XML 38 R24.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Accounting Policies - Accounting Policies (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2016
Accounting Policies [Abstract] |
Schedule of Variable Interest Entities [Table Text Block] | The following tables present, by line of business, details about the consolidation of VIEs: Table 2.5
| Consolidation of Variable Interest Entities
| As of December 31, 2016
| 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 | $ | 1,132,966 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,132,966 |
Debt securities of consolidated trusts held by third parties (1) | 1,142,704 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,142,704 |
Unconsolidated VIEs: |  |  |  |  |  |  |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |  |  |  |  |  |  |
Carrying value (2) | — |  |  | 36,042 |  |  | — |  |  | 30,347 |  |  | — |  |  | 66,389 |
Maximum exposure to loss (3) | — |  |  | 35,599 |  |  | — |  |  | 30,000 |  |  | — |  |  | 65,599 |
Investment securities: |  |  |  |  |  |  |  |  |  |  |
Carrying value (4) | — |  |  | — |  |  | — |  |  | — |  |  | 827,874 |  |  | 827,874 |
Maximum exposure to loss (3) (4) | — |  |  | — |  |  | — |  |  | — |  |  | 825,909 |  |  | 825,909 |
Off-Balance Sheet: |  |  |  |  |  |  |  |  |  |  |
Unconsolidated VIEs: |  |  |  |  |  |  |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |  |  |  |  |  |  |
Maximum exposure to loss (3) (5) | 415,441 |  |  | 103,976 |  |  | — |  |  | 970,000 |  |  | — |  |  | 1,489,417 |
(1) | Includes borrower remittances of $9.7 million. The borrower remittances had not been passed through to third party investors as of December 31, 2016.
(2) | Includes $0.4 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. Includes fair value adjustments related to the Institutional Credit line of business of $0.3 million.
(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, 2015
| 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 | $ | 708,111 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 708,111 |
Debt securities of consolidated trusts held by third parties (1) | 713,536 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 713,536 |
Unconsolidated VIEs: |  |  |  |  |  |  |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |  |  |  |  |  |  |
Carrying value (2) | — |  |  | 31,360 |  |  | — |  |  | 31,400 |  |  | — |  |  | 62,760 |
Maximum exposure to loss (3) | — |  |  | 31,553 |  |  | — |  |  | 30,000 |  |  | — |  |  | 61,553 |
Investment securities: |  |  |  |  |  |  |  |  |  |  |
Carrying value (4) | — |  |  | — |  |  | — |  |  | — |  |  | 917,292 |  |  | 917,292 |
Maximum exposure to loss (3) (4) | — |  |  | — |  |  | — |  |  | — |  |  | 918,121 |  |  | 918,121 |
Off-Balance Sheet: |  |  |  |  |  |  |  |  |  |  |
Unconsolidated VIEs: |  |  |  |  |  |  |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |  |  |  |  |  |  |
Maximum exposure to loss (3) (5) | 514,051 |  |  | 10,272 |  |  | — |  |  | 970,000 |  |  | — |  |  | 1,494,323 |
(1) | Includes borrower remittances of $5.4 million, which have not been passed through to third party investors as of December 31, 2015.
(2) | Includes $0.2 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. Includes fair value adjustments related to the Institutional Credit line of business of $1.4 million.
(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.
Schedule of Cash Flow, Supplemental Disclosures | The following table sets forth information regarding certain cash and non-cash transactions for the years ended December 31, 2016, 2015, and 2014: Table 2.1
| For the Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (in thousands)
Cash paid during the period for: |  |  |  |  |
Interest | $ | 110,609 |  |  | $ | 108,254 |  |  | $ | 171,644 |
Income taxes | 29,500 |  |  | 31,000 |  |  | 12,750 |
Non-cash activity: |  |  |  |  |
Loans acquired and securitized as Farmer Mac Guaranteed Securities | 609,347 |  |  | 336,913 |  |  | 175,754 |
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 | 511,393 |  |  | 336,913 |  |  | 199,906 |
Purchases of securities - traded, not yet settled | — |  |  | 20,000 |  |  | 70,178 |
Issuance costs on the retirement of Farmer Mac II LLC Preferred Stock | — |  |  | 8,147 |  |  | — |
Unsettled common stock repurchases | — |  |  | 197 |  |  | — |
Transfers of available-for-sale USDA Securities to held-to-maturity | 1,980,327 |  |  | — |  |  | — |
Transfers of available-for-sale Farmer Mac Guaranteed Securities to held-to-maturity | 32,824 |  |  | — |  |  | 1,632,786 |
On October 1, 2016, Farmer Mac transferred $2.0 billion of USDA Securities and $32.8 million of Farmer Mac Guaranteed USDA Securities from available-for-sale to held-to-maturity to reflect Farmer Mac’s positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized appreciation in the amount of $73.1 million for the USDA Securities and $0.7 million for the Farmer Mac Guaranteed USDA Securities. The accumulated unrealized appreciation was retained in accumulated other comprehensive income in the amount of $73.8 million. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized appreciation will be amortized as adjustments to the yield on the held-to-maturity USDA Securities over the remaining contractual term of the transferred securities. On January 1, 2014, Farmer Mac transferred $1.6 billion of Farmer Mac Guaranteed AgVantage Securities from available-for-sale to held-to-maturity because Farmer Mac determined it has the ability and intent to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value, which included a cost basis adjustment of unrealized appreciation in the amount of $22.3 million. The accumulated unrealized appreciation was retained in accumulated other comprehensive income. Farmer Mac accounts for held-to-maturity securities at amortized cost. The cost basis adjustment and accumulated unrealized appreciation are being amortized as adjustments to the yield on the held-to-maturity Farmer Mac Guaranteed AgVantage Securities over the remaining term of the transferred securities.
