 — 198 19,281 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 5,522,712 50,000 (63,955) 27 (80,694) 29,107 5,457,197 Farmer Mac Guaranteed Securities 9,767 — (177) — — (99) 9,491 Total available-for-sale 5,532,479 50,000 (64,132) 27 (80,694) 29,008 5,466,688 USDA Securities: Trading 1,241 — (174) — (1) — 1,066 Total USDA Securities 1,241 — (174) — (1) — 1,066 Guarantee and commitment obligations: Guarantee Asset 5,831 — (85) — (13) — 5,733 Total Guarantee and commitment obligations 5,831 — (85) — (13) — 5,733 Total Assets at fair value $ 5,558,633 $ 50,000 $ (64,391) $ 28 $ (80,708) $ 29,206 $ 5,492,768 Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended March 31, 2023 Beginning Balance Purchases Settlements Allowance for Losses Realized and unrealized gains included in Income Unrealized (losses)/gains included in Other Comprehensive Income Ending Balance (in thousands) Recurring: Assets: Investment Securities: Available-for-sale: Floating rate auction-rate certificates backed by Government guaranteed student loans $ 19,027 $ — $ — $ 4 $ — $ — $ 19,031 Total available-for-sale 19,027 — — 4 — — 19,031 Farmer Mac Guaranteed Securities: Available-for-sale: AgVantage 7,599,379 687,650 (141,386) 32 93,342 (21,597) 8,217,420 Farmer Mac Guaranteed 7,847 — (433) — — 620 8,034 Total available-for-sale 7,607,226 687,650 (141,819) 32 93,342 (20,977) 8,225,454 USDA Securities: Trading 1,767 — (387) — 25 — 1,405 Total USDA Securities 1,767 — (387) — 25 — 1,405 Guarantee and commitment obligations: Guarantee Asset 4,467 — (231) — 334 — 4,570 Total Guarantee and commitment obligations 4,467 — (231) — 334 — 4,570 Total Assets at fair value $ 7,632,487 $ 687,650 $ (142,437) $ 36 $ 93,701 $ (20,977) $ 8,250,460 |
Schedule of Fair Value Inputs, Assets and Liabilities, Quantitative Information | The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in Level 3 of the fair value hierarchy as of March 31, 2024 and December 31, 2023: Table 9.3 As of March 31, 2024 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 $ 19,281 Indicative bids Range of broker quotes 98.0% - 98.0% (98.0%) Farmer Mac Guaranteed Securities: AgVantage $ 5,457,197 Discounted cash flow Discount rate 5.0% - 5.8% (5.3%) Farmer Mac Guaranteed Securities $ 9,491 Discounted cash flow Discount rate 8.0% CPR 3% USDA Securities $ 1,066 Discounted cash flow Discount rate 5.7% - 5.8% (5.7%) CPR 12% - 12% (12%) Guarantee Asset $ 5,733 Discounted cash flow Discount rate 8.0% CPR 3% As of December 31, 2023 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 $ 19,082 Indicative bids Range of broker quotes 97.0% - 97.0% (97.0%) Farmer Mac Guaranteed Securities: AgVantage $ 5,522,712 Discounted cash flow Discount rate 4.7% - 5.4% (5.0%) Farmer Mac Guaranteed Securities $ 9,767 Discounted cash flow Discount rate 8.3% CPR 3% USDA Securities $ 1,241 Discounted cash flow Discount rate 5.4% - 5.4% (5.4%) CPR 12% - 12% (12%) Guarantee Asset $ 5,831 Discounted cash flow Discount rate 8.3% CPR 3% |
Schedule of Fair Value, by Balance Sheet Grouping | The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of March 31, 2024 and December 31, 2023: Table 9.4 As of March 31, 2024 As of December 31, 2023 Fair Value Carrying Fair Value Carrying (in thousands) Financial assets: Cash and cash equivalents $ 745,105 $ 745,105 $ 888,707 $ 888,707 Investment securities 5,069,547 5,068,443 4,981,249 4,979,504 Farmer Mac Guaranteed Securities 9,889,495 9,921,620 9,710,074 9,745,548 USDA Securities 2,016,076 2,334,093 2,036,046 2,355,412 Loans 10,632,530 11,233,071 10,426,021 11,039,349 Financial derivatives 31,433 31,433 37,478 37,478 Guarantee and commitment fees receivable 55,856 48,130 58,465 49,832 Financial liabilities: Notes payable 25,825,161 26,509,011 25,670,971 26,336,542 Debt securities of consolidated trusts held by third parties 1,244,879 1,325,289 1,268,563 1,351,069 Financial derivatives 128,530 128,530 117,131 117,131 Guarantee and commitment obligations 53,591 45,866 56,195 47,563 |
BUSINESS SEGMENT REPORTING (Tab
BUSINESS SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three months ended March 31, 2024 and 2023. Table 10.1 Core Earnings by Business Segment For the Three Months Ended March 31, 2024 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 $ 33,889 $ 7,971 $ 7,265 $ 2,049 $ 34,719 $ 475 $ — $ — $ 86,368 Less: reconciling adjustments (1)(2)(3) (1,046) — (33) — (2,245) — — 3,324 — Net effective spread 32,843 7,971 7,232 2,049 32,474 475 — 3,324 — Guarantee and commitment fees 4,484 87 349 62 — — — (1,065) 3,917 Other income (3) 995 12 — — — 4 66 2,251 3,328 Total revenues 38,322 8,070 7,581 2,111 32,474 479 66 4,510 93,613 (Provision for)/release of losses (561) 378 3,017 (1,034) — 1 — — 1,801 Release of reserve for losses 64 — 5 — — — — — 69 Operating expenses — — — — — — (27,237) — (27,237) Total non-interest expense 64 — 5 — — — (27,237) — (27,168) Core earnings before income taxes 37,825 8,448 10,603 1,077 32,474 480 (27,171) 4,510 (4) 68,246 Income tax (expense)/benefit (7,943) (1,774) (2,227) (226) (6,819) (101) 5,537 (947) (14,500) Core earnings before preferred stock dividends 29,882 6,674 8,376 851 25,655 379 (21,634) 3,563 (4) 53,746 Preferred stock dividends — — — — — — (6,791) — (6,791) Segment core earnings/(losses) $ 29,882 $ 6,674 $ 8,376 $ 851 $ 25,655 $ 379 $ (28,425) $ 3,563 (4) $ 46,955 Total Assets $ 15,240,436 $ 1,637,460 $ 7,003,165 $ 578,709 $ — $ 5,190,082 $ 122,339 $ — $ 29,772,191 Total on- and off-balance sheet program assets at principal balance $ 18,900,906 $ 1,766,294 $ 7,437,723 $ 742,307 $ — $ — $ — $ — $ 28,847,230 (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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4) Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders. Core Earnings by Business Segment For the Three Months Ended March 31, 2023 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 $ 33,511 $ 7,148 $ 5,540 $ 858 $ 32,544 $ (543) $ — $ — $ 79,058 Less: reconciling adjustments (1)(2)(3) (1,046) — (33) — (806) — — 1,885 — Net effective spread 32,465 7,148 5,507 858 31,738 (543) — 1,885 — Guarantee and commitment fees 4,292 53 281 28 — — — (721) 3,933 Other income/(expense) (3) 1,067 — — — — — — 558 1,625 Total revenues 37,824 7,201 5,788 886 31,738 (543) — 1,722 84,616 Release of/(provision for) losses 128 (4,301) 3,484 138 — 4 — — (547) (Provision for)/release of reserve for losses (577) — 374 — — — — — (203) Operating expenses — — — — — — (23,713) — (23,713) Total non-interest expense (577) — 374 — — — (23,713) — (23,916) Core earnings before income taxes 37,375 2,900 9,646 1,024 31,738 (539) (23,713) 1,722 (4) 60,153 Income tax (expense)/benefit (7,849) (609) (2,026) (215) (6,665) 113 4,495 (362) (13,118) Core earnings before preferred stock dividends 29,526 2,291 7,620 809 25,073 (426) (19,218) 1,360 (4) 47,035 Preferred stock dividends — — — — — — (6,791) — (6,791) Segment core earnings/(losses) $ 29,526 $ 2,291 $ 7,620 $ 809 $ 25,073 $ (426) $ (26,009) $ 1,360 (4) $ 40,244 Total Assets $ 14,549,275 $ 1,515,976 $ 6,444,264 $ 286,824 $ — $ 4,998,854 $ 144,754 $ — $ 27,939,947 Total on- and off-balance sheet program assets at principal balance $ 17,685,961 $ 1,599,982 $ 6,889,682 $ 308,493 $ — $ — $ — $ — $ 26,484,118 (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 "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) | Mar. 31, 2024 subsidiary |
Accounting Policies [Abstract] | |
Number of subsidiaries | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidation of Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Loans held for investment in consolidated trusts, at amortized cost | $ 9,837,962 | $ 9,623,119 |
Debt securities of consolidated trusts held by third parties | 26,814,918 | 26,586,959 |
Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 5,466,688 | 5,532,479 |
Investment Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 5,007,787 | 4,918,931 |
Agricultural Finance | ||
Variable Interest Entity [Line Items] | ||
Borrower remittances | 1,100 | 6,000 |
Unamortized discount | 85,100 | 87,100 |
Consolidated VIE | On-balance sheet | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment in consolidated trusts, at amortized cost | 1,409,397 | 1,432,261 |
Debt securities of consolidated trusts held by third parties | 1,325,289 | 1,351,069 |
Consolidated VIE | On-balance sheet | Agricultural Finance | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment in consolidated trusts, at amortized cost | 1,432,261 | |
Debt securities of consolidated trusts held by third parties | 1,351,069 | |
Consolidated VIE | On-balance sheet | Treasury | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment in consolidated trusts, at amortized cost | 0 | |
Debt securities of consolidated trusts held by third parties | 0 | |
Consolidated VIE | Operating Segments | On-balance sheet | Agricultural Finance | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment in consolidated trusts, at amortized cost | 1,409,397 | |
Debt securities of consolidated trusts held by third parties | 1,325,289 | |
Consolidated VIE | Corporate, non-segment | On-balance sheet | ||
Variable Interest Entity [Line Items] | ||
Loans held for investment in consolidated trusts, at amortized cost | 0 | |
Debt securities of consolidated trusts held by third parties | 0 | |
Unconsolidated VIE | On-balance sheet | Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 51,906 | 46,343 |
Maximum exposure to loss | 51,616 | 45,952 |
Unconsolidated VIE | On-balance sheet | Investment Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 3,735,413 | 3,676,555 |
Maximum exposure to loss | 3,936,368 | 3,862,006 |
Unconsolidated VIE | On-balance sheet | Agricultural Finance | Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 46,343 | |
Maximum exposure to loss | 45,952 | |
Unconsolidated VIE | On-balance sheet | Agricultural Finance | Investment Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | |
Maximum exposure to loss | 0 | |
Unconsolidated VIE | On-balance sheet | Treasury | Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | |
Maximum exposure to loss | 0 | |
Unconsolidated VIE | On-balance sheet | Treasury | Investment Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 3,676,555 | |
Maximum exposure to loss | 3,862,006 | |
Unconsolidated VIE | Off-balance sheet | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 443,843 | 452,602 |
Unconsolidated VIE | Off-balance sheet | Agricultural Finance | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 452,602 | |
Unconsolidated VIE | Off-balance sheet | Treasury | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 0 | |
Unconsolidated VIE | Operating Segments | On-balance sheet | Agricultural Finance | Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 51,906 | |
Maximum exposure to loss | 51,616 | |
Unconsolidated VIE | Operating Segments | On-balance sheet | Agricultural Finance | Investment Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | |
Maximum exposure to loss | 0 | |
Unconsolidated VIE | Operating Segments | Off-balance sheet | Agricultural Finance | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | 443,843 | |
Unconsolidated VIE | Corporate, non-segment | On-balance sheet | Farmer Mac Guaranteed Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 0 | |
Maximum exposure to loss | 0 | |
Unconsolidated VIE | Corporate, non-segment | On-balance sheet | Investment Securities | ||
Variable Interest Entity [Line Items] | ||
Carrying value | 3,735,413 | |
Maximum exposure to loss | 3,936,368 | |
Unconsolidated VIE | Corporate, non-segment | Off-balance sheet | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic EPS | ||
Net income attributable to common stockholders | $ 46,955 | $ 40,244 |
Net income attributable to common stockholders (in shares) | 10,847,000 | 10,802,000 |
Net income attributable to common stockholders (in dollars per share) | $ 4.33 | $ 3.73 |
Effect of dilutive securities | ||
SARs and restricted stock units (in shares) | 122,000 | 116,000 |
SARs and restricted stock units (in dollars per share) | $ (0.05) | $ (0.04) |
Net income, diluted EPS | $ 46,955 | $ 40,244 |
Weighted-Average Shares, diluted EPS (in shares) | 10,969,000 | 10,918,000 |
Diluted EPS (in dollars per share) | $ 4.28 | $ 3.69 |
Stock Appreciation Rights and Restricted Stock | ||
Effect of dilutive securities | ||
Antidilutive securities excluded from earnings per share (in shares) | 49,371 | 62,709 |
Performance Shares | ||
Effect of dilutive securities | ||
Antidilutive securities excluded from earnings per share (in shares) | 29,918 | 32,282 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,411,863 | $ 1,271,958 |
Other comprehensive income/(loss) before reclassifications | 40,821 | (4,927) |
Amounts reclassified from AOCI | (4,794) | (4,092) |
Other comprehensive income/(loss) net of tax | 36,027 | (9,019) |
Ending balance | 1,480,343 | 1,292,385 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (40,145) | (50,843) |
Other comprehensive income/(loss) net of tax | 36,027 | (9,019) |
Ending balance | (4,118) | (59,862) |
AOCI, Securities | Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (68,447) | (115,561) |
Other comprehensive income/(loss) before reclassifications | 31,565 | 525 |
Amounts reclassified from AOCI | (4) | (5) |
Other comprehensive income/(loss) net of tax | 31,561 | 520 |
