FEDERAL AGRICULTURAL MORTGAGE CORPORATION
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(Exact name of registrant as specified in its charter)
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Federally chartered instrumentality
of the United States
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52-1578738
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. employer identification number)
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1999 K Street, N.W., 4th Floor,
Washington, D.C.
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20006
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(Address of principal executive offices)
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(Zip code)
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(202) 872-7700
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(Registrant's telephone number, including area code)
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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
Smaller reporting company
|
o
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Emerging growth company
|
o
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PART I
- Financial Information
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Item 1.
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Financial Statements
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As of
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||||||
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September 30, 2018
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|
December 31, 2017
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||||
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(in thousands)
|
||||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
436,152
|
|
|
$
|
302,022
|
|
Investment securities:
|
|
|
|
|
|
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Available-for-sale, at fair value
|
2,224,002
|
|
|
2,215,405
|
|
||
Held-to-maturity, at amortized cost
|
45,032
|
|
|
45,032
|
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||
Total Investment Securities
|
2,269,034
|
|
|
2,260,437
|
|
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Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
||
Available-for-sale, at fair value
|
5,957,304
|
|
|
5,471,914
|
|
||
Held-to-maturity, at amortized cost
|
2,067,307
|
|
|
2,126,274
|
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||
Total Farmer Mac Guaranteed Securities
|
8,024,611
|
|
|
7,598,188
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USDA Securities:
|
|
|
|
|
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Trading, at fair value
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10,237
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|
|
13,515
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|
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Held-to-maturity, at amortized cost
|
2,143,874
|
|
|
2,117,850
|
|
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Total USDA Securities
|
2,154,111
|
|
|
2,131,365
|
|
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Loans:
|
|
|
|
|
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Loans held for investment, at amortized cost
|
3,884,636
|
|
|
3,873,755
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|
||
Loans held for investment in consolidated trusts, at amortized cost
|
1,483,135
|
|
|
1,399,827
|
|
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Allowance for loan losses
|
(6,871
|
)
|
|
(6,796
|
)
|
||
Total loans, net of allowance
|
5,360,900
|
|
|
5,266,786
|
|
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Real estate owned, at lower of cost or fair value
|
128
|
|
|
139
|
|
||
Financial derivatives, at fair value
|
8,007
|
|
|
7,093
|
|
||
Interest receivable (includes $12,446 and $17,373, respectively, related to consolidated trusts)
|
135,677
|
|
|
155,278
|
|
||
Guarantee and commitment fees receivable
|
40,178
|
|
|
39,895
|
|
||
Deferred tax asset, net
|
—
|
|
|
2,048
|
|
||
Prepaid expenses and other assets
|
45,236
|
|
|
29,023
|
|
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Total Assets
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$
|
18,474,034
|
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$
|
17,792,274
|
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Liabilities and Equity:
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Liabilities:
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Notes payable:
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|
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Due within one year
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$
|
7,378,927
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|
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$
|
8,089,826
|
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Due after one year
|
8,419,424
|
|
|
7,432,790
|
|
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Total notes payable
|
15,798,351
|
|
|
15,522,616
|
|
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Debt securities of consolidated trusts held by third parties
|
1,486,733
|
|
|
1,404,945
|
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Financial derivatives, at fair value
|
17,841
|
|
|
26,599
|
|
||
Accrued interest payable (includes $10,507 and $14,631, respectively, related to consolidated trusts)
|
87,435
|
|
|
75,402
|
|
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Guarantee and commitment obligation
|
38,597
|
|
|
38,400
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|
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Accounts payable and accrued expenses
|
260,753
|
|
|
14,096
|
|
||
Deferred tax liability, net
|
4,586
|
|
|
—
|
|
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Reserve for losses
|
2,147
|
|
|
2,070
|
|
||
Total Liabilities
|
17,696,443
|
|
|
17,084,128
|
|
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Commitments and Contingencies (Note 6)
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Equity:
|
|
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Preferred stock:
|
|
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|
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Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding
|
58,333
|
|
|
58,333
|
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Series B, par value $25 per share, 3,000,000 shares authorized, issued and outstanding
|
73,044
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73,044
|
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Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding
|
73,382
|
|
|
73,382
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Common stock:
|
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Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding
|
1,031
|
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|
1,031
|
|
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Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding
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500
|
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|
500
|
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Class C Non-Voting, $1 par value, no maximum authorization, 9,137,500 shares and 9,087,670 shares outstanding, respectively
|
9,138
|
|
|
9,088
|
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Additional paid-in capital
|
118,183
|
|
|
118,979
|
|
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Accumulated other comprehensive income, net of tax
|
64,001
|
|
|
51,085
|
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Retained earnings
|
379,979
|
|
|
322,704
|
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Total Equity
|
777,591
|
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|
708,146
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Total Liabilities and Equity
|
$
|
18,474,034
|
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$
|
17,792,274
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For the Three Months Ended
|
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For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
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(in thousands, except per share amounts)
|
||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Investments and cash equivalents
|
$
|
15,123
|
|
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$
|
9,223
|
|
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$
|
38,681
|
|
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$
|
24,834
|
|
Farmer Mac Guaranteed Securities and USDA Securities
|
76,870
|
|
|
54,350
|
|
|
213,479
|
|
|
146,978
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Loans
|
50,622
|
|
|
40,924
|
|
|
145,671
|
|
|
117,349
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|
||||
Total interest income
|
142,615
|
|
|
104,497
|
|
|
397,831
|
|
|
289,161
|
|
||||
Total interest expense
|
97,557
|
|
|
64,935
|
|
|
265,611
|
|
|
172,797
|
|
||||
Net interest income
|
45,058
|
|
|
39,562
|
|
|
132,220
|
|
|
116,364
|
|
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Provision for loan losses
|
(99
|
)
|
|
(270
|
)
|
|
(92
|
)
|
|
(1,234
|
)
|
||||
Net interest income after provision for loan losses
|
44,959
|
|
|
39,292
|
|
|
132,128
|
|
|
115,130
|
|
||||
Non-interest income:
|
|
|
|
|
|
|
|
||||||||
Guarantee and commitment fees
|
3,490
|
|
|
3,314
|
|
|
10,470
|
|
|
10,630
|
|
||||
Gains/(losses) on financial derivatives and hedging activities
|
628
|
|
|
661
|
|
|
(688
|
)
|
|
2,530
|
|
||||
(Losses)/gains on trading securities
|
(3
|
)
|
|
—
|
|
|
24
|
|
|
(84
|
)
|
||||
Gains on sale of available-for-sale investment securities
|
—
|
|
|
89
|
|
|
—
|
|
|
89
|
|
||||
(Losses)/gains on sale of real estate owned
|
(41
|
)
|
|
32
|
|
|
(7
|
)
|
|
784
|
|
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Other income
|
365
|
|
|
203
|
|
|
1,259
|
|
|
890
|
|
||||
Non-interest income
|
4,439
|
|
|
4,299
|
|
|
11,058
|
|
|
14,839
|
|
||||
Non-interest expense:
|
|
|
|
|
|
|
|
||||||||
Compensation and employee benefits
|
6,777
|
|
|
5,987
|
|
|
20,367
|
|
|
18,986
|
|
||||
General and administrative
|
4,350
|
|
|
3,890
|
|
|
13,878
|
|
|
11,611
|
|
||||
Regulatory fees
|
625
|
|
|
625
|
|
|
1,875
|
|
|
1,875
|
|
||||
Real estate owned operating costs, net
|
—
|
|
|
—
|
|
|
16
|
|
|
23
|
|
||||
(Release of)/provision for reserve for losses
|
(102
|
)
|
|
114
|
|
|
77
|
|
|
60
|
|
||||
Non-interest expense
|
11,650
|
|
|
10,616
|
|
|
36,213
|
|
|
32,555
|
|
||||
Income before income taxes
|
37,748
|
|
|
32,975
|
|
|
106,973
|
|
|
97,414
|
|
||||
Income tax expense
|
7,979
|
|
|
11,193
|
|
|
21,749
|
|
|
33,103
|
|
||||
Net income
|
29,769
|
|
|
21,782
|
|
|
85,224
|
|
|
64,311
|
|
||||
Less: Net loss attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
||||
Net income attributable to Farmer Mac
|
29,769
|
|
|
21,782
|
|
|
85,224
|
|
|
64,476
|
|
||||
Preferred stock dividends
|
(3,295
|
)
|
|
(3,295
|
)
|
|
(9,886
|
)
|
|
(9,886
|
)
|
||||
Net income attributable to common stockholders
|
$
|
26,474
|
|
|
$
|
18,487
|
|
|
$
|
75,338
|
|
|
$
|
54,590
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share and dividends:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
2.48
|
|
|
$
|
1.74
|
|
|
$
|
7.07
|
|
|
$
|
5.16
|
|
Diluted earnings per common share
|
$
|
2.46
|
|
|
$
|
1.71
|
|
|
$
|
7.01
|
|
|
$
|
5.06
|
|
Common stock dividends per common share
|
$
|
0.58
|
|
|
$
|
0.36
|
|
|
$
|
1.74
|
|
|
$
|
1.08
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Net income
|
$
|
29,769
|
|
|
$
|
21,782
|
|
|
$
|
85,224
|
|
|
$
|
64,311
|
|
Other comprehensive income before taxes:
|
|
|
|
|
|
|
|
||||||||
Net unrealized (losses)/gains on available-for-sale securities
|
(13,546
|
)
|
|
(886
|
)
|
|
8,678
|
|
|
19,283
|
|
||||
Net changes in held-to-maturity securities
|
(1,544
|
)
|
|
(1,879
|
)
|
|
(4,400
|
)
|
|
(7,491
|
)
|
||||
Net unrealized gains/(losses) on cash flow hedges
|
3,181
|
|
|
253
|
|
|
12,038
|
|
|
(966
|
)
|
||||
Other comprehensive (loss)/income before tax
|
(11,909
|
)
|
|
(2,512
|
)
|
|
16,316
|
|
|
10,826
|
|
||||
Income tax expense related to other comprehensive (loss)/income
|
2,500
|
|
|
879
|
|
|
(3,427
|
)
|
|
(3,789
|
)
|
||||
Other comprehensive (loss)/income net of tax
|
(9,409
|
)
|
|
(1,633
|
)
|
|
12,889
|
|
|
7,037
|
|
||||
Comprehensive income
|
20,360
|
|
|
20,149
|
|
|
98,113
|
|
|
71,348
|
|
||||
Less: comprehensive loss attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
||||
Comprehensive income attributable to Farmer Mac
|
$
|
20,360
|
|
|
$
|
20,149
|
|
|
$
|
98,113
|
|
|
$
|
71,513
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
Additional
|
|
Other
|
|
|
|
|
|
|
||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Paid-In
|
|
Comprehensive
|
|
Retained
|
|
Non-controlling
|
|
Total
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income/(Loss)
|
|
Earnings
|
|
Interest
|
|
Equity
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||||
Balance as of December 31, 2016
|
8,400
|
|
|
$
|
204,759
|
|
|
10,539
|
|
|
$
|
10,539
|
|
|
$
|
118,655
|
|
|
$
|
33,758
|
|
|
$
|
275,714
|
|
|
$
|
222
|
|
|
$
|
643,647
|
|
Net income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Attributable to Farmer Mac
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,476
|
|
|
—
|
|
|
64,476
|
|
|||||||
Attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(165
|
)
|
|
(165
|
)
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,037
|
|
|
—
|
|
|
—
|
|
|
7,037
|
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,886
|
)
|
|
—
|
|
|
(9,886
|
)
|
|||||||
Common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,435
|
)
|
|
—
|
|
|
(11,435
|
)
|
|||||||
Issuance of Class C Common Stock
|
—
|
|
|
—
|
|
|
74
|
|
|
74
|
|
|
228
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
302
|
|
|||||||
Stock-based compensation cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,597
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,597
|
|
|||||||
Other stock-based award activity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,350
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,350
|
)
|
|||||||
Redemption of interest in subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|
(57
|
)
|
|||||||
Balance as of September 30, 2017
|
8,400
|
|
|
$
|
204,759
|
|
|
10,613
|
|
|
$
|
10,613
|
|
|
$
|
119,130
|
|
|
$
|
40,795
|
|
|
$
|
318,869
|
|
|
$
|
—
|
|
|
$
|
694,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance as of December 31, 2017
|
8,400
|
|
|
$
|
204,759
|
|
|
10,619
|
|
|
$
|
10,619
|
|
|
$
|
118,979
|
|
|
$
|
51,085
|
|
|
$
|
322,704
|
|
|
$
|
—
|
|
|
$
|
708,146
|
|
Cumulative effect from change in hedge accounting
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
471
|
|
|
—
|
|
|
498
|
|
|||||||
Balance as of January 1, 2018
|
8,400
|
|
|
$
|
204,759
|
|
|
10,619
|
|
|
$
|
10,619
|
|
|
$
|
118,979
|
|
|
$
|
51,112
|
|
|
$
|
323,175
|
|
|
$
|
—
|
|
|
$
|
708,644
|
|
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Attributable to Farmer Mac
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,224
|
|
|
—
|
|
|
85,224
|
|
|||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,889
|
|
|
—
|
|
|
—
|
|
|
12,889
|
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,886
|
)
|
|
—
|
|
|
(9,886
|
)
|
|||||||
Common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,534
|
)
|
|
—
|
|
|
(18,534
|
)
|
|||||||
Issuance of Class C Common Stock
|
—
|
|
|
—
|
|
|
50
|
|
|
50
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|||||||
Stock-based compensation cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,882
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,882
|
|
|||||||
Other stock-based award activity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,685
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,685
|
)
|
|||||||
Balance as of September 30, 2018
|
8,400
|
|
|
$
|
204,759
|
|
|
10,669
|
|
|
$
|
10,669
|
|
|
$
|
118,183
|
|
|
$
|
64,001
|
|
|
$
|
379,979
|
|
|
$
|
—
|
|
|
$
|
777,591
|
|
|
For the Nine Months Ended
|
||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||
|
(in thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
85,224
|
|
|
$
|
64,311
|
|
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
|
713
|
|
|
1,701
|
|
||
Amortization of debt premiums, discounts and issuance costs
|
21,744
|
|
|
17,078
|
|
||
Net change in fair value of trading securities, hedged assets, and financial derivatives
|
42,054
|
|
|
(12,232
|
)
|
||
Losses/(gains) on sale of real estate owned
|
7
|
|
|
(784
|
)
|
||
Total provision for losses
|
169
|
|
|
1,294
|
|
||
Excess tax benefits related to stock-based awards
|
1,105
|
|
|
1,170
|
|
||
Deferred income taxes
|
1,750
|
|
|
1,910
|
|
||
Other
|
—
|
|
|
11
|
|
||
Stock-based compensation expense
|
1,882
|
|
|
2,597
|
|
||
Proceeds from repayment of loans purchased as held for sale
|
76,259
|
|
|
54,919
|
|
||
Net change in:
|
|
|
|
||||
Interest receivable
|
18,537
|
|
|
12,678
|
|
||
Guarantee and commitment fees receivable
|
(86
|
)
|
|
226
|
|
||
Other assets
|
(7,268
|
)
|
|
(109
|
)
|
||
Accrued interest payable
|
12,033
|
|
|
12,104
|
|
||
Other liabilities
|
(1,898
|
)
|
|
435
|
|
||
Net cash provided by operating activities
|
252,225
|
|
|
157,309
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of available-for-sale investment securities
|
(833,650
|
)
|
|
(614,423
|
)
|
||
Purchases of Farmer Mac Guaranteed Securities and USDA Securities
|
(2,544,812
|
)
|
|
(2,580,229
|
)
|
||
Purchases of loans held for investment
|
(684,486
|
)
|
|
(1,047,001
|
)
|
||
Purchases of defaulted loans
|
(7,756
|
)
|
|
(3,458
|
)
|
||
Proceeds from repayment of available-for-sale investment securities
|
814,712
|
|
|
895,497
|
|
||
Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities
|
2,201,723
|
|
|
787,743
|
|
||
Proceeds from repayment of loans purchased as held for investment
|
508,969
|
|
|
368,826
|
|
||
Proceeds from sale of available-for-sale investment securities
|
—
|
|
|
5,089
|
|
||
Proceeds from sale of Farmer Mac Guaranteed Securities
|
305,391
|
|
|
404,246
|
|
||
Proceeds from sale of real estate owned
|
116
|
|
|
6,464
|
|
||
Net cash used by investing activities
|
(239,793
|
)
|
|
(1,777,246
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Proceeds from issuance of discount notes
|
30,946,426
|
|
|
40,262,122
|
|
||
Proceeds from issuance of medium-term notes
|
6,109,613
|
|
|
7,160,298
|
|
||
Payments to redeem discount notes
|
(31,530,896
|
)
|
|
(42,174,697
|
)
|
||
Payments to redeem medium-term notes
|
(5,254,430
|
)
|
|
(3,416,300
|
)
|
||
Payments to third parties on debt securities of consolidated trusts
|
(117,966
|
)
|
|
(86,582
|
)
|
||
Proceeds from common stock issuance
|
7
|
|
|
235
|
|
||
Tax payments related to share-based awards
|
(2,635
|
)
|
|
(2,283
|
)
|
||
Dividends paid on common and preferred stock
|
(28,421
|
)
|
|
(21,321
|
)
|
||
Net cash provided by financing activities
|
121,698
|
|
|
1,721,472
|
|
||
Net increase in cash and cash equivalents
|
134,130
|
|
|
101,535
|
|
||
Cash and cash equivalents at beginning of period
|
302,022
|
|
|
265,229
|
|
||
Cash and cash equivalents at end of period
|
$
|
436,152
|
|
|
$
|
366,764
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
Consolidation of Variable Interest Entities
|
||||||||||||||||||||||
|
As of September 30, 2018
|
||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural Utilities
|
|
Institutional Credit
|
|
Corporate
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
On-Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated VIEs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment in consolidated trusts, at amortized cost
|
$
|
1,483,135
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,483,135
|
|
Debt securities of consolidated trusts held by third parties
(1)
|
1,486,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,486,733
|
|
||||||
Unconsolidated VIEs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Carrying value
(2)
|
—
|
|
|
28,117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,117
|
|
||||||
Maximum exposure to loss
(3)
|
—
|
|
|
27,861
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,861
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Carrying value
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
924,099
|
|
|
924,099
|
|
||||||
Maximum exposure to loss
(3) (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
924,494
|
|
|
924,494
|
|
||||||
Off-Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unconsolidated VIEs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maximum exposure to loss
(3) (5)
|
287,594
|
|
|
346,689
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
634,283
|
|
(1)
|
Includes borrower remittances of
$3.6 million
. The borrower remittances had not been passed through to third party investors as of
September 30, 2018
.
|
(2)
|
Includes
$0.3 million
of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.
|
(3)
|
Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.
|
(4)
|
Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.
|
(5)
|
The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.
|
|
Consolidation of Variable Interest Entities
|
||||||||||||||||||||||
|
As of December 31, 2017
|
||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural Utilities
|
|
Institutional Credit
|
|
Corporate
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
On-Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated VIEs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment in consolidated trusts, at amortized cost
|
$
|
1,399,827
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,399,827
|
|
Debt securities of consolidated trusts held by third parties
(1)
|
1,404,945
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,404,945
|
|
||||||
Unconsolidated VIEs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Carrying value
(2)
|
—
|
|
|
30,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,300
|
|
||||||
Maximum exposure to loss
(3)
|
—
|
|
|
29,980
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,980
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Carrying value
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
783,964
|
|
|
783,964
|
|
||||||
Maximum exposure to loss
(3) (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
783,916
|
|
|
783,916
|
|
||||||
Off-Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unconsolidated VIEs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maximum exposure to loss
(3) (5)
|
333,511
|
|
|
254,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
587,728
|
|
(1)
|
Includes borrower remittances of
$5.1 million
, which have not been passed through to third party investors as of December 31, 2017.
|
(2)
|
Includes
$0.3 million
of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.
|
(3)
|
Farmer Mac uses unpaid principal balance and the outstanding face amount of investment securities to represent maximum exposure to loss.
|
(4)
|
Includes auction-rate certificates, asset-backed securities, and GSE-guaranteed mortgage-backed securities.
|
(5)
|
The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.
|
(a)
|
Statements of Cash Flows
|
|
For the Nine Months Ended
|
||||
|
September 30, 2018
|
|
September 30, 2017
|
||
|
(in thousands)
|
||||
Non-cash activity:
|
|
|
|
||
Real estate owned acquired through loan liquidation
|
128
|
|
|
5,261
|
|
Loans acquired and securitized as Farmer Mac Guaranteed Securities
|
305,391
|
|
|
404,246
|
|
Consolidation of Farm & Ranch Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties
|
199,764
|
|
|
277,307
|
|
Purchases of securities - traded not yet settled
|
248,600
|
|
|
9,987
|
|
(b)
|
Earnings Per Common Share
|
|
For the Three Months Ended
|
||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||
|
Net
Income |
|
Weighted-Average Shares
|
|
$ per
Share |
|
Net
Income |
|
Weighted-Average Shares
|
|
$ per
Share |
||||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||||||||
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders
|
$
|
26,474
|
|
|
10,668
|
|
|
$
|
2.48
|
|
|
$
|
18,487
|
|
|
10,605
|
|
|
$
|
1.74
|
|
Effect of dilutive securities
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Stock options, SARs and restricted stock
|
—
|
|
|
76
|
|
|
(0.02
|
)
|
|
—
|
|
|
210
|
|
|
(0.03
|
)
|
||||
Diluted EPS
|
$
|
26,474
|
|
|
10,744
|
|
|
$
|
2.46
|
|
|
$
|
18,487
|
|
|
10,815
|
|
|
$
|
1.71
|
|
(1)
|
For the three months ended September 30, 2018,
10,122
SARs were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive, compared to
24,657
stock options and SARs for the three months ended September 30, 2017. For the three months ended September 30, 2018 and 2017, contingent shares of non-vested restricted stock of
13,138
and
32,892
, 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.
|
|
For the Nine Months Ended
|
||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||
|
Net
Income |
|
Weighted-Average Shares
|
|
$ per
Share |
|
Net
Income |
|
Weighted-Average Shares
|
|
$ per
Share |
||||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||||||||
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders
|
$
|
75,338
|
|
|
10,650
|
|
|
$
|
7.07
|
|
|
$
|
54,590
|
|
|
10,586
|
|
|
$
|
5.16
|
|
Effect of dilutive securities
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock options, SARs and restricted stock
|
—
|
|
|
93
|
|
|
(0.06
|
)
|
|
—
|
|
|
208
|
|
|
(0.10
|
)
|
||||
Diluted EPS
|
$
|
75,338
|
|
|
10,743
|
|
|
$
|
7.01
|
|
|
$
|
54,590
|
|
|
10,794
|
|
|
$
|
5.06
|
|
(1)
|
For the nine months ended September 30, 2018,
15,437
SARs were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive, compared to
33,440
stock options and SARs for the nine months ended September 30, 2017. For the nine months ended September 30, 2018 and 2017, contingent shares of non-vested restricted stock of
13,138
and
32,892
, 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.