Earnings Per Common Share | The following schedule reconciles basic and diluted EPS for the years ended December 31, 2016, 2015, and 2014: Table 2.2
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
| Net Income |  | Weighted-Average Shares |  | $ per Share |  | 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 | $ | 64,152 |  |  | 10,477 |  |  | $ | 6.12 |  |  | $ | 47,371 |  |  | 10,949 |  |  | $ | 4.33 |  |  | $ | 38,251 |  |  | 10,920 |  |  | $ | 3.50 |
Effect of dilutive securities(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stock options, SARs and restricted stock | — |  |  | 269 |  |  | (0.15 | ) |  | — |  |  | 360 |  |  | (0.14 | ) |  | — |  |  | 447 |  |  | (0.13 | )
Diluted EPS | $ | 64,152 |  |  | 10,746 |  |  | $ | 5.97 |  |  | $ | 47,371 |  |  | 11,309 |  |  | $ | 4.19 |  |  | $ | 38,251 |  |  | 11,367 |  |  | $ | 3.37 |
(1) | For the years ended December 31, 2016, 2015, and 2014, stock options and SARs of 86,907, 304,132, and 109,143, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the years ended December 31, 2016, 2015, and 2014, contingent shares of non-vested restricted stock of 37,284, 46,303, and 36,784 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the years ended December 31, 2016, 2015, and 2014 Table 2.3
| Available-for-Sale Securities |  | Held-to-Maturity Securities |  | Cash Flow Hedges |  | Total
| (in thousands)
Balance as of January 1, 2014 | $ | (16,272 | ) |  | $ | — |  |  | $ | 70 |  |  | $ | (16,202 | )
Other comprehensive income/(loss) before reclassifications | 38,927 |  |  | 14,502 |  |  | (364 | ) |  | 53,065 |
Amounts reclassified from AOCI | (12,939 | ) |  | (8,529 | ) |  | 138 |  |  | (21,330 | )
Net comprehensive income/(loss) | 25,988 |  |  | 5,973 |  |  | (226 | ) |  | 31,735 |
Balance as of December 31, 2014 | $ | 9,716 |  |  | $ | 5,973 |  |  | $ | (156 | ) |  | $ | 15,533 |
Other comprehensive loss before reclassifications | (6,026 | ) |  | — |  |  | (1,155 | ) |  | (7,181 | )
Amounts reclassified from AOCI | (13,725 | ) |  | (6,449 | ) |  | 803 |  |  | (19,371 | )
Net comprehensive loss | (19,751 | ) |  | (6,449 | ) |  | (352 | ) |  | (26,552 | )
Balance as of December 31, 2015 | $ | (10,035 | ) |  | $ | (476 | ) |  | $ | (508 | ) |  | $ | (11,019 | )
Other comprehensive income before reclassifications | 5,481 |  |  | 47,993 |  |  | 1,588 |  |  | 55,062 |
Amounts reclassified from AOCI | (9,833 | ) |  | (1,765 | ) |  | 1,313 |  |  | (10,285 | )
Net comprehensive (loss)/income | (4,352 | ) |  | 46,228 |  |  | 2,901 |  |  | 44,777 |
Balance as of December 31, 2016 | $ | (14,387 | ) |  | $ | 45,752 |  |  | $ | 2,393 |  |  | $ | 33,758 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the years ended December 31, 2016, 2015, and 2014: Table 2.4
| For the Years Ended December 31,
| 2016 |  | 2015 |  | 2014
| Before Tax |  | Provision (Benefit) |  | After Tax |  | Before Tax |  | Provision (Benefit) |  | After Tax |  | Before Tax |  | Provision (Benefit) |  | After Tax
| (in thousands)
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale-securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains/(losses) on available-for-sale-securities | $ | 8,433 |  |  | $ | 2,952 |  |  | $ | 5,481 |  |  | $ | (9,270 | ) |  | $ | (3,244 | ) |  | $ | (6,026 | ) |  | $ | 59,887 |  |  | $ | 20,960 |  |  | $ | 38,927 |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Losses on financial derivatives and hedging activities(1) | (15,375 | ) |  | (5,381 | ) |  | (9,994 | ) |  | (20,125 | ) |  | (7,044 | ) |  | (13,081 | ) |  | (19,213 | ) |  | (6,725 | ) |  | (12,488 | )