Ending balance | (36,886) | (115,041) |
AOCI, Securities | Held-to-Maturity Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (8,724) | 16,357 |
Other comprehensive income/(loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | (500) | (618) |
Other comprehensive income/(loss) net of tax | (500) | (618) |
Ending balance | (9,224) | 15,739 |
AOCI, Cash Flow Hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 37,026 | 48,361 |
Other comprehensive income/(loss) before reclassifications | 9,256 | (5,452) |
Amounts reclassified from AOCI | (4,290) | (3,469) |
Other comprehensive income/(loss) net of tax | 4,966 | (8,921) |
Ending balance | $ 41,992 | $ 39,440 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other comprehensive income/(loss): | ||
Other comprehensive income/(loss) before tax | $ 45,604 | $ (11,416) |
Provision (Benefit) | ||
Other comprehensive income/(loss), Provision (Benefit) | 9,577 | (2,397) |
After Tax | ||
Unrealized gains/(losses), after tax | 40,821 | (4,927) |
Less reclassification adjustments, provision (benefit) | (4,794) | (4,092) |
Other comprehensive income/(loss) net of tax | 36,027 | (9,019) |
Accumulated Other Comprehensive Income (Loss) | ||
Other comprehensive income/(loss): | ||
Other comprehensive income/(loss) before tax | 45,604 | (11,416) |
Provision (Benefit) | ||
Other comprehensive income/(loss), Provision (Benefit) | 9,577 | (2,397) |
After Tax | ||
Other comprehensive income/(loss) net of tax | 36,027 | (9,019) |
Securities | Available-for-Sale Securities | ||
Other comprehensive income/(loss): | ||
Unrealized gain/(losses), before tax | 39,957 | 664 |
Other comprehensive income/(loss) before tax | 39,952 | 658 |
Provision (Benefit) | ||
Unrealized gains/(losses), provision (benefit) | 8,392 | 139 |
Other comprehensive income/(loss), Provision (Benefit) | 8,391 | 138 |
After Tax | ||
Unrealized gains/(losses), after tax | 31,565 | 525 |
Other comprehensive income/(loss) net of tax | 31,561 | 520 |
Securities | Held-to-Maturity Securities | ||
Other comprehensive income/(loss): | ||
Less reclassification adjustments, before tax | (634) | (782) |
Other comprehensive income/(loss) before tax | (634) | (782) |
Provision (Benefit) | ||
Less reclassification adjustments, Provision (Benefit) | (134) | (164) |
Other comprehensive income/(loss), Provision (Benefit) | (134) | (164) |
After Tax | ||
Less reclassification adjustments, provision (benefit) | (500) | (618) |
Other comprehensive income/(loss) net of tax | (500) | (618) |
Securities | Other income | Available-for-Sale Securities | ||
Other comprehensive income/(loss): | ||
Less reclassification adjustments, before tax | (5) | (6) |
Provision (Benefit) | ||
Less reclassification adjustments, Provision (Benefit) | (1) | (1) |
After Tax | ||
Less reclassification adjustments, provision (benefit) | (4) | (5) |
Cash Flow Hedges | ||
Other comprehensive income/(loss): | ||
Unrealized gain/(losses), before tax | 11,717 | (6,901) |
Less reclassification adjustments, before tax | (5,431) | (4,391) |
Other comprehensive income/(loss) before tax | 6,286 | (11,292) |
Provision (Benefit) | ||
Unrealized gains/(losses), provision (benefit) | 2,461 | (1,449) |
Less reclassification adjustments, Provision (Benefit) | (1,141) | (922) |
Other comprehensive income/(loss), Provision (Benefit) | 1,320 | (2,371) |
After Tax | ||
Unrealized gains/(losses), after tax | 9,256 | (5,452) |
Less reclassification adjustments, provision (benefit) | (4,290) | (3,469) |
Other comprehensive income/(loss) net of tax | $ 4,966 | $ (8,921) |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investment Securities | ||
Available-for-sale: | ||
Amount Outstanding | $ 5,229,446 | $ 5,120,963 |
Amortized cost | 5,165,562 | 5,060,135 |
Allowance for losses | (25) | (27) |
Unrealized Gains | 5,441 | 9,844 |
Unrealized Losses | (163,191) | (151,021) |
Fair Value | 5,007,787 | 4,918,931 |
Held-to-maturity: | ||
Amount Outstanding | 53,756 | 53,756 |
Amortized Cost | 53,756 | 53,756 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 1,104 | 1,745 |
Unrealized Losses | 0 | 0 |
Fair Value | 54,860 | 55,501 |
Available-for-sale, accrued interest excluded | 22,200 | 15,900 |
Available-for-Sale Securities | Investment Securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | (63,884) | (60,828) |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (63,884) | (60,828) |
Held-to-Maturity Securities | Investment Securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
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 | (25) | (27) |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (394) | (591) |
Fair Value | 19,281 | 19,082 |
Floating interest rate | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Amount Outstanding | 2,402,850 | 2,454,009 |
Amortized cost | 2,401,544 | 2,452,871 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 2,608 | 1,212 |
Unrealized Losses | (24,086) | (29,649) |
Fair Value | 2,380,066 | 2,424,434 |
Floating interest rate | US Treasuries | ||
Available-for-sale: | ||
Amount Outstanding | 50,000 | 50,000 |
Amortized cost | 49,990 | 49,983 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 6 | 0 |
Unrealized Losses | 0 | (15) |
Fair Value | 49,996 | 49,968 |
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 |
Floating interest rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | (1,306) | (1,138) |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (1,306) | (1,138) |
Floating interest rate | Available-for-Sale Securities | US Treasuries | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | (10) | (17) |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (10) | (17) |
Fixed Interest Rate | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Amount Outstanding | 1,851,641 | 1,727,669 |
Amortized cost | 1,804,193 | 1,680,881 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 2,746 | 6,558 |
Unrealized Losses | (134,551) | (117,824) |
Fair Value | 1,672,388 | 1,569,615 |
Held-to-maturity: | ||
Amount Outstanding | 53,756 | 53,756 |
Amortized Cost | 53,756 | 53,756 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 1,104 | 1,745 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 54,860 | $ 55,501 |
Held-to-maturity investment securities weighted average yield | 6.70% | 6.70% |
Fixed Interest Rate | US Treasuries | ||
Available-for-sale: | ||
Amount Outstanding | $ 905,255 | $ 869,585 |
Amortized cost | 890,135 | 856,700 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 81 | 2,074 |
Unrealized Losses | (4,160) | (2,942) |
Fair Value | 886,056 | 855,832 |
Fixed Interest Rate | Available-for-Sale Securities | Guaranteed mortgage-backed securities | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | (47,448) | (46,788) |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (47,448) | (46,788) |
Fixed Interest Rate | Available-for-Sale Securities | US Treasuries | ||
Available-for-sale: | ||
Unamortized Premium/(Discount) | (15,120) | (12,885) |
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (15,120) | (12,885) |
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 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sale of available-for-sale investment | $ 0 | $ 0 |
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 | 94.10% |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | $ 1,429,751 | $ 1,143,468 |
Unrealized loss position for less than 12 months, Unrealized Loss | (12,342) | (9,278) |
Unrealized loss position for more than 12 months, Fair Value | 2,405,544 | 2,611,155 |
Unrealized loss position for more than 12 months, Unrealized Loss | $ (150,849) | $ (141,743) |
Investment Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Number of securities in loss position | security | 107 | 91 |
Unrealized loss position for more than 12 months, Number of securities in loss position | security | 158 | 162 |
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 | 19,281 | 19,082 |
Unrealized loss position for more than 12 months, Unrealized Loss | (394) | (591) |
Floating interest rate | Guaranteed mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 414,299 | 568,759 |
Unrealized loss position for less than 12 months, Unrealized Loss | (2,066) | (4,395) |
Unrealized loss position for more than 12 months, Fair Value | 1,293,103 | 1,449,122 |
Unrealized loss position for more than 12 months, Unrealized Loss | (22,020) | (25,254) |
Floating interest rate | US Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 49,969 | |
Unrealized loss position for less than 12 months, Unrealized Loss | (15) | |
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 | Guaranteed mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 458,047 | 384,305 |
Unrealized loss position for less than 12 months, Unrealized Loss | (7,183) | (4,262) |
Unrealized loss position for more than 12 months, Fair Value | 991,514 | 905,759 |
Unrealized loss position for more than 12 months, Unrealized Loss | (127,368) | (113,562) |
Fixed Interest Rate | US Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Unrealized loss position for less than 12 months, Fair Value | 557,405 | 140,435 |
Unrealized loss position for less than 12 months, Unrealized Loss | (3,093) | (606) |
Unrealized loss position for more than 12 months, Fair Value | 101,646 | 237,192 |
Unrealized loss position for more than 12 months, Unrealized Loss | $ (1,067) | $ (2,336) |
INVESTMENT SECURITIES - Debt Ma
INVESTMENT SECURITIES - Debt Maturities (Details) - Investment Securities - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due within one year | $ 431,353 | |
Due after one year through five years | 1,578,453 | |
Due after five years through ten years | 2,375,052 | |
Due after ten years | 780,704 | |
Available-for-sale, amortized cost | 5,165,562 | $ 5,060,135 |
Fair Value | ||
Due within one year | 430,225 | |
Due after one year through five years | 1,552,380 | |
Due after five years through ten years | 2,260,716 | |
Due after ten years | 764,466 | |
Total fair value | $ 5,007,787 | $ 4,918,931 |
Weighted- Average Yield | ||
Due within one year | 2.32% | |
Due after one year through five years | 4.19% | |
Due after five years through ten years | 4.35% | |
Due after ten years | 5.70% | |
Weighted-average yield | 4.33% |
FARMER MAC GUARANTEED SECURIT_3
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES - Schedule of On-Balance Sheet Securities (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Trading: | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable (includes $9,963 and $16,764, respectively, related to consolidated trusts) | Accrued interest receivable (includes $9,963 and $16,764, respectively, related to consolidated trusts) |
Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | $ 4,483,971,000 | $ 4,242,867,000 |
Amortized Cost | 4,455,111,000 | 4,213,278,000 |
Allowance for losses | (179,000) | (209,000) |
Unrealized Gains | 3,888,000 | 4,783,000 |
Unrealized Losses | (36,013,000) | (40,257,000) |
Fair Value | 4,422,807,000 | 4,177,595,000 |
Available-for-sale: | ||
Amortized cost | 5,811,302,000 | |
Fair Value | 5,466,688,000 | |
USDA Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 2,311,442,000 | 2,331,093,000 |
Amortized Cost | 2,333,027,000 | 2,354,171,000 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 303,000 | 417,000 |
Unrealized Losses | (318,319,000) | (319,783,000) |
Fair Value | 2,015,011,000 | 2,034,805,000 |
Trading: | ||
Unpaid Principal Balance | 1,069,000 | 1,236,000 |
Amortized Cost | 1,126,000 | 1,300,000 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (60,000) | (59,000) |
Fair Value | 1,066,000 | $ 1,241,000 |
Trading securities, weighted-average yield | 5.46% | |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 6,795,413,000 | $ 6,573,960,000 |
Amortized Cost | 6,788,138,000 | 6,567,449,000 |
Allowance for losses | (179,000) | (209,000) |
Unrealized Gains | 4,191,000 | 5,200,000 |
Unrealized Losses | (354,332,000) | (360,040,000) |
Fair Value | 6,437,818,000 | 6,212,400,000 |
Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Amortized Cost | 4,454,932,000 | 4,213,069,000 |
Available-for-sale: | ||
Unpaid Principal Balance | 5,802,070,000 | 5,816,024,000 |
Amortized cost | 5,811,302,000 | 5,825,433,000 |
Allowance for losses | (291,000) | (317,000) |
Unrealized Gains | 8,623,000 | 16,774,000 |
Unrealized Losses | (352,946,000) | (309,411,000) |
Fair Value | 5,466,688,000 | 5,532,479,000 |
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (28,860,000) | (29,589,000) |
Available-for-sale: | ||
Unamortized Premium/(Discount) | (28,860,000) | (29,589,000) |
Trading: | ||
Unamortized Premium/(Discount) | (28,860,000) | (29,589,000) |
Held-to-Maturity Securities | USDA Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 21,585,000 | 23,078,000 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 21,585,000 | 23,078,000 |
Trading: | ||
Unamortized Premium/(Discount) | 21,585,000 | 23,078,000 |
Held-to-Maturity Securities | Farmer Mac Guaranteed Securities and USDA Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (7,275,000) | (6,511,000) |
Available-for-sale: | ||
Unamortized Premium/(Discount) | (7,275,000) | (6,511,000) |
Trading: | ||
Unamortized Premium/(Discount) | (7,275,000) | (6,511,000) |
Available-for-Sale Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 9,232,000 | 9,409,000 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 9,232,000 | 9,409,000 |
Trading: | ||
Unamortized Premium/(Discount) | 9,232,000 | 9,409,000 |
Trading Securities | USDA Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 57,000 | 64,000 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 57,000 | 64,000 |
Trading: | ||
Unamortized Premium/(Discount) | 57,000 | 64,000 |
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities | ||
Available-for-sale: | ||
Fair Value | 9,500,000 | 9,800,000 |
Trading: | ||
Derivative, notional amount | 233,500,000 | 238,400,000 |
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities | ||
Available-for-sale: | ||
Unpaid Principal Balance | 0 | 0 |
Amortized cost | 9,232,000 | 9,409,000 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 259,000 | 358,000 |
Unrealized Losses | 0 | 0 |
Fair Value | 9,491,000 | 9,767,000 |
Farmer Mac Guaranteed Securities | Available-for-Sale Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 9,232,000 | 9,409,000 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 9,232,000 | 9,409,000 |
Trading: | ||
Unamortized Premium/(Discount) | 9,232,000 | 9,409,000 |
AgVantage | ||
Trading: | ||
Available-for-sale, accrued interest excluded | 57,900,000 | 47,200,000 |
Held-to-maturity, accrued interest excluded | 59,400,000 | 67,400,000 |
Trading securities, accrued interest excluded | 27,610 | 42,000 |
AgVantage | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 4,441,588,000 | 4,206,324,000 |
Amortized Cost | 4,412,697,000 | 4,176,702,000 |
Allowance for losses | (179,000) | (209,000) |
Unrealized Gains | 3,829,000 | 4,676,000 |
Unrealized Losses | (35,130,000) | (39,451,000) |
Fair Value | 4,381,217,000 | 4,141,718,000 |
AgVantage | Farmer Mac Guaranteed Securities | ||
Available-for-sale: | ||
Unpaid Principal Balance | 5,802,070,000 | 5,816,024,000 |
Amortized cost | 5,802,070,000 | 5,816,024,000 |
Allowance for losses | (291,000) | (317,000) |
Unrealized Gains | 8,364,000 | 16,416,000 |
Unrealized Losses | (352,946,000) | (309,411,000) |
Fair Value | 5,457,197,000 | 5,522,712,000 |
AgVantage | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | (28,891,000) | (29,622,000) |
Available-for-sale: | ||
Unamortized Premium/(Discount) | (28,891,000) | (29,622,000) |
Trading: | ||
Unamortized Premium/(Discount) | (28,891,000) | (29,622,000) |
AgVantage | Available-for-Sale Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Trading: | ||
Unamortized Premium/(Discount) | 0 | 0 |
Farmer Mac Guaranteed USDA Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unpaid Principal Balance | 42,383,000 | 36,543,000 |
Amortized Cost | 42,414,000 | 36,576,000 |
Allowance for losses | 0 | 0 |
Unrealized Gains | 59,000 | 107,000 |
Unrealized Losses | (883,000) | (806,000) |
Fair Value | $ 41,590,000 | 35,877,000 |
Farmer Mac Guaranteed USDA Securities | USDA Securities | ||
Trading: | ||
Trading securities, weighted-average yield | 5.58% | |
Farmer Mac Guaranteed USDA Securities | Held-to-Maturity Securities | Farmer Mac Guaranteed Securities | ||
Held-to-maturity: | ||
Unamortized Premium/(Discount) | $ 31,000 | 33,000 |
Available-for-sale: | ||
Unamortized Premium/(Discount) | 31,000 | 33,000 |
Trading: | ||
Unamortized Premium/(Discount) | $ 31,000 | $ 33,000 |
FARMER MAC GUARANTEED SECURIT_4
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES - Narrative (Details) - AgVantage $ in Millions | Jul. 01, 2023 USD ($) | Mar. 31, 2024 security | Dec. 31, 2023 security |
Debt Securities, Available-for-sale [Line Items] | |||
Held-to-maturity, transfer in | $ | $ 2,700 | ||
Held-to-maturity, transfer in, unrealized loss | $ | 31.9 | ||
Held-to-maturity, transfer in, accumulated unrealized loss | $ | $ 31.9 | ||
Farmer Mac Guaranteed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 73 | 68 | |
Held-to-maturity, securities in unrealized loss positions | 63 | 53 | |
Unrealized loss position for more than 12 months, Number of securities in loss position | 60 | 62 | |
Debt securities, held-to-maturity, unrealized loss position for more than 12 months, Number of securities in loss position | 19 | 22 |
FARMER MAC GUARANTEED SECURIT_5
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES - Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Unrealized loss position for less than 12 months | ||
Unrealized loss position for less than 12 months, Fair Value | $ 1,429,751 | $ 1,143,468 |
Unrealized loss position for less than 12 months, Unrealized Loss | (12,342) | (9,278) |
Unrealized loss position for more than 12 months | ||
Unrealized loss position for more than 12 months, Fair Value | 2,405,544 | 2,611,155 |
Unrealized loss position for more than 12 months, Unrealized Loss | (150,849) | (141,743) |
Operating Segments | ||
Unrealized loss position for less than 12 months | ||
Unrealized loss position for less than 12 months, Fair Value | 1,133,776 | 508,182 |
Unrealized loss position for less than 12 months, Unrealized Loss | (15,100) | (5,716) |
Unrealized loss position for more than 12 months | ||
Unrealized loss position for more than 12 months, Fair Value | 3,945,347 | 4,043,431 |
Unrealized loss position for more than 12 months, Unrealized Loss | (337,846) | (303,695) |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 2,787,789 | 2,070,770 |
Unrealized Loss | (3,922) | (6,705) |
Unrealized loss position for more than 12 months | ||
Fair Value | 2,712,556 | 2,757,541 |
Unrealized Loss | (350,410) | (353,335) |
USDA Securities: | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 3,025 | 0 |
Unrealized Loss | (9) | 0 |
Unrealized loss position for more than 12 months | ||
Fair Value | 2,004,512 | 2,023,801 |
Unrealized Loss | (318,310) | (319,783) |
AgVantage | Farmer Mac Guaranteed Securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 2,757,735 | 2,070,770 |
Unrealized Loss | (3,858) | (6,705) |
Unrealized loss position for more than 12 months | ||
Fair Value | 699,786 | 725,347 |
Unrealized Loss | (31,272) | (32,746) |
Unrealized loss position for less than 12 months | ||
Unrealized loss position for less than 12 months, Fair Value | 508,182 | |
Unrealized loss position for less than 12 months, Unrealized Loss | (5,716) | |
Unrealized loss position for more than 12 months | ||
Unrealized loss position for more than 12 months, Fair Value | 4,043,431 | |
Unrealized loss position for more than 12 months, Unrealized Loss | (303,695) | |
AgVantage | Farmer Mac Guaranteed Securities | Operating Segments | ||
Unrealized loss position for less than 12 months | ||
Unrealized loss position for less than 12 months, Fair Value | 1,133,776 | |
Unrealized loss position for less than 12 months, Unrealized Loss | (15,100) | |
Unrealized loss position for more than 12 months | ||
Unrealized loss position for more than 12 months, Fair Value | 3,945,347 | |
Unrealized loss position for more than 12 months, Unrealized Loss | (337,846) | |
USDA Securities | Farmer Mac Guaranteed Securities | ||
Unrealized loss position for less than 12 months | ||
Fair Value | 27,029 | 0 |
Unrealized Loss | (55) | 0 |
Unrealized loss position for more than 12 months | ||
Fair Value | 8,258 | 8,393 |
Unrealized Loss | $ (828) | $ (806) |
FARMER MAC GUARANTEED SECURIT_6
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES - Schedule of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
AgVantage | ||
Weighted- Average Yield | ||
Available-for-sale, accrued interest excluded | $ 57,900 | $ 47,200 |
Farmer Mac Guaranteed Securities | ||
Amortized Cost | ||
Due within one year | 850,000 | |
Due after one year through five years | 2,811,653 | |
Due after five years through ten years | 1,200,000 | |
Due after ten years | 949,649 | |
Available-for-sale, amortized cost | 5,811,302 | |
Fair Value | ||
Due within one year | 838,515 | |
Due after one year through five years | 2,701,597 | |
Due after five years through ten years | 1,105,537 | |
Due after ten years | 821,039 | |
Total fair value | $ 5,466,688 | |
Weighted- Average Yield | ||
Due within one year | 3.05% | |
Due after one year through five years | 3.74% | |
Due after five years through ten years | 3.61% | |
Due after ten years | 3.55% | |
Weighted-average yield | 3.58% |
FARMER MAC GUARANTEED SECURIT_7
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES - Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
AgVantage | ||
Weighted- Average Yield | ||
Held-to-maturity, accrued interest excluded | $ 59,400 | $ 67,400 |
Farmer Mac Guaranteed Securities and USDA Securities | ||
Amortized Cost | ||
Due within one year | 2,141,438 | |
Due after one year through five years | 1,692,904 | |
Due after five years through ten years | 249,080 | |
Due after ten years | 2,704,716 | |
Total, Amortized Cost | 6,788,138 | |
Fair Value | ||
Due within one year | 2,139,182 | |
Due after one year through five years | 1,657,244 | |
Due after five years through ten years | 217,955 | |
Due after ten years | 2,423,437 | |
Total, Fair Value | $ 6,437,818 | |
Weighted- Average Yield | ||
Due within one year | 5.72% | |
Due after one year through five years | 4.63% | |
Due after five years through ten years | 3.58% | |
Due after ten years | 4.32% | |
Total, Weighted- Average Yield | 4.85% |
FINANCIAL DERIVATIVES - Narrati
FINANCIAL DERIVATIVES - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable (includes $9,963 and $16,764, respectively, related to consolidated trusts) | Accrued interest receivable (includes $9,963 and $16,764, respectively, related to consolidated trusts) | |
Gain expected to be reclassified from AOCI to earnings over next 12 months | $ 14,500,000 | ||
Gain (loss) from interest rate swaps designated as cash flow hedges reclassified to earnings | 0 | $ 0 | |
Financial derivatives, net payable position | 0 | $ 0 | |
Notional amount | 26,094,494,000 | 25,779,468,000 | |
Exchange Cleared | |||
Derivative [Line Items] | |||
Notional amount | 20,800,000,000 | 20,500,000,000 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | 26,100,000,000 | 25,800,000,000 | |
Cleared Swaps | |||
Derivative [Line Items] | |||
Accrued interest on cleared swaps | 17,600,000 | 16,400,000 | |
Uncleared Swaps | |||
Derivative [Line Items] | |||
Accrued interest payable | $ 6,200,000 | $ 6,500,000 |
FINANCIAL DERIVATIVES - Schedul
FINANCIAL DERIVATIVES - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Notional Disclosures [Abstract] | ||
Notional Amount | $ 26,094,494 | $ 25,779,468 |
Asset | ||
Fair value, asset | 31,433 | 37,478 |
Netting adjustments | (3,355) | (1,236) |
(Liability) | ||
Fair value, liability | (128,530) | (117,131) |
Netting adjustments | 3,355 | 1,236 |
Designated as hedge | Fair value hedges: | Receive fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | 9,705,185 | 9,174,253 |
Asset | ||
Fair value, asset | 230 | 7,767 |
(Liability) | ||
Fair value, liability | $ (25,315) | $ (1,081) |
Weighted- Average Pay Rate | 5.54% | 2.50% |
Weighted- Average Receive Rate | 3.03% | 5.47% |
Weighted- Average Remaining Term (in years) | 1 year 8 months 12 days | 9 years 6 months 25 days |
Designated as hedge | Fair value hedges: | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 9,226,082 | $ 9,776,685 |
Asset | ||
Fair value, asset | 7,675 | 2,350 |
(Liability) | ||
Fair value, liability | $ (68) | $ (20,390) |
Weighted- Average Pay Rate | 2.52% | 5.57% |
Weighted- Average Receive Rate | 5.43% | 2.94% |
Weighted- Average Remaining Term (in years) | 9 years 4 months 13 days | 1 year 9 months 10 days |
Designated as hedge | Fair value hedges: | Receive fixed callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 3,963,827 | $ 3,879,827 |
Asset | ||
Fair value, asset | 2,892 | 7,374 |
(Liability) | ||
Fair value, liability | $ (105,971) | $ (95,984) |
Weighted- Average Pay Rate | 5.36% | 5.40% |
Weighted- Average Receive Rate | 3.46% | 3.40% |
Weighted- Average Remaining Term (in years) | 2 years 6 months 21 days | 2 years 5 months 23 days |
Designated as hedge | Cash flow hedges: | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 552,000 | $ 558,000 |
Asset | ||
Fair value, asset | 22,270 | 20,234 |
(Liability) | ||
Fair value, liability | $ 0 | $ (43) |
Weighted- Average Pay Rate | 1.93% | 1.94% |
Weighted- Average Receive Rate | 5.80% | 5.82% |
Weighted- Average Remaining Term (in years) | 4 years 1 month 2 days | 4 years 3 months 18 days |
No hedge designation | Receive fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 1,638,958 | $ 1,358,396 |
Asset | ||
Fair value, asset | 34 | 263 |
(Liability) | ||
Fair value, liability | $ (9) | $ (3) |
Weighted- Average Pay Rate | 5.38% | 5.44% |
Weighted- Average Receive Rate | 5.11% | 4.87% |
Weighted- Average Remaining Term (in years) | 5 months 19 days | 7 months 20 days |
No hedge designation | Pay fixed non-callable | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 157,933 | $ 160,623 |
Asset | ||
Fair value, asset | 992 | 676 |
(Liability) | ||
Fair value, liability | $ 0 | $ (29) |
Weighted- Average Pay Rate | 2.92% | 2.92% |
Weighted- Average Receive Rate | 5.60% | 5.64% |
Weighted- Average Remaining Term (in years) | 4 years 1 month 24 days | 4 years 4 months 2 days |
No hedge designation | Basis swaps | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 850,384 | $ 850,384 |
Asset | ||
Fair value, asset | 15 | 39 |
(Liability) | ||
Fair value, liability | $ (522) | $ (746) |
Weighted- Average Pay Rate | 5.49% | 5.52% |
Weighted- Average Receive Rate | 5.47% | 5.48% |
Weighted- Average Remaining Term (in years) | 3 years 6 months 29 days | 3 years 9 months 29 days |
No hedge designation | Treasury futures | ||
Notional Disclosures [Abstract] | ||
Notional Amount | $ 125 | $ 21,300 |
Asset | ||
Fair value, asset | 680 | 11 |
Netting adjustments | (3,355) | (1,236) |
(Liability) | ||
Fair value, liability | 0 | (91) |
Netting adjustments | $ 3,355 | $ 1,236 |
Weighted- Average Forward Price (in dollars per share) | $ 110.25 | $ 112.51 |
FINANCIAL DERIVATIVES - Sched_2
FINANCIAL DERIVATIVES - Schedule of Net Income/(Expense) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Investments and cash equivalents | $ 84,924 | $ 59,703 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | 166,813 | |
Interest Income Loans | 144,580 | 119,032 |
Total interest expense | (309,949) | (236,214) |
Gains on financial derivatives | 2,079 | 399 |
Total | 88,447 | |
Interest expense on interest rate swaps | 7,314 | 5,355 |
Designated as hedge | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Investments and cash equivalents | 59,703 | |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | 136,537 | |
Interest Income Loans | 119,032 | |
Total interest expense | (236,214) | |
Gains on financial derivatives | 399 | |
Total | 79,457 | |
Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | (28,182) | (6,835) |
Premium/discount amortization recognized on hedged items | (302) | (423) |
Recognized on hedged items | (99,836) | 54,981 |
Gains/(losses) on fair value hedging relationships | 3,002 | (105) |
Designated as hedge | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Premium/discount amortization recognized on hedged items | (14) | (14) |
Interest settlements reclassified from AOCI into net income on derivatives | 5,431 | 4,391 |
Recognized on hedged items | (8,091) | (7,190) |
Expense recognized on cash flow hedges | (2,674) | (2,813) |
No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 2,079 | 399 |
Interest Income Investments and Cash Equivalents | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 9,948 | 6,961 |
Premium/discount amortization recognized on hedged items | 445 | 268 |
Recognized on hedged items | (27,521) | 27,428 |
Gains/(losses) on fair value hedging relationships | 268 | 275 |
Interest Income Investments and Cash Equivalents | Designated as hedge | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Premium/discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Interest Income Investments and Cash Equivalents | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 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 | 51,705 | 41,971 |
Premium/discount amortization recognized on hedged items | 0 | 0 |
Recognized on hedged items | (80,743) | 93,295 |
Gains/(losses) on fair value hedging relationships | 843 | (497) |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Designated as hedge | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Premium/discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Interest Income Loans | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 16,598 | 15,208 |
Premium/discount amortization recognized on hedged items | 0 | 0 |
Recognized on hedged items | (47,061) | 56,957 |
Gains/(losses) on fair value hedging relationships | 1,119 | 276 |
Interest Income Loans | Designated as hedge | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Premium/discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Interest Income Loans | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Total Interest Expense | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | (106,433) | (70,975) |
Premium/discount amortization recognized on hedged items | (747) | (691) |
Recognized on hedged items | 55,489 | (122,699) |
Gains/(losses) on fair value hedging relationships | 772 | (159) |
Total Interest Expense | Designated as hedge | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Premium/discount amortization recognized on hedged items | (14) | (14) |
Interest settlements reclassified from AOCI into net income on derivatives | 5,431 | 4,391 |
Recognized on hedged items | (8,091) | (7,190) |
Expense recognized on cash flow hedges | (2,674) | (2,813) |
Total Interest Expense | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Gains on financial derivatives | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on hedged items | 0 | 0 |
Premium/discount amortization recognized on hedged items | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Gains/(losses) on fair value hedging relationships | 0 | 0 |
Gains on financial derivatives | Designated as hedge | Cash flow hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Premium/discount amortization recognized on hedged items | 0 | 0 |
Interest settlements reclassified from AOCI into net income on derivatives | 0 | 0 |
Recognized on hedged items | 0 | 0 |
Expense recognized on cash flow hedges | 0 | 0 |
Gains on financial derivatives | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 2,079 | 399 |
Interest Rate Swap | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | (15,073) | (28,829) |
Income/(expense) related to interest settlements on fair value hedging relationships | (43,557) | (36,087) |
Recognized on derivatives | 102,838 | (55,086) |
Interest Rate Swap | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 754 | 33 |
Interest expense on interest rate swaps | (34) | (1,625) |
Interest Rate Swap | Interest Income Investments and Cash Equivalents | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | 10,297 | 6,549 |
Income/(expense) related to interest settlements on fair value hedging relationships | 20,690 | 13,778 |
Recognized on derivatives | 27,789 | (27,153) |
Interest Rate Swap | Interest Income Investments and Cash Equivalents | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Interest expense on interest rate swaps | 0 | 0 |
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | 40,332 | 28,909 |
Income/(expense) related to interest settlements on fair value hedging relationships | 92,037 | 70,880 |
Recognized on derivatives | 81,586 | (93,792) |
Interest Rate Swap | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Interest expense on interest rate swaps | 0 | 0 |
Interest Rate Swap | Interest Income Loans | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | 17,849 | 13,180 |
Income/(expense) related to interest settlements on fair value hedging relationships | 34,447 | 28,388 |
Recognized on derivatives | 48,180 | (56,681) |
Interest Rate Swap | Interest Income Loans | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Interest expense on interest rate swaps | 0 | 0 |
Interest Rate Swap | Total Interest Expense | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | (83,551) | (77,467) |
Income/(expense) related to interest settlements on fair value hedging relationships | (190,731) | (149,133) |
Recognized on derivatives | (54,717) | 122,540 |
Interest Rate Swap | Total Interest Expense | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Interest expense on interest rate swaps | 0 | 0 |
Interest Rate Swap | Gains on financial derivatives | Designated as hedge | Fair value hedges: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized on derivatives | 0 | 0 |
Income/(expense) related to interest settlements on fair value hedging relationships | 0 | 0 |
Recognized on derivatives | 0 | 0 |
Interest Rate Swap | Gains on financial derivatives | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 754 | 33 |
Interest expense on interest rate swaps | (34) | (1,625) |
Treasury futures | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 1,359 | 1,991 |
Treasury futures | Interest Income Investments and Cash Equivalents | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Treasury futures | Interest Income Farmer Mac Guaranteed Securities and USDA Securities | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Treasury futures | Interest Income Loans | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Treasury futures | Total Interest Expense | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | 0 | 0 |
Treasury futures | Gains on financial derivatives | No hedge designation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains on financial derivatives | $ 1,359 | $ 1,991 |
FINANCIAL DERIVATIVES - Hedged
FINANCIAL DERIVATIVES - Hedged Items in Fair Value Hedging Relationships (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-Sale Securities | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | $ 1,261,144 | $ 1,251,386 |
Hedged Asset | (116,156) | (88,635) |
Loans | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | 1,692,131 | 1,699,361 |
Hedged Asset | (352,653) | (305,592) |
Notes Payable | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | (13,327,828) | (13,350,111) |
Hedged Liability | 305,907 | 250,418 |
Farmer Mac Guaranteed Securities | ||
HedgedItemsinFairValueHedgingRelationship [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | 5,432,676 | 5,497,948 |
Hedged Asset | $ (338,180) | $ (257,436) |
FINANCIAL DERIVATIVES - Sched_3
FINANCIAL DERIVATIVES - Schedule of Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Gross Amount Recognized | $ 33,594 | $ 36,139 |
Gross Amounts offset in the Consolidated Balance Sheet | (3,355) | (1,236) |
Net Amount Presented in the Consolidated Balance Sheet | 30,239 | 34,903 |
Netting Adjustments | (24,674) | (25,727) |
Financial instruments pledged | 0 | 0 |
Cash collateral | 0 | 0 |
Net amount | 5,565 | 9,176 |
Liabilities: | ||
Gross Amount Recognized | (110,088) | (101,350) |
Gross Amounts offset in the Consolidated Balance Sheet | 3,355 | 1,236 |
Net Amount Presented in the Consolidated Balance Sheet | (106,733) | (100,114) |
Netting Adjustments | 24,674 | 25,727 |
Financial instruments pledged | 0 | 0 |
Cash collateral | 76,472 | 69,360 |
Net amount | (5,587) | (5,027) |
Derivative liability, not subject to master netting arrangement | 15,600 | 15,200 |
Collateral received | 0 | 2,000 |
Derivative, additional net exposure | 197,900 | 207,200 |
Uncleared derivatives | ||
Assets: | ||
Gross Amount Recognized | 25,354 | 25,751 |
Gross Amounts offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheet | 25,354 | 25,751 |
Netting Adjustments | (24,674) | (25,727) |
Financial instruments pledged | 0 | 0 |
Cash collateral | 0 | 0 |
Net amount | 680 | 24 |
Liabilities: | ||
Gross Amount Recognized | (106,733) | (100,114) |
Gross Amounts offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amount Presented in the Consolidated Balance Sheet | (106,733) | (100,114) |
Netting Adjustments | 24,674 | 25,727 |
Financial instruments pledged | 0 | 0 |
Cash collateral | 76,472 | 69,360 |
Net amount | (5,587) | (5,027) |
Cleared derivatives | ||
Assets: | ||
Gross Amount Recognized | 8,240 | 10,388 |
Gross Amounts offset in the Consolidated Balance Sheet | (3,355) | (1,236) |
Net Amount Presented in the Consolidated Balance Sheet | 4,885 | 9,152 |
Netting Adjustments | 0 | 0 |
Financial instruments pledged | 0 | 0 |
Cash collateral | 0 | 0 |
Net amount | 4,885 | 9,152 |
Liabilities: | ||
Gross Amount Recognized | (3,355) | (1,236) |
Gross Amounts offset in the Consolidated Balance Sheet | 3,355 | 1,236 |
Net Amount Presented in the Consolidated Balance Sheet | 0 | 0 |
Netting Adjustments | 0 | 0 |
Financial instruments pledged | 0 | 0 |
Cash collateral | 0 | 0 |
Net amount | $ 0 | $ 0 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale, at lower of cost or fair value | $ 0 | $ 0 | |
Number of operating segments | segment | 7 | ||
Rural Infrastructure Finance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for/(release of) losses | $ (1,963,000) | $ (3,613,000) | |
Principal balance paydown | 15% | ||
Agricultural Finance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of operating segments | segment | 2 | ||
Provision for/(release of) losses | $ 220,000 | $ 4,197,000 | |
Increase (decrease) in loan volume | $ 73,000,000 |
LOANS - Schedule of Composition
LOANS - Schedule of Composition of Loan Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 11,602,199 | $ 11,360,197 | ||
Allowance for losses | (14,288) | (16,031) | ||
Total loans, net of allowance | 11,233,071 | 11,039,349 | ||
Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 11,602,199 | 11,360,197 | ||
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | (354,840) | (304,817) | ||
Total loans | 11,247,359 | 11,055,380 | ||
Allowance for losses | (14,288) | (16,031) | ||
Total loans, net of allowance | 11,233,071 | 11,039,349 | ||
Agricultural Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 7,915,446 | 7,825,434 | ||
Allowance for losses | (7,104) | (6,884) | $ (10,972) | $ (6,775) |
Agricultural Finance | Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 7,915,446 | 7,825,434 | ||
Allowance for losses | (7,104) | (6,884) | ||
Farm & Ranch | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,656,940 | 6,565,711 | ||
Allowance for losses | (4,535) | (3,936) | (3,933) | (4,044) |
Farm & Ranch | Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,656,940 | 6,565,711 | ||
Allowance for losses | (4,535) | (3,936) | ||
Corporate AgFinance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,258,506 | 1,259,723 | ||
Allowance for losses | (2,569) | (2,948) | (7,039) | (2,731) |
Corporate AgFinance | Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,258,506 | 1,259,723 | ||
Allowance for losses | (2,569) | (2,948) | ||
Rural Infrastructure Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 3,686,753 | 3,534,763 | ||
Allowance for losses | (7,184) | (9,147) | $ (4,701) | $ (8,314) |
Rural Infrastructure Finance | Real Estate Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 3,686,753 | 3,534,763 | ||
Allowance for losses | (7,184) | (9,147) | ||
Unsecuritized | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 10,192,802 | 9,927,936 | ||
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | (354,840) | (304,817) | ||
Total loans | 9,837,962 | 9,623,119 | ||
Allowance for losses | (13,836) | (15,588) | ||
Total loans, net of allowance | 9,824,126 | 9,607,531 | ||
Unsecuritized | Agricultural Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,506,049 | 6,393,173 | ||
Unsecuritized | Farm & Ranch | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 5,247,543 | 5,133,450 | ||
Unsecuritized | Corporate AgFinance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,258,506 | 1,259,723 | ||
Unsecuritized | Rural Infrastructure Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 3,686,753 | 3,534,763 | ||
In Consolidated Trusts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,409,397 | 1,432,261 | ||
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | 0 | 0 | ||
Total loans | 1,409,397 | 1,432,261 | ||
Allowance for losses | (452) | (443) | ||
Total loans, net of allowance | 1,408,945 | 1,431,818 | ||
In Consolidated Trusts | Agricultural Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,409,397 | 1,432,261 | ||
In Consolidated Trusts | Farm & Ranch | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,409,397 | 1,432,261 | ||
In Consolidated Trusts | Corporate AgFinance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 0 | ||
In Consolidated Trusts | Rural Infrastructure Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 0 | $ 0 |
LOANS - Allowance for Losses (D
LOANS - Allowance for Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | $ 14,288 | $ 16,031 | ||
Real Estate Loan | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 14,288 | 16,031 | ||
Agricultural Finance | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 7,104 | 6,884 | $ 10,972 | $ 6,775 |
Agricultural Finance | Real Estate Loan | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 7,104 | 6,884 | ||
Farm & Ranch | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 4,535 | 3,936 | 3,933 | 4,044 |
Farm & Ranch | Real Estate Loan | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 4,535 | 3,936 | ||
Corporate AgFinance | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 2,569 | 2,948 | 7,039 | 2,731 |
Corporate AgFinance | Real Estate Loan | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 2,569 | 2,948 | ||
Rural Infrastructure Finance | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | 7,184 | 9,147 | $ 4,701 | $ 8,314 |
Rural Infrastructure Finance | Real Estate Loan | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total | $ 7,184 | $ 9,147 |
LOANS - Changes in the Allowanc
LOANS - Changes in the Allowance for Losses (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 16,031,000 | |
Ending balance | 14,288,000 | |
Agricultural Finance | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 6,884,000 | $ 6,775,000 |
Provision for/(release of) losses | 220,000 | 4,197,000 |
Charge-offs | 0 | 0 |
Ending balance | 7,104,000 | 10,972,000 |
Farm & Ranch | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 3,936,000 | 4,044,000 |
Provision for/(release of) losses | 599,000 | (111,000) |
Charge-offs | 0 | 0 |
Ending balance | 4,535,000 | 3,933,000 |
Farm & Ranch | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision for/(release of) losses | 1,400,000 | 1,100,000 |
Corporate AgFinance | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 2,948,000 | 2,731,000 |
Provision for/(release of) losses | (379,000) | 4,308,000 |
Charge-offs | 0 | 0 |
Ending balance | 2,569,000 | 7,039,000 |
Corporate AgFinance | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision for/(release of) losses | 0 | 4,600,000 |
Rural Infrastructure Finance | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 9,147,000 | 8,314,000 |
Provision for/(release of) losses | (1,963,000) | (3,613,000) |
Charge-offs | 0 | 0 |
Ending balance | 7,184,000 | 4,701,000 |
Rural Infrastructure Finance | Collateral Pledged | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision for/(release of) losses | $ 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, 2024 | Dec. 31, 2023 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | $ 9,837,962 | $ 9,623,119 |
Nonaccrual loans | 96,240 | 65,236 |
Total loans | 11,602,199 | 11,360,197 |
Nonaccrual loans with no associated allowance | 45,900 | 25,700 |
Interest received on nonaccrual loans | 600 | 2,600 |
Agricultural Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 96,240 | 65,236 |
Total loans | 7,915,446 | 7,825,434 |
Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 6,656,940 | 6,565,711 |
Nonaccrual loans | 84,793 | 65,236 |
Total loans | 6,656,940 | 6,565,711 |
Corporate AgFinance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 1,258,506 | 1,259,723 |
Nonaccrual loans | 11,447 | 0 |
Total loans | 1,258,506 | 1,259,723 |
Rural Infrastructure Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 3,686,753 | 3,534,763 |
Nonaccrual loans | 0 | 0 |
Total loans | 3,686,753 | 3,534,763 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 11,472,618 | 11,264,691 |
Current | Agricultural Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 7,785,865 | 7,729,928 |
Current | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 6,538,806 | 6,470,205 |
Current | Corporate AgFinance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 1,247,059 | 1,259,723 |
Current | Rural Infrastructure Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 3,686,753 | 3,534,763 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 33,341 | 30,270 |
Total Past Due | Agricultural Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 33,341 | 30,270 |
Total Past Due | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 33,341 | 30,270 |
Total Past Due | Corporate AgFinance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
Total Past Due | Rural Infrastructure Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 13,764 | 15,326 |
30-59 Days | Agricultural Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 13,764 | 15,326 |
30-59 Days | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 13,764 | 15,326 |
30-59 Days | Corporate AgFinance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
30-59 Days | Rural Infrastructure Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 3,954 | 3,953 |
60-89 Days | Agricultural Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 3,954 | 3,953 |
60-89 Days | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 3,954 | 3,953 |
60-89 Days | Corporate AgFinance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
60-89 Days | Rural Infrastructure Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
90 Days and Greater | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 15,623 | 10,991 |
90 Days and Greater | Agricultural Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 15,623 | 10,991 |
90 Days and Greater | Farm & Ranch | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 15,623 | 10,991 |
90 Days and Greater | Corporate AgFinance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | 0 | 0 |
90 Days and Greater | Rural Infrastructure Finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, at amortized cost | $ 0 | $ 0 |
LOANS - Schedule of Financing R
LOANS - Schedule of Financing Receivables Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Total | |||
Total | $ 9,837,962 | $ 9,623,119 | |
Agricultural Finance | |||
Total | |||
Current period charge-offs | 0 | $ 0 | |
Farm & Ranch | |||
Year One | |||
Total | 207,272 | 604,837 | |
Current period charge-offs | 0 | 0 | |
Year Two | |||
Total | 611,432 | 1,207,742 | |
Current period charge-offs | 0 | 0 | |
Year Three | |||
Total | 1,192,657 | 1,691,901 | |
Current period charge-offs | 0 | 0 | |
Year Four | |||
Total | 1,667,156 | 1,149,903 | |
Current period charge-offs | 0 | 0 | |
Year Five | |||
Total | 1,122,060 | 357,646 | |
Current period charge-offs | 0 | 0 | |
Prior | |||
Total | 1,475,276 | 1,148,725 | |
Current period charge-offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 381,087 | 404,957 | |
Current period charge-offs | 0 | 0 | |
Total | |||
Total | 6,656,940 | 6,565,711 | |
Current period charge-offs | 0 | 0 | |
Corporate AgFinance | |||
Year One | |||
Total | 34,521 | 207,279 | |
Current period charge-offs | 0 | 0 | |
Year Two | |||
Total | 204,717 | 112,444 | |
Current period charge-offs | 0 | 0 | |
Year Three | |||
Total | 91,839 | 277,400 | |
Current period charge-offs | 0 | 0 | |
Year Four | |||
Total | 272,595 | 173,980 | |
Current period charge-offs | 0 | 0 | |
Year Five | |||
Total | 172,484 | 119,685 | |
Current period charge-offs | 0 | 0 | |
Prior | |||
Total | 226,337 | 112,947 | |
Current period charge-offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 256,013 | 255,988 | |
Current period charge-offs | 0 | 0 | |
Total | |||
Total | 1,258,506 | 1,259,723 | |
Current period charge-offs | 0 | 0 | |
Rural Infrastructure Finance | |||
Year One | |||
Total | 192,160 | 618,946 | |
Current period charge-offs | 0 | 0 | |
Year Two | |||
Total | 572,095 | 720,522 | |
Current period charge-offs | 0 | 0 | |
Year Three | |||
Total | 700,374 | 187,746 | |
Current period charge-offs | 0 | 0 | |
Year Four | |||
Total | 189,652 | 593,841 | |
Current period charge-offs | 0 | 0 | |
Year Five | |||
Total | 585,661 | 701,937 | |
Current period charge-offs | 0 | 0 | |
Prior | |||
Total | 1,283,649 | 611,548 | |
Current period charge-offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 163,162 | 100,223 | |
Current period charge-offs | 0 | 0 | |
Total | |||
Total | 3,686,753 | 3,534,763 | |
Current period charge-offs | 0 | $ 0 | |
Acceptable | Farm & Ranch | |||
Year One | |||
Total | 190,820 | 530,956 | |
Year Two | |||
Total | 509,485 | 1,137,226 | |
Year Three | |||
Total | 1,135,915 | 1,653,780 | |
Year Four | |||
Total | 1,601,660 | 1,120,917 | |
Year Five | |||
Total | 1,082,703 | 323,922 | |
Prior | |||
Total | 1,349,086 | 1,068,862 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 354,735 | 385,766 | |
Total | |||
Total | 6,224,404 | 6,221,429 | |
Acceptable | Corporate AgFinance | |||
Year One | |||
Total | 34,521 | 207,279 | |
Year Two | |||
Total | 204,717 | 97,922 | |
Year Three | |||
Total | 77,402 | 261,992 | |
Year Four | |||
Total | 257,391 | 123,158 | |
Year Five | |||
Total | 122,517 | 99,352 | |
Prior | |||
Total | 209,987 | 112,947 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 242,494 | 254,325 | |
Total | |||
Total | 1,149,029 | 1,156,975 | |
Acceptable | Rural Infrastructure Finance | |||
Year One | |||
Total | 192,160 | 618,946 | |
Year Two | |||
Total | 572,095 | 681,272 | |
Year Three | |||
Total | 665,560 | 187,746 | |
Year Four | |||
Total | 189,652 | 593,841 | |
Year Five | |||
Total | 585,661 | 701,937 | |
Prior | |||
Total | 1,283,649 | 611,548 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 163,162 | 100,223 | |
Total | |||
Total | 3,651,939 | 3,495,513 | |
Special mention | Farm & Ranch | |||
Year One | |||
Total | 16,452 | 70,524 | |
Year Two | |||
Total | 90,681 | 46,529 | |
Year Three | |||
Total | 29,227 | 27,957 | |
Year Four | |||
Total | 36,893 | 11,591 | |
Year Five | |||
Total | 4,387 | 4,782 | |
Prior | |||
Total | 31,355 | 21,257 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 9,093 | 8,777 | |
Total | |||
Total | 218,088 | 191,417 | |
Special mention | Corporate AgFinance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 14,522 | |
Year Three | |||
Total | 14,437 | 15,408 | |
Year Four | |||
Total | 15,204 | 50,822 | |
Year Five | |||
Total | 49,967 | 20,333 | |
Prior | |||
Total | 16,350 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 2,072 | 1,663 | |
Total | |||
Total | 98,030 | 102,748 | |
Special mention | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 9,850 | |
Year Three | |||
Total | 34,814 | 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 | 34,814 | 9,850 | |
Substandard | Farm & Ranch | |||
Year One | |||
Total | 0 | 3,357 | |
Year Two | |||
Total | 11,266 | 23,987 | |
Year Three | |||
Total | 27,515 | 10,164 | |
Year Four | |||
Total | 28,603 | 17,395 | |
Year Five | |||
Total | 34,970 | 28,942 | |
Prior | |||
Total | 94,835 | 58,606 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 17,259 | 10,414 | |
Total | |||
Total | 214,448 | 152,865 | |
Substandard | Corporate AgFinance | |||
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 | 11,447 | 0 | |
Total | |||
Total | 11,447 | 0 | |
Substandard | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 29,400 | |
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 | $ 29,400 |
GUARANTEES AND COMMITMENTS - Of
GUARANTEES AND COMMITMENTS - Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed USDA Securities - Unconsolidated VIE - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 443,843 | $ 452,602 |
Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total off-balance sheet Farmer Mac Guaranteed Securities | $ 443,843 | $ 452,602 |
GUARANTEES AND COMMITMENTS - Si
GUARANTEES AND COMMITMENTS - Significant Cash Flows Received From and Paid to Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Proceeds from new securitizations | $ 0 | $ 222,188 |
Guarantee fees received | $ 449 | $ 487 |
GUARANTEES AND COMMITMENTS - Sc
GUARANTEES AND COMMITMENTS - Schedule of Underlying Off-Balance Sheet Guaranteed Securities (Details) - Farmer Mac Guaranteed USDA Securities - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Guarantor Obligations [Line Items] | ||
Guarantee and commitment obligation | $ 5,808 | $ 5,969 |
Weighted-average remaining maturity | 21 years 7 months 6 days | 21 years 10 months 24 days |
GUARANTEES AND COMMITMENTS - _2
GUARANTEES AND COMMITMENTS - Schedule of Long-Term Standby Purchase Commitments (Details) - Long-Term Standby Purchase Commitments - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Guarantor Obligations [Line Items] | ||
Maximum principal amount | $ 3,636,782 | $ 3,680,333 |
Weighted-average remaining maturity | 14 years 3 months 18 days | 14 years 6 months |
Guarantee and commitment obligation | ||
Guarantor Obligations [Line Items] | ||
Guarantee and commitment obligation | $ 40,057 | $ 41,594 |
GUARANTEES AND COMMITMENTS - Re
GUARANTEES AND COMMITMENTS - Reserve For Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Guarantor Obligations [Line Items] | ||||
Reserve for losses | $ 1,642 | $ 1,711 | ||
Agricultural Finance | ||||
Guarantor Obligations [Line Items] | ||||
Reserve for losses | 1,407 | 1,471 | $ 1,396 | $ 819 |
Rural Infrastructure Finance | ||||
Guarantor Obligations [Line Items] | ||||
Reserve for losses | $ 235 | $ 240 | $ 240 | $ 614 |
GUARANTEES AND COMMITMENTS - Ch
GUARANTEES AND COMMITMENTS - Changes in Reserve for Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 1,711 | |
Release of losses | (69) | $ 203 |
Ending balance | 1,642 | |
Agricultural Finance | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 1,471 | 819 |
Release of losses | (64) | 577 |
Ending balance | 1,407 | 1,396 |
Rural Infrastructure Finance | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 240 | 614 |
Release of losses | (5) | (374) |
Ending balance | $ 235 | $ 240 |
GUARANTEES AND COMMITMENTS - Un
GUARANTEES AND COMMITMENTS - Unpaid Principal Balances by Delinquency Status (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Guarantor Obligations [Line Items] | ||
Total Loans | $ 9,837,962 | $ 9,623,119 |
Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,883,355 | 3,932,857 |
Current | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 11,472,618 | 11,264,691 |
Current | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,868,467 | 3,925,931 |
Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 33,341 | 30,270 |
Total Past Due | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 14,888 | 6,926 |
30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 13,764 | 15,326 |
30-59 Days | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 4,791 | 2,776 |
60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,954 | 3,953 |
60-89 Days | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 528 | 2,366 |
90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 15,623 | 10,991 |
90 Days and Greater | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 9,569 | 1,784 |
Agricultural Finance | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,269,371 | 3,397,844 |
Agricultural Finance | Current | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 7,785,865 | 7,729,928 |
Agricultural Finance | Current | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,254,483 | 3,390,918 |
Agricultural Finance | Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 33,341 | 30,270 |
Agricultural Finance | Total Past Due | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 14,888 | 6,926 |
Agricultural Finance | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 13,764 | 15,326 |
Agricultural Finance | 30-59 Days | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 4,791 | 2,776 |
Agricultural Finance | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,954 | 3,953 |
Agricultural Finance | 60-89 Days | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 528 | 2,366 |
Agricultural Finance | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 15,623 | 10,991 |
Agricultural Finance | 90 Days and Greater | Agricultural Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 9,569 | 1,784 |
Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,686,753 | 3,534,763 |
Rural Infrastructure Finance | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 613,984 | 535,013 |
Rural Infrastructure Finance | Current | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 3,686,753 | 3,534,763 |
Rural Infrastructure Finance | Current | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 613,984 | 535,013 |
Rural Infrastructure Finance | Total Past Due | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | Total Past Due | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | 30-59 Days | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | 30-59 Days | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | 60-89 Days | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | 60-89 Days | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | 90 Days and Greater | ||
Guarantor Obligations [Line Items] | ||
Total Loans | 0 | 0 |
Rural Infrastructure Finance | 90 Days and Greater | Rural Infrastructure Finance | ||
Guarantor Obligations [Line Items] | ||
Total Loans | $ 0 | $ 0 |
GUARANTEES AND COMMITMENTS - Cr
GUARANTEES AND COMMITMENTS - Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Total | |||
Total | $ 9,837,962 | $ 9,623,119 | |
Agricultural Finance | |||
Total | |||
Current period charge-offs | 0 | $ 0 | |
Rural Infrastructure Finance | |||
Year One | |||
Total | 192,160 | 618,946 | |
Current period charge-offs | 0 | 0 | |
Year Two | |||
Total | 572,095 | 720,522 | |
Current period charge-offs | 0 | 0 | |
Year Three | |||
Total | 700,374 | 187,746 | |
Current period charge-offs | 0 | 0 | |
Year Four | |||
Total | 189,652 | 593,841 | |
Current period charge-offs | 0 | 0 | |
Year Five | |||
Total | 585,661 | 701,937 | |
Current period charge-offs | 0 | 0 | |
Prior | |||
Total | 1,283,649 | 611,548 | |
Current period charge-offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 163,162 | 100,223 | |
Current period charge-offs | 0 | 0 | |
Total | |||
Total | 3,686,753 | 3,534,763 | |
Current period charge-offs | 0 | 0 | |
Acceptable | Rural Infrastructure Finance | |||
Year One | |||
Total | 192,160 | 618,946 | |
Year Two | |||
Total | 572,095 | 681,272 | |
Year Three | |||
Total | 665,560 | 187,746 | |
Year Four | |||
Total | 189,652 | 593,841 | |
Year Five | |||
Total | 585,661 | 701,937 | |
Prior | |||
Total | 1,283,649 | 611,548 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 163,162 | 100,223 | |
Total | |||
Total | 3,651,939 | 3,495,513 | |
Special mention | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 9,850 | |
Year Three | |||
Total | 34,814 | 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 | 34,814 | 9,850 | |
Substandard | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 29,400 | |
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 | 29,400 | |
Rural Infrastructure Finance: | |||
Total | |||
Total | 3,883,355 | 3,932,857 | |
Rural Infrastructure Finance: | Agricultural Finance | |||
Year One | |||
Total | 686 | 169,429 | |
Current period charge-offs | 0 | ||
Year Two | |||
Total | 167,655 | 246,512 | |
Current period charge-offs | 0 | ||
Year Three | |||
Total | 237,965 | 517,862 | |
Current period charge-offs | 0 | ||
Year Four | |||
Total | 506,137 | 535,398 | |
Current period charge-offs | 0 | ||
Year Five | |||
Total | 525,482 | 266,882 | |
Current period charge-offs | 0 | ||
Prior | |||
Total | 1,459,080 | 1,256,770 | |
Current period charge-offs | 0 | ||
Revolving Loans - Amortized Cost Basis | |||
Total | 372,366 | 404,991 | |
Current period charge-offs | 0 | ||
Total | |||
Total | 3,269,371 | 3,397,844 | |
Current period charge-offs | 0 | ||
Rural Infrastructure Finance: | Acceptable | Agricultural Finance | |||
Year One | |||
Total | 686 | 169,429 | |
Year Two | |||
Total | 167,655 | 246,441 | |
Year Three | |||
Total | 236,692 | 515,396 | |
Year Four | |||
Total | 503,681 | 534,395 | |
Year Five | |||
Total | 520,556 | 264,815 | |
Prior | |||
Total | 1,380,938 | 1,185,811 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 362,500 | 391,335 | |
Total | |||
Total | 3,172,708 | 3,307,622 | |
Rural Infrastructure Finance: | Special mention | Agricultural Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 71 | |
Year Three | |||
Total | 71 | 2,466 | |
Year Four | |||
Total | 2,456 | 872 | |
Year Five | |||
Total | 4,817 | 531 | |
Prior | |||
Total | 51,388 | 44,631 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 8,612 | 8,565 | |
Total | |||
Total | 67,344 | 57,136 | |
Rural Infrastructure Finance: | Substandard | Agricultural Finance | |||
Year One | |||
Total | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Year Three | |||
Total | 1,202 | 0 | |
Year Four | |||
Total | 0 | 131 | |
Year Five | |||
Total | 109 | 1,536 | |
Prior | |||
Total | 26,754 | 26,328 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 1,254 | 5,091 | |
Total | |||
Total | 29,319 | 33,086 | |
Long-Term Standby Purchase Commitments | Rural Infrastructure Finance | |||
Year One | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Year Two | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Year Three | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Year Four | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Year Five | |||
Total | 0 | 0 | |
Current period charge-offs | 0 | 0 | |
Prior | |||
Total | 391,099 | 419,190 | |
Current period charge-offs | 0 | 0 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 222,885 | 115,823 | |
Current period charge-offs | 0 | 0 | |
Total | |||
Total | 613,984 | 535,013 | |
Current period charge-offs | 0 | $ 0 | |
Long-Term Standby Purchase Commitments | 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 | 391,099 | 419,190 | |
Revolving Loans - Amortized Cost Basis | |||
Total | 222,885 | 115,823 | |
Total | |||
Total | 613,984 | 535,013 | |
Long-Term Standby Purchase Commitments | 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 | |
Long-Term Standby Purchase Commitments | 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 |
NOTES PAYABLE - Narrative (Deta
NOTES PAYABLE - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Medium term notes called during the period | $ 354,500,000 | $ 0 |
Maximum borrowing capacity from U.S. Treasury | 1,500,000,000 | |
Outstanding debt repurchases | $ 0 | 0 |
Discount Notes | ||
Debt Instrument [Line Items] | ||
Maturities of notes | 1 year | |
Medium-term notes | Minimum | ||
Debt Instrument [Line Items] | ||
Maturities of notes | 6 months | |
Medium-term notes | Maximum | ||
Debt Instrument [Line Items] | ||
Maturities of notes | 25 years | |
Discount notes | ||
Debt Instrument [Line Items] | ||
Maximum amount of discount notes outstanding at any month end | $ 1,900,000,000 | $ 900,000,000 |
NOTES PAYABLE - Borrowings (Det
NOTES PAYABLE - Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Due within one year: | ||
Outstanding, Amount | $ 8,870,013 | $ 8,087,168 |
Outstanding, Weighted - average rate | 3.63% | 3.52% |
Medium-term notes due in: | ||
Two years | $ 4,972,023 | |
Three years | 4,064,733 | |
Four years | 2,568,251 | |
Five years | 2,941,652 | |
Thereafter | 3,398,246 | |
Total due after one year | 17,944,905 | |
Total principal net of discounts | 26,814,918 | $ 26,586,959 |
Hedging adjustments | (305,907) | (250,417) |
Total | $ 26,509,011 | 26,336,542 |
Weighted - average rate | 3.21% | |
Total weighted - average rate | 3.35% | |
Two years | ||
Medium-term notes due in: | ||
Weighted - average rate | 2.95% | |
Three years | ||
Medium-term notes due in: | ||
Weighted - average rate | 2.60% | |
Four years | ||
Medium-term notes due in: | ||
Weighted - average rate | 3.84% | |
Five years | ||
Medium-term notes due in: | ||
Weighted - average rate | 4.45% | |
Thereafter | ||
Medium-term notes due in: | ||
Weighted - average rate | 2.76% | |
Discount notes | ||
Due within one year: | ||
Outstanding, Amount | $ 1,898,810 | $ 1,734,387 |
Outstanding, Weighted - average rate | 5.23% | 5.32% |
Average Outstanding, Amount | $ 1,662,014 | $ 1,097,300 |
Average Outstanding, Weighted - average rate (as a percent) | 5.25% | 5.08% |
Medium-term notes | ||
Due within one year: | ||
Outstanding, Amount | $ 366,953 | $ 384,970 |
Outstanding, Weighted - average rate | 5.28% | 5.07% |
Average Outstanding, Amount | $ 272,528 | $ 1,731,308 |
Average Outstanding, Weighted - average rate (as a percent) | 5.23% | 4.09% |
Medium-term notes due in: | ||
Two years | $ 5,523,671 | |
Three years | 3,825,702 | |
Four years | 3,038,229 | |
Five years | 2,623,202 | |
Thereafter | 3,488,987 | |
Total due after one year | $ 18,499,791 | |
Weighted - average rate | 3.16% | |
Total weighted - average rate | 3.27% | |
Medium-term notes | Two years | ||
Medium-term notes due in: | ||
Weighted - average rate | 3.27% | |
Medium-term notes | Three years | ||
Medium-term notes due in: | ||
Weighted - average rate | 2.27% | |
Medium-term notes | Four years | ||
Medium-term notes due in: | ||
Weighted - average rate | 3.44% | |
Medium-term notes | Five years | ||
Medium-term notes due in: | ||
Weighted - average rate | 4.37% | |
Medium-term notes | Thereafter | ||
Medium-term notes due in: | ||
Weighted - average rate | 2.80% | |
Current portion of medium-term notes | ||
Due within one year: | ||
Outstanding, Amount | $ 6,604,250 | $ 5,967,811 |
Outstanding, Weighted - average rate | 3.08% | 2.90% |
NOTES PAYABLE - Callable Medium
NOTES PAYABLE - Callable Medium-Term Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
2026 | $ 4,972,023 | |
2027 | 4,064,733 | |
2028 | 2,568,251 | |
Total principal net of discounts | $ 26,814,918 | $ 26,586,959 |
Weighted-Average Rate | 3.21% | |
Year one | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 3.03% | |
Year two | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 2.15% | |
Year three | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 3.29% | |
Year four | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 4.24% | |
Call Option | ||
Debt Instrument [Line Items] | ||
2025 | $ 1,090,521 | |
2026 | 1,378,822 | |
2027 | 884,005 | |
2028 | 567,953 | |
Thereafter | 1,775,587 | |
Total principal net of discounts | $ 5,696,888 | |
Weighted-Average Rate | 2.71% | |
Call Option | Year one | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 3.12% | |
Call Option | Year two | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 2% | |
Call Option | Year three | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 2.80% | |
Call Option | Year four | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 4.22% | |
Call Option | Thereafter | ||
Debt Instrument [Line Items] | ||
Weighted-Average Rate | 2.48% |
NOTES PAYABLE - Earliest Intere
NOTES PAYABLE - Earliest Interest Reset Date of Borrowing Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
2024 | $ 8,789,318 | |
2025 | 5,180,648 | |
2026 | 3,750,964 | |
2027 | 2,972,357 | |
2028 | 2,584,403 | |
Thereafter | 3,537,228 | |
Total principal net of discounts | $ 26,814,918 | |
Short-term debt, weighted average rate (as a percent) | 3.63% | 3.52% |
Weighted - average rate | 3.21% | |
Total weighted - average rate | 3.35% | |
Due within one year | ||
Debt Instrument [Line Items] | ||
Short-term debt, weighted average rate (as a percent) | 4.06% | |
Year one | ||
Debt Instrument [Line Items] | ||
Weighted - average rate | 3.03% | |
Year two | ||
Debt Instrument [Line Items] | ||
Weighted - average rate | 2.15% | |
Year three | ||
Debt Instrument [Line Items] | ||
Weighted - average rate | 3.29% | |
Year four | ||
Debt Instrument [Line Items] | ||
Weighted - average rate | 4.24% | |
Thereafter | ||
Debt Instrument [Line Items] | ||
Weighted - average rate | 2.71% |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Feb. 28, 2023 | |
Class of Stock [Line Items] | ||||||||
Quarterly dividend on all classes of common stock (in dollars per share) | $ 1.40 | $ 1.10 | $ 1.10 | $ 1.10 | $ 1.10 | |||
Capital required for capital adequacy | $ 872.3 | $ 872.3 | $ 862.6 | $ 862.6 | ||||
Capital | 1,500 | 1,500 | 1,500 | 1,500 | ||||
Excess capital | $ 612.1 | $ 612.1 | $ 589.4 | $ 589.4 | ||||
Class C non-voting common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Remaining authorized amount for repurchase | $ 9.8 | |||||||
Shares repurchased (in shares) | 673,000 | 0 | ||||||
Shares repurchased | $ 19.8 |
FAIR VALUE DISCLOSURES - Schedu
FAIR VALUE DISCLOSURES - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Financial derivatives | $ 31,433 | $ 37,478 |
Liabilities: | ||
Financial derivatives | 128,530 | 117,131 |
Investment Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,007,787 | $ 4,918,931 |
Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | $ 5,466,688 | |
Level 3 | ||
Liabilities: | ||
Percent of level three fair value assets and liabilities | 18% | 19% |
Financial instruments level three percent | 52% | 52% |
Recurring | ||
Assets: | ||
Financial derivatives | $ 31,433 | $ 37,478 |
Guarantee Asset | 5,733 | 5,831 |
Total Assets at fair value | 10,512,707 | 10,495,960 |
Liabilities: | ||
Financial derivatives | 128,530 | 117,131 |
Total Liabilities at fair value | 128,530 | 117,131 |
Recurring | USDA Securities: | ||
Assets: | ||
Trading | 1,066 | 1,241 |
Recurring | Investment Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,007,787 | 4,918,931 |
Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,466,688 | 5,532,479 |
Recurring | Level 1 | ||
Assets: | ||
Financial derivatives | 680 | 11 |
Guarantee Asset | 0 | 0 |
Total Assets at fair value | 936,732 | 905,811 |
Liabilities: | ||
Financial derivatives | 0 | 91 |
Total Liabilities at fair value | 0 | 91 |
Recurring | Level 1 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
Recurring | Level 1 | Investment Securities | ||
Assets: | ||
Available-for-sale, at fair value | 936,052 | 905,800 |
Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Financial derivatives | 30,753 | 37,467 |
Guarantee Asset | 0 | 0 |
Total Assets at fair value | 4,083,207 | 4,031,516 |
Liabilities: | ||
Financial derivatives | 128,530 | 117,040 |
Total Liabilities at fair value | 128,530 | 117,040 |
Recurring | Level 2 | USDA Securities: | ||
Assets: | ||
Trading | 0 | 0 |
Recurring | Level 2 | Investment Securities | ||
Assets: | ||
Available-for-sale, at fair value | 4,052,454 | 3,994,049 |
Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | ||
Assets: | ||
Financial derivatives | 0 | 0 |
Guarantee Asset | 5,733 | 5,831 |
Total Assets at fair value | 5,492,768 | 5,558,633 |
Liabilities: | ||
Financial derivatives | 0 | 0 |
Total Liabilities at fair value | 0 | 0 |
Recurring | Level 3 | USDA Securities: | ||
Assets: | ||
Trading | 1,066 | 1,241 |
Recurring | Level 3 | Investment Securities | ||
Assets: | ||
Available-for-sale, at fair value | 19,281 | 19,082 |
Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,466,688 | 5,532,479 |
AgVantage | Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,457,197 | 5,522,712 |
AgVantage | Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
AgVantage | Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
AgVantage | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 5,457,197 | 5,522,712 |
Farmer Mac Guaranteed USDA Securities | Recurring | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 9,491 | 9,767 |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 1 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 2 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Assets: | ||
Available-for-sale, at fair value | 9,491 | 9,767 |
USDA Securities | Recurring | USDA Securities: | ||
Assets: | ||
Trading | 1,066 | 1,241 |
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 | 1,066 | 1,241 |
Floating interest rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 19,281 | 19,082 |
Floating interest rate | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 2,380,066 | 2,424,434 |
Floating interest rate | US Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 49,996 | 49,968 |
Floating interest rate | Recurring | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 19,281 | 19,082 |
Floating interest rate | Recurring | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 2,380,066 | 2,424,434 |
Floating interest rate | Recurring | Floating rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 49,996 | 49,968 |
Floating interest rate | Recurring | Level 1 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating interest rate | Recurring | Level 1 | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating interest rate | Recurring | Level 1 | Floating rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 49,996 | 49,968 |
Floating interest rate | Recurring | Level 2 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating interest rate | Recurring | Level 2 | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 2,380,066 | 2,424,434 |
Floating interest rate | Recurring | Level 2 | Floating rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating interest rate | Recurring | Level 3 | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Assets: | ||
Available-for-sale, at fair value | 19,281 | 19,082 |
Floating interest rate | Recurring | Level 3 | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Floating interest rate | Recurring | Level 3 | Floating rate U.S. Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,672,388 | 1,569,615 |
Fixed Interest Rate | US Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 886,056 | 855,832 |
Fixed Interest Rate | Recurring | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,672,388 | 1,569,615 |
Fixed Interest Rate | Recurring | US Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 886,056 | 855,832 |
Fixed Interest Rate | Recurring | Level 1 | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Recurring | Level 1 | US Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 886,056 | 855,832 |
Fixed Interest Rate | Recurring | Level 2 | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 1,672,388 | 1,569,615 |
Fixed Interest Rate | Recurring | Level 2 | US Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Recurring | Level 3 | Guaranteed mortgage-backed securities | ||
Assets: | ||
Available-for-sale, at fair value | 0 | 0 |
Fixed Interest Rate | Recurring | Level 3 | US Treasuries | ||
Assets: | ||
Available-for-sale, at fair value | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Sche_2
FAIR VALUE DISCLOSURES - Schedule of Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Income | Net Income |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Comprehensive Income (Loss), Net of Tax, Attributable to Parent | Comprehensive Income (Loss), Net of Tax, Attributable to Parent |
Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 5,558,633 | $ 7,632,487 |
Purchases | 50,000 | 687,650 |
Settlements | (64,391) | (142,437) |
Allowance for Losses | 28 | 36 |
Realized and unrealized losses included in Income | (80,708) | 93,701 |
Unrealized gains/(losses) included in Other Comprehensive Income | 29,206 | (20,977) |
Ending Balance | 5,492,768 | 8,250,460 |
Available-for-sale securities | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 19,082 | 19,027 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Allowance for Losses | 1 | 4 |
Realized and unrealized losses included in Income | 0 | 0 |
Unrealized gains/(losses) included in Other Comprehensive Income | 198 | 0 |
Ending Balance | 19,281 | 19,031 |
Floating rate auction-rate certificates backed by Government guaranteed student loans | Floating interest rate | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 19,082 | 19,027 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Allowance for Losses | 1 | 4 |
Realized and unrealized losses included in Income | 0 | 0 |
Unrealized gains/(losses) included in Other Comprehensive Income | 198 | 0 |
Ending Balance | 19,281 | 19,031 |
Farmer Mac Guaranteed Securities | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 5,532,479 | 7,607,226 |
Purchases | 50,000 | 687,650 |
Settlements | (64,132) | (141,819) |
Allowance for Losses | 27 | 32 |
Realized and unrealized losses included in Income | (80,694) | 93,342 |
Unrealized gains/(losses) included in Other Comprehensive Income | 29,008 | (20,977) |
Ending Balance | 5,466,688 | 8,225,454 |
Farmer Mac Guaranteed Securities | Level 3 | Recurring | AgVantage Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 5,522,712 | 7,599,379 |
Purchases | 50,000 | 687,650 |
Settlements | (63,955) | (141,386) |
Allowance for Losses | 27 | 32 |
Realized and unrealized losses included in Income | (80,694) | 93,342 |
Unrealized gains/(losses) included in Other Comprehensive Income | 29,107 | (21,597) |
Ending Balance | 5,457,197 | 8,217,420 |
Farmer Mac Guaranteed Securities | Level 3 | Recurring | Farmer Mac Guaranteed USDA Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 9,767 | 7,847 |
Purchases | 0 | 0 |
Settlements | (177) | (433) |
Allowance for Losses | 0 | 0 |
Realized and unrealized losses included in Income | 0 | 0 |
Unrealized gains/(losses) included in Other Comprehensive Income | (99) | 620 |
Ending Balance | 9,491 | 8,034 |
USDA Securities: | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,241 | 1,767 |
Purchases | 0 | 0 |
Settlements | (174) | (387) |
Allowance for Losses | 0 | 0 |
Realized and unrealized losses included in Income | (1) | 25 |
Unrealized gains/(losses) included in Other Comprehensive Income | 0 | 0 |
Ending Balance | 1,066 | 1,405 |
Guarantee and commitment obligations: | Level 3 | Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 5,831 | 4,467 |
Purchases | 0 | 0 |
Settlements | (85) | (231) |
Allowance for Losses | 0 | 0 |
Realized and unrealized losses included in Income | (13) | 334 |
Unrealized gains/(losses) included in Other Comprehensive Income | 0 | 0 |
Ending Balance | 5,733 | 4,570 |
Guarantee and commitment obligations: | Level 3 | Recurring | Guarantee Asset | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 5,831 | 4,467 |
Purchases | 0 | 0 |
Settlements | (85) | (231) |
Allowance for Losses | 0 | 0 |
Realized and unrealized losses included in Income | (13) | 334 |
Unrealized gains/(losses) included in Other Comprehensive Income | 0 | 0 |
Ending Balance | $ 5,733 | $ 4,570 |
FAIR VALUE DISCLOSURES - Quanti
FAIR VALUE DISCLOSURES - Quantitative Information (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | $ 5,466,688 | |
Floating interest rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 19,281 | $ 19,082 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Guarantee Asset | 5,733 | 5,831 |
Recurring | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 5,466,688 | 5,532,479 |
Recurring | Floating interest rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 19,281 | 19,082 |
Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Guarantee Asset | 5,733 | 5,831 |
Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 5,466,688 | 5,532,479 |
Recurring | Level 3 | Floating interest rate | Floating rate auction-rate certificates backed by Government guaranteed student loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 19,281 | 19,082 |
Farmer Mac Guaranteed Securities | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 9,500 | 9,800 |
USDA Securities: | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading | 1,066 | 1,241 |
USDA Securities: | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading | 1,066 | 1,241 |
AgVantage Securities | Recurring | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 5,457,197 | 5,522,712 |
AgVantage Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 5,457,197 | 5,522,712 |
Farmer Mac Guaranteed USDA Securities | Recurring | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 9,491 | 9,767 |
Farmer Mac Guaranteed USDA Securities | Recurring | Level 3 | Farmer Mac Guaranteed Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Available-for-sale, at fair value | 9,491 | 9,767 |
USDA Securities | USDA Securities: | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading | 1,066 | 1,241 |
USDA Securities | USDA Securities: | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Trading | $ 1,066 | $ 1,241 |
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 | 0.970 |
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 | 0.970 |
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 | 0.970 |
Discount rate | Discounted cash flow | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Guarantee asset, measurement input | 0.080 | |
Discount rate | 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 | 0.080 | |
Discount rate | Minimum | Discounted cash flow | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Guarantee asset, measurement input | 0.083 | |
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 | 0.050 | 0.047 |
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 | 0.083 | |
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 | 0.057 | 0.054 |
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 | 0.058 | 0.054 |
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 | 0.058 | 0.054 |
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 | 0.053 | 0.050 |
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 | 0.057 | 0.054 |
CPR | Discounted cash flow | Recurring | Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Guarantee asset, measurement input | 0.03 | 0.03 |
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 | 0.03 | 0.03 |
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 | 0.12 | 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 | 0.12 | 0.12 |
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 | 0.12 | 0.12 |
FAIR VALUE DISCLOSURES - Summar
FAIR VALUE DISCLOSURES - Summary of Carrying Value and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Financial derivatives | $ 31,433 | $ 37,478 |
Guarantee and commitment fees receivable | 48,130 | 49,832 |
Financial liabilities: | ||
Financial derivatives | 128,530 | 117,131 |
Guarantee and commitment obligation | 45,866 | 47,563 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 745,105 | 888,707 |
Loans | 10,632,530 | 10,426,021 |
Financial derivatives | 31,433 | 37,478 |
Guarantee and commitment fees receivable | 55,856 | 58,465 |
Financial liabilities: | ||
Notes payable | 25,825,161 | 25,670,971 |
Debt securities of consolidated trusts held by third parties | 1,244,879 | 1,268,563 |
Financial derivatives | 128,530 | 117,131 |
Guarantee and commitment obligation | 53,591 | 56,195 |
Fair Value | Investment Securities | ||
Financial assets: | ||
Marketable securities | 5,069,547 | 4,981,249 |
Fair Value | Farmer Mac Guaranteed Securities | ||
Financial assets: | ||
Marketable securities | 9,889,495 | 9,710,074 |
Fair Value | USDA Securities | ||
Financial assets: | ||
Marketable securities | 2,016,076 | 2,036,046 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 745,105 | 888,707 |
Loans | 11,233,071 | 11,039,349 |
Financial derivatives | 31,433 | 37,478 |
Guarantee and commitment fees receivable | 48,130 | 49,832 |
Financial liabilities: | ||
Notes payable | 26,509,011 | 26,336,542 |
Debt securities of consolidated trusts held by third parties | 1,325,289 | 1,351,069 |
Financial derivatives | 128,530 | 117,131 |
Guarantee and commitment obligation | 45,866 | 47,563 |
Carrying Amount | Investment Securities | ||
Financial assets: | ||
Marketable securities | 5,068,443 | 4,979,504 |
Carrying Amount | Farmer Mac Guaranteed Securities | ||
Financial assets: | ||
Marketable securities | 9,921,620 | 9,745,548 |
Carrying Amount | USDA Securities | ||
Financial assets: | ||
Marketable securities | $ 2,334,093 | $ 2,355,412 |
BUSINESS SEGMENT REPORTING (Det
BUSINESS SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 7 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | $ 86,368 | $ 79,058 | |
Guarantee and commitment fees | 3,917 | 3,933 | |
Other income/(expense) | 3,328 | 1,625 | |
Total revenues | 93,613 | 84,616 | |
Release of/(provision for) losses | 1,801 | (547) | |
Release of/(provision for) reserve for losses | 69 | (203) | |
Operating expenses | (27,237) | (23,713) | |
Total non-interest expense | (27,168) | (23,916) | |
Core earnings before income taxes | 68,246 | 60,153 | |
Income tax (expense)/benefit | (14,500) | (13,118) | |
Core earnings before preferred stock dividends | 53,746 | 47,035 | |
Preferred stock dividends | (6,791) | (6,791) | |
Segment core earnings/(losses) | 46,955 | 40,244 | |
Total Assets | 29,772,191 | 27,939,947 | $ 29,524,382 |
Total on- and off-balance sheet program assets at principal balance | 28,847,230 | 26,484,118 | |
Reconciling Adjustments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 0 | 0 | |
Less: reconciling adjustments | 3,324 | 1,885 | |
Net effective spread | 3,324 | 1,885 | |
Guarantee and commitment fees | (1,065) | (721) | |
Other income/(expense) | 2,251 | 558 | |
Total revenues | 4,510 | 1,722 | |
Release of/(provision for) losses | 0 | 0 | |
Release of/(provision for) reserve for losses | 0 | 0 | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 0 | 0 | |
Core earnings before income taxes | 4,510 | 1,722 | |
Income tax (expense)/benefit | (947) | (362) | |
Core earnings before preferred stock dividends | 3,563 | 1,360 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 3,563 | 1,360 | |
Total Assets | 0 | 0 | |
Total on- and off-balance sheet program assets at principal balance | $ 0 | 0 | |
Agricultural Finance | |||
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Release of/(provision for) reserve for losses | $ 64 | (577) | |
Farm & Ranch | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 33,889 | 33,511 | |
Less: reconciling adjustments | (1,046) | (1,046) | |
Net effective spread | 32,843 | 32,465 | |
Guarantee and commitment fees | 4,484 | 4,292 | |
Other income/(expense) | 995 | 1,067 | |
Total revenues | 38,322 | 37,824 | |
Release of/(provision for) losses | (561) | 128 | |
Release of/(provision for) reserve for losses | 64 | (577) | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 64 | (577) | |
Core earnings before income taxes | 37,825 | 37,375 | |
Income tax (expense)/benefit | (7,943) | (7,849) | |
Core earnings before preferred stock dividends | 29,882 | 29,526 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 29,882 | 29,526 | |
Total Assets | 15,240,436 | 14,549,275 | |
Total on- and off-balance sheet program assets at principal balance | 18,900,906 | 17,685,961 | |
Corporate AgFinance | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 7,971 | 7,148 | |
Less: reconciling adjustments | 0 | 0 | |
Net effective spread | 7,971 | 7,148 | |
Guarantee and commitment fees | 87 | 53 | |
Other income/(expense) | 12 | 0 | |
Total revenues | 8,070 | 7,201 | |
Release of/(provision for) losses | 378 | (4,301) | |
Release of/(provision for) reserve for losses | 0 | 0 | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 0 | 0 | |
Core earnings before income taxes | 8,448 | 2,900 | |
Income tax (expense)/benefit | (1,774) | (609) | |
Core earnings before preferred stock dividends | 6,674 | 2,291 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 6,674 | 2,291 | |
Total Assets | 1,637,460 | 1,515,976 | |
Total on- and off-balance sheet program assets at principal balance | 1,766,294 | 1,599,982 | |
Rural Infrastructure Finance | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Release of/(provision for) reserve for losses | 5 | 374 | |
Rural Utilities | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 7,265 | 5,540 | |
Less: reconciling adjustments | (33) | (33) | |
Net effective spread | 7,232 | 5,507 | |
Guarantee and commitment fees | 349 | 281 | |
Other income/(expense) | 0 | 0 | |
Total revenues | 7,581 | 5,788 | |
Release of/(provision for) losses | 3,017 | 3,484 | |
Release of/(provision for) reserve for losses | 5 | 374 | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 5 | 374 | |
Core earnings before income taxes | 10,603 | 9,646 | |
Income tax (expense)/benefit | (2,227) | (2,026) | |
Core earnings before preferred stock dividends | 8,376 | 7,620 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 8,376 | 7,620 | |
Total Assets | 7,003,165 | 6,444,264 | |
Total on- and off-balance sheet program assets at principal balance | 7,437,723 | 6,889,682 | |
Renewable Energy | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 2,049 | 858 | |
Less: reconciling adjustments | 0 | 0 | |
Net effective spread | 2,049 | 858 | |
Guarantee and commitment fees | 62 | 28 | |
Other income/(expense) | 0 | 0 | |
Total revenues | 2,111 | 886 | |
Release of/(provision for) losses | (1,034) | 138 | |
Release of/(provision for) reserve for losses | 0 | 0 | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 0 | 0 | |
Core earnings before income taxes | 1,077 | 1,024 | |
Income tax (expense)/benefit | (226) | (215) | |
Core earnings before preferred stock dividends | 851 | 809 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 851 | 809 | |
Total Assets | 578,709 | 286,824 | |
Total on- and off-balance sheet program assets at principal balance | 742,307 | 308,493 | |
Funding | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 34,719 | 32,544 | |
Less: reconciling adjustments | (2,245) | (806) | |
Net effective spread | 32,474 | 31,738 | |
Guarantee and commitment fees | 0 | 0 | |
Other income/(expense) | 0 | 0 | |
Total revenues | 32,474 | 31,738 | |
Release of/(provision for) losses | 0 | 0 | |
Release of/(provision for) reserve for losses | 0 | 0 | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 0 | 0 | |
Core earnings before income taxes | 32,474 | 31,738 | |
Income tax (expense)/benefit | (6,819) | (6,665) | |
Core earnings before preferred stock dividends | 25,655 | 25,073 | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 25,655 | 25,073 | |
Total Assets | 0 | 0 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | |
Investments | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 475 | (543) | |
Less: reconciling adjustments | 0 | 0 | |
Net effective spread | 475 | (543) | |
Guarantee and commitment fees | 0 | 0 | |
Other income/(expense) | 4 | 0 | |
Total revenues | 479 | (543) | |
Release of/(provision for) losses | 1 | 4 | |
Release of/(provision for) reserve for losses | 0 | 0 | |
Operating expenses | 0 | 0 | |
Total non-interest expense | 0 | 0 | |
Core earnings before income taxes | 480 | (539) | |
Income tax (expense)/benefit | (101) | 113 | |
Core earnings before preferred stock dividends | 379 | (426) | |
Preferred stock dividends | 0 | 0 | |
Segment core earnings/(losses) | 379 | (426) | |
Total Assets | 5,190,082 | 4,998,854 | |
Total on- and off-balance sheet program assets at principal balance | 0 | 0 | |
Corporate | Operating Segments | |||
Segment Reporting Information, Profit (Loss) [Abstract] | |||
Net interest income | 0 | 0 | |
Less: reconciling adjustments | 0 | 0 | |
Net effective spread | 0 | 0 | |
Guarantee and commitment fees | 0 | 0 | |
Other income/(expense) | 66 | 0 | |
Total revenues | 66 | 0 | |
Release of/(provision for) losses | 0 | 0 | |
Release of/(provision for) reserve for losses | 0 | 0 | |
Operating expenses | (27,237) | (23,713) | |
Total non-interest expense | (27,237) | (23,713) | |
Core earnings before income taxes | (27,171) | (23,713) | |
Income tax (expense)/benefit | 5,537 | 4,495 | |
Core earnings before preferred stock dividends | (21,634) | (19,218) | |
Preferred stock dividends | (6,791) | (6,791) | |
Segment core earnings/(losses) | (28,425) | (26,009) | |
Total Assets | 122,339 | 144,754 | |
Total on- and off-balance sheet program assets at principal balance | $ 0 | $ 0 |