|
(c)
|
Comprehensive Income
|
|
As of September 30, 2018
|
|
As of September 30, 2017
|
||||||||||||||||||||||||||||
|
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
|
$
|
15,882
|
|
|
$
|
45,979
|
|
|
$
|
11,549
|
|
|
$
|
73,410
|
|
|
$
|
(1,276
|
)
|
|
$
|
42,104
|
|
|
$
|
1,600
|
|
|
$
|
42,428
|
|
Other comprehensive (loss)/income before reclassifications
|
(9,947
|
)
|
|
—
|
|
|
2,662
|
|
|
(7,285
|
)
|
|
2,298
|
|
|
—
|
|
|
(97
|
)
|
|
2,201
|
|
||||||||
Amounts reclassified from AOCI
|
(755
|
)
|
|
(1,220
|
)
|
|
(149
|
)
|
|
(2,124
|
)
|
|
(2,875
|
)
|
|
(1,221
|
)
|
|
262
|
|
|
(3,834
|
)
|
||||||||
Net comprehensive (loss)/income
|
(10,702
|
)
|
|
(1,220
|
)
|
|
2,513
|
|
|
(9,409
|
)
|
|
(577
|
)
|
|
(1,221
|
)
|
|
165
|
|
|
(1,633
|
)
|
||||||||
Ending Balance
|
$
|
5,180
|
|
|
$
|
44,759
|
|
|
$
|
14,062
|
|
|
$
|
64,001
|
|
|
$
|
(1,853
|
)
|
|
$
|
40,883
|
|
|
$
|
1,765
|
|
|
$
|
40,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning Balance
|
$
|
(1,676
|
)
|
|
$
|
48,236
|
|
|
$
|
4,525
|
|
|
$
|
51,085
|
|
|
$
|
(14,387
|
)
|
|
$
|
45,752
|
|
|
$
|
2,393
|
|
|
$
|
33,758
|
|
Cumulative effect from change in hedge accounting
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Adjusted Beginning Balance
|
(1,676
|
)
|
|
48,236
|
|
|
4,552
|
|
|
51,112
|
|
|
(14,387
|
)
|
|
45,752
|
|
|
2,393
|
|
|
33,758
|
|
||||||||
Other comprehensive income/(loss) before reclassifications
|
10,450
|
|
|
—
|
|
|
9,493
|
|
|
19,943
|
|
|
20,711
|
|
|
—
|
|
|
(1,522
|
)
|
|
19,189
|
|
||||||||
Amounts reclassified from AOCI
|
(3,594
|
)
|
|
(3,477
|
)
|
|
17
|
|
|
(7,054
|
)
|
|
(8,177
|
)
|
|
(4,869
|
)
|
|
894
|
|
|
(12,152
|
)
|
||||||||
Net comprehensive income/(loss)
|
6,856
|
|
|
(3,477
|
)
|
|
9,510
|
|
|
12,889
|
|
|
12,534
|
|
|
(4,869
|
)
|
|
(628
|
)
|
|
7,037
|
|
||||||||
Ending Balance
|
$
|
5,180
|
|
|
$
|
44,759
|
|
|
$
|
14,062
|
|
|
$
|
64,001
|
|
|
$
|
(1,853
|
)
|
|
$
|
40,883
|
|
|
$
|
1,765
|
|
|
$
|
40,795
|
|
|
For the Three Months Ended
|
||||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||||
|
Before Tax
|
|
Provision (Benefit)
|
|
After Tax
|
|
Before Tax
|
|
Provision (Benefit)
|
|
After Tax
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale-securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized holding (losses)/gains on available-for-sale-securities
|
$
|
(12,590
|
)
|
|
$
|
(2,643
|
)
|
|
$
|
(9,947
|
)
|
|
$
|
3,536
|
|
|
$
|
1,238
|
|
|
$
|
2,298
|
|
Less reclassification adjustments included in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Interest Income
(1)
|
(946
|
)
|
|
(199
|
)
|
|
(747
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gains/(losses) on financial derivatives and hedging activities
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,326
|
)
|
|
(1,514
|
)
|
|
(2,812
|
)
|
||||||
Gains on sale of available-for-sale investment securities
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
(31
|
)
|
|
(58
|
)
|
||||||
Other income
(2)
|
(10
|
)
|
|
(2
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|
(2
|
)
|
|
(5
|
)
|
||||||
Total
|
$
|
(13,546
|
)
|
|
$
|
(2,844
|
)
|
|
$
|
(10,702
|
)
|
|
$
|
(886
|
)
|
|
$
|
(309
|
)
|
|
$
|
(577
|
)
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less reclassification adjustments included in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
(3)
|
(1,544
|
)
|
|
(324
|
)
|
|
(1,220
|
)
|
|
(1,879
|
)
|
|
(658
|
)
|
|
(1,221
|
)
|
||||||
Total
|
$
|
(1,544
|
)
|
|
$
|
(324
|
)
|
|
$
|
(1,220
|
)
|
|
$
|
(1,879
|
)
|
|
$
|
(658
|
)
|
|
$
|
(1,221
|
)
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gains/(losses) on cash flow hedges
|
$
|
3,370
|
|
|
$
|
708
|
|
|
$
|
2,662
|
|
|
$
|
(150
|
)
|
|
$
|
(53
|
)
|
|
$
|
(97
|
)
|
Less reclassification adjustments included in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
(4)
|
(189
|
)
|
|
(40
|
)
|
|
(149
|
)
|
|
403
|
|
|
141
|
|
|
262
|
|
||||||
Total
|
$
|
3,181
|
|
|
$
|
668
|
|
|
$
|
2,513
|
|
|
$
|
253
|
|
|
$
|
88
|
|
|
$
|
165
|
|
Other comprehensive (loss)/income
|
$
|
(11,909
|
)
|
|
$
|
(2,500
|
)
|
|
$
|
(9,409
|
)
|
|
$
|
(2,512
|
)
|
|
$
|
(879
|
)
|
|
$
|
(1,633
|
)
|
(1)
|
Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.
|
(2)
|
Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.
|
(3)
|
Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.
|
(4)
|
Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.
|
|
For the Nine Months Ended
|
||||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||||
|
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
|
$
|
13,227
|
|
|
$
|
2,777
|
|
|
$
|
10,450
|
|
|
$
|
31,863
|
|
|
$
|
11,152
|
|
|
$
|
20,711
|
|
Less reclassification adjustments included in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Interest Income
(1)
|
(4,523
|
)
|
|
(949
|
)
|
|
(3,574
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gains/(losses) on financial derivatives and hedging activities
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,470
|
)
|
|
(4,365
|
)
|
|
(8,105
|
)
|
||||||
Gains on sale of available-for-sale investment securities
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
(31
|
)
|
|
(58
|
)
|
||||||
Other income
(2)
|
(26
|
)
|
|
(6
|
)
|
|
(20
|
)
|
|
(21
|
)
|
|
(7
|
)
|
|
(14
|
)
|
||||||
Total
|
$
|
8,678
|
|
|
$
|
1,822
|
|
|
$
|
6,856
|
|
|
$
|
19,283
|
|
|
$
|
6,749
|
|
|
$
|
12,534
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less reclassification adjustments included in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
(3)
|
(4,400
|
)
|
|
(923
|
)
|
|
(3,477
|
)
|
|
(7,491
|
)
|
|
(2,622
|
)
|
|
(4,869
|
)
|
||||||
Total
|
$
|
(4,400
|
)
|
|
$
|
(923
|
)
|
|
$
|
(3,477
|
)
|
|
$
|
(7,491
|
)
|
|
$
|
(2,622
|
)
|
|
$
|
(4,869
|
)
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized gains/(losses) on cash flow hedges
|
$
|
12,017
|
|
|
$
|
2,524
|
|
|
$
|
9,493
|
|
|
$
|
(2,342
|
)
|
|
$
|
(820
|
)
|
|
$
|
(1,522
|
)
|
Less reclassification adjustments included in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
(4)
|
21
|
|
|
4
|
|
|
17
|
|
|
1,376
|
|
|
482
|
|
|
894
|
|
||||||
Total
|
$
|
12,038
|
|
|
$
|
2,528
|
|
|
$
|
9,510
|
|
|
$
|
(966
|
)
|
|
$
|
(338
|
)
|
|
$
|
(628
|
)
|
Other comprehensive income
|
$
|
16,316
|
|
|
$
|
3,427
|
|
|
$
|
12,889
|
|
|
$
|
10,826
|
|
|
$
|
3,789
|
|
|
$
|
7,037
|
|
(1)
|
Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.
|
(2)
|
Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.
|
(3)
|
Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.
|
(4)
|
Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.
|
(e)
|
Reclassifications
|
2.
|
INVESTMENT SECURITIES
|
|
As of September 30, 2018
|
||||||||||||||||||||||
|
Amount Outstanding
|
|
Unamortized Premium/(Discount)
|
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair Value
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
19,700
|
|
|
$
|
—
|
|
|
$
|
19,700
|
|
|
$
|
—
|
|
|
$
|
(739
|
)
|
|
$
|
18,961
|
|
Floating rate asset-backed securities
|
30,266
|
|
|
(143
|
)
|
|
30,123
|
|
|
18
|
|
|
(85
|
)
|
|
30,056
|
|
||||||
Floating rate Government/GSE guaranteed mortgage-backed securities
|
1,336,138
|
|
|
1,616
|
|
|
1,337,754
|
|
|
1,196
|
|
|
(2,476
|
)
|
|
1,336,474
|
|
||||||
Fixed rate GSE guaranteed mortgage-backed securities
(1)
|
400
|
|
|
—
|
|
|
400
|
|
|
22
|
|
|
—
|
|
|
422
|
|
||||||
Fixed rate U.S. Treasuries
|
843,362
|
|
|
(4,031
|
)
|
|
839,331
|
|
|
—
|
|
|
(1,242
|
)
|
|
838,089
|
|
||||||
Total available-for-sale
|
2,229,866
|
|
|
(2,558
|
)
|
|
2,227,308
|
|
|
1,236
|
|
|
(4,542
|
)
|
|
2,224,002
|
|
||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed rate Government/GSE guaranteed mortgage-backed securities
|
45,032
|
|
|
—
|
|
|
45,032
|
|
|
843
|
|
|
—
|
|
|
45,875
|
|
||||||
Total investment securities
|
$
|
2,274,898
|
|
|
$
|
(2,558
|
)
|
|
$
|
2,272,340
|
|
|
$
|
2,079
|
|
|
$
|
(4,542
|
)
|
|
$
|
2,269,877
|
|
(1)
|
During second quarter 2018, the remaining premium of an interest-only security was fully amortized because the issuer called the security upon full prepayment of the underlying mortgage loan that collateralized the security.
|
|
As of December 31, 2017
|
||||||||||||||||||||||
|
Amount Outstanding
|
|
Unamortized Premium/(Discount)
|
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair Value
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
19,700
|
|
|
$
|
—
|
|
|
$
|
19,700
|
|
|
$
|
—
|
|
|
$
|
(886
|
)
|
|
$
|
18,814
|
|
Floating rate asset-backed securities
|
34,462
|
|
|
(154
|
)
|
|
34,308
|
|
|
22
|
|
|
(120
|
)
|
|
34,210
|
|
||||||
Floating rate Government/GSE guaranteed mortgage-backed securities
|
1,289,123
|
|
|
2,217
|
|
|
1,291,340
|
|
|
2,215
|
|
|
(3,368
|
)
|
|
1,290,187
|
|
||||||
Fixed rate GSE guaranteed mortgage-backed securities
(1)
|
451
|
|
|
2,138
|
|
|
2,589
|
|
|
2,230
|
|
|
—
|
|
|
4,819
|
|
||||||
Fixed rate senior agency debt
|
100,000
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
|
(49
|
)
|
|
99,951
|
|
||||||
Fixed rate U.S. Treasuries
|
770,852
|
|
|
(1,836
|
)
|
|
769,016
|
|
|
—
|
|
|
(1,592
|
)
|
|
767,424
|
|
||||||
Total available-for-sale
|
2,214,588
|
|
|
2,365
|
|
|
2,216,953
|
|
|
4,467
|
|
|
(6,015
|
)
|
|
2,215,405
|
|
||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed rate Government/GSE guaranteed mortgage-backed securities
|
45,032
|
|
|
—
|
|
|
45,032
|
|
|
532
|
|
|
—
|
|
|
45,564
|
|
||||||
Total investment securities
|
$
|
2,259,620
|
|
|
$
|
2,365
|
|
|
$
|
2,261,985
|
|
|
$
|
4,999
|
|
|
$
|
(6,015
|
)
|
|
$
|
2,260,969
|
|
(1)
|
Fair value includes
$4.3 million
of an interest-only security with a notional amount of
$143.7 million
.
|
|
As of September 30, 2018
|
||||||||||||||
|
Available-for-Sale Securities
|
||||||||||||||
|
Unrealized loss position for
less than 12 months |
|
Unrealized loss position for
more than 12 months |
||||||||||||
|
Fair Value
|
|
Unrealized
Loss |
|
Fair Value
|
|
Unrealized
Loss |
||||||||
|
(in thousands)
|
||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,961
|
|
|
$
|
(739
|
)
|
Floating rate asset-backed securities
|
—
|
|
|
—
|
|
|
20,080
|
|
|
(85
|
)
|
||||
Floating rate Government/GSE guaranteed mortgage-backed securities
|
508,554
|
|
|
(1,285
|
)
|
|
179,870
|
|
|
(1,191
|
)
|
||||
Fixed rate U.S. Treasuries
|
703,306
|
|
|
(1,164
|
)
|
|
134,782
|
|
|
(78
|
)
|
||||
Total
|
$
|
1,211,860
|
|
|
$
|
(2,449
|
)
|
|
$
|
353,693
|
|
|
$
|
(2,093
|
)
|
|
As of December 31, 2017
|
||||||||||||||
|
Available-for-Sale Securities
|
||||||||||||||
|
Unrealized loss position for
less than 12 months |
|
Unrealized loss position for
more than 12 months |
||||||||||||
|
Fair Value
|
|
Unrealized
Loss |
|
Fair Value
|
|
Unrealized
Loss |
||||||||
|
(in thousands)
|
||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,814
|
|
|
$
|
(886
|
)
|
Floating rate asset-backed securities
|
—
|
|
|
—
|
|
|
23,145
|
|
|
(120
|
)
|
||||
Floating rate Government/GSE guaranteed mortgage-backed securities
|
292,522
|
|
|
(2,337
|
)
|
|
221,641
|
|
|
(1,031
|
)
|
||||
Fixed rate U.S. Treasuries
|
742,442
|
|
|
(1,572
|
)
|
|
24,983
|
|
|
(20
|
)
|
||||
Fixed rate senior agency debt
|
—
|
|
|
—
|
|
|
99,951
|
|
|
(49
|
)
|
||||
Total
|
$
|
1,034,964
|
|
|
$
|
(3,909
|
)
|
|
$
|
388,534
|
|
|
$
|
(2,106
|
)
|
|
As of September 30, 2018
|
||||||||
|
Available-for-Sale Securities
|
||||||||
|
Amortized
Cost |
|
Fair Value
|
|
Weighted-
Average Yield |
||||
|
(dollars in thousands)
|
||||||||
Due within one year
|
$
|
807,395
|
|
|
$
|
806,214
|
|
|
1.24%
|
Due after one year through five years
|
277,030
|
|
|
277,382
|
|
|
2.52%
|
||
Due after five years through ten years
|
508,970
|
|
|
508,629
|
|
|
2.46%
|
||
Due after ten years
|
633,913
|
|
|
631,777
|
|
|
2.65%
|
||
Total
|
$
|
2,227,308
|
|
|
$
|
2,224,002
|
|
|
2.08%
|
3.
|
FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES
|
|
As of September 30, 2018
|
||||||||||||||||||||||
|
Unpaid Principal Balance
|
|
Unamortized Premium/(Discount)
|
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair Value
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AgVantage
|
$
|
2,039,471
|
|
|
$
|
(282
|
)
|
|
$
|
2,039,189
|
|
|
$
|
441
|
|
|
$
|
(22,500
|
)
|
|
$
|
2,017,130
|
|
Farmer Mac Guaranteed USDA Securities
|
27,862
|
|
|
256
|
|
|
28,118
|
|
|
134
|
|
|
—
|
|
|
28,252
|
|
||||||
Total Farmer Mac Guaranteed Securities
|
2,067,333
|
|
|
(26
|
)
|
|
2,067,307
|
|
|
575
|
|
|
(22,500
|
)
|
|
2,045,382
|
|
||||||
USDA Securities
|
2,086,842
|
|
|
57,032
|
|
|
2,143,874
|
|
|
1
|
|
|
(86,529
|
)
|
|
2,057,346
|
|
||||||
Total held-to-maturity
|
$
|
4,154,175
|
|
|
$
|
57,006
|
|
|
$
|
4,211,181
|
|
|
$
|
576
|
|
|
$
|
(109,029
|
)
|
|
$
|
4,102,728
|
|
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AgVantage
|
$
|
6,014,252
|
|
|
$
|
(195
|
)
|
|
$
|
6,014,057
|
|
|
$
|
12,112
|
|
|
$
|
(68,865
|
)
|
|
$
|
5,957,304
|
|
Trading:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
USDA Securities
|
$
|
9,857
|
|
|
$
|
728
|
|
|
$
|
10,585
|
|
|
$
|
19
|
|
|
$
|
(367
|
)
|
|
$
|
10,237
|
|
|
As of December 31, 2017
|
||||||||||||||||||||||
|
Unpaid Principal Balance
|
|
Unamortized Premium/(Discount)
|
|
Amortized
Cost |
|
Unrealized
Gains |
|
Unrealized
Losses |
|
Fair Value
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AgVantage
|
$
|
2,096,754
|
|
|
$
|
(779
|
)
|
|
$
|
2,095,975
|
|
|
$
|
2,011
|
|
|
$
|
(11,429
|
)
|
|
$
|
2,086,557
|
|
Farmer Mac Guaranteed USDA Securities
|
29,980
|
|
|
319
|
|
|
30,299
|
|
|
108
|
|
|
(73
|
)
|
|
30,334
|
|
||||||
Total Farmer Mac Guaranteed Securities
|
2,126,734
|
|
|
(460
|
)
|
|
2,126,274
|
|
|
2,119
|
|
|
(11,502
|
)
|
|
2,116,891
|
|
||||||
USDA Securities
|
2,055,050
|
|
|
62,800
|
|
|
2,117,850
|
|
|
—
|
|
|
(54,969
|
)
|
|
2,062,881
|
|
||||||
Total held-to-maturity
|
$
|
4,181,784
|
|
|
$
|
62,340
|
|
|
$
|
4,244,124
|
|
|
$
|
2,119
|
|
|
$
|
(66,471
|
)
|
|
$
|
4,179,772
|
|
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AgVantage
|
$
|
5,496,569
|
|
|
$
|
(182
|
)
|
|
$
|
5,496,387
|
|
|
$
|
21,838
|
|
|
$
|
(46,311
|
)
|
|
$
|
5,471,914
|
|
Trading:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
USDA Securities
|
$
|
12,966
|
|
|
$
|
922
|
|
|
$
|
13,888
|
|
|
$
|
28
|
|
|
$
|
(401
|
)
|
|
$
|
13,515
|
|
|
As of September 30, 2018
|
||||||||||||||
|
Held-to-Maturity and Available-for-Sale Securities
|
||||||||||||||
|
Unrealized loss position for
less than 12 months |
|
Unrealized loss position for
more than 12 months |
||||||||||||
|
Fair Value
|
|
Unrealized
Loss |
|
Fair Value
|
|
Unrealized
Loss |
||||||||
|
(in thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
||||||||
AgVantage
|
$
|
1,064,053
|
|
|
$
|
(11,558
|
)
|
|
$
|
814,058
|
|
|
$
|
(10,942
|
)
|
USDA Securities
|
38,879
|
|
|
(415
|
)
|
|
2,018,466
|
|
|
(86,114
|
)
|
||||
Total held-to-maturity
|
$
|
1,102,932
|
|
|
$
|
(11,973
|
)
|
|
$
|
2,832,524
|
|
|
$
|
(97,056
|
)
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
AgVantage
|
$
|
2,367,859
|
|
|
$
|
(31,550
|
)
|
|
$
|
1,559,584
|
|
|
$
|
(37,315
|
)
|
|
As of December 31, 2017
|
||||||||||||||
|
Held-to-Maturity and Available-for-Sale Securities
|
||||||||||||||
|
Unrealized loss position for
less than 12 months |
|
Unrealized loss position for
more than 12 months |
||||||||||||
|
Fair Value
|
|
Unrealized
Loss |
|
Fair Value
|
|
Unrealized
Loss |
||||||||
|
(in thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
||||||||
AgVantage
|
$
|
1,304,160
|
|
|
$
|
(8,094
|
)
|
|
$
|
351,664
|
|
|
$
|
(3,335
|
)
|
Farmer Mac Guaranteed USDA Securities
|
24,721
|
|
|
(73
|
)
|
|
—
|
|
|
—
|
|
||||
USDA Securities
|
451
|
|
|
(2
|
)
|
|
2,062,429
|
|
|
(54,967
|
)
|
||||
Total held-to-maturity
|
$
|
1,329,332
|
|
|
$
|
(8,169
|
)
|
|
$
|
2,414,093
|
|
|
$
|
(58,302
|
)
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
AgVantage
|
$
|
1,273,965
|
|
|
$
|
(8,819
|
)
|
|
$
|
1,759,377
|
|
|
$
|
(37,492
|
)
|
|
As of September 30, 2018
|
|||||||||
|
Available-for-Sale Securities
|
|||||||||
|
Amortized
Cost |
|
Fair Value
|
|
Weighted-
Average Yield |
|||||
|
(dollars in thousands)
|
|||||||||
Due within one year
|
$
|
1,019,282
|
|
|
$
|
1,018,343
|
|
|
2.58
|
%
|
Due after one year through five years
|
2,664,743
|
|
|
2,652,381
|
|
|
2.95
|
%
|
||
Due after five years through ten years
|
777,186
|
|
|
751,727
|
|
|
3.14
|
%
|
||
Due after ten years
|
1,552,846
|
|
|
1,534,853
|
|
|
2.64
|
%
|
||
Total
|
$
|
6,014,057
|
|
|
$
|
5,957,304
|
|
|
2.84
|
%
|
|
As of September 30, 2018
|
|||||||||
|
Held-to-Maturity Securities
|
|||||||||
|
Amortized
Cost |
|
Fair Value
|
|
Weighted-
Average Yield |
|||||
|
(dollars in thousands)
|
|||||||||
Due within one year
|
$
|
750,013
|
|
|
$
|
745,474
|
|
|
2.10
|
%
|
Due after one year through five years
|
1,359,953
|
|
|
1,340,138
|
|
|
2.99
|
%
|
||
Due after five years through ten years
|
218,630
|
|
|
209,806
|
|
|
3.36
|
%
|
||
Due after ten years
|
1,882,585
|
|
|
1,807,310
|
|
|
3.54
|
%
|
||
Total
|
$
|
4,211,181
|
|
|
$
|
4,102,728
|
|
|
3.09
|
%
|
4.
|
FINANCIAL DERIVATIVES
|
|
As of September 30, 2018
|
|||||||||||||||||||
|
|
|
Fair Value
|
|
Weighted-
Average Pay Rate |
|
Weighted-
Average Receive Rate |
|
Weighted-
Average Forward Price |
|
Weighted-
Average Remaining Term (in years) |
|||||||||
|
Notional Amount
|
|
Asset
|
|
(Liability)
|
|
|
|
|
|||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pay fixed non-callable
|
$
|
2,801,164
|
|
|
$
|
860
|
|
|
$
|
(4,493
|
)
|
|
2.04%
|
|
2.13%
|
|
|
|
10.39
|
|
Receive fixed non-callable
|
2,131,200
|
|
|
682
|
|
|
(4,796
|
)
|
|
2.20%
|
|
1.78%
|
|
|
|
1.74
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pay fixed non-callable
|
389,500
|
|
|
4,429
|
|
|
(276
|
)
|
|
2.36%
|
|
2.57%
|
|
|
|
6.10
|
||||
No hedge designation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pay fixed non-callable
|
317,586
|
|
|
1,966
|
|
|
(8,065
|
)
|
|
3.69%
|
|
2.33%
|
|
|
|
6.48
|
||||
Receive fixed non-callable
|
2,521,965
|
|
|
—
|
|
|
—
|
|
|
2.16%
|
|
1.99%
|
|
|
|
0.84
|
||||
Basis swaps
|
1,529,000
|
|
|
233
|
|
|
(206
|
)
|
|
2.01%
|
|
2.07%
|
|
|
|
1.41
|
||||
Treasury futures
|
12,700
|
|
|
—
|
|
|
(11
|
)
|
|
|
|
|
|
118.70
|
|
|
|
|||
Credit valuation adjustment
|
|
|
(163
|
)
|
|
6
|
|
|
|
|
|
|
|
|
|
|||||
Total financial derivatives
|
$
|
9,703,115
|
|
|
$
|
8,007
|
|
|
$
|
(17,841
|
)
|
|
|
|
|
|
|
|
|
|
Collateral pledged
|
|
|
—
|
|
|
46,841
|
|
|
|
|
|
|
|
|
|
|||||
Net amount
|
|
|
$
|
8,007
|
|
|
$
|
29,000
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|||||||||||||||||||
|
|
|
Fair Value
|
|
Weighted-
Average Pay Rate |
|
Weighted-
Average Receive Rate |
|
Weighted-
Average Forward Price |
|
Weighted-
Average Remaining Term (in years) |
|||||||||
|
Notional Amount
|
|
Asset
|
|
(Liability)
|
|
|
|
|
|||||||||||
|
(dollars in thousands)
|
|||||||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pay fixed non-callable
|
$
|
2,086,347
|
|
|
$
|
5,240
|
|
|
$
|
(5,990
|
)
|
|
1.88%
|
|
1.40%
|
|
|
|
5.46
|
|
Receive fixed non-callable
|
1,559,700
|
|
|
110
|
|
|
(4,033
|
)
|
|
1.38%
|
|
1.45%
|
|
|
|
1.68
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pay fixed non-callable
|
365,500
|
|
|
1,402
|
|
|
(138
|
)
|
|
2.16%
|
|
1.74%
|
|
|
|
5.84
|
||||
No hedge designation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pay fixed non-callable
|
345,333
|
|
|
339
|
|
|
(16,352
|
)
|
|
3.79%
|
|
1.40%
|
|
|
|
6.68
|
||||
Receive fixed non-callable
|
3,409,916
|
|
|
—
|
|
|
—
|
|
|
1.25%
|
|
1.24%
|
|
|
|
0.92
|
||||
Basis swaps
|
1,053,500
|
|
|
18
|
|
|
(106
|
)
|
|
1.33%
|
|
1.42%
|
|
|
|
0.91
|
||||
Treasury futures
|
40,000
|
|
|
—
|
|
|
(36
|
)
|
|
|
|
|
|
123.96
|
|
|
|
|||
Credit valuation adjustment
|
|
|
(16
|
)
|
|
56
|
|
|
|
|
|
|
|
|
|
|||||
Total financial derivatives
|
$
|
8,860,296
|
|
|
$
|
7,093
|
|
|
$
|
(26,599
|
)
|
|
|
|
|
|
|
|
|
|
Collateral pledged
|
|
|
—
|
|
|
24,926
|
|
|
|
|
|
|
|
|
|
|||||
Net amount
|
|
|
$
|
7,093
|
|
|
$
|
(1,673
|
)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2018
|
||||||||||||||||||
|
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
|
||||||||||||||||||
|
Net Interest Income
|
|
Non-Interest Income
|
|
Total
|
||||||||||||||
|
Interest Income
Farmer Mac Guaranteed Securities and USDA Securities |
|
Interest Income Loans
|
|
Total Interest Expense
|
|
Gains/(losses) on financial derivatives and hedging activities
|
|
|||||||||||
|
(in thousands)
|
||||||||||||||||||
Total amounts presented in the consolidated statement of operations:
|
$
|
76,870
|
|
|
$
|
50,622
|
|
|
$
|
(97,557
|
)
|
|
$
|
628
|
|
|
$
|
30,563
|
|
Income/(expense) related to interest settlements on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
|
1,272
|
|
|
(98
|
)
|
|
(2,702
|
)
|
|
—
|
|
|
(1,528
|
)
|
|||||
Recognized on hedged items
|
16,769
|
|
|
1,660
|
|
|
(9,821
|
)
|
|
—
|
|
|
8,608
|
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
|||||
Income/(expense) related to interest settlements on fair value hedging relationships
|
$
|
18,041
|
|
|
$
|
1,562
|
|
|
$
|
(12,700
|
)
|
|
$
|
—
|
|
|
$
|
6,903
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Losses)/gains on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
|
13,420
|
|
|
3,909
|
|
|
(1,188
|
)
|
|
—
|
|
|
16,141
|
|
|||||
Recognized on hedged items
|
(13,432
|
)
|
|
(4,062
|
)
|
|
2,404
|
|
|
—
|
|
|
(15,090
|
)
|
|||||
(Losses)/gains on fair value hedging relationships
|
$
|
(12
|
)
|
|
$
|
(153
|
)
|
|
$
|
1,216
|
|
|
$
|
—
|
|
|
$
|
1,051
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expense related to interest settlements on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest settlements reclassified from AOCI into net income on derivatives
|
—
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|
189
|
|
|||||
Recognized on hedged items
|
—
|
|
|
—
|
|
|
(2,501
|
)
|
|
—
|
|
|
(2,501
|
)
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Expense recognized on cash flow hedges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2,314
|
)
|
|
$
|
—
|
|
|
$
|
(2,314
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on financial derivatives not designated in hedge relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
3,267
|
|
|
3,267
|
|
|||||
Interest expense on interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,048
|
)
|
|
(3,048
|
)
|
|||||
Treasury futures
|
—
|
|
|
—
|
|
|
—
|
|
|
409
|
|
|
409
|
|
|||||
Gains on financial derivatives not designated in hedge relationships
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
628
|
|
|
$
|
628
|
|
|
For the Three Months Ended September 30, 2017
|
||||||||||||||||||
|
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
|
||||||||||||||||||
|
Net Interest Income
|
|
Non-Interest Income
|
|
Total
|
||||||||||||||
|
Interest Income Farmer Mac Guaranteed Securities and USDA Securities
|
|
Interest Income Loans
|
|
Total Interest Expense
|
|
Gains/(losses) on financial derivatives and hedging activities
|
|
|||||||||||
|
(in thousands)
|
||||||||||||||||||
Total amounts presented in the consolidated statement of operations
|
$
|
54,350
|
|
|
$
|
40,924
|
|
|
$
|
(64,935
|
)
|
|
$
|
661
|
|
|
$
|
31,000
|
|
Income/(expense) related to interest settlements on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
|
(2,267
|
)
|
|
(342
|
)
|
|
717
|
|
|
—
|
|
|
(1,892
|
)
|
|||||
Recognized on hedged items
|
11,986
|
|
|
947
|
|
|
(5,069
|
)
|
|
—
|
|
|
7,864
|
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(121
|
)
|
|
—
|
|
|
(121
|
)
|
|||||
Income/(expense) related to interest settlements on fair value hedging relationships
|
$
|
9,719
|
|
|
$
|
605
|
|
|
$
|
(4,473
|
)
|
|
$
|
—
|
|
|
$
|
5,851
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,576
|
|
|
1,576
|
|
|||||
Recognized on hedged items
|
—
|
|
|
—
|
|
|
—
|
|
|
166
|
|
|
166
|
|
|||||
Gains on fair value hedging relationships
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,742
|
|
|
$
|
1,742
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expense related to interest settlements on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest settlements reclassified from AOCI into net income on derivatives
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(454
|
)
|
|
$
|
—
|
|
|
$
|
(454
|
)
|
Recognized on hedged items
|
—
|
|
|
—
|
|
|
(1,169
|
)
|
|
—
|
|
|
(1,169
|
)
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Losses recognized in income for hedge ineffectiveness
|
—
|
|
|
—
|
|
|
—
|
|
|
(191
|
)
|
|
(191
|
)
|
|||||
Expense recognized on cash flow hedges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,624
|
)
|
|
$
|
(191
|
)
|
|
$
|
(1,815
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses on financial derivatives not designated in hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on interest rate swaps
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,645
|
|
|
$
|
1,645
|
|
Interest expense on interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,676
|
)
|
|
(2,676
|
)
|
|||||
Agency forwards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Treasury futures
|
—
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
141
|
|
|||||
Losses on financial derivatives not designated in hedge relationships
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(890
|
)
|
|
$
|
(890
|
)
|
(1)
|
Included in the assessment of hedge effectiveness as of
September 30, 2017
, but excluded from the amounts in the table, were losses of
$1.6 million
for the three months ended
September 30, 2017
, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amount recognized as hedge ineffectiveness for the three months ended
September 30, 2017
were gains of
$0.1 million
.
|
|
For the Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
|
||||||||||||||||||
|
Net Interest Income
|
|
Non-Interest Income
|
|
Total
|
||||||||||||||
|
Interest Income
Farmer Mac Guaranteed Securities and USDA Securities |
|
Interest Income Loans
|
|
Total Interest Expense
|
|
Gains/(losses) on financial derivatives and hedging activities
|
|
|||||||||||
|
(in thousands)
|
||||||||||||||||||
Total amounts presented in the consolidated statement of operations:
|
$
|
213,479
|
|
|
$
|
145,671
|
|
|
$
|
(265,611
|
)
|
|
$
|
(688
|
)
|
|
$
|
92,851
|
|
Income/(expense) related to interest settlements on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
|
465
|
|
|
(560
|
)
|
|
(5,315
|
)
|
|
—
|
|
|
(5,410
|
)
|
|||||
Recognized on hedged items
|
46,289
|
|
|
4,619
|
|
|
(28,633
|
)
|
|
—
|
|
|
22,275
|
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(534
|
)
|
|
—
|
|
|
(534
|
)
|
|||||
Income/(expense) related to interest settlements on fair value hedging relationships
|
$
|
46,754
|
|
|
$
|
4,059
|
|
|
$
|
(34,482
|
)
|
|
$
|
—
|
|
|
$
|
16,331
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains/(losses) on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
|
46,354
|
|
|
12,564
|
|
|
(13,565
|
)
|
|
—
|
|
|
45,353
|
|
|||||
Recognized on hedged items
|
(43,229
|
)
|
|
(13,106
|
)
|
|
16,733
|
|
|
—
|
|
|
(39,602
|
)
|
|||||
Gains/(losses) on fair value hedging relationships
|
$
|
3,125
|
|
|
$
|
(542
|
)
|
|
$
|
3,168
|
|
|
$
|
—
|
|
|
$
|
5,751
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expense related to interest settlements on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest settlements reclassified from AOCI into net income on derivatives
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|||||
Recognized on hedged items
|
—
|
|
|
—
|
|
|
(6,611
|
)
|
|
—
|
|
|
(6,611
|
)
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Expense recognized on cash flow hedges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(6,637
|
)
|
|
$
|
—
|
|
|
$
|
(6,637
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses on financial derivatives not designated in hedge relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
7,443
|
|
|
7,443
|
|
|||||
Interest expense on interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,903
|
)
|
|
(8,903
|
)
|
|||||
Treasury futures
|
—
|
|
|
—
|
|
|
—
|
|
|
772
|
|
|
772
|
|
|||||
Losses on financial derivatives not designated in hedge relationships
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(688
|
)
|
|
$
|
(688
|
)
|
|
For the Nine Months Ended September 30, 2017
|
||||||||||||||||||
|
Net Income/(Expense) Recognized in Consolidated Statement of Operations on Derivatives
|
||||||||||||||||||
|
Net Interest Income
|
|
Non-Interest Income
|
|
Total
|
||||||||||||||
|
Interest Income Farmer Mac Guaranteed Securities and USDA Securities
|
|
Interest Income Loans
|
|
Total Interest Expense
|
|
Gains/(losses) on financial derivatives and hedging activities
|
|
|||||||||||
|
(in thousands)
|
||||||||||||||||||
Total amounts presented in the consolidated statement of operations
|
$
|
146,978
|
|
|
$
|
117,349
|
|
|
$
|
(172,797
|
)
|
|
$
|
2,530
|
|
|
$
|
94,060
|
|
Income/(expense) related to interest settlements on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
|
(8,251
|
)
|
|
(767
|
)
|
|
2,157
|
|
|
—
|
|
|
(6,861
|
)
|
|||||
Recognized on hedged items
|
34,212
|
|
|
2,045
|
|
|
(12,832
|
)
|
|
—
|
|
|
23,425
|
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(311
|
)
|
|
—
|
|
|
(311
|
)
|
|||||
Income/(expense) related to interest settlements on fair value hedging relationships
|
$
|
25,961
|
|
|
$
|
1,278
|
|
|
$
|
(10,986
|
)
|
|
$
|
—
|
|
|
$
|
16,253
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses on fair value hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Recognized on derivatives
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,466
|
)
|
|
(5,466
|
)
|
|||||
Recognized on hedged items
|
—
|
|
|
—
|
|
|
—
|
|
|
4,750
|
|
|
4,750
|
|
|||||
Losses on fair value hedging relationships
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(716
|
)
|
|
$
|
(716
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Expense related to interest settlements on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest settlements reclassified from AOCI into net income on derivatives
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,494
|
)
|
|
$
|
—
|
|
|
$
|
(1,494
|
)
|
Recognized on hedged items
|
—
|
|
|
—
|
|
|
(2,665
|
)
|
|
—
|
|
|
(2,665
|
)
|
|||||
Discount amortization recognized on hedged items
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||
Losses recognized in income for hedge ineffectiveness
|
—
|
|
|
—
|
|
|
—
|
|
|
(365
|
)
|
|
(365
|
)
|
|||||
Expense recognized on cash flow hedges
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,162
|
)
|
|
$
|
(365
|
)
|
|
$
|
(4,527
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on financial derivatives not designated in hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gains on interest rate swaps
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,324
|
|
|
$
|
12,324
|
|
Interest expense on interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,318
|
)
|
|
(8,318
|
)
|
|||||
Agency forwards
|
—
|
|
|
—
|
|
|
—
|
|
|
(588
|
)
|
|
(588
|
)
|
|||||
Treasury futures
|
—
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|
193
|
|
|||||
Gains on financial derivatives not designated in hedge relationships
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,611
|
|
|
$
|
3,611
|
|
(1)
|
Included in the assessment of hedge effectiveness as of
September 30, 2017
, but excluded from the amounts in the table, were gains of
$0.7 million
for the nine months ended
September 30, 2017
, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for the nine months ended
September 30, 2017
were
zero
.
|
|
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)
|
||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Farmer Mac Guaranteed Securities, Available-for-Sale, at fair value
|
$
|
2,514,978
|
|
|
$
|
1,928,220
|
|
|
$
|
(65,596
|
)
|
|
$
|
(22,853
|
)
|
Loans held for investment, at amortized cost
|
166,754
|
|
|
149,304
|
|
|
(13,150
|
)
|
|
(189
|
)
|
||||
Notes Payable, due after one year
(1)(2)
|
(2,057,594
|
)
|
|
(1,552,935
|
)
|
|
22,428
|
|
|
5,836
|
|
(1)
|
Carrying amount represents amortized cost.
|
(2)
|
Includes
$0.4 million
of hedging adjustments on a discontinued hedging relationship.
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||||||||||||||||||
|
Unsecuritized
|
|
In Consolidated Trusts
|
|
Total
|
|
Unsecuritized
|
|
In Consolidated Trusts
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Farm & Ranch
|
$
|
2,937,484
|
|
|
$
|
1,483,135
|
|
|
$
|
4,420,619
|
|
|
$
|
2,798,906
|
|
|
$
|
1,399,827
|
|
|
$
|
4,198,733
|
|
Rural Utilities
|
962,702
|
|
|
—
|
|
|
962,702
|
|
|
1,076,291
|
|
|
—
|
|
|
1,076,291
|
|
||||||
Total unpaid principal balance
(1)
|
3,900,186
|
|
|
1,483,135
|
|
|
5,383,321
|
|
|
3,875,197
|
|
|
1,399,827
|
|
|
5,275,024
|
|
||||||
Unamortized premiums, discounts, and other cost basis adjustments
|
(15,550
|
)
|
|
—
|
|
|
(15,550
|
)
|
|
(1,442
|
)
|
|
—
|
|
|
(1,442
|
)
|
||||||
Total loans
|
3,884,636
|
|
|
1,483,135
|
|
|
5,367,771
|
|
|
3,873,755
|
|
|
1,399,827
|
|
|
5,273,582
|
|
||||||
Allowance for loan losses
|
(5,378
|
)
|
|
(1,493
|
)
|
|
(6,871
|
)
|
|
(5,493
|
)
|
|
(1,303
|
)
|
|
(6,796
|
)
|
||||||
Total loans, net of allowance
|
$
|
3,879,258
|
|
|
$
|
1,481,642
|
|
|
$
|
5,360,900
|
|
|
$
|
3,868,262
|
|
|
$
|
1,398,524
|
|
|
$
|
5,266,786
|
|
(1)
|
Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.
|
|
As of September 30, 2018
|
|
As of September 30, 2017
|
||||||||||||||||||||
|
Allowance
for Loan Losses |
|
Reserve
for Losses |
|
Total
Allowance for Losses |
|
Allowance
for Loan Losses |
|
Reserve
for Losses |
|
Total
Allowance for Losses |
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
$
|
6,789
|
|
|
$
|
2,249
|
|
|
$
|
9,038
|
|
|
$
|
6,138
|
|
|
$
|
1,966
|
|
|
$
|
8,104
|
|
Provision for/(release of) losses
|
99
|
|
|
(102
|
)
|
|
(3
|
)
|
|
270
|
|
|
114
|
|
|
384
|
|
||||||
Charge-offs
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Ending Balance
|
$
|
6,871
|
|
|
$
|
2,147
|
|
|
$
|
9,018
|
|
|
$
|
6,408
|
|
|
$
|
2,080
|
|
|
$
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
6,796
|
|
|
2,070
|
|
|
8,866
|
|
|
5,415
|
|
|
2,020
|
|
|
7,435
|
|
||||||
Provision for losses
|
92
|
|
|
77
|
|
|
169
|
|
|
1,234
|
|
|
60
|
|
|
1,294
|
|
||||||
Charge-offs
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
$
|
(241
|
)
|
|
$
|
—
|
|
|
$
|
(241
|
)
|
Ending Balance
|
$
|
6,871
|
|
|
$
|
2,147
|
|
|
$
|
9,018
|
|
|
$
|
6,408
|
|
|
$
|
2,080
|
|
|
$
|
8,488
|
|
|
September 30, 2018
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning Balance
|
$
|
4,125
|
|
|
$
|
2,368
|
|
|
$
|
1,322
|
|
|
$
|
448
|
|
|
$
|
720
|
|
|
$
|
55
|
|
|
$
|
9,038
|
|
Provision for/(release of) losses
|
(99
|
)
|
|
40
|
|
|
148
|
|
|
50
|
|
|
(97
|
)
|
|
(45
|
)
|
|
(3
|
)
|
|||||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||||
Ending Balance
|
$
|
4,026
|
|
|
$
|
2,408
|
|
|
$
|
1,470
|
|
|
$
|
481
|
|
|
$
|
623
|
|
|
$
|
10
|
|
|
$
|
9,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning Balance
|
$
|
4,081
|
|
|
$
|
2,469
|
|
|
$
|
1,211
|
|
|
$
|
481
|
|
|
$
|
606
|
|
|
$
|
18
|
|
|
$
|
8,866
|
|
Provision for/(release of) losses
|
(55
|
)
|
|
(61
|
)
|
|
259
|
|
|
17
|
|
|
17
|
|
|
(8
|
)
|
|
169
|
|
|||||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||||
Ending Balance
|
$
|
4,026
|
|
|
$
|
2,408
|
|
|
$
|
1,470
|
|
|
$
|
481
|
|
|
$
|
623
|
|
|
$
|
10
|
|
|
$
|
9,018
|
|
|
September 30, 2017
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning Balance
|
$
|
3,735
|
|
|
$
|
2,164
|
|
|
$
|
1,234
|
|
|
$
|
397
|
|
|
$
|
558
|
|
|
$
|
16
|
|
|
$
|
8,104
|
|
Provision for/(release of) losses
|
115
|
|
|
162
|
|
|
35
|
|
|
4
|
|
|
72
|
|
|
(4
|
)
|
|
384
|
|
|||||||
Ending Balance
|
$
|
3,850
|
|
|
$
|
2,326
|
|
|
$
|
1,269
|
|
|
$
|
401
|
|
|
$
|
630
|
|
|
$
|
12
|
|
|
$
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Beginning Balance
|
$
|
3,365
|
|
|
$
|
1,723
|
|
|
$
|
1,375
|
|
|
$
|
405
|
|
|
$
|
533
|
|
|
$
|
34
|
|
|
$
|
7,435
|
|
Provision for/(release of) losses
|
713
|
|
|
603
|
|
|
(93
|
)
|
|
(4
|
)
|
|
97
|
|
|
(22
|
)
|
|
1,294
|
|
|||||||
Charge-offs
|
(228
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(241
|
)
|
|||||||
Ending Balance
|
$
|
3,850
|
|
|
$
|
2,326
|
|
|
$
|
1,269
|
|
|
$
|
401
|
|
|
$
|
630
|
|
|
$
|
12
|
|
|
$
|
8,488
|
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Ending Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Collectively evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
2,428,763
|
|
|
$
|
860,870
|
|
|
$
|
678,456
|
|
|
$
|
309,235
|
|
|
$
|
10,824
|
|
|
$
|
4,542
|
|
|
$
|
4,292,690
|
|
Off-balance sheet
|
1,242,091
|
|
|
503,784
|
|
|
648,648
|
|
|
166,570
|
|
|
68,651
|
|
|
3,509
|
|
|
2,633,253
|
|
|||||||
Total
|
$
|
3,670,854
|
|
|
$
|
1,364,654
|
|
|
$
|
1,327,104
|
|
|
$
|
475,805
|
|
|
$
|
79,475
|
|
|
$
|
8,051
|
|
|
$
|
6,925,943
|
|
Individually evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
63,726
|
|
|
$
|
33,948
|
|
|
$
|
22,729
|
|
|
$
|
7,526
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
127,929
|
|
Off-balance sheet
|
11,497
|
|
|
2,374
|
|
|
3,308
|
|
|
896
|
|
|
—
|
|
|
71
|
|
|
18,146
|
|
|||||||
Total
|
$
|
75,223
|
|
|
$
|
36,322
|
|
|
$
|
26,037
|
|
|
$
|
8,422
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
146,075
|
|
Total Farm & Ranch loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
2,492,489
|
|
|
$
|
894,818
|
|
|
$
|
701,185
|
|
|
$
|
316,761
|
|
|
$
|
10,824
|
|
|
$
|
4,542
|
|
|
$
|
4,420,619
|
|
Off-balance sheet
|
1,253,588
|
|
|
506,158
|
|
|
651,956
|
|
|
167,466
|
|
|
68,651
|
|
|
3,580
|
|
|
2,651,399
|
|
|||||||
Total
|
$
|
3,746,077
|
|
|
$
|
1,400,976
|
|
|
$
|
1,353,141
|
|
|
$
|
484,227
|
|
|
$
|
79,475
|
|
|
$
|
8,122
|
|
|
$
|
7,072,018
|
|
Allowance for Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collectively evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
2,047
|
|
|
$
|
955
|
|
|
$
|
765
|
|
|
$
|
300
|
|
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
4,080
|
|
Off-balance sheet
|
612
|
|
|
191
|
|
|
211
|
|
|
49
|
|
|
614
|
|
|
5
|
|
|
1,682
|
|
|||||||
Total
|
$
|
2,659
|
|
|
$
|
1,146
|
|
|
$
|
976
|
|
|
$
|
349
|
|
|
$
|
623
|
|
|
$
|
9
|
|
|
$
|
5,762
|
|
Individually evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
1,112
|
|
|
$
|
1,207
|
|
|
$
|
361
|
|
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,791
|
|
Off-balance sheet
|
255
|
|
|
55
|
|
|
133
|
|
|
21
|
|
|
—
|
|
|
1
|
|
|
465
|
|
|||||||
Total
|
$
|
1,367
|
|
|
$
|
1,262
|
|
|
$
|
494
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
3,256
|
|
Total Farm & Ranch loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
3,159
|
|
|
$
|
2,162
|
|
|
$
|
1,126
|
|
|
$
|
411
|
|
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
6,871
|
|
Off-balance sheet
|
867
|
|
|
246
|
|
|
344
|
|
|
70
|
|
|
614
|
|
|
6
|
|
|
2,147
|
|
|||||||
Total
|
$
|
4,026
|
|
|
$
|
2,408
|
|
|
$
|
1,470
|
|
|
$
|
481
|
|
|
$
|
623
|
|
|
$
|
10
|
|
|
$
|
9,018
|
|
|
As of December 31, 2017
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Ending Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Collectively evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
2,344,821
|
|
|
$
|
794,478
|
|
|
$
|
635,768
|
|
|
$
|
269,337
|
|
|
$
|
13,023
|
|
|
$
|
9,030
|
|
|
$
|
4,066,457
|
|
Off-balance sheet
|
1,236,392
|
|
|
532,666
|
|
|
678,642
|
|
|
155,627
|
|
|
45,738
|
|
|
4,981
|
|
|
2,654,046
|
|
|||||||
Total
|
$
|
3,581,213
|
|
|
$
|
1,327,144
|
|
|
$
|
1,314,410
|
|
|
$
|
424,964
|
|
|
$
|
58,761
|
|
|
$
|
14,011
|
|
|
$
|
6,720,503
|
|
Individually evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
67,828
|
|
|
$
|
38,180
|
|
|
$
|
17,766
|
|
|
$
|
7,858
|
|
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
132,276
|
|
Off-balance sheet
|
8,904
|
|
|
2,239
|
|
|
2,782
|
|
|
806
|
|
|
—
|
|
|
76
|
|
|
14,807
|
|
|||||||
Total
|
$
|
76,732
|
|
|
$
|
40,419
|
|
|
$
|
20,548
|
|
|
$
|
8,664
|
|
|
$
|
—
|
|
|
$
|
720
|
|
|
$
|
147,083
|
|
Total Farm & Ranch loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
2,412,649
|
|
|
$
|
832,658
|
|
|
$
|
653,534
|
|
|
$
|
277,195
|
|
|
$
|
13,023
|
|
|
$
|
9,674
|
|
|
$
|
4,198,733
|
|
Off-balance sheet
|
1,245,296
|
|
|
534,905
|
|
|
681,424
|
|
|
156,433
|
|
|
45,738
|
|
|
5,057
|
|
|
2,668,853
|
|
|||||||
Total
|
$
|
3,657,945
|
|
|
$
|
1,367,563
|
|
|
$
|
1,334,958
|
|
|
$
|
433,628
|
|
|
$
|
58,761
|
|
|
$
|
14,731
|
|
|
$
|
6,867,586
|
|
Allowance for Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collectively evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
2,104
|
|
|
$
|
1,101
|
|
|
$
|
738
|
|
|
$
|
287
|
|
|
$
|
44
|
|
|
$
|
11
|
|
|
$
|
4,285
|
|
Off-balance sheet
|
546
|
|
|
305
|
|
|
231
|
|
|
48
|
|
|
562
|
|
|
5
|
|
|
1,697
|
|
|||||||
Total
|
$
|
2,650
|
|
|
$
|
1,406
|
|
|
$
|
969
|
|
|
$
|
335
|
|
|
$
|
606
|
|
|
$
|
16
|
|
|
$
|
5,982
|
|
Individually evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
1,207
|
|
|
$
|
1,006
|
|
|
$
|
172
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,511
|
|
Off-balance sheet
|
224
|
|
|
57
|
|
|
70
|
|
|
20
|
|
|
—
|
|
|
2
|
|
|
373
|
|
|||||||
Total
|
$
|
1,431
|
|
|
$
|
1,063
|
|
|
$
|
242
|
|
|
$
|
146
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2,884
|
|
Total Farm & Ranch loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet
|
$
|
3,311
|
|
|
$
|
2,107
|
|
|
$
|
910
|
|
|
$
|
413
|
|
|
$
|
44
|
|
|
$
|
11
|
|
|
$
|
6,796
|
|
Off-balance sheet
|
770
|
|
|
362
|
|
|
301
|
|
|
68
|
|
|
562
|
|
|
7
|
|
|
2,070
|
|
|||||||
Total
|
$
|
4,081
|
|
|
$
|
2,469
|
|
|
$
|
1,211
|
|
|
$
|
481
|
|
|
$
|
606
|
|
|
$
|
18
|
|
|
$
|
8,866
|
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Impaired Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With no specific allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Recorded investment
|
$
|
14,815
|
|
|
$
|
848
|
|
|
$
|
10,431
|
|
|
$
|
2,036
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,130
|
|
Unpaid principal balance
|
14,851
|
|
|
851
|
|
|
10,456
|
|
|
2,041
|
|
|
—
|
|
|
—
|
|
|
28,199
|
|
|||||||
With a specific allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Recorded investment
(1)
|
60,250
|
|
|
35,389
|
|
|
15,550
|
|
|
6,368
|
|
|
—
|
|
|
71
|
|
|
117,628
|
|
|||||||
Unpaid principal balance
|
60,372
|
|
|
35,471
|
|
|
15,581
|
|
|
6,381
|
|
|
—
|
|
|
71
|
|
|
117,876
|
|
|||||||
Associated allowance
|
1,367
|
|
|
1,262
|
|
|
494
|
|
|
132
|
|
|
—
|
|
|
1
|
|
|
3,256
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Recorded investment
|
75,065
|
|
|
36,237
|
|
|
25,981
|
|
|
8,404
|
|
|
—
|
|
|
71
|
|
|
145,758
|
|
|||||||
Unpaid principal balance
|
75,223
|
|
|
36,322
|
|
|
26,037
|
|
|
8,422
|
|
|
—
|
|
|
71
|
|
|
146,075
|
|
|||||||
Associated allowance
|
1,367
|
|
|
1,262
|
|
|
494
|
|
|
132
|
|
|
—
|
|
|
1
|
|
|
3,256
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Recorded investment of loans on nonaccrual status
(2)
|
$
|
28,098
|
|
|
$
|
23,090
|
|
|
$
|
7,859
|
|
|
$
|
4,291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63,338
|
|
(1)
|
Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on
$115.2 million
(
79 percent
) of impaired loans as of
September 30, 2018
, which resulted in a specific allowance of
$2.7 million
.
|
(2)
|
Includes
$30.6 million
of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.
|
|
As of December 31, 2017
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Impaired Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
With no specific allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Recorded investment
|
$
|
14,417
|
|
|
$
|
3,272
|
|
|
$
|
11,171
|
|
|
$
|
1,953
|
|
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
31,457
|
|
Unpaid principal balance
|
14,418
|
|
|
3,273
|
|
|
11,172
|
|
|
1,953
|
|
|
—
|
|
|
644
|
|
|
31,460
|
|
|||||||
With a specific allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Recorded investment
(1)
|
62,309
|
|
|
37,143
|
|
|
9,376
|
|
|
6,710
|
|
|
—
|
|
|
76
|
|
|
115,614
|
|
|||||||
Unpaid principal balance
|
62,314
|
|
|
37,146
|
|
|
9,376
|
|
|
6,711
|
|
|
—
|
|
|
76
|
|
|
115,623
|
|
|||||||
Associated allowance
|
1,431
|
|
|
1,063
|
|
|
242
|
|
|
146
|
|
|
—
|
|
|
2
|
|
|
2,884
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Recorded investment
|
76,726
|
|
|
40,415
|
|
|
20,547
|
|
|
8,663
|
|
|
—
|
|
|
720
|
|
|
147,071
|
|
|||||||
Unpaid principal balance
|
76,732
|
|
|
40,419
|
|
|
20,548
|
|
|
8,664
|
|
|
—
|
|
|
720
|
|
|
147,083
|
|
|||||||
Associated allowance
|
1,431
|
|
|
1,063
|
|
|
242
|
|
|
146
|
|
|
—
|
|
|
2
|
|
|
2,884
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Recorded investment of loans on nonaccrual status
(2)
|
$
|
27,630
|
|
|
$
|
25,701
|
|
|
$
|
5,333
|
|
|
$
|
4,929
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63,593
|
|
(1)
|
Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on
$113.2 million
(
77 percent
) of impaired loans as of
December 31, 2017
, which resulted in a specific allowance of
$2.7 million
.
|
(2)
|
Includes
$15.7 million
of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.
|
|
September 30, 2018
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average recorded investment in impaired loans
|
$
|
75,920
|
|
|
$
|
44,818
|
|
|
$
|
24,443
|
|
|
$
|
8,898
|
|
|
$
|
—
|
|
|
$
|
72
|
|
|
$
|
154,151
|
|
Income recognized on impaired loans
|
223
|
|
|
933
|
|
|
122
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
1,334
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average recorded investment in impaired loans
|
$
|
73,968
|
|
|
$
|
44,122
|
|
|
$
|
23,358
|
|
|
$
|
8,874
|
|
|
$
|
—
|
|
|
$
|
394
|
|
|
$
|
150,716
|
|
Income recognized on impaired loans
|
942
|
|
|
1,597
|
|
|
261
|
|
|
173
|
|
|
—
|
|
|
—
|
|
|
2,973
|
|
|
September 30, 2017
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average recorded investment in impaired loans
|
$
|
72,180
|
|
|
$
|
38,396
|
|
|
$
|
15,582
|
|
|
$
|
7,944
|
|
|
$
|
—
|
|
|
$
|
401
|
|
|
$
|
134,503
|
|
Income recognized on impaired loans
|
101
|
|
|
244
|
|
|
13
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
419
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average recorded investment in impaired loans
|
$
|
65,244
|
|
|
$
|
35,101
|
|
|
$
|
14,620
|
|
|
$
|
8,096
|
|
|
$
|
—
|
|
|
$
|
201
|
|
|
$
|
123,262
|
|
Income recognized on impaired loans
|
563
|
|
|
464
|
|
|
212
|
|
|
235
|
|
|
—
|
|
|
—
|
|
|
1,474
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
($ in thousands)
|
||||||||||||||
Unpaid principal balance at acquisition date:
|
|
|
|
|
|
|
|
||||||||
Loans underlying LTSPCs
|
$
|
1,483
|
|
|
$
|
—
|
|
|
$
|
1,483
|
|
|
$
|
311
|
|
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)
|
5,552
|
|
|
3,043
|
|
|
6,273
|
|
|
3,147
|
|
||||
Total unpaid principal balance at acquisition date
|
7,035
|
|
|
3,043
|
|
|
7,756
|
|
|
3,458
|
|
||||
Contractually required payments receivable
|
7,115
|
|
|
3,073
|
|
|
7,845
|
|
|
3,490
|
|
||||
Impairment recognized subsequent to acquisition
|
26
|
|
|
—
|
|
|
26
|
|
|
—
|
|
||||
Release of allowance for all outstanding acquired defaulted loans
|
—
|
|
|
29
|
|
|
—
|
|
|
171
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Number of defaulted loans purchased
|
7
|
|
|
6
|
|
|
11
|
|
|
10
|
|
|
As of
|
||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(in thousands)
|
||||||
Outstanding balance
|
$
|
22,242
|
|
|
$
|
18,866
|
|
Carrying amount
|
21,481
|
|
|
17,691
|
|
|
90-Day Delinquencies
(1)
|
|
Net Credit (Recoveries)/Losses
|
||||||||||||
|
As of
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
On-balance sheet assets:
|
|
|
|
|
|
|
|
||||||||
Farm & Ranch:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
32,756
|
|
|
$
|
47,881
|
|
|
$
|
40
|
|
|
$
|
(520
|
)
|
Total on-balance sheet
|
$
|
32,756
|
|
|
$
|
47,881
|
|
|
$
|
40
|
|
|
$
|
(520
|
)
|
Off-balance sheet assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Farm & Ranch:
|
|
|
|
|
|
|
|
|
|
|
|||||
LTSPCs
|
$
|
4,789
|
|
|
$
|
563
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total off-balance sheet
|
$
|
4,789
|
|
|
$
|
563
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
$
|
37,545
|
|
|
$
|
48,444
|
|
|
$
|
40
|
|
|
$
|
(520
|
)
|
(1)
|
Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are
90 days
or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Credit risk profile by internally assigned grade
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acceptable
|
$
|
2,355,938
|
|
|
$
|
847,666
|
|
|
$
|
652,715
|
|
|
$
|
302,243
|
|
|
$
|
10,824
|
|
|
$
|
4,542
|
|
|
$
|
4,173,928
|
|
Special mention
(2)
|
72,974
|
|
|
13,204
|
|
|
25,729
|
|
|
6,992
|
|
|
—
|
|
|
—
|
|
|
118,899
|
|
|||||||
Substandard
(3)
|
63,577
|
|
|
33,948
|
|
|
22,741
|
|
|
7,526
|
|
|
—
|
|
|
—
|
|
|
127,792
|
|
|||||||
Total on-balance sheet
|
$
|
2,492,489
|
|
|
$
|
894,818
|
|
|
$
|
701,185
|
|
|
$
|
316,761
|
|
|
$
|
10,824
|
|
|
$
|
4,542
|
|
|
$
|
4,420,619
|
|
Off-Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acceptable
|
$
|
1,131,413
|
|
|
$
|
455,135
|
|
|
$
|
600,128
|
|
|
$
|
161,671
|
|
|
$
|
67,287
|
|
|
$
|
2,870
|
|
|
$
|
2,418,504
|
|
Special mention
(2)
|
70,511
|
|
|
36,062
|
|
|
37,305
|
|
|
786
|
|
|
—
|
|
|
—
|
|
|
144,664
|
|
|||||||
Substandard
(3)
|
51,664
|
|
|
14,961
|
|
|
14,523
|
|
|
5,009
|
|
|
1,364
|
|
|
710
|
|
|
88,231
|
|
|||||||
Total off-balance sheet
|
$
|
1,253,588
|
|
|
$
|
506,158
|
|
|
$
|
651,956
|
|
|
$
|
167,466
|
|
|
$
|
68,651
|
|
|
$
|
3,580
|
|
|
$
|
2,651,399
|
|
Total Ending Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acceptable
|
$
|
3,487,351
|
|
|
$
|
1,302,801
|
|
|
$
|
1,252,843
|
|
|
$
|
463,914
|
|
|
$
|
78,111
|
|
|
$
|
7,412
|
|
|
$
|
6,592,432
|
|
Special mention
(2)
|
143,485
|
|
|
49,266
|
|
|
63,034
|
|
|
7,778
|
|
|
—
|
|
|
—
|
|
|
263,563
|
|
|||||||
Substandard
(3)
|
115,241
|
|
|
48,909
|
|
|
37,264
|
|
|
12,535
|
|
|
1,364
|
|
|
710
|
|
|
216,023
|
|
|||||||
Total
|
$
|
3,746,077
|
|
|
$
|
1,400,976
|
|
|
$
|
1,353,141
|
|
|
$
|
484,227
|
|
|
$
|
79,475
|
|
|
$
|
8,122
|
|
|
$
|
7,072,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commodity analysis of past due loans
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
On-balance sheet
|
$
|
15,843
|
|
|
$
|
7,822
|
|
|
$
|
5,274
|
|
|
$
|
3,817
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,756
|
|
Off-balance sheet
|
1,146
|
|
|
1,518
|
|
|
1,489
|
|
|
636
|
|
|
—
|
|
|
—
|
|
|
4,789
|
|
|||||||
90 days or more past due
|
$
|
16,989
|
|
|
$
|
9,340
|
|
|
$
|
6,763
|
|
|
$
|
4,453
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,545
|
|
(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, 2017
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Credit risk profile by internally assigned grade
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
On-balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acceptable
|
$
|
2,274,912
|
|
|
$
|
771,600
|
|
|
$
|
617,527
|
|
|
$
|
260,854
|
|
|
$
|
13,023
|
|
|
$
|
9,030
|
|
|
$
|
3,946,946
|
|
Special mention
(2)
|
70,063
|
|
|
22,878
|
|
|
18,405
|
|
|
8,483
|
|
|
—
|
|
|
—
|
|
|
119,829
|
|
|||||||
Substandard
(3)
|
67,674
|
|
|
38,180
|
|
|
17,602
|
|
|
7,858
|
|
|
—
|
|
|
644
|
|
|
131,958
|
|
|||||||
Total on-balance sheet
|
$
|
2,412,649
|
|
|
$
|
832,658
|
|
|
$
|
653,534
|
|
|
$
|
277,195
|
|
|
$
|
13,023
|
|
|
$
|
9,674
|
|
|
$
|
4,198,733
|
|
Off-Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acceptable
|
$
|
1,132,196
|
|
|
$
|
478,573
|
|
|
$
|
634,633
|
|
|
$
|
150,906
|
|
|
$
|
42,723
|
|
|
$
|
4,294
|
|
|
$
|
2,443,325
|
|
Special mention
(2)
|
76,778
|
|
|
26,134
|
|
|
31,451
|
|
|
1,647
|
|
|
—
|
|
|
169
|
|
|
136,179
|
|
|||||||
Substandard
(3)
|
36,322
|
|
|
30,198
|
|
|
15,340
|
|
|
3,880
|
|
|
3,015
|
|
|
594
|
|
|
89,349
|
|
|||||||
Total off-balance sheet
|
$
|
1,245,296
|
|
|
$
|
534,905
|
|
|
$
|
681,424
|
|
|
$
|
156,433
|
|
|
$
|
45,738
|
|
|
$
|
5,057
|
|
|
$
|
2,668,853
|
|
Total Ending Balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Acceptable
|
$
|
3,407,108
|
|
|
$
|
1,250,173
|
|
|
$
|
1,252,160
|
|
|
$
|
411,760
|
|
|
$
|
55,746
|
|
|
$
|
13,324
|
|
|
$
|
6,390,271
|
|
Special mention
(2)
|
146,841
|
|
|
49,012
|
|
|
49,856
|
|
|
10,130
|
|
|
—
|
|
|
169
|
|
|
256,008
|
|
|||||||
Substandard
(3)
|
103,996
|
|
|
68,378
|
|
|
32,942
|
|
|
11,738
|
|
|
3,015
|
|
|
1,238
|
|
|
221,307
|
|
|||||||
Total
|
$
|
3,657,945
|
|
|
$
|
1,367,563
|
|
|
$
|
1,334,958
|
|
|
$
|
433,628
|
|
|
$
|
58,761
|
|
|
$
|
14,731
|
|
|
$
|
6,867,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commodity analysis of past due loans
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
On-balance sheet
|
$
|
21,702
|
|
|
$
|
18,833
|
|
|
$
|
3,835
|
|
|
$
|
3,511
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,881
|
|
Off-balance sheet
|
151
|
|
|
—
|
|
|
—
|
|
|
412
|
|
|
—
|
|
|
—
|
|
|
563
|
|
|||||||
90 days or more past due
|
$
|
21,853
|
|
|
$
|
18,833
|
|
|
$
|
3,835
|
|
|
$
|
3,923
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,444
|
|
(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
|
||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(in thousands)
|
||||||
By commodity/collateral type:
|
|
|
|
||||
Crops
|
$
|
3,746,077
|
|
|
$
|
3,657,945
|
|
Permanent plantings
|
1,400,976
|
|
|
1,367,563
|
|
||
Livestock
|
1,353,141
|
|
|
1,334,958
|
|
||
Part-time farm
|
484,227
|
|
|
433,628
|
|
||
Ag. Storage and Processing
|
79,475
|
|
|
58,761
|
|
||
Other
|
8,122
|
|
|
14,731
|
|
||
Total
|
$
|
7,072,018
|
|
|
$
|
6,867,586
|
|
By geographic region
(1)
:
|
|
|
|
|
|
||
Northwest
|
$
|
815,346
|
|
|
$
|
740,991
|
|
Southwest
|
2,198,744
|
|
|
2,093,213
|
|
||
Mid-North
|
2,276,100
|
|
|
2,244,094
|
|
||
Mid-South
|
876,960
|
|
|
908,603
|
|
||
Northeast
|
315,685
|
|
|
296,264
|
|
||
Southeast
|
589,183
|
|
|
584,421
|
|
||
Total
|
$
|
7,072,018
|
|
|
$
|
6,867,586
|
|
By original loan-to-value ratio
(2)
:
|
|
|
|
|
|
||
0.00% to 40.00%
|
$
|
1,317,118
|
|
|
$
|
1,322,422
|
|
40.01% to 50.00%
|
1,769,124
|
|
|
1,733,671
|
|
||
50.01% to 60.00%
|
2,456,766
|
|
|
2,385,605
|
|
||
60.01% to 70.00%
|
1,227,092
|
|
|
1,150,914
|
|
||
70.01% to 80.00%
(3)
|
277,204
|
|
|
248,799
|
|
||
80.01% to 90.00%
(3)
|
24,714
|
|
|
26,175
|
|
||
Total
|
$
|
7,072,018
|
|
|
$
|
6,867,586
|
|
By size of borrower exposure
(4)
:
|
|
|
|
||||
Less than $1,000,000
|
$
|
2,423,394
|
|
|
$
|
2,379,596
|
|
$1,000,000 to $4,999,999
|
2,696,431
|
|
|
2,627,617
|
|
||
$5,000,000 to $9,999,999
|
917,198
|
|
|
867,574
|
|
||
$10,000,000 to $24,999,999
|
587,618
|
|
|
584,896
|
|
||
$25,000,000 to $50,000,000
|
447,377
|
|
|
407,903
|
|
||
Total
|
$
|
7,072,018
|
|
|
$
|
6,867,586
|
|
(1)
|
Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).
|
(2)
|
As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.
|
(3)
|
Primarily part-time farm loans. Loans with original loan-to-value ratios of greater than 80% are required to have private mortgage insurance.
|
(4)
|
Includes multiple loans to the same borrower or borrower-related entities.
|
6.
|
GUARANTEES AND LONG-TERM STANDBY PURCHASE COMMITMENTS
|
Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
|
|||||||
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||
|
(in thousands)
|
||||||
Farm & Ranch:
|
|
|
|
||||
Guaranteed Securities
|
$
|
287,594
|
|
|
$
|
333,511
|
|
USDA Guarantees:
|
|
|
|
||||
Farmer Mac Guaranteed USDA Securities
|
346,690
|
|
|
254,217
|
|
||
Institutional Credit:
|
|
|
|
|
|
||
AgVantage Securities
|
11,556
|
|
|
11,556
|
|
||
Revolving floating rate AgVantage facility
(1)
|
300,000
|
|
|
300,000
|
|
||
Total off-balance sheet Farmer Mac Guaranteed Securities
|
$
|
945,840
|
|
|
$
|
899,284
|
|
(1)
|
Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.
|
|
For the Nine Months Ended
|
||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||
|
(in thousands)
|
||||||
Proceeds from new securitizations
|
$
|
305,391
|
|
|
$
|
404,246
|
|
Guarantee fees received
|
1,481
|
|
|
2,141
|
|
||
Purchases of assets from the trusts
|
(6,273
|
)
|
|
(3,147
|
)
|
7.
|
EQUITY
|
•
|
Statutory minimum capital requirement – Farmer Mac's statutory minimum capital level is an amount of core capital (stockholders' equity less accumulated other comprehensive income) equal to the sum of 2.75 percent of Farmer Mac's aggregate on-balance sheet assets, as calculated for regulatory purposes, plus 0.75 percent of the aggregate off-balance sheet obligations of Farmer Mac, specifically including:
|
◦
|
the unpaid principal balance of outstanding Farmer Mac Guaranteed Securities;
|
◦
|
instruments issued or guaranteed by Farmer Mac that are substantially equivalent to Farmer Mac Guaranteed Securities, including LTSPCs; and
|
◦
|
other off-balance sheet obligations of Farmer Mac.
|
•
|
Statutory critical capital requirement – Farmer Mac's critical capital level is an amount of core capital equal to 50 percent of the total minimum capital requirement at that time.
|
•
|
Risk-based capital requirement – Farmer Mac's charter directs the Farm Credit Administration ("FCA"), an independent agency in the executive branch of the United States government that regulates Farmer Mac, to establish a risk-based capital stress test for Farmer Mac, using specified stress-test parameters.
|
8.
|
FAIR VALUE DISCLOSURES
|
Assets and Liabilities Measured at Fair Value as of September 30, 2018
|
|||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
Recurring:
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment Securities:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,961
|
|
|
$
|
18,961
|
|
Floating rate asset-backed securities
|
—
|
|
|
30,056
|
|
|
—
|
|
|
30,056
|
|
||||
Floating rate Government/GSE guaranteed mortgage-backed securities
|
—
|
|
|
1,336,474
|
|
|
—
|
|
|
1,336,474
|
|
||||
Fixed rate GSE guaranteed mortgage-backed securities
|
—
|
|
|
422
|
|
|
—
|
|
|
422
|
|
||||
Fixed rate U.S. Treasuries
|
838,089
|
|
|
—
|
|
|
—
|
|
|
838,089
|
|
||||
Total Investment Securities
|
838,089
|
|
|
1,366,952
|
|
|
18,961
|
|
|
2,224,002
|
|
||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||
AgVantage
|
—
|
|
|
—
|
|
|
5,957,304
|
|
|
5,957,304
|
|
||||
Total Farmer Mac Guaranteed Securities
|
—
|
|
|
—
|
|
|
5,957,304
|
|
|
5,957,304
|
|
||||
USDA Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trading
|
—
|
|
|
—
|
|
|
10,237
|
|
|
10,237
|
|
||||
Total USDA Securities
|
—
|
|
|
—
|
|
|
10,237
|
|
|
10,237
|
|
||||
Financial derivatives
|
—
|
|
|
8,007
|
|
|
—
|
|
|
8,007
|
|
||||
Total Assets at fair value
|
$
|
838,089
|
|
|
$
|
1,374,959
|
|
|
$
|
5,986,502
|
|
|
$
|
8,199,550
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial derivatives
|
$
|
10
|
|
|
$
|
17,831
|
|
|
$
|
—
|
|
|
$
|
17,841
|
|
Total Liabilities at fair value
|
$
|
10
|
|
|
$
|
17,831
|
|
|
$
|
—
|
|
|
$
|
17,841
|
|
Non-recurring:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans held for investment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
317
|
|
|
$
|
317
|
|
REO
|
—
|
|
|
—
|
|
|
128
|
|
|
128
|
|
||||
Total Non-recurring Assets at fair value
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
445
|
|
|
$
|
445
|
|
Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
|
Beginning
Balance |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Realized and
Unrealized (Losses) included in Income |
|
Unrealized
Gains/(Losses) included in Other Comprehe- nsive Income |
|
Ending
Balance |
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Recurring:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
19,010
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(49
|
)
|
|
$
|
18,961
|
|
Total available-for-sale
|
19,010
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|
18,961
|
|
|||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AgVantage
|
5,985,806
|
|
|
687,381
|
|
|
—
|
|
|
(689,213
|
)
|
|
(13,432
|
)
|
|
(13,238
|
)
|
|
5,957,304
|
|
|||||||
Total available-for-sale
|
5,985,806
|
|
|
687,381
|
|
|
—
|
|
|
(689,213
|
)
|
|
(13,432
|
)
|
|
(13,238
|
)
|
|
5,957,304
|
|
|||||||
USDA Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Available-for-sale
|
—
|
|
|
26,321
|
|
|
(26,321
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Trading
(1)
|
10,748
|
|
|
—
|
|
|
—
|
|
|
(508
|
)
|
|
(3
|
)
|
|
—
|
|
|
10,237
|
|
|||||||
Total USDA Securities
|
10,748
|
|
|
26,321
|
|
|
(26,321
|
)
|
|
(508
|
)
|
|
(3
|
)
|
|
—
|
|
|
10,237
|
|
|||||||
Total Assets at fair value
|
$
|
6,015,564
|
|
|
$
|
713,702
|
|
|
$
|
(26,321
|
)
|
|
$
|
(689,721
|
)
|
|
$
|
(13,435
|
)
|
|
$
|
(13,287
|
)
|
|
$
|
5,986,502
|
|
(1)
|
Includes unrealized losses of
$9,000
attributable to assets still held as of
September 30, 2018
that are recorded in "
(Losses)/gains on trading securities
."
|
Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2017
|
|||||||||||||||||||||||||||
|
Beginning
Balance |
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Realized and
Unrealized Gains/(losses) included in Income |
|
Unrealized Gains/(losses) included in Other
Comprehe-nsive Income |
|
Ending
Balance |
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Recurring:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
18,518
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,518
|
|
Fixed rate GSE guaranteed mortgage-backed securities
|
4,651
|
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(82
|
)
|
|
4,458
|
|
|||||||
Total available-for-sale
|
23,169
|
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(82
|
)
|
|
22,976
|
|
|||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AgVantage
|
5,282,562
|
|
|
193,800
|
|
|
—
|
|
|
(29,851
|
)
|
|
(1,171
|
)
|
|
(1,594
|
)
|
|
5,443,746
|
|
|||||||
Total available-for-sale
|
5,282,562
|
|
|
193,800
|
|
|
—
|
|
|
(29,851
|
)
|
|
(1,171
|
)
|
|
(1,594
|
)
|
|
5,443,746
|
|
|||||||
USDA Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Available-for-sale
|
—
|
|
|
40,844
|
|
|
(40,844
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Trading
(1)
|
16,294
|
|
|
—
|
|
|
—
|
|
|
(1,430
|
)
|
|
—
|
|
|
—
|
|
|
14,864
|
|
|||||||
Total USDA Securities
|
16,294
|
|
|
40,844
|
|
|
(40,844
|
)
|
|
(1,430
|
)
|
|
—
|
|
|
—
|
|
|
14,864
|
|
|||||||
Total Assets at fair value
|
$
|
5,322,025
|
|
|
$
|
234,644
|
|
|
$
|
(40,844
|
)
|
|
$
|
(31,392
|
)
|
|
$
|
(1,171
|
)
|
|
$
|
(1,676
|
)
|
|
$
|
5,481,586
|
|
(1)
|
Includes unrealized gains of
$34,000
attributable to assets still held as of
September 30, 2017
that are recorded in "
(Losses)/gains on trading securities
."
|
Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||||||
|
Beginning
Balance |
|
Cumulative Effect from Change in Hedge Accounting
|
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Realized and
Unrealized (Losses) included in Income |
|
Unrealized
Gains/(Losses) included in Other Comprehe- nsive Income |
|
Ending
Balance |
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Recurring:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
18,814
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
147
|
|
|
$
|
18,961
|
|
|
Fixed rate GSE guaranteed mortgage-backed securities
|
4,333
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,137
|
)
|
|
(2,092
|
)
|
|
(104
|
)
|
|
—
|
|
||||||||
Total available-for-sale
|
23,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,137
|
)
|
|
(2,092
|
)
|
|
43
|
|
|
18,961
|
|
||||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
AgVantage
|
5,471,914
|
|
|
487
|
|
|
1,646,345
|
|
|
—
|
|
|
(1,128,674
|
)
|
|
(43,230
|
)
|
|
10,462
|
|
|
5,957,304
|
|
||||||||
Total available-for-sale
|
5,471,914
|
|
|
487
|
|
|
1,646,345
|
|
|
—
|
|
|
(1,128,674
|
)
|
|
(43,230
|
)
|
|
10,462
|
|
|
5,957,304
|
|
||||||||
USDA Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale
|
—
|
|
|
—
|
|
|
105,628
|
|
|
(105,628
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Trading
(1)
|
13,515
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,302
|
)
|
|
24
|
|
|
—
|
|
|
10,237
|
|
||||||||
Total USDA Securities
|
13,515
|
|
|
—
|
|
|
105,628
|
|
|
(105,628
|
)
|
|
(3,302
|
)
|
|
24
|
|
|
—
|
|
|
10,237
|
|
||||||||
Total Assets at fair value
|
$
|
5,508,576
|
|
|
$
|
487
|
|
|
$
|
1,751,973
|
|
|
$
|
(105,628
|
)
|
|
$
|
(1,134,113
|
)
|
|
$
|
(45,298
|
)
|
|
$
|
10,505
|
|
|
$
|
5,986,502
|
|
(1)
|
Includes unrealized gains of
$0.1 million
attributable to assets still held as of
September 30, 2018
that are recorded in "
(Losses)/gains on trading securities
."
|
Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2017
|
|||||||||||||||||||||||||||||||
|
Beginning
Balance |
|
Transfers in
|
|
Purchases
|
|
Sales
|
|
Settlements
|
|
Realized and
Unrealized Gains/(losses) included in Income |
|
Unrealized Gains/(losses) included in Other
Comprehe-nsive Income |
|
Ending
Balance |
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Recurring:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
$
|
17,730
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
788
|
|
|
$
|
18,518
|
|
Fixed rate GSE guaranteed mortgage-backed securities
|
$
|
—
|
|
|
$
|
7,041
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(334
|
)
|
|
$
|
—
|
|
|
$
|
(2,249
|
)
|
|
$
|
4,458
|
|
Total available-for-sale
|
17,730
|
|
|
7,041
|
|
|
—
|
|
|
—
|
|
|
(334
|
)
|
|
—
|
|
|
(1,461
|
)
|
|
22,976
|
|
||||||||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
AgVantage
|
4,853,685
|
|
|
—
|
|
|
927,615
|
|
|
—
|
|
|
(357,006
|
)
|
|
5,166
|
|
|
14,286
|
|
|
5,443,746
|
|
||||||||
Total available-for-sale
|
4,853,685
|
|
|
—
|
|
|
927,615
|
|
|
—
|
|
|
(357,006
|
)
|
|
5,166
|
|
|
14,286
|
|
|
5,443,746
|
|
||||||||
USDA Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale
|
—
|
|
|
—
|
|
|
126,939
|
|
|
(126,939
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Trading
(1)
|
20,388
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,440
|
)
|
|
(84
|
)
|
|
—
|
|
|
14,864
|
|
||||||||
Total USDA Securities
|
20,388
|
|
|
—
|
|
|
126,939
|
|
|
(126,939
|
)
|
|
(5,440
|
)
|
|
(84
|
)
|
|
—
|
|
|
14,864
|
|
||||||||
Total Assets at fair value
|
$
|
4,891,803
|
|
|
$
|
7,041
|
|
|
$
|
1,054,554
|
|
|
$
|
(126,939
|
)
|
|
$
|
(362,780
|
)
|
|
$
|
5,082
|
|
|
$
|
12,825
|
|
|
$
|
5,481,586
|
|
(1)
|
Includes unrealized gains of
$42,000
attributable to assets still held as of
September 30, 2017
that are recorded in "
(Losses)/gains on trading securities
."
|
|
|
As of September 30, 2018
|
||||||||
Financial Instruments
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Weighted-Average)
|
||
|
|
(in thousands)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||
Investment securities:
|
|
|
|
|
|
|
|
|
||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
|
$
|
18,961
|
|
|
Indicative bids
|
|
Range of broker quotes
|
|
96.3% - 96.3% (96.3%)
|
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
||
AgVantage
|
|
$
|
5,957,304
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.9% - 4.0% (3.1%)
|
|
|
|
|
|
|
|
|
|
||
USDA Securities
|
|
$
|
10,237
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.3% - 5.2% (4.9%)
|
|
|
|
|
|
|
CPR
|
|
6% - 16% (15%)
|
|
|
As of December 31, 2017
|
||||||||
Financial Instruments
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Weighted-Average)
|
||
|
|
(in thousands)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||
Investment securities:
|
|
|
|
|
|
|
|
|
||
Floating rate auction-rate certificates backed by Government guaranteed student loans
|
|
$
|
18,814
|
|
|
Indicative bids
|
|
Range of broker quotes
|
|
95.5% - 95.5% (95.5%)
|
Fixed rate GSE guaranteed mortgage-backed securities
|
|
$
|
4,333
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.9%
|
|
|
|
|
|
|
CPR
|
|
0 %
|
||
Farmer Mac Guaranteed Securities:
|
|
|
|
|
|
|
|
|
||
AgVantage
|
|
$
|
5,471,914
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.1% - 3.4% (2.4%)
|
|
|
|
|
|
|
|
|
|
||
USDA Securities
|
|
$
|
13,515
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.6% - 5.4% (5.0%)
|
|
|
|
|
|
|
CPR
|
|
7% - 19% (17%)
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||||||||||
|
Fair Value
|
|
Carrying
Amount |
|
Fair Value
|
|
Carrying
Amount |
||||||||
|
(in thousands)
|
||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
436,152
|
|
|
$
|
436,152
|
|
|
$
|
302,022
|
|
|
$
|
302,022
|
|
Investment securities
|
2,269,877
|
|
|
2,269,034
|
|
|
2,260,969
|
|
|
2,260,437
|
|
||||
Farmer Mac Guaranteed Securities
|
8,002,686
|
|
|
8,024,611
|
|
|
7,588,806
|
|
|
7,598,188
|
|
||||
USDA Securities
|
2,067,583
|
|
|
2,154,111
|
|
|
2,076,396
|
|
|
2,131,365
|
|
||||
Loans
|
5,331,095
|
|
|
5,360,900
|
|
|
5,279,225
|
|
|
5,266,786
|
|
||||
Financial derivatives
|
8,007
|
|
|
8,007
|
|
|
7,093
|
|
|
7,093
|
|
||||
Guarantee and commitment fees receivable:
|
|
|
|
|
|
|
|
||||||||
LTSPCs
|
37,764
|
|
|
36,436
|
|
|
33,871
|
|
|
35,718
|
|
||||
Farmer Mac Guaranteed Securities
|
3,710
|
|
|
3,742
|
|
|
4,323
|
|
|
4,177
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Notes payable:
|
|
|
|
|
|
|
|
||||||||
Due within one year
|
7,363,251
|
|
|
7,378,927
|
|
|
8,079,309
|
|
|
8,089,826
|
|
||||
Due after one year
|
8,348,709
|
|
|
8,419,424
|
|
|
7,445,545
|
|
|
7,432,790
|
|
||||
Debt securities of consolidated trusts held by third parties
|
1,451,781
|
|
|
1,486,733
|
|
|
1,386,652
|
|
|
1,404,945
|
|
||||
Financial derivatives
|
17,841
|
|
|
17,841
|
|
|
26,599
|
|
|
26,599
|
|
||||
Guarantee and commitment obligations:
|
|
|
|
|
|
|
|
||||||||
LTSPCs
|
36,796
|
|
|
35,468
|
|
|
32,976
|
|
|
34,824
|
|
||||
Farmer Mac Guaranteed Securities
|
3,098
|
|
|
3,129
|
|
|
3,722
|
|
|
3,576
|
|
9.
|
BUSINESS SEGMENT REPORTING
|
Core Earnings by Business Segment
|
|||||||||||||||||||||||||||
For the Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural
Utilities
|
|
Institutional Credit
|
|
Corporate
|
|
Reconciling
Adjustments |
|
Consolidated Net Income
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Net interest income
|
$
|
16,425
|
|
|
$
|
5,304
|
|
|
$
|
3,081
|
|
|
$
|
17,600
|
|
|
$
|
2,648
|
|
|
$
|
—
|
|
|
$
|
45,058
|
|
Less: reconciling adjustments
(1)(2)(3)(4)
|
(2,538
|
)
|
|
(677
|
)
|
|
(204
|
)
|
|
(1,958
|
)
|
|
(604
|
)
|
|
5,981
|
|
|
—
|
|
|||||||
Net effective spread
|
13,887
|
|
|
4,627
|
|
|
2,877
|
|
|
15,642
|
|
|
2,044
|
|
|
5,981
|
|
|
—
|
|
|||||||
Guarantee and commitment fees
(2)
|
4,489
|
|
|
214
|
|
|
376
|
|
|
91
|
|
|
—
|
|
|
(1,680
|
)
|
|
3,490
|
|
|||||||
Other income/(expense)
(3)
|
294
|
|
|
5
|
|
|
15
|
|
|
—
|
|
|
(245
|
)
|
|
880
|
|
|
949
|
|
|||||||
Non-interest income/(loss)
|
4,783
|
|
|
219
|
|
|
391
|
|
|
91
|
|
|
(245
|
)
|
|
(800
|
)
|
|
4,439
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for loan losses
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Release of reserve for losses
|
102
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|||||||
Other non-interest expense
|
(4,456
|
)
|
|
(1,288
|
)
|
|
(732
|
)
|
|
(1,844
|
)
|
|
(3,432
|
)
|
|
—
|
|
|
(11,752
|
)
|
|||||||
Non-interest expense
(5)
|
(4,354
|
)
|
|
(1,288
|
)
|
|
(732
|
)
|
|
(1,844
|
)
|
|
(3,432
|
)
|
|
—
|
|
|
(11,650
|
)
|
|||||||
Core earnings before income taxes
|
14,217
|
|
|
3,558
|
|
|
2,536
|
|
|
13,889
|
|
|
(1,633
|
)
|
|
5,181
|
|
(6)
|
37,748
|
|
|||||||
Income tax (expense)/benefit
|
(2,986
|
)
|
|
(747
|
)
|
|
(533
|
)
|
|
(2,917
|
)
|
|
292
|
|
|
(1,088
|
)
|
|
(7,979
|
)
|
|||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest
|
11,231
|
|
|
2,811
|
|
|
2,003
|
|
|
10,972
|
|
|
(1,341
|
)
|
|
4,093
|
|
(6)
|
29,769
|
|
|||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,295
|
)
|
|
—
|
|
|
(3,295
|
)
|
|||||||
Segment core earnings/(losses)
|
$
|
11,231
|
|
|
$
|
2,811
|
|
|
$
|
2,003
|
|
|
$
|
10,972
|
|
|
$
|
(4,636
|
)
|
|
$
|
4,093
|
|
(6)
|
$
|
26,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets at carrying value
|
$
|
4,438,128
|
|
|
$
|
2,212,515
|
|
|
$
|
956,204
|
|
|
$
|
8,103,181
|
|
|
$
|
2,764,006
|
|
|
$
|
—
|
|
|
$
|
18,474,034
|
|
Total on- and off-balance sheet program assets at principal balance
|
$
|
7,072,018
|
|
|
$
|
2,471,251
|
|
|
$
|
1,632,037
|
|
|
$
|
8,365,280
|
|
|
—
|
|
|
—
|
|
|
$
|
19,540,586
|
|
(1)
|
Excludes 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/(losses) on financial derivatives and hedging activities
" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
|
(4)
|
Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
|
(5)
|
Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
|
(6)
|
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 and attribution of income to non-controlling interest 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 September 30, 2017
|
|||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural
Utilities |
|
Institutional Credit
|
|
Corporate
|
|
Reconciling
Adjustments
|
|
Consolidated Net Income
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Net interest income
|
$
|
13,609
|
|
|
$
|
5,288
|
|
|
$
|
2,230
|
|
|
$
|
15,431
|
|
|
$
|
3,004
|
|
|
$
|
—
|
|
|
$
|
39,562
|
|
Less: reconciling adjustments
(1)(2)(3)(4)
|
(2,306
|
)
|
|
(560
|
)
|
|
535
|
|
|
(976
|
)
|
|
(279
|
)
|
|
3,586
|
|
|
—
|
|
|||||||
Net effective spread
|
11,303
|
|
|
4,728
|
|
|
2,765
|
|
|
14,455
|
|
|
2,725
|
|
|
3,586
|
|
|
—
|
|
|||||||
Guarantee and commitment fees
(2)
|
4,236
|
|
|
130
|
|
|
476
|
|
|
93
|
|
|
—
|
|
|
(1,621
|
)
|
|
3,314
|
|
|||||||
Other income/(expense)
(3)(5)
|
214
|
|
|
9
|
|
|
5
|
|
|
—
|
|
|
78
|
|
|
679
|
|
|
985
|
|
|||||||
Non-interest income/(loss)
|
4,450
|
|
|
139
|
|
|
481
|
|
|
93
|
|
|
78
|
|
|
(942
|
)
|
|
4,299
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for loan losses
|
(270
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(270
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for reserve for losses
|
(114
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(114
|
)
|
|||||||
Other non-interest expense
|
(4,077
|
)
|
|
(1,080
|
)
|
|
(608
|
)
|
|
(1,670
|
)
|
|
(3,067
|
)
|
|
—
|
|
|
(10,502
|
)
|
|||||||
Non-interest expense
(6)
|
(4,191
|
)
|
|
(1,080
|
)
|
|
(608
|
)
|
|
(1,670
|
)
|
|
(3,067
|
)
|
|
—
|
|
|
(10,616
|
)
|
|||||||
Core earnings before income taxes
|
11,292
|
|
|
3,787
|
|
|
2,638
|
|
|
12,878
|
|
|
(264
|
)
|
|
2,644
|
|
(7)
|
32,975
|
|
|||||||
Income tax (expense)/benefit
|
(3,952
|
)
|
|
(1,325
|
)
|
|
(923
|
)
|
|
(4,507
|
)
|
|
439
|
|
|
(925
|
)
|
|
(11,193
|
)
|
|||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest
|
7,340
|
|
|
2,462
|
|
|
1,715
|
|
|
8,371
|
|
|
175
|
|
|
1,719
|
|
(7)
|
21,782
|
|
|||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,295
|
)
|
|
—
|
|
|
(3,295
|
)
|
|||||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Segment core earnings/(losses)
|
$
|
7,340
|
|
|
$
|
2,462
|
|
|
$
|
1,715
|
|
|
$
|
8,371
|
|
|
$
|
(3,120
|
)
|
|
$
|
1,719
|
|
(7)
|
$
|
18,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets at carrying value
|
$
|
4,128,778
|
|
|
$
|
2,165,749
|
|
|
$
|
1,073,525
|
|
|
$
|
7,612,572
|
|
|
$
|
2,709,614
|
|
|
$
|
—
|
|
|
$
|
17,690,238
|
|
Total on- and off-balance sheet program assets at principal balance
|
$
|
6,557,030
|
|
|
$
|
2,298,956
|
|
|
$
|
1,886,445
|
|
|
$
|
7,901,842
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,644,273
|
|
(1)
|
Excludes 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/(losses) on financial derivatives and hedging activities
" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
|
(4)
|
Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
|
(5)
|
Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
|
(6)
|
Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
|
(7)
|
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 and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
|
Core Earnings by Business Segment
|
|||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural
Utilities
|
|
Institutional Credit
|
|
Corporate
|
|
Reconciling
Adjustments |
|
Consolidated Net Income
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Net interest income
|
$
|
47,255
|
|
|
$
|
15,446
|
|
|
$
|
8,931
|
|
|
$
|
54,237
|
|
|
$
|
6,351
|
|
|
$
|
—
|
|
|
$
|
132,220
|
|
Less: reconciling adjustments
(1)(2)(3)(4)
|
(7,481
|
)
|
|
(2,021
|
)
|
|
(181
|
)
|
|
(8,551
|
)
|
|
(1,646
|
)
|
|
19,880
|
|
|
—
|
|
|||||||
Net effective spread
|
39,774
|
|
|
13,425
|
|
|
8,750
|
|
|
45,686
|
|
|
4,705
|
|
|
19,880
|
|
|
—
|
|
|||||||
Guarantee and commitment fees
(2)
|
13,356
|
|
|
570
|
|
|
1,227
|
|
|
271
|
|
|
—
|
|
|
(4,954
|
)
|
|
10,470
|
|
|||||||
Other income/(expense)
(3)
|
1,193
|
|
|
18
|
|
|
25
|
|
|
—
|
|
|
(594
|
)
|
|
(54
|
)
|
|
588
|
|
|||||||
Non-interest income/(loss)
|
14,549
|
|
|
588
|
|
|
1,252
|
|
|
271
|
|
|
(594
|
)
|
|
(5,008
|
)
|
|
11,058
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for loan losses
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(92
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for reserve for losses
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|||||||
Other non-interest expense
|
(13,930
|
)
|
|
(3,793
|
)
|
|
(2,144
|
)
|
|
(5,720
|
)
|
|
(10,549
|
)
|
|
—
|
|
|
(36,136
|
)
|
|||||||
Non-interest expense
(5)
|
(14,007
|
)
|
|
(3,793
|
)
|
|
(2,144
|
)
|
|
(5,720
|
)
|
|
(10,549
|
)
|
|
—
|
|
|
(36,213
|
)
|
|||||||
Core earnings before income taxes
|
40,224
|
|
|
10,220
|
|
|
7,858
|
|
|
40,237
|
|
|
(6,438
|
)
|
|
14,872
|
|
(6)
|
106,973
|
|
|||||||
Income tax (expense)/benefit
|
(8,447
|
)
|
|
(2,146
|
)
|
|
(1,651
|
)
|
|
(8,450
|
)
|
|
2,067
|
|
|
(3,122
|
)
|
|
(21,749
|
)
|
|||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest
|
31,777
|
|
|
8,074
|
|
|
6,207
|
|
|
31,787
|
|
|
(4,371
|
)
|
|
11,750
|
|
(6)
|
85,224
|
|
|||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,886
|
)
|
|
—
|
|
|
(9,886
|
)
|
|||||||
Segment core earnings/(losses)
|
$
|
31,777
|
|
|
$
|
8,074
|
|
|
$
|
6,207
|
|
|
$
|
31,787
|
|
|
$
|
(14,257
|
)
|
|
$
|
11,750
|
|
(6)
|
$
|
75,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets at carrying value
|
$
|
4,438,128
|
|
|
$
|
2,212,515
|
|
|
$
|
956,204
|
|
|
$
|
8,103,181
|
|
|
$
|
2,764,006
|
|
|
$
|
—
|
|
|
$
|
18,474,034
|
|
Total on- and off-balance sheet program assets at principal balance
|
$
|
7,072,018
|
|
|
$
|
2,471,251
|
|
|
$
|
1,632,037
|
|
|
$
|
8,365,280
|
|
|
—
|
|
|
—
|
|
|
$
|
19,540,586
|
|
(1)
|
Excludes 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/(losses) on financial derivatives and hedging activities
" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
|
(4)
|
Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
|
(5)
|
Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
|
(6)
|
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 and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
|
Core Earnings by Business Segment
|
|||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2017
|
|||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural
Utilities |
|
Institutional Credit
|
|
Corporate
|
|
Reconciling
Adjustments
|
|
Consolidated Net Income
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
Net interest income
|
$
|
39,701
|
|
|
$
|
15,747
|
|
|
$
|
8,181
|
|
|
$
|
44,364
|
|
|
$
|
8,371
|
|
|
$
|
—
|
|
|
$
|
116,364
|
|
Less: reconciling adjustments
(1)(2)(3)(4)
|
(6,729
|
)
|
|
(1,907
|
)
|
|
(179
|
)
|
|
(2,827
|
)
|
|
(886
|
)
|
|
12,528
|
|
|
—
|
|
|||||||
Net effective spread
|
32,972
|
|
|
13,840
|
|
|
8,002
|
|
|
41,537
|
|
|
7,485
|
|
|
12,528
|
|
|
—
|
|
|||||||
Guarantee and commitment fees
(2)
|
12,722
|
|
|
303
|
|
|
1,455
|
|
|
713
|
|
|
—
|
|
|
(4,563
|
)
|
|
10,630
|
|
|||||||
Other income/(expense)
(3)(5)
|
1,402
|
|
|
34
|
|
|
15
|
|
|
—
|
|
|
199
|
|
|
2,559
|
|
|
4,209
|
|
|||||||
Non-interest income/(loss)
|
14,124
|
|
|
337
|
|
|
1,470
|
|
|
713
|
|
|
199
|
|
|
(2,004
|
)
|
|
14,839
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for loan losses
|
(1,234
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,234
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for reserve for losses
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|||||||
Other non-interest expense
|
(12,588
|
)
|
|
(3,333
|
)
|
|
(1,838
|
)
|
|
(4,813
|
)
|
|
(9,923
|
)
|
|
—
|
|
|
(32,495
|
)
|
|||||||
Non-interest expense
(6)
|
(12,648
|
)
|
|
(3,333
|
)
|
|
(1,838
|
)
|
|
(4,813
|
)
|
|
(9,923
|
)
|
|
—
|
|
|
(32,555
|
)
|
|||||||
Core earnings before income taxes
|
33,214
|
|
|
10,844
|
|
|
7,634
|
|
|
37,437
|
|
|
(2,239
|
)
|
|
10,524
|
|
(7)
|
97,414
|
|
|||||||
Income tax (expense)/benefit
|
(11,625
|
)
|
|
(3,795
|
)
|
|
(2,671
|
)
|
|
(13,103
|
)
|
|
1,775
|
|
|
(3,684
|
)
|
|
(33,103
|
)
|
|||||||
Core earnings before preferred stock dividends and attribution of income to non-controlling interest
|
21,589
|
|
|
7,049
|
|
|
4,963
|
|
|
24,334
|
|
|
(464
|
)
|
|
6,840
|
|
(7)
|
64,311
|
|
|||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,886
|
)
|
|
—
|
|
|
(9,886
|
)
|
|||||||
Non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
|||||||
Segment core earnings/(losses)
|
$
|
21,589
|
|
|
$
|
7,049
|
|
|
$
|
4,963
|
|
|
$
|
24,334
|
|
|
$
|
(10,185
|
)
|
|
$
|
6,840
|
|
(7)
|
$
|
54,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets at carrying value
|
$
|
4,128,778
|
|
|
$
|
2,165,749
|
|
|
$
|
1,073,525
|
|
|
$
|
7,612,572
|
|
|
$
|
2,709,614
|
|
|
$
|
—
|
|
|
$
|
17,690,238
|
|
Total on- and off-balance sheet program assets at principal balance
|
$
|
6,557,030
|
|
|
$
|
2,298,956
|
|
|
$
|
1,886,445
|
|
|
$
|
7,901,842
|
|
|
—
|
|
|
—
|
|
|
$
|
18,644,273
|
|
(1)
|
Excludes 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/(losses) on financial derivatives and hedging activities
" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
|
(4)
|
Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
|
(5)
|
Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
|
(6)
|
Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
|
(7)
|
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 and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
|
10.
|
INCOME TAXES
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
prospects for earnings;
|
•
|
prospects for growth in business volume;
|
•
|
trends in net interest income and net effective spread;
|
•
|
trends in portfolio credit quality, delinquencies, substandard assets, credit losses, and provisions for losses;
|
•
|
trends in expenses;
|
•
|
trends in investment securities;
|
•
|
prospects for asset impairments and allowance for losses;
|
•
|
changes in capital position;
|
•
|
future dividend payments; and
|
•
|
other business and financial matters.
|
•
|
the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;
|
•
|
legislative or regulatory developments that could affect Farmer Mac, its sources of business, or the agricultural or rural utilities industries;
|
•
|
fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;
|
•
|
the rate and direction of development of the secondary market for agricultural mortgage and rural utilities loans, including lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;
|
•
|
the general rate of growth in agricultural mortgage and rural utilities indebtedness;
|
•
|
the effect of economic conditions, including the effects of drought and other weather-related conditions and fluctuations in agricultural real estate values, on agricultural mortgage lending and borrower repayment capacity;
|
•
|
the effect of any changes in Farmer Mac's executive leadership;
|
•
|
developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;
|
•
|
changes in the level and direction of interest rates, which could, among other things, affect the value of collateral securing Farmer Mac's agricultural mortgage loan assets;
|
•
|
the degree to which Farmer Mac is exposed to basis risk, which results from fluctuations in Farmer Mac's borrowing costs relative to market indexes such as LIBOR; and
|
•
|
volatility in commodity prices relative to costs of production, changes in U.S. trade policies, and/or fluctuations in export demand for U.S. agricultural products.
|
Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
|
|||||||
|
For the Three Months Ended
|
||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||
|
(in thousands, except per share amounts)
|
||||||
Net income attributable to common stockholders
|
$
|
26,474
|
|
|
$
|
18,487
|
|
Less reconciling items:
|
|
|
|
|
|
||
Gains on undesignated financial derivatives due to fair value changes (see Table 8)
|
3,625
|
|
|
995
|
|
||
Gains on hedging activities due to fair value changes
|
1,051
|
|
|
1,742
|
|
||
Unrealized losses on trading securities
|
(3
|
)
|
|
—
|
|
||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value
|
(38
|
)
|
|
(954
|
)
|
||
Net effects of terminations or net settlements on financial derivatives and hedging activities
(1)
|
546
|
|
|
862
|
|
||
Income tax effect related to reconciling items
|
(1,088
|
)
|
|
(926
|
)
|
||
Sub-total
|
4,093
|
|
|
1,719
|
|
||
Core earnings
|
$
|
22,381
|
|
|
$
|
16,768
|
|
|
|
|
|
||||
Composition of Core Earnings:
|
|
|
|
||||
Revenues:
|
|
|
|
||||
Net effective spread
(2)
|
$
|
39,077
|
|
|
$
|
35,976
|
|
Guarantee and commitment fees
(3)
|
5,170
|
|
|
4,935
|
|
||
Other
(4)
|
110
|
|
|
274
|
|
||
Total revenues
|
44,357
|
|
|
41,185
|
|
||
|
|
|
|
||||
Credit related expense/(income)(GAAP):
|
|
|
|
||||
(Release of)/provision for losses
|
(3
|
)
|
|
384
|
|
||
Losses/(gains) on sale of REO
|
41
|
|
|
(32
|
)
|
||
Total credit related expenses
|
38
|
|
|
352
|
|
||
|
|
|
|
||||
Operating expenses (GAAP):
|
|
|
|
||||
Compensation and employee benefits
|
6,777
|
|
|
5,987
|
|
||
General and administrative
|
4,350
|
|
|
3,890
|
|
||
Regulatory fees
|
625
|
|
|
625
|
|
||
Total operating expenses
|
11,752
|
|
|
10,502
|
|
||
|
|
|
|
||||
Net earnings
|
32,567
|
|
|
30,331
|
|
||
Income tax expense
(5)
|
6,891
|
|
|
10,268
|
|
||
Preferred stock dividends (GAAP)
|
3,295
|
|
|
3,295
|
|
||
Core earnings
|
$
|
22,381
|
|
|
$
|
16,768
|
|
|
|
|
|
||||
Core earnings per share:
|
|
|
|
||||
Basic
|
$
|
2.10
|
|
|
$
|
1.58
|
|
Diluted
|
2.08
|
|
|
1.55
|
|
||
Weighted-average shares:
|
|
|
|
||||
Basic
|
10,668
|
|
|
10,605
|
|
||
Diluted
|
10,744
|
|
|
10,815
|
|
(1)
|
Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, which is a component of core earnings, to also include the net effects of terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" and the information set forth below.
|
(2)
|
Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 6 for a reconciliation of net interest income to net effective spread.
|
(3)
|
Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.
|
(4)
|
Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives and hedging activities, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
|
(5)
|
Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.
|
(1)
|
Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, which is a component of core earnings, to also include the net effects of terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" and the information set forth below.
|
(2)
|
Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 6 for a reconciliation of net interest income to net effective spread.
|
(3)
|
Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.
|
(4)
|
Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and terminations or net settlements on financial derivatives and hedging activities, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
|
(5)
|
Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.
|
Reconciliation of GAAP Basic Earnings Per Share to Core Earnings - Basic Earnings Per Share
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||
GAAP - Basic EPS
|
$
|
2.48
|
|
|
$
|
1.74
|
|
|
$
|
7.07
|
|
|
$
|
5.16
|
|
Less reconciling items:
|
|
|
|
|
|
|
|
||||||||
Gains on undesignated financial derivatives due to fair value changes (see Table 8)
|
0.34
|
|
|
0.09
|
|
|
0.76
|
|
|
0.99
|
|
||||
Gains/(losses) on hedging activities due to fair value changes
|
0.10
|
|
|
0.17
|
|
|
0.50
|
|
|
(0.07
|
)
|
||||
Unrealized gains/(losses) on trading securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value
|
—
|
|
|
(0.09
|
)
|
|
(0.05
|
)
|
|
(0.11
|
)
|
||||
Net effects of terminations or net settlements on financial derivatives and hedging activities
|
0.05
|
|
|
0.08
|
|
|
0.19
|
|
|
0.20
|
|
||||
Income tax effect related to reconciling items
|
(0.11
|
)
|
|
(0.09
|
)
|
|
(0.30
|
)
|
|
(0.35
|
)
|
||||
Sub-total
|
0.38
|
|
|
0.16
|
|
|
1.10
|
|
|
0.65
|
|
||||
Core Earnings - Basic EPS
|
$
|
2.10
|
|
|
$
|
1.58
|
|
|
$
|
5.97
|
|
|
$
|
4.51
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used in per share calculation (GAAP and Core Earnings)
|
10,668
|
|
|
10,605
|
|
|
10,650
|
|
|
10,586
|
|
Non-GAAP Reconciling Items for Gains/(Losses) on Hedging Activities due to Fair Value Changes
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Gains/(losses) due to fair value changes (see Table 4.2)
|
1,051
|
|
|
1,742
|
|
|
5,751
|
|
|
(716
|
)
|
||||
Initial cash payment received at inception of swap
(1)
|
—
|
|
|
—
|
|
|
(449
|
)
|
|
—
|
|
||||
Gains/(losses) on hedging activities due to fair value changes
|
$
|
1,051
|
|
|
$
|
1,742
|
|
|
$
|
5,302
|
|
|
$
|
(716
|
)
|
(1)
|
Relates to initial cash payments received at the inception of a swap designated in a fair value hedge. These initial cash payments were previously recognized in "
Gains/(losses) on financial derivatives and hedging activities
" in the statement of operations. Upon adoption of ASU 2017-12, "
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,"
for financial derivatives designated in fair value hedge relationships, the changes in the fair values of the derivative and the associated hedged item are recorded within net interest income. For core earnings purposes, these initial cash payments are deferred and amortized as net yield adjustments over the term of the related debt.
|
•
|
Forward contracts on the debt of other GSEs and futures contracts on U.S. Treasury securities. These contracts are used as a short-term economic hedge of the issuance of debt. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the consolidated statements of operations in the period in which they occur. For core earnings purposes, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.
|
•
|
Initial cash payments received by Farmer Mac upon the inception of certain swaps. When there is no direct payment arrangement between a swap dealer counterparty and a debt dealer issuing Farmer Mac's medium-term notes for a particular transaction, Farmer Mac may receive an initial cash payment from the swap dealer at the inception of the swap to offset dollar-for-dollar the
|
|
For the Nine Months Ended
|
||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||
|
Average
Balance |
|
Income/
Expense |
|
Average
Rate |
|
Average
Balance |
|
Income/
Expense |
|
Average
Rate |
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and investments
|
$
|
2,750,402
|
|
|
$
|
38,681
|
|
|
1.88
|
%
|
|
$
|
2,746,902
|
|
|
$
|
24,834
|
|
|
1.21
|
%
|
Loans, Farmer Mac Guaranteed Securities and USDA Securities
(1)
|
13,889,468
|
|
|
319,040
|
|
|
3.06
|
%
|
|
12,496,888
|
|
|
231,852
|
|
|
2.47
|
%
|
||||
Total interest-earning assets
|
16,639,870
|
|
|
357,721
|
|
|
2.87
|
%
|
|
15,243,790
|
|
|
256,686
|
|
|
2.25
|
%
|
||||
Funding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Notes payable due within one year
|
3,521,125
|
|
|
44,990
|
|
|
1.70
|
%
|
|
5,409,742
|
|
|
36,526
|
|
|
0.90
|
%
|
||||
Notes payable due after one year
(2)
|
12,399,858
|
|
|
185,464
|
|
|
1.99
|
%
|
|
9,205,917
|
|
|
108,359
|
|
|
1.57
|
%
|
||||
Total interest-bearing liabilities
(3)
|
15,920,983
|
|
|
230,454
|
|
|
1.93
|
%
|
|
14,615,659
|
|
|
144,885
|
|
|
1.32
|
%
|
||||
Net non-interest-bearing funding
|
718,887
|
|
|
—
|
|
|
|
|
|
628,131
|
|
|
—
|
|
|
|
|
||||
Total funding
|
16,639,870
|
|
|
230,454
|
|
|
1.85
|
%
|
|
15,243,790
|
|
|
144,885
|
|
|
1.27
|
%
|
||||
Net interest income/yield prior to consolidation of certain trusts
|
16,639,870
|
|
|
127,267
|
|
|
1.02
|
%
|
|
15,243,790
|
|
|
111,801
|
|
|
0.98
|
%
|
||||
Net effect of consolidated trusts
(4)
|
1,427,560
|
|
|
4,953
|
|
|
0.46
|
%
|
|
1,211,419
|
|
|
4,563
|
|
|
0.50
|
%
|
||||
Net interest income/yield
|
$
|
18,067,430
|
|
|
$
|
132,220
|
|
|
0.98
|
%
|
|
$
|
16,455,209
|
|
|
$
|
116,364
|
|
|
0.94
|
%
|
(1)
|
Excludes interest income of
$40.1 million
and
$32.5 million
in the first nine months of 2018 and 2017, respectively, related to consolidated trusts with beneficial interests owned by third parties.
|
(2)
|
Includes current portion of long-term notes.
|
(3)
|
Excludes interest expense of
$35.2 million
and
$27.9 million
in the first nine months of 2018 and 2017, respectively, related to consolidated trusts with beneficial interests owned by third parties.
|
(4)
|
Includes the effect of consolidated trusts with beneficial interests owned by third parties.
|
|
For the Nine Months Ended September 30, 2018 Compared to Same Period in 2017
|
||||||||||
|
Increase/(Decrease) Due to
|
||||||||||
|
Rate
|
|
Volume
|
|
Total
|
||||||
|
(in thousands)
|
||||||||||
Income from interest-earning assets:
|
|
|
|
|
|
||||||
Cash and investments
|
$
|
13,815
|
|
|
$
|
32
|
|
|
$
|
13,847
|
|
Loans, Farmer Mac Guaranteed Securities and USDA Securities
|
59,391
|
|
|
27,797
|
|
|
87,188
|
|
|||
Total
|
73,206
|
|
|
27,829
|
|
|
101,035
|
|
|||
Expense from other interest-bearing liabilities
|
71,662
|
|
|
13,907
|
|
|
85,569
|
|
|||
Change in net interest income prior to consolidation of certain trusts
(1)
|
$
|
1,544
|
|
|
$
|
13,922
|
|
|
$
|
15,466
|
|
(1)
|
Excludes the effect of debt in consolidated trusts with beneficial interests owned by third parties.
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||||||||
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||
Net interest income/yield
|
$
|
45,058
|
|
|
0.99
|
%
|
|
$
|
39,562
|
|
|
0.92
|
%
|
|
$
|
132,220
|
|
|
0.98
|
%
|
|
$
|
116,364
|
|
|
0.94
|
%
|
Net effects of consolidated trusts
|
(1,681
|
)
|
|
0.05
|
%
|
|
(1,621
|
)
|
|
0.04
|
%
|
|
(4,953
|
)
|
|
0.04
|
%
|
|
(4,563
|
)
|
|
0.04
|
%
|
||||
Expense related to undesignated financial derivatives
|
(3,223
|
)
|
|
(0.08
|
)%
|
|
(2,675
|
)
|
|
(0.07
|
)%
|
|
(9,523
|
)
|
|
(0.08
|
)%
|
|
(8,317
|
)
|
|
(0.07
|
)%
|
||||
Amortization of premiums/discounts on assets consolidated at fair value
|
49
|
|
|
—
|
%
|
|
961
|
|
|
0.03
|
%
|
|
555
|
|
|
0.01
|
%
|
|
1,219
|
|
|
0.01
|
%
|
||||
Amortization of losses due to terminations or net settlements on financial derivatives and hedging activities
|
(75
|
)
|
|
—
|
%
|
|
(251
|
)
|
|
(0.01
|
)%
|
|
(207
|
)
|
|
—
|
%
|
|
(867
|
)
|
|
(0.01
|
)%
|
||||
Fair value changes on fair value hedge relationships
|
(1,051
|
)
|
|
(0.03
|
)%
|
|
—
|
|
|
—
|
%
|
|
$
|
(5,752
|
)
|
|
(0.05
|
)%
|
|
$
|
—
|
|
|
—
|
%
|
||
Net effective spread
|
$
|
39,077
|
|
|
0.93
|
%
|
|
$
|
35,976
|
|
|
0.91
|
%
|
|
$
|
112,340
|
|
|
0.90
|
%
|
|
$
|
103,836
|
|
|
0.91
|
%
|
|
As of September 30, 2018
|
|
As of September 30, 2017
|
||||||||||||||||||||
|
Allowance
for Loan Losses |
|
Reserve
for Losses |
|
Total
Allowance for Losses |
|
Allowance
for Loan Losses |
|
Reserve
for Losses |
|
Total
Allowance for Losses |
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
$
|
6,789
|
|
|
$
|
2,249
|
|
|
$
|
9,038
|
|
|
$
|
6,138
|
|
|
$
|
1,966
|
|
|
$
|
8,104
|
|
Provision for/(release of) losses
|
99
|
|
|
(102
|
)
|
|
(3
|
)
|
|
270
|
|
|
114
|
|
|
384
|
|
||||||
Charge-offs
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Ending Balance
|
$
|
6,871
|
|
|
$
|
2,147
|
|
|
$
|
9,018
|
|
|
$
|
6,408
|
|
|
$
|
2,080
|
|
|
$
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
$
|
6,796
|
|
|
$
|
2,070
|
|
|
$
|
8,866
|
|
|
$
|
5,415
|
|
|
$
|
2,020
|
|
|
$
|
7,435
|
|
Provision for losses
|
92
|
|
|
$
|
77
|
|
|
$
|
169
|
|
|
1,234
|
|
|
60
|
|
|
1,294
|
|
||||
Charge-offs
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
(241
|
)
|
|
—
|
|
|
(241
|
)
|
||||
Ending Balance
|
$
|
6,871
|
|
|
$
|
2,147
|
|
|
$
|
9,018
|
|
|
$
|
6,408
|
|
|
$
|
2,080
|
|
|
$
|
8,488
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
||||||||
(Losses)/gains due to fair value changes:
|
|
|
|
|
|
|
|
||||||||
Financial derivatives
(2)
|
$
|
—
|
|
|
$
|
1,576
|
|
|
|
|
|
$
|
(5,466
|
)
|
|
Hedged items
|
—
|
|
|
166
|
|
|
|
|
|
4,750
|
|
||||
(Losses)/gains on fair value hedging activities
|
—
|
|
|
1,742
|
|
|
—
|
|
|
(716
|
)
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Loss recognized (ineffective portion)
|
—
|
|
|
(191
|
)
|
|
|
|
|
(365
|
)
|
||||
Losses on cash flow hedges
|
—
|
|
|
(191
|
)
|
|
|
|
|
(365
|
)
|
||||
No hedge designation:
|
|
|
|
|
|
|
|
||||||||
(Losses)/Gains due to fair value changes
|
3,624
|
|
|
995
|
|
|
8,055
|
|
|
10,479
|
|
||||
Accrual of contractual payments
|
(3,224
|
)
|
|
(2,484
|
)
|
|
(9,524
|
)
|
|
(7,952
|
)
|
||||
Gains/(losses) due to terminations or net settlements
|
228
|
|
|
599
|
|
|
781
|
|
|
1,084
|
|
||||
(Losses)/gains on financial derivatives not designated in hedging relationships
|
628
|
|
|
(890
|
)
|
|
(688
|
)
|
|
3,611
|
|
||||
(Losses)/gains on financial derivatives and hedging activities
|
$
|
628
|
|
|
$
|
661
|
|
|
$
|
(688
|
)
|
|
$
|
2,530
|
|
(1)
|
Effective in first quarter 2018, Farmer Mac adopted ASU 2017-12, "
Derivatives and Hedging
(Topic 815):
Targeted Improvements to Accounting for Hedging Activities
." For financial derivatives designated in fair value hedge relationships, changes in the fair values of the derivative and the associated hedged item are recorded within net interest income. For financial derivatives designated in cash flow hedge relationships, changes in the fair values of the derivative and the associated hedged item are recorded within accumulated other comprehensive income and reclassified to net interest income when the hedged item impacts earnings.
|
(2)
|
Included in the assessment of hedge effectiveness as of
September 30, 2017
, but excluded from the amounts in the table, were losses of
$1.6 million
and gains of
$0.7 million
for the three and nine months ended
September 30, 2017
, respectively, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for the three and nine months ended
September 30, 2017
were gains of
$0.1 million
and losses of
zero
, respectively.
|
•
|
purchased
$786.0 million
of AgVantage securities;
|
•
|
renewed a
$300.0 million
revolving floating rate AgVantage facility;
|
•
|
purchased
$192.6 million
of newly originated Farm & Ranch loans;
|
•
|
purchased
$90.0 million
of USDA Securities;
|
•
|
added
$64.1 million
of Farm & Ranch loans under LTSPCs; and
|
•
|
issued
$26.3 million
of Farmer Mac Guaranteed USDA Securities.
|
New Business Volume – Farmer Mac Loan Purchases, Guarantees, LTSPCs, and AgVantage Securities
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Farm & Ranch:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
192,628
|
|
|
$
|
298,274
|
|
|
$
|
675,840
|
|
|
$
|
924,628
|
|
LTSPCs
|
64,100
|
|
|
102,774
|
|
|
349,231
|
|
|
271,934
|
|
||||
USDA Guarantees:
|
|
|
|
|
|
|
|
||||||||
USDA Securities
|
90,018
|
|
|
90,229
|
|
|
264,196
|
|
|
298,539
|
|
||||
Farmer Mac Guaranteed USDA Securities
|
26,321
|
|
|
41,069
|
|
|
105,628
|
|
|
133,121
|
|
||||
Rural Utilities:
|
|
|
|
|
|
|
|
||||||||
Loans
|
—
|
|
|
70,000
|
|
|
8,645
|
|
|
122,341
|
|
||||
Institutional Credit:
|
|
|
|
|
|
|
|
||||||||
AgVantage securities
|
785,953
|
|
|
290,995
|
|
|
2,424,493
|
|
|
2,149,159
|
|
||||
AgVantage revolving line of credit facility
|
300,000
|
|
|
—
|
|
|
300,000
|
|
|
—
|
|
||||
Total purchases, guarantees, LTSPCs, and AgVantage securities
|
$
|
1,459,020
|
|
|
$
|
893,341
|
|
|
$
|
4,128,033
|
|
|
$
|
3,899,722
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Loans securitized and sold as Farm & Ranch Guaranteed Securities
|
$
|
82,781
|
|
|
$
|
115,427
|
|
|
$
|
199,764
|
|
|
$
|
277,307
|
|
Farmer Mac Guaranteed USDA Securities
|
26,321
|
|
|
41,069
|
|
|
105,628
|
|
|
127,164
|
|
||||
AgVantage securities
|
785,953
|
|
|
290,995
|
|
|
2,424,493
|
|
|
2,149,159
|
|
||||
Total Farmer Mac Guaranteed Securities issuances
|
$
|
895,055
|
|
|
$
|
447,491
|
|
|
$
|
2,729,885
|
|
|
$
|
2,553,630
|
|
Lines of Business - Outstanding Business Volume
|
|||||||
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||
|
(in thousands)
|
||||||
On-balance sheet:
|
|
|
|
||||
Farm & Ranch:
|
|
|
|
||||
Loans
|
$
|
2,937,484
|
|
|
$
|
2,798,906
|
|
Loans held in trusts:
|
|
|
|
||||
Beneficial interests owned by third party investors
|
1,483,135
|
|
|
1,399,827
|
|
||
USDA Guarantees:
|
|
|
|
||||
USDA Securities
|
2,096,700
|
|
|
2,068,017
|
|
||
Farmer Mac Guaranteed USDA Securities
|
27,861
|
|
|
29,980
|
|
||
Rural Utilities:
|
|
|
|
||||
Loans
|
962,702
|
|
|
1,076,291
|
|
||
Institutional Credit:
|
|
|
|
||||
AgVantage securities
|
8,053,724
|
|
|
7,593,322
|
|
||
Total on-balance sheet
|
$
|
15,561,606
|
|
|
$
|
14,966,343
|
|
Off-balance sheet:
|
|
|
|
||||
Farm & Ranch:
|
|
|
|
||||
LTSPCs
|
$
|
2,363,805
|
|
|
$
|
2,335,342
|
|
Guaranteed Securities
|
287,594
|
|
|
333,511
|
|
||
USDA Guarantees:
|
|
|
|
||||
Farmer Mac Guaranteed USDA Securities
|
346,690
|
|
|
254,217
|
|
||
Rural Utilities:
|
|
|
|
||||
LTSPCs
(1)
|
669,335
|
|
|
806,342
|
|
||
Institutional Credit:
|
|
|
|
||||
AgVantage securities
|
11,556
|
|
|
11,556
|
|
||
Revolving floating rate AgVantage facility
(2)
|
300,000
|
|
|
300,000
|
|
||
Total off-balance sheet
|
$
|
3,978,980
|
|
|
$
|
4,040,968
|
|
Total
|
$
|
19,540,586
|
|
|
$
|
19,007,311
|
|
(1)
|
Includes $20.0 million related to one-year loan purchase commitments on which Farmer Mac receives a nominal unused commitment fee as of both
September 30, 2018
and December 31, 2017.
|
(2)
|
During the first nine months of 2018, $100.0 million of this facility was drawn and subsequently repaid. During 2017, $100.0 million of this facility was drawn and subsequently repaid. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. If the counterparty draws on the facility, the amounts drawn will be in the form of AgVantage securities, and Farmer Mac will earn interest income on those securities.
|
Schedule of Principal Amortization as of September 30, 2018
|
|||||||||||||||
|
Loans Held
|
|
Loans Underlying Off-Balance Sheet Farmer Mac Guaranteed Securities and LTSPCs
|
|
USDA Securities and Farmer Mac Guaranteed USDA Securities
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
2018
|
51,715
|
|
|
57,751
|
|
|
25,722
|
|
|
135,188
|
|
||||
2019
|
219,777
|
|
|
267,446
|
|
|
109,758
|
|
|
596,981
|
|
||||
2020
|
240,173
|
|
|
238,144
|
|
|
107,449
|
|
|
585,766
|
|
||||
2021
|
249,110
|
|
|
270,939
|
|
|
111,138
|
|
|
631,187
|
|
||||
2022
|
216,044
|
|
|
208,781
|
|
|
114,561
|
|
|
539,386
|
|
||||
Thereafter
|
4,406,501
|
|
|
2,277,675
|
|
|
2,002,622
|
|
|
8,686,798
|
|
||||
Total
|
$
|
5,383,320
|
|
|
$
|
3,320,736
|
|
|
$
|
2,471,250
|
|
|
$
|
11,175,306
|
|
AgVantage Balances by Year of Maturity
|
|||
|
As of
|
||
|
September 30, 2018
|
||
|
(in thousands)
|
||
2018
|
520,919
|
|
|
2019
|
1,437,279
|
|
|
2020
|
1,320,758
|
|
|
2021
|
1,414,262
|
|
|
2022
|
909,278
|
|
|
Thereafter
(1)(2)
|
2,762,784
|
|
|
Total
|
$
|
8,365,280
|
|
(1)
|
Includes the expiration of the $300.0 million revolving floating rate AgVantage facility.
|
(2)
|
Includes various maturities ranging from 2023 to 2044.
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
|
September 30, 2018
|
|
September 30, 2017
|
||||||||
|
(in thousands)
|
||||||||||||||
Defaulted loans purchased underlying Farm & Ranch Guaranteed Securities owned by third party investors
|
$
|
5,552
|
|
|
$
|
3,043
|
|
|
$
|
6,273
|
|
|
$
|
3,147
|
|
Defaulted loans purchased underlying LTSPCs
|
1,483
|
|
|
—
|
|
|
1,483
|
|
|
311
|
|
||||
Total loan purchases
|
$
|
7,035
|
|
|
$
|
3,043
|
|
|
$
|
7,756
|
|
|
$
|
3,458
|
|
•
|
As agricultural and rural utilities lenders seek to manage equity capital requirements under regulatory frameworks or seek to reduce exposure due to lending limits or concentration limits, Farmer Mac can provide relief for those institutions through loan purchases, guarantees, LTSPCs, or wholesale funding.
|
•
|
Prospects for loan growth within the rural utilities industry appear to be modest in the near term due to generally flat demand for capital. Future growth opportunities for Farmer Mac related to this industry through its Rural Utilities and Institutional Credit lines of business may be impacted by sector growth, credit quality, and the competitiveness of Farmer Mac's AgVantage product.
|
•
|
As a result of targeted marketing and brand awareness initiatives, product development efforts, and continued interest in the agricultural asset class from institutional investors, Farmer Mac's customer base continues to expand, which may generate additional demand for Farmer Mac's products from new sources.
|
•
|
Consolidation, expansion, and vertical integration occurring across many sectors of the agricultural industry and in agricultural finance, coupled with Farmer Mac's relationships with larger regional and national lenders, continues to provide opportunities that could influence Farmer Mac's loan demand and the average transaction size within Farmer Mac's Farm & Ranch line of business.
|
•
|
loans held;
|
•
|
loans underlying Farmer Mac Guaranteed Securities; and
|
•
|
loans underlying LTSPCs.
|
|
As of September 30, 2018
|
|
As of September 30, 2017
|
||||||||||||||||||||
|
Allowance
for Loan Losses |
|
Reserve
for Losses |
|
Total
Allowance for Losses |
|
Allowance
for Loan Losses |
|
Reserve
for Losses |
|
Total
Allowance for Losses |
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
For the Three Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
$
|
6,789
|
|
|
$
|
2,249
|
|
|
$
|
9,038
|
|
|
$
|
6,138
|
|
|
$
|
1,966
|
|
|
$
|
8,104
|
|
Provision for losses
|
99
|
|
|
(102
|
)
|
|
(3
|
)
|
|
270
|
|
|
114
|
|
|
384
|
|
||||||
Charge-offs
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Ending Balance
|
$
|
6,871
|
|
|
$
|
2,147
|
|
|
$
|
9,018
|
|
|
$
|
6,408
|
|
|
$
|
2,080
|
|
|
$
|
8,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Nine Months Ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning Balance
|
$
|
6,796
|
|
|
$
|
2,070
|
|
|
$
|
8,866
|
|
|
$
|
5,415
|
|
|
$
|
2,020
|
|
|
$
|
7,435
|
|
Provision for losses
|
92
|
|
|
77
|
|
|
169
|
|
|
1,234
|
|
|
60
|
|
|
1,294
|
|
||||||
Charge-offs
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|
(241
|
)
|
|
—
|
|
|
(241
|
)
|
||||||
Ending Balance
|
$
|
6,871
|
|
|
$
|
2,147
|
|
|
$
|
9,018
|
|
|
$
|
6,408
|
|
|
$
|
2,080
|
|
|
$
|
8,488
|
|
|
Farm & Ranch Line of Business
|
|
90-Day
Delinquencies |
|
Percentage
|
|||||
|
(dollars in thousands)
|
|||||||||
As of:
|
|
|
|
|
|
|||||
September 30, 2018
|
$
|
7,072,018
|
|
|
$
|
37,545
|
|
|
0.53
|
%
|
June 30, 2018
|
7,045,397
|
|
|
43,076
|
|
|
0.61
|
%
|
||
March 31, 2018
|
6,932,002
|
|
|
47,560
|
|
|
0.69
|
%
|
||
December 31, 2017
|
6,867,586
|
|
|
48,444
|
|
|
0.71
|
%
|
||
September 30, 2017
|
6,557,030
|
|
|
66,381
|
|
|
1.01
|
%
|
||
June 30, 2017
|
6,426,518
|
|
|
41,901
|
|
|
0.65
|
%
|
||
March 31, 2017
|
6,240,467
|
|
|
50,807
|
|
|
0.81
|
%
|
||
December 31, 2016
|
6,139,304
|
|
|
21,038
|
|
|
0.34
|
%
|
||
September 30, 2016
|
6,004,728
|
|
|
18,377
|
|
|
0.31
|
%
|
Farm & Ranch 90-Day Delinquencies as of September 30, 2018
|
|||||||||||||
|
Distribution of Farm & Ranch Line of Business
|
|
Farm & Ranch Line of Business
|
|
90-Day Delinquencies
(1)
|
|
Percentage
|
||||||
|
(dollars in thousands)
|
||||||||||||
By year of origination:
|
|
|
|
|
|
|
|
||||||
2008 and prior
|
11
|
%
|
|
790,898
|
|
|
8,548
|
|
|
1.08
|
%
|
||
2009
|
1
|
%
|
|
95,465
|
|
|
477
|
|
|
0.50
|
%
|
||
2010
|
2
|
%
|
|
152,089
|
|
|
—
|
|
|
—
|
%
|
||
2011
|
3
|
%
|
|
225,295
|
|
|
914
|
|
|
0.41
|
%
|
||
2012
|
8
|
%
|
|
532,747
|
|
|
1,955
|
|
|
0.37
|
%
|
||
2013
|
11
|
%
|
|
759,516
|
|
|
4,018
|
|
|
0.53
|
%
|
||
2014
|
8
|
%
|
|
597,238
|
|
|
3,075
|
|
|
0.51
|
%
|
||
2015
|
11
|
%
|
|
768,477
|
|
|
391
|
|
|
0.05
|
%
|
||
2016
|
16
|
%
|
|
1,123,758
|
|
|
8,663
|
|
|
0.77
|
%
|
||
2017
|
19
|
%
|
|
1,306,981
|
|
|
9,504
|
|
|
0.73
|
%
|
||
2018
|
10
|
%
|
|
719,554
|
|
|
—
|
|
|
—
|
%
|
||
Total
|
100
|
%
|
|
$
|
7,072,018
|
|
|
$
|
37,545
|
|
|
0.53
|
%
|
By geographic region
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||
Northwest
|
12
|
%
|
|
$
|
815,346
|
|
|
$
|
12,659
|
|
|
1.55
|
%
|
Southwest
|
31
|
%
|
|
2,198,744
|
|
|
12,065
|
|
|
0.55
|
%
|
||
Mid-North
|
32
|
%
|
|
2,276,100
|
|
|
7,373
|
|
|
0.32
|
%
|
||
Mid-South
|
12
|
%
|
|
876,960
|
|
|
3,274
|
|
|
0.37
|
%
|
||
Northeast
|
5
|
%
|
|
315,685
|
|
|
1,487
|
|
|
0.47
|
%
|
||
Southeast
|
8
|
%
|
|
589,183
|
|
|
687
|
|
|
0.12
|
%
|
||
Total
|
100
|
%
|
|
$
|
7,072,018
|
|
|
$
|
37,545
|
|
|
0.53
|
%
|
By commodity/collateral type:
|
|
|
|
|
|
|
|
|
|
|
|||
Crops
|
53
|
%
|
|
$
|
3,746,077
|
|
|
$
|
16,989
|
|
|
0.45
|
%
|
Permanent plantings
|
20
|
%
|
|
1,400,976
|
|
|
9,340
|
|
|
0.67
|
%
|
||
Livestock
|
19
|
%
|
|
1,353,141
|
|
|
6,763
|
|
|
0.50
|
%
|
||
Part-time farm
|
7
|
%
|
|
484,227
|
|
|
4,453
|
|
|
0.92
|
%
|
||
Ag. Storage and Processing
|
1
|
%
|
|
79,475
|
|
|
—
|
|
|
—
|
%
|
||
Other
|
—
|
|
|
8,122
|
|
|
—
|
|
|
—
|
%
|
||
Total
|
100
|
%
|
|
$
|
7,072,018
|
|
|
$
|
37,545
|
|
|
0.53
|
%
|
By original loan-to-value ratio
(3)
:
|
|
|
|
|
|
|
|
||||||
0.00% to 40.00%
|
19
|
%
|
|
$
|
1,317,118
|
|
|
$
|
4,607
|
|
|
0.35
|
%
|
40.01% to 50.00%
|
25
|
%
|
|
1,769,124
|
|
|
11,794
|
|
|
0.67
|
%
|
||
50.01% to 60.00%
|
35
|
%
|
|
2,456,766
|
|
|
16,074
|
|
|
0.65
|
%
|
||
60.01% to 70.00%
|
17
|
%
|
|
1,227,092
|
|
|
3,809
|
|
|
0.31
|
%
|
||
70.01% to 80.00%
(4)
|
4
|
%
|
|
277,204
|
|
|
960
|
|
|
0.35
|
%
|
||
80.01% to 90.00%
(4)
|
—
|
%
|
|
24,714
|
|
|
301
|
|
|
1.22
|
%
|
||
Total
|
100
|
%
|
|
$
|
7,072,018
|
|
|
$
|
37,545
|
|
|
0.53
|
%
|
By size of borrower exposure
(5)
:
|
|
|
|
|
|
|
|
||||||
Less than $1,000,000
|
34
|
%
|
|
$
|
2,423,394
|
|
|
$
|
13,862
|
|
|
0.57
|
%
|
$1,000,000 to $4,999,999
|
38
|
%
|
|
2,696,431
|
|
|
23,683
|
|
|
0.88
|
%
|
||
$5,000,000 to $9,999,999
|
13
|
%
|
|
917,198
|
|
|
—
|
|
|
—
|
%
|
||
$10,000,000 to $24,999,999
|
8
|
%
|
|
587,618
|
|
|
—
|
|
|
—
|
%
|
||
$25,000,000 to $50,000,000
|
7
|
%
|
|
447,377
|
|
|
—
|
|
|
—
|
%
|
||
Total
|
100
|
%
|
|
$
|
7,072,018
|
|
|
$
|
37,545
|
|
|
0.53
|
%
|
(1)
|
Includes loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.
|
(2)
|
Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).
|
(3)
|
As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans, set forth as follows: (i) the original loan principal balance amounts in the numerator; and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.
|
(4)
|
Primarily part-time farm loans. Loans with an original loan-to-value ratio of greater than 80% are required to have private mortgage insurance.
|
(5)
|
Includes aggregated loans to single borrowers or borrower-related entities.
|
Farm & Ranch Credit Losses Relative to Cumulative
|
||||||||||
Original Loans, Guarantees, and LTSPCs as of September 30, 2018
|
||||||||||
|
Cumulative Original Loans, Guarantees and LTSPCs
|
|
Cumulative Net Credit Losses/(Recoveries)
|
|
Cumulative Loss Rate
|
|||||
|
(dollars in thousands)
|
|||||||||
By year of origination:
|
|
|
|
|
|
|||||
2008 and prior
|
14,974,346
|
|
|
28,538
|
|
|
0.19
|
%
|
||
2009
|
579,665
|
|
|
1,544
|
|
|
0.27
|
%
|
||
2010
|
663,870
|
|
|
5
|
|
|
—
|
%
|
||
2011
|
785,554
|
|
|
3,661
|
|
|
0.47
|
%
|
||
2012
|
1,158,941
|
|
|
—
|
|
|
—
|
%
|
||
2013
|
1,423,735
|
|
|
—
|
|
|
—
|
%
|
||
2014
|
980,965
|
|
|
—
|
|
|
—
|
%
|
||
2015
|
1,104,579
|
|
|
(540
|
)
|
|
(0.05
|
)%
|
||
2016
|
1,404,299
|
|
|
—
|
|
|
—
|
%
|
||
2017
|
1,482,209
|
|
|
—
|
|
|
—
|
%
|
||
2018
|
776,090
|
|
|
—
|
|
|
—
|
%
|
||
Total
|
$
|
25,334,253
|
|
|
$
|
33,208
|
|
|
0.13
|
%
|
By geographic region
(1)
:
|
|
|
|
|
|
|
|
|
||
Northwest
|
$
|
3,245,378
|
|
|
$
|
11,191
|
|
|
0.34
|
%
|
Southwest
|
8,840,676
|
|
|
8,167
|
|
|
0.09
|
%
|
||
Mid-North
|
6,239,007
|
|
|
12,830
|
|
|
0.21
|
%
|
||
Mid-South
|
2,930,849
|
|
|
(211
|
)
|
|
(0.01
|
)%
|
||
Northeast
|
1,780,211
|
|
|
259
|
|
|
0.01
|
%
|
||
Southeast
|
2,298,132
|
|
|
972
|
|
|
0.04
|
%
|
||
Total
|
$
|
25,334,253
|
|
|
$
|
33,208
|
|
|
0.13
|
%
|
By commodity/collateral type:
|
|
|
|
|
|
|
|
|
||
Crops
|
$
|
11,416,270
|
|
|
$
|
2,887
|
|
|
0.03
|
%
|
Permanent plantings
|
5,369,875
|
|
|
9,368
|
|
|
0.17
|
%
|
||
Livestock
|
6,055,966
|
|
|
3,877
|
|
|
0.06
|
%
|
||
Part-time farm
|
1,550,443
|
|
|
1,403
|
|
|
0.09
|
%
|
||
Ag. Storage and Processing
|
783,908
|
|
|
15,673
|
|
|
2.00
|
%
|
||
Other
|
157,791
|
|
|
—
|
|
|
—
|
%
|
||
Total
|
$
|
25,334,253
|
|
|
$
|
33,208
|
|
|
0.13
|
%
|
(1)
|
Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).
|
|
As of September 30, 2018
|
||||||||||||||||||||||||||
|
Farm & Ranch Concentrations by Commodity Type within Geographic Region
|
||||||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Other
|
|
Total
|
||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||
By geographic region
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Northwest
|
$
|
401,675
|
|
|
$
|
102,187
|
|
|
$
|
240,728
|
|
|
$
|
70,353
|
|
|
$
|
—
|
|
|
$
|
403
|
|
|
$
|
815,346
|
|
|
5.7
|
%
|
|
1.4
|
%
|
|
3.4
|
%
|
|
1.0
|
%
|
|
—
|
%
|
|
—
|
%
|
|
11.5
|
%
|
|||||||
Southwest
|
534,570
|
|
|
1,089,010
|
|
|
439,515
|
|
|
81,284
|
|
|
50,292
|
|
|
4,073
|
|
|
2,198,744
|
|
|||||||
|
7.6
|
%
|
|
15.4
|
%
|
|
6.2
|
%
|
|
1.1
|
%
|
|
0.7
|
%
|
|
0.1
|
%
|
|
31.1
|
%
|
|||||||
Mid-North
|
1,932,370
|
|
|
16,948
|
|
|
188,220
|
|
|
126,823
|
|
|
8,943
|
|
|
2,796
|
|
|
2,276,100
|
|
|||||||
|
27.3
|
%
|
|
0.3
|
%
|
|
2.7
|
%
|
|
1.8
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
32.2
|
%
|
|||||||
Mid-South
|
533,204
|
|
|
8,094
|
|
|
264,086
|
|
|
62,458
|
|
|
8,661
|
|
|
457
|
|
|
876,960
|
|
|||||||
|
7.5
|
%
|
|
0.1
|
%
|
|
3.7
|
%
|
|
0.9
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
12.3
|
%
|
|||||||
Northeast
|
153,233
|
|
|
22,450
|
|
|
60,545
|
|
|
74,879
|
|
|
4,578
|
|
|
—
|
|
|
315,685
|
|
|||||||
|
2.2
|
%
|
|
0.3
|
%
|
|
0.9
|
%
|
|
1.1
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
4.6
|
%
|
|||||||
Southeast
|
191,025
|
|
|
162,287
|
|
|
160,047
|
|
|
68,430
|
|
|
7,001
|
|
|
393
|
|
|
589,183
|
|
|||||||
|
2.7
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|
0.9
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|
8.3
|
%
|
|||||||
Total
|
$
|
3,746,077
|
|
|
$
|
1,400,976
|
|
|
$
|
1,353,141
|
|
|
$
|
484,227
|
|
|
$
|
79,475
|
|
|
$
|
8,122
|
|
|
$
|
7,072,018
|
|
|
53.0
|
%
|
|
19.8
|
%
|
|
19.2
|
%
|
|
6.8
|
%
|
|
1.1
|
%
|
|
0.1
|
%
|
|
100.0
|
%
|
(1)
|
Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).
|
|
As of September 30, 2018
|
||||||||||||||||||||||
|
Farm & Ranch Cumulative Credit Losses by Origination Year and Commodity Type
|
||||||||||||||||||||||
|
Crops
|
|
Permanent
Plantings |
|
Livestock
|
|
Part-time
Farm |
|
Ag. Storage and
Processing |
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
By year of origination:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2008 and Prior
|
$
|
3,329
|
|
|
$
|
9,184
|
|
|
$
|
3,803
|
|
|
$
|
1,403
|
|
|
$
|
10,819
|
|
|
$
|
28,538
|
|
2009
|
98
|
|
|
184
|
|
|
69
|
|
|
—
|
|
|
1,193
|
|
|
1,544
|
|
||||||
2010
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
2011
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,661
|
|
|
3,661
|
|
||||||
2012
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
2013
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
2014
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
2015
|
(540
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(540
|
)
|
||||||
2016
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
2017
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
2018
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
2,887
|
|
|
$
|
9,368
|
|
|
$
|
3,877
|
|
|
$
|
1,403
|
|
|
$
|
15,673
|
|
|
$
|
33,208
|
|
•
|
issuers of AgVantage securities;
|
•
|
approved lenders and servicers; and
|
•
|
interest rate swap counterparties.
|
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||||||||||
Counterparty
|
|
Balance
|
|
Credit Rating
|
|
Required Collateralization
|
|
Balance
|
|
Credit Rating
|
|
Required Collateralization
|
||||
|
|
(dollars in thousands)
|
||||||||||||||
AgVantage:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
MetLife
|
|
$
|
2,550,000
|
|
|
AA-
|
|
103%
|
|
$
|
2,550,000
|
|
|
AA-
|
|
103%
|
CFC
(1)
|
|
3,086,187
|
|
|
A
|
|
100%
|
|
2,800,188
|
|
|
A
|
|
100%
|
||
Rabo AgriFinance
|
|
2,075,000
|
|
|
None
|
|
110%
|
|
2,075,000
|
|
|
None
|
|
106%
|
||
Other
(2)
|
|
374,303
|
|
|
(3)
|
|
106% to 125%
|
|
199,959
|
|
|
(3)
|
|
106% to 125%
|
||
Farm Equity AgVantage
(4)
|
|
279,790
|
|
|
None
|
|
110%
|
|
279,731
|
|
|
None
|
|
110%
|
||
Total outstanding
|
|
$
|
8,365,280
|
|
|
|
|
|
|
$
|
7,904,878
|
|
|
|
|
|
(1)
|
Includes $300.0 million related to a revolving floating rate AgVantage facility. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.
|
(2)
|
Consists of AgVantage securities issued by
6
different issuers as of both
September 30, 2018
and December 31, 2017.
|
(3)
|
Consists of AgVantage securities from
6
different issuers without a credit rating as of both
September 30, 2018
and December 31, 2017.
|
(4)
|
Consists of AgVantage securities from
5
different issuers as of both
September 30, 2018
and December 31, 2017.
|
•
|
purchasing assets in the ordinary course of business;
|
•
|
refinancing existing liabilities; or
|
•
|
using financial derivatives to alter the characteristics of existing assets or liabilities.
|
|
|
Percentage Change in MVE from Base Case
|
||||
Interest Rate Scenario
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||
+100 basis points
|
|
(1.6
|
)%
|
|
(1.1
|
)%
|
-100 basis points
|
|
(2.7
|
)%
|
|
(5.4
|
)%
|
|
|
Percentage Change in NES from Base Case
|
||||
Interest Rate Scenario
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||
+100 basis points
|
|
5.2
|
%
|
|
4.4
|
%
|
-100 basis points
|
|
(5.8
|
)%
|
|
(3.7
|
)%
|
•
|
"pay-fixed" interest rate swaps, in which Farmer Mac pays fixed rates of interest to, and receives floating rates of interest from, counterparties;
|
•
|
"receive-fixed" interest rate swaps, in which Farmer Mac receives fixed rates of interest from, and pays floating rates of interest to, counterparties; and
|
•
|
"basis swaps," in which Farmer Mac pays variable rates of interest based on one index to, and receives variable rates of interest based on another index from, counterparties.
|
•
|
issuing short-term discount notes with maturities that match the reset period of the assets;
|
•
|
issuing floating rate medium-term notes with maturities that match the maturities of the assets;
|
•
|
issuing non-maturity matched, floating rate medium-term notes; or
|
•
|
issuing non-maturity matched, fixed-rate discount notes or medium-term notes swapped to match the interest rate reset dates of the assets as an alternative source of effectively floating rate funding.
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
|
|||
|
(in thousands)
|
||||||
Cash and cash equivalents
|
$
|
436,152
|
|
|
$
|
302,022
|
|
Investment securities:
|
|
|
|
|
|
||
Guaranteed by U.S. Government and its agencies
|
1,299,903
|
|
|
1,331,490
|
|
||
Guaranteed by GSEs
|
935,633
|
|
|
893,843
|
|
||
|
|
|
|
||||
Asset-backed securities
|
33,498
|
|
|
35,104
|
|
||
Total
|
$
|
2,705,186
|
|
|
$
|
2,562,459
|
|
•
|
$0.3672 per share on its 5.875% Non-Cumulative Preferred Stock, Series A;
|
•
|
$0.4297 per share on its 6.875% Non-Cumulative Preferred Stock, Series B; and
|
•
|
$0.3750 per share on its 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C.
|
New Business Volume
|
|||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural Utilities
|
|
Institutional Credit
|
|
|
||||||||||||||||||
|
Loans
|
|
LTSPCs
|
|
USDA Securities
|
|
Loans
|
|
LTSPCs
|
|
AgVantage
|
|
Total
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
For the quarter ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
September 30, 2018
|
$
|
192,628
|
|
|
$
|
64,100
|
|
|
$
|
116,339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,085,953
|
|
|
$
|
1,459,020
|
|
June 30, 2018
|
224,101
|
|
|
126,066
|
|
|
129,960
|
|
|
—
|
|
|
—
|
|
|
825,203
|
|
|
1,305,330
|
|
|||||||
March 31, 2018
|
259,111
|
|
|
159,065
|
|
|
123,525
|
|
|
8,645
|
|
|
—
|
|
|
813,337
|
|
|
1,363,683
|
|
|||||||
December 31, 2017
|
204,917
|
|
|
282,809
|
|
|
100,024
|
|
|
15,000
|
|
|
—
|
|
|
234,753
|
|
|
837,503
|
|
|||||||
September 30, 2017
|
298,274
|
|
|
102,774
|
|
|
131,298
|
|
|
70,000
|
|
|
—
|
|
|
290,995
|
|
|
893,341
|
|
|||||||
June 30, 2017
|
312,217
|
|
|
55,899
|
|
|
169,261
|
|
|
25,000
|
|
|
—
|
|
|
1,296,757
|
|
|
1,859,134
|
|
|||||||
March 31, 2017
|
314,137
|
|
|
113,261
|
|
|
131,101
|
|
|
27,341
|
|
|
—
|
|
|
561,407
|
|
|
1,147,247
|
|
|||||||
December 31, 2016
|
243,692
|
|
|
117,265
|
|
|
129,343
|
|
|
10,800
|
|
|
20,000
|
|
|
247,154
|
|
|
768,254
|
|
|||||||
September 30, 2016
|
282,690
|
|
|
155,657
|
|
|
119,201
|
|
|
20,000
|
|
|
—
|
|
|
528,234
|
|
|
1,105,782
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the year ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2017
|
1,129,545
|
|
|
554,743
|
|
|
531,684
|
|
|
137,341
|
|
|
—
|
|
|
2,383,912
|
|
|
4,737,225
|
|
|||||||
December 31, 2016
|
966,023
|
|
|
399,095
|
|
|
481,257
|
|
|
50,491
|
|
|
441,404
|
|
|
2,098,852
|
|
|
4,437,122
|
|
Repayments of Assets by Line of Business
|
|||||||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural Utilities
|
|
Institutional Credit
|
|
|
||||||||||||||||||||||
|
Loans
|
|
Guaranteed Securities
|
|
LTSPCs
|
|
USDA Securities
|
|
Loans
|
|
LTSPCs
|
|
AgVantage
|
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
For the quarter ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
73,476
|
|
|
$
|
3,556
|
|
|
$
|
21,742
|
|
|
$
|
28,135
|
|
|
$
|
25,640
|
|
|
$
|
8,286
|
|
|
$
|
1,112,558
|
|
|
$
|
1,273,393
|
|
Unscheduled
|
77,492
|
|
|
6,683
|
|
|
47,159
|
|
|
35,068
|
|
|
3,476
|
|
|
—
|
|
|
—
|
|
|
169,878
|
|
||||||||
September 30, 2018
|
$
|
150,968
|
|
|
$
|
10,239
|
|
|
$
|
68,901
|
|
|
$
|
63,203
|
|
|
$
|
29,116
|
|
|
$
|
8,286
|
|
|
$
|
1,112,558
|
|
|
$
|
1,443,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
33,075
|
|
|
$
|
8,391
|
|
|
$
|
31,067
|
|
|
$
|
36,983
|
|
|
$
|
353
|
|
|
$
|
8,699
|
|
|
$
|
759,223
|
|
|
$
|
877,791
|
|
Unscheduled
|
86,426
|
|
|
8,273
|
|
|
69,539
|
|
|
66,601
|
|
|
51,306
|
|
|
—
|
|
|
—
|
|
|
282,145
|
|
||||||||
June 30, 2018
|
$
|
119,501
|
|
|
$
|
16,664
|
|
|
$
|
100,606
|
|
|
$
|
103,584
|
|
|
$
|
51,659
|
|
|
$
|
8,699
|
|
|
$
|
759,223
|
|
|
$
|
1,159,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
110,733
|
|
|
$
|
14,085
|
|
|
$
|
70,057
|
|
|
$
|
40,811
|
|
|
$
|
26,507
|
|
|
$
|
—
|
|
|
$
|
392,310
|
|
|
$
|
654,503
|
|
Unscheduled
|
73,502
|
|
|
4,929
|
|
|
81,204
|
|
|
43,189
|
|
|
14,952
|
|
|
120,022
|
|
|
—
|
|
|
337,798
|
|
||||||||
March 31, 2018
|
$
|
184,235
|
|
|
$
|
19,014
|
|
|
$
|
151,261
|
|
|
$
|
84,000
|
|
|
$
|
41,459
|
|
|
$
|
120,022
|
|
|
$
|
392,310
|
|
|
$
|
992,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
25,848
|
|
|
$
|
14,371
|
|
|
$
|
36,806
|
|
|
$
|
22,381
|
|
|
$
|
315
|
|
|
$
|
13,621
|
|
|
$
|
231,717
|
|
|
$
|
345,059
|
|
Unscheduled
|
49,229
|
|
|
6,941
|
|
|
43,975
|
|
|
24,385
|
|
|
4,876
|
|
|
—
|
|
|
—
|
|
|
129,406
|
|
||||||||
December 31, 2017
|
$
|
75,077
|
|
|
$
|
21,312
|
|
|
$
|
80,781
|
|
|
$
|
46,766
|
|
|
$
|
5,191
|
|
|
$
|
13,621
|
|
|
$
|
231,717
|
|
|
$
|
474,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
61,961
|
|
|
$
|
6,735
|
|
|
$
|
21,409
|
|
|
$
|
24,163
|
|
|
$
|
27,191
|
|
|
$
|
39,816
|
|
|
$
|
100,571
|
|
|
$
|
281,846
|
|
Unscheduled
|
49,894
|
|
|
5,861
|
|
|
124,676
|
|
|
45,192
|
|
|
457
|
|
|
—
|
|
|
—
|
|
|
226,080
|
|
||||||||
September 30, 2017
|
$
|
111,855
|
|
|
$
|
12,596
|
|
|
$
|
146,085
|
|
|
$
|
69,355
|
|
|
$
|
27,648
|
|
|
$
|
39,816
|
|
|
$
|
100,571
|
|
|
$
|
507,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
21,687
|
|
|
$
|
9,116
|
|
|
$
|
41,821
|
|
|
$
|
35,169
|
|
|
$
|
—
|
|
|
$
|
9,885
|
|
|
$
|
1,166,922
|
|
|
$
|
1,284,600
|
|
Unscheduled
|
51,442
|
|
|
10,737
|
|
|
47,262
|
|
|
46,776
|
|
|
—
|
|
|
—
|
|
|
4,000
|
|
|
160,217
|
|
||||||||
June 30, 2017
|
$
|
73,129
|
|
|
$
|
19,853
|
|
|
$
|
89,083
|
|
|
$
|
81,945
|
|
|
$
|
—
|
|
|
$
|
9,885
|
|
|
$
|
1,170,922
|
|
|
$
|
1,444,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
70,394
|
|
|
$
|
16,184
|
|
|
$
|
48,375
|
|
|
$
|
36,322
|
|
|
$
|
26,909
|
|
|
$
|
8,934
|
|
|
$
|
161,451
|
|
|
$
|
368,569
|
|
Unscheduled
|
114,811
|
|
|
11,985
|
|
|
64,486
|
|
|
39,457
|
|
|
814
|
|
|
—
|
|
|
102,059
|
|
|
333,612
|
|
||||||||
March 31, 2017
|
$
|
185,205
|
|
|
$
|
28,169
|
|
|
$
|
112,861
|
|
|
$
|
75,779
|
|
|
$
|
27,723
|
|
|
$
|
8,934
|
|
|
$
|
263,510
|
|
|
$
|
702,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
20,566
|
|
|
$
|
15,209
|
|
|
$
|
21,546
|
|
|
$
|
21,325
|
|
|
$
|
—
|
|
|
$
|
15,929
|
|
|
$
|
311,739
|
|
|
$
|
406,314
|
|
Unscheduled
|
47,156
|
|
|
10,767
|
|
|
111,137
|
|
|
34,477
|
|
|
4,427
|
|
|
—
|
|
|
2,240
|
|
|
210,204
|
|
||||||||
December 31, 2016
|
$
|
67,722
|
|
|
$
|
25,976
|
|
|
$
|
132,683
|
|
|
$
|
55,802
|
|
|
$
|
4,427
|
|
|
$
|
15,929
|
|
|
$
|
313,979
|
|
|
$
|
616,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
47,221
|
|
|
$
|
7,954
|
|
|
$
|
39,192
|
|
|
$
|
22,626
|
|
|
$
|
26,522
|
|
|
$
|
58,177
|
|
|
$
|
559,895
|
|
|
$
|
761,587
|
|
Unscheduled
|
85,583
|
|
|
17,108
|
|
|
67,094
|
|
|
36,099
|
|
|
2,108
|
|
|
—
|
|
|
5,000
|
|
|
212,992
|
|
||||||||
September 30, 2016
|
$
|
132,804
|
|
|
$
|
25,062
|
|
|
$
|
106,286
|
|
|
$
|
58,725
|
|
|
$
|
28,630
|
|
|
$
|
58,177
|
|
|
$
|
564,895
|
|
|
$
|
974,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
For the year ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
179,890
|
|
|
$
|
46,406
|
|
|
$
|
148,411
|
|
|
$
|
118,035
|
|
|
$
|
54,415
|
|
|
$
|
72,256
|
|
|
$
|
1,660,661
|
|
|
$
|
2,280,074
|
|
Unscheduled
|
265,376
|
|
|
35,524
|
|
|
280,399
|
|
|
155,810
|
|
|
6,147
|
|
|
—
|
|
|
106,059
|
|
|
849,315
|
|
||||||||
December 31, 2017
|
$
|
445,266
|
|
|
$
|
81,930
|
|
|
$
|
428,810
|
|
|
$
|
273,845
|
|
|
$
|
60,562
|
|
|
$
|
72,256
|
|
|
$
|
1,766,720
|
|
|
$
|
3,129,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Scheduled
|
$
|
121,111
|
|
|
$
|
50,905
|
|
|
$
|
137,967
|
|
|
$
|
121,354
|
|
|
$
|
52,570
|
|
|
$
|
85,670
|
|
|
$
|
1,528,180
|
|
|
$
|
2,097,757
|
|
Unscheduled
|
288,433
|
|
|
47,705
|
|
|
304,992
|
|
|
183,805
|
|
|
6,535
|
|
|
—
|
|
|
7,240
|
|
|
838,710
|
|
||||||||
December 31, 2016
|
$
|
409,544
|
|
|
$
|
98,610
|
|
|
$
|
442,959
|
|
|
$
|
305,159
|
|
|
$
|
59,105
|
|
|
$
|
85,670
|
|
|
$
|
1,535,420
|
|
|
$
|
2,936,467
|
|
Lines of Business - Outstanding Business Volume
|
|||||||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural Utilities
|
|
Institutional Credit
|
|
|
||||||||||||||||||||||
|
Loans
|
|
Guaranteed Securities
|
|
LTSPCs
|
|
USDA Securities
|
|
Loans
|
|
LTSPCs
|
|
AgVantage
|
|
Total
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
As of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
September 30, 2018
|
$
|
4,420,619
|
|
|
$
|
287,594
|
|
|
$
|
2,363,805
|
|
|
$
|
2,471,251
|
|
|
$
|
962,702
|
|
|
$
|
669,335
|
|
|
$
|
8,365,280
|
|
|
$
|
19,540,586
|
|
June 30, 2018
|
4,378,958
|
|
|
297,833
|
|
|
2,368,606
|
|
|
2,418,115
|
|
|
991,819
|
|
|
677,621
|
|
|
8,391,885
|
|
|
19,524,837
|
|
||||||||
March 31, 2018
|
4,274,359
|
|
|
314,497
|
|
|
2,343,146
|
|
|
2,391,739
|
|
|
1,043,477
|
|
|
686,320
|
|
|
8,325,905
|
|
|
19,379,443
|
|
||||||||
December 31, 2017
|
4,198,733
|
|
|
333,511
|
|
|
2,335,342
|
|
|
2,352,214
|
|
|
1,076,291
|
|
|
806,342
|
|
|
7,904,878
|
|
|
19,007,311
|
|
||||||||
September 30, 2017
|
4,068,893
|
|
|
354,823
|
|
|
2,133,314
|
|
|
2,298,956
|
|
|
1,066,482
|
|
|
819,963
|
|
|
7,901,842
|
|
|
18,644,273
|
|
||||||||
June 30, 2017
|
3,882,474
|
|
|
367,419
|
|
|
2,176,625
|
|
|
2,237,013
|
|
|
1,024,130
|
|
|
859,779
|
|
|
7,711,418
|
|
|
18,258,858
|
|
||||||||
March 31, 2017
|
3,643,386
|
|
|
387,272
|
|
|
2,209,809
|
|
|
2,149,697
|
|
|
999,130
|
|
|
869,664
|
|
|
7,585,583
|
|
|
17,844,541
|
|
||||||||
December 31, 2016
|
3,514,454
|
|
|
415,441
|
|
|
2,209,409
|
|
|
2,094,375
|
|
|
999,512
|
|
|
878,598
|
|
|
7,287,686
|
|
|
17,399,475
|
|
||||||||
September 30, 2016
|
3,338,484
|
|
|
441,417
|
|
|
2,224,827
|
|
|
2,020,834
|
|
|
993,139
|
|
|
874,527
|
|
|
7,354,511
|
|
|
17,247,739
|
|
On-Balance Sheet Outstanding Business Volume
|
|||||||||||||||
|
Fixed Rate
|
|
5- to 10-Year ARMs & Resets
|
|
1-Month to 3-Year ARMs
|
|
Total Held in Portfolio
|
||||||||
|
(in thousands)
|
||||||||||||||
As of:
|
|
|
|
|
|
|
|
||||||||
September 30, 2018
|
$
|
7,945,007
|
|
|
$
|
2,629,612
|
|
|
$
|
4,986,987
|
|
|
$
|
15,561,606
|
|
June 30, 2018
|
7,551,149
|
|
|
2,594,399
|
|
|
5,398,021
|
|
|
15,543,569
|
|
||||
March 31, 2018
|
7,507,581
|
|
|
2,498,985
|
|
|
5,432,923
|
|
|
15,439,489
|
|
||||
December 31, 2017
|
7,158,014
|
|
|
2,499,203
|
|
|
5,309,126
|
|
|
14,966,343
|
|
||||
September 30, 2017
|
6,921,477
|
|
|
2,447,923
|
|
|
5,426,757
|
|
|
14,796,157
|
|
||||
June 30, 2017
|
6,722,463
|
|
|
2,406,120
|
|
|
5,226,982
|
|
|
14,355,565
|
|
||||
March 31, 2017
|
5,373,283
|
|
|
2,330,819
|
|
|
5,255,146
|
|
|
12,959,248
|
|
||||
December 31, 2016
|
5,346,011
|
|
|
2,274,535
|
|
|
4,888,291
|
|
|
12,508,837
|
|
||||
September 30, 2016
|
5,278,332
|
|
|
2,212,946
|
|
|
4,869,765
|
|
|
12,361,043
|
|
|
Net Effective Spread by Line of Business
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Farm & Ranch
|
|
USDA Guarantees
|
|
Rural Utilities
|
|
Institutional Credit
|
|
Corporate
|
|
Net Effective Spread
(1)
|
||||||||||||||||||||||||||||||
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
|
Dollars
|
|
Yield
|
||||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
For the quarter ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
September 30, 2018
(2)
|
$
|
13,887
|
|
|
1.91
|
%
|
|
$
|
4,627
|
|
|
0.86
|
%
|
|
$
|
2,877
|
|
|
1.18
|
%
|
|
$
|
15,642
|
|
|
0.78
|
%
|
|
$
|
2,044
|
|
|
0.30
|
%
|
|
$
|
39,077
|
|
|
0.93
|
%
|
June 30, 2018
|
13,347
|
|
|
1.86
|
%
|
|
4,398
|
|
|
0.83
|
%
|
|
2,923
|
|
|
1.15
|
%
|
|
15,220
|
|
|
0.76
|
%
|
|
274
|
|
|
0.04
|
%
|
|
36,162
|
|
|
0.86
|
%
|
||||||
March 31, 2018
|
12,540
|
|
|
1.80
|
%
|
|
4,400
|
|
|
0.82
|
%
|
|
2,950
|
|
|
1.12
|
%
|
|
14,824
|
|
|
0.78
|
%
|
|
2,387
|
|
|
0.36
|
%
|
|
37,101
|
|
|
0.91
|
%
|
||||||
December 31, 2017
|
12,396
|
|
|
1.80
|
%
|
|
4,979
|
|
|
0.93
|
%
|
|
3,057
|
|
|
1.14
|
%
|
|
14,800
|
|
|
0.78
|
%
|
|
2,235
|
|
|
0.35
|
%
|
|
37,467
|
|
|
0.93
|
%
|
||||||
September 30, 2017
(2)
|
11,303
|
|
|
1.73
|
%
|
|
4,728
|
|
|
0.90
|
%
|
|
2,765
|
|
|
1.07
|
%
|
|
14,455
|
|
|
0.78
|
%
|
|
2,725
|
|
|
0.41
|
%
|
|
35,976
|
|
|
0.91
|
%
|
||||||
June 30, 2017
|
11,158
|
|
|
1.77
|
%
|
|
4,551
|
|
|
0.87
|
%
|
|
2,669
|
|
|
1.06
|
%
|
|
14,467
|
|
|
0.81
|
%
|
|
2,489
|
|
|
0.36
|
%
|
|
35,334
|
|
|
0.91
|
%
|
||||||
March 31, 2017
|
10,511
|
|
|
1.77
|
%
|
|
4,561
|
|
|
0.89
|
%
|
|
2,568
|
|
|
1.04
|
%
|
|
12,615
|
|
|
0.82
|
%
|
|
2,271
|
|
|
0.32
|
%
|
|
32,526
|
|
|
0.90
|
%
|
||||||
December 31, 2016
|
10,131
|
|
|
1.75
|
%
|
|
5,152
|
|
|
1.04
|
%
|
|
2,530
|
|
|
1.02
|
%
|
|
11,636
|
|
|
0.78
|
%
|
|
1,999
|
|
|
0.26
|
%
|
|
31,448
|
|
|
0.88
|
%
|
||||||
September 30, 2016
|
10,476
|
|
|
1.86
|
%
|
|
4,994
|
|
|
1.03
|
%
|
|
2,541
|
|
|
1.01
|
%
|
|
11,431
|
|
|
0.75
|
%
|
|
2,239
|
|
|
0.24
|
%
|
|
31,681
|
|
|
0.85
|
%
|
(1)
|
Net effective spread is a non-GAAP measure. Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread to also include the net effects of terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised net effective spread methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for more information about net effective spread.
|
(2)
|
See Note 9 to the consolidated financial statements for a reconciliation of GAAP net interest income by line of business to net effective spread by line of business for the three months ended September 30, 2018 and 2017.
|
Core Earnings by Quarter End
|
|||||||||||||||||||||||||||||||||||
|
September 2018
|
|
June 2018
|
|
March 2018
|
|
December 2017
|
|
September 2017
|
|
June 2017
|
|
March 2017
|
|
December 2016
|
|
September 2016
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net effective spread
|
$
|
39,077
|
|
|
$
|
36,162
|
|
|
$
|
37,101
|
|
|
$
|
37,467
|
|
|
$
|
35,976
|
|
|
$
|
35,334
|
|
|
$
|
32,526
|
|
|
$
|
31,448
|
|
|
$
|
31,681
|
|
Guarantee and commitment fees
|
5,170
|
|
|
5,171
|
|
|
5,083
|
|
|
5,157
|
|
|
4,935
|
|
|
4,942
|
|
|
5,316
|
|
|
5,158
|
|
|
4,533
|
|
|||||||||
Other
|
110
|
|
|
111
|
|
|
428
|
|
|
69
|
|
|
274
|
|
|
107
|
|
|
485
|
|
|
545
|
|
|
713
|
|
|||||||||
Total revenues
|
44,357
|
|
|
41,444
|
|
|
42,612
|
|
|
42,693
|
|
|
41,185
|
|
|
40,383
|
|
|
38,327
|
|
|
37,151
|
|
|
36,927
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Credit related expense/(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Release of)/provision for losses
|
(3
|
)
|
|
582
|
|
|
(410
|
)
|
|
464
|
|
|
384
|
|
|
466
|
|
|
444
|
|
|
512
|
|
|
(31
|
)
|
|||||||||
REO operating expenses
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Losses/(gains) on sale of REO
|
41
|
|
|
(34
|
)
|
|
—
|
|
|
(964
|
)
|
|
(32
|
)
|
|
(757
|
)
|
|
5
|
|
|
—
|
|
|
(15
|
)
|
|||||||||
Total credit related expense/(income)
|
38
|
|
|
548
|
|
|
(394
|
)
|
|
(500
|
)
|
|
352
|
|
|
(268
|
)
|
|
449
|
|
|
512
|
|
|
(46
|
)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Compensation and employee benefits
|
6,777
|
|
|
6,936
|
|
|
6,654
|
|
|
5,247
|
|
|
5,987
|
|
|
6,682
|
|
|
6,317
|
|
|
5,949
|
|
|
5,438
|
|
|||||||||
General and administrative
|
4,350
|
|
|
5,202
|
|
|
4,326
|
|
|
4,348
|
|
|
3,890
|
|
|
3,921
|
|
|
3,800
|
|
|
4,352
|
|
|
3,474
|
|
|||||||||
Regulatory fees
|
625
|
|
|
625
|
|
|
625
|
|
|
625
|
|
|
625
|
|
|
625
|
|
|
625
|
|
|
625
|
|
|
613
|
|
|||||||||
Total operating expenses
|
11,752
|
|
|
12,763
|
|
|
11,605
|
|
|
10,220
|
|
|
10,502
|
|
|
11,228
|
|
|
10,742
|
|
|
10,926
|
|
|
9,525
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net earnings
|
32,567
|
|
|
28,133
|
|
|
31,401
|
|
|
32,973
|
|
|
30,331
|
|
|
29,423
|
|
|
27,136
|
|
|
25,713
|
|
|
27,448
|
|
|||||||||
Income tax expense
|
6,891
|
|
|
5,477
|
|
|
6,259
|
|
|
11,796
|
|
|
10,268
|
|
|
10,307
|
|
|
8,844
|
|
|
9,189
|
|
|
9,577
|
|
|||||||||
Net (loss)/income attributable to non-controlling interest
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
(15
|
)
|
|
28
|
|
|
(18
|
)
|
|||||||||
Preferred stock dividends
|
3,295
|
|
|
3,296
|
|
|
3,295
|
|
|
3,296
|
|
|
3,295
|
|
|
3,296
|
|
|
3,295
|
|
|
3,296
|
|
|
3,295
|
|
|||||||||
Core earnings
|
$
|
22,381
|
|
|
$
|
19,360
|
|
|
$
|
21,847
|
|
|
$
|
17,881
|
|
|
$
|
16,768
|
|
|
$
|
15,970
|
|
|
$
|
15,012
|
|
|
$
|
13,200
|
|
|
$
|
14,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Gains/(losses) on undesignated financial derivatives due to fair value changes
|
3,625
|
|
|
6,709
|
|
|
(2,279
|
)
|
|
(261
|
)
|
|
995
|
|
|
801
|
|
|
8,683
|
|
|
17,906
|
|
|
734
|
|
|||||||||
Gains/(losses) on hedging activities due to fair value changes
|
1,051
|
|
|
1,687
|
|
|
2,564
|
|
|
(3
|
)
|
|
1,742
|
|
|
1,420
|
|
|
(3,878
|
)
|
|
(673
|
)
|
|
726
|
|
|||||||||
Unrealized (losses)/gains on trading assets
|
(3
|
)
|
|
11
|
|
|
16
|
|
|
60
|
|
|
—
|
|
|
(2
|
)
|
|
(82
|
)
|
|
(474
|
)
|
|
1,182
|
|
|||||||||
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value
|
(38
|
)
|
|
196
|
|
|
(686
|
)
|
|
(129
|
)
|
|
(954
|
)
|
|
(117
|
)
|
|
(127
|
)
|
|
(40
|
)
|
|
(157
|
)
|
|||||||||
Net effects of terminations or net settlements on financial derivatives and hedging activities
|
546
|
|
|
232
|
|
|
1,242
|
|
|
632
|
|
|
862
|
|
|
232
|
|
|
948
|
|
|
2,150
|
|
|
238
|
|
|||||||||
Re-measurement of net deferred tax asset due to enactment of new tax legislation
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,365
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Income tax effect related to reconciling items
|
(1,088
|
)
|
|
(1,855
|
)
|
|
(180
|
)
|
|
(105
|
)
|
|
(926
|
)
|
|
(816
|
)
|
|
(1,941
|
)
|
|
(6,604
|
)
|
|
(953
|
)
|
|||||||||
Net income attributable to common stockholders
|
$
|
26,474
|
|
|
$
|
26,340
|
|
|
$
|
22,524
|
|
|
$
|
16,710
|
|
|
$
|
18,487
|
|
|
$
|
17,488
|
|
|
$
|
18,615
|
|
|
$
|
25,465
|
|
|
$
|
16,364
|
|
(1)
|
As of May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
(b)
|
Not applicable.
|
(c)
|
None.
|
Item 4.
|
Mine Safety Disclosures
|
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
*
|
|
|
—
|
|
||
**#
|
|
|
—
|
|
||
*
†
|
|
|
|
|
||
**
|
|
|
—
|
|
||
**
|
|
|
—
|
|
||
**
|
|
|
—
|
|
*
|
Incorporated by reference to the indicated prior filing.
|
**
|
Filed with this report.
|
#
|
Portions of this exhibit have been omitted pursuant to a request for confidential treatment.
|
†
|
Management contract or compensatory plan.
|
/s/ Bradford T. Nordholm
|
|
November 8, 2018
|
|
By:
|
Bradford T. Nordholm
|
|
Date
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
/s/ R. Dale Lynch
|
|
November 8, 2018
|
|
By:
|
R. Dale Lynch
|
|
Date
|
|
Executive Vice President – Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
|
|
By
|
|
|
|
|
Name:
|
|
Title:
|
Date of Exchange
|
Amount of decrease in principal amount of this Bond
|
Amount of increase in principal amount of this Bond
|
Principal amount of this Bond following such decrease or increase
|
Signature of authorized officer or signatory of Issuer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2018;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Bradford T. Nordholm
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Bradford T. Nordholm
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Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2018;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ R. Dale Lynch
|
|
R. Dale Lynch
|
|
Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
/s/ Bradford T. Nordholm
|
|
|
Bradford T. Nordholm
|
|
|
Chief Executive Officer
|
|
|
|
|
|
/s/ R. Dale Lynch
|
|
|
R. Dale Lynch
|
|
|
Chief Financial Officer
|
|
|
|
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Date:
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November 8, 2018
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