Gains/(losses) on sale of available-for-sale investment securities(2) | 9 |  |  | 3 |  |  | 6 |  |  | (10 | ) |  | (4 | ) |  | (6 | ) |  | 239 |  |  | 84 |  |  | 155 |
Other income(3) | 239 |  |  | 84 |  |  | 155 |  |  | (982 | ) |  | (344 | ) |  | (638 | ) |  | (933 | ) |  | (327 | ) |  | (606 | )
Total | $ | (6,694 | ) |  | $ | (2,342 | ) |  | $ | (4,352 | ) |  | $ | (30,387 | ) |  | $ | (10,636 | ) |  | $ | (19,751 | ) |  | $ | 39,980 |  |  | $ | 13,992 |  |  | $ | 25,988 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in fair value(4) | $ | 73,835 |  |  | $ | 25,842 |  |  | $ | 47,993 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 22,311 |  |  | $ | 7,809 |  |  | $ | 14,502 |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(5) | (2,715 | ) |  | (950 | ) |  | (1,765 | ) |  | (9,922 | ) |  | (3,473 | ) |  | (6,449 | ) |  | (13,121 | ) |  | (4,592 | ) |  | (8,529 | )
Total | $ | 71,120 |  |  | $ | 24,892 |  |  | $ | 46,228 |  |  | $ | (9,922 | ) |  | $ | (3,473 | ) |  | $ | (6,449 | ) |  | $ | 9,190 |  |  | $ | 3,217 |  |  | $ | 5,973 |
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains/(losses) on cash flow hedges | $ | 2,443 |  |  | $ | 855 |  |  | $ | 1,588 |  |  | $ | (1,776 | ) |  | $ | (621 | ) |  | $ | (1,155 | ) |  | $ | (559 | ) |  | $ | (195 | ) |  | $ | (364 | )
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(6) | 2,020 |  |  | 707 |  |  | 1,313 |  |  | 1,235 |  |  | 432 |  |  | 803 |  |  | 212 |  |  | 74 |  |  | 138 |
Total | $ | 4,463 |  |  | $ | 1,562 |  |  | $ | 2,901 |  |  | $ | (541 | ) |  | $ | (189 | ) |  | $ | (352 | ) |  | $ | (347 | ) |  | $ | (121 | ) |  | $ | (226 | )
Other comprehensive income/(loss) | $ | 68,889 |  |  | $ | 24,112 |  |  | $ | 44,777 |  |  | $ | (40,850 | ) |  | $ | (14,298 | ) |  | $ | (26,552 | ) |  | $ | 48,823 |  |  | $ | 17,088 |  |  | $ | 31,735 |
(1) | Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.
(2) | Represents unrealized gains and losses on sales of available-for-sale investment securities.
(3) | Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.
(4) | Represents the accumulated unrealized gain on the USDA Securities and the Farmer Mac Guaranteed Securities transferred from available-for-sale to held-to-maturity.
(5) | 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.
(6) | Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss). + References No definition available. + Details
Name: | us-gaap_ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of accumulated other comprehensive income (loss). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14A -URI http://asc.fasb.org/extlink&oid=66004124&loc=SL7669686-108580 + Details
Name: | us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of supplemental cash flow information for the periods presented. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=64801991&loc=d3e5747-111685 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=64801991&loc=SL6228884-111685 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64801991&loc=d3e5728-111685 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Variable Interest Entity -URI http://asc.fasb.org/extlink&oid=6528138 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=64801991&loc=SL6759159-111685 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64801991&loc=d3e5710-111685 + Details
Name: | us-gaap_ScheduleOfVariableInterestEntitